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Why In-Car Advertising Works
For over two decades, advertising has fueled the online and mobile world. What can it do for your car?

The Fourth Screen

Advertising has made a huge impact on the way we consume our media, products and services. It began with the first screen, television. Thanks to advertising, we can enjoy our favorite programs, sports and news at no cost to us. Then came the desktop, the second screen. Advertising gives us the option to view content for free as opposed to paying for a subscription. Eventually, advertising entered the third screen, our mobile devices—which, thanks to ads, provide us with free news, free weather, and the occasional free dancing-baby or cat video.

Advertising can have the same impact on the fourth screen—inside our cars.

Advertising is worth it to the consumer.

Since the early days of the Web, advertising has been part of the digital age. That’s because it’s a proven business model. Consumers are comfortable with viewing ads if they feel they’re reaping the benefits. For instance, take free entertainment. The 2018 Pandora® Annual Report noted that 90% of their users are ad-supported, however, those same users make up a vast majority of Pandora’s revenues.* 

This success can also hold true for automakers.

It's a fair exchange.

Take your mobile phone as an example. You get ads on your device, but you also get access to plenty of free services and content. It’s only fair. So, what would be the right tradeoff for ads in your car?

In-car ads are a win-win for drivers and automakers.

In-car advertising gives Auto OEMs the opportunity to offer free value-added services to drivers. At no costs, drivers have continual access to multiple services such as GPS navigation, or remote access. On a cold day, remote access can start the car and click the heat on—or the air conditioner on hot days. The best part, from the consumer’s perspective, is that by viewing an occasional ad, they get free features such as these.

As a matter of fact, a recent McKinsey Report indicates that most consumers would prefer ads for connected navigation service. The research showed that 67% of those surveyed prefer free in-car services through targeted ads while only 33% opted to pay for a subscription for the same connected car service. ** 

‍‍Recent McKinsey Report indicates that most consumers would prefer ads for connected navigation service

 For automakers, having in-car ads can increase the intrinsic value of the vehicle with these additional services:

 Consumers view this trade-off as fair.

In-Car Advertising is designed with safety in mind.

Naysayers suggest that in-car advertising poses a risk to the driver and others. They believe it will create another distracted driver on the roads—equal to those texting while driving. At Telenav, we’re committed to making people's lives less stressful, more productive, and more fun while on the go. That’s why we created our In-Car Advertising platform with safety as a top priority.

Drivers will never see an ad while their vehicles are in motion. Ads automatically disappear whenever the car is moving or when users interact with other in-dash functions. For example, when a driver starts her vehicle, a relevant ad will appear on her dashboard. The moment the driver shifts into reverse to back out the driveway, the ad automatically disappears. 

In-Car Advertising offers convenience as well.

In-car ads can also be rather helpful while on the drive.  For example, when your vehicle is low on gas or if your electric vehicle needs a recharge, the platform points out nearby stations (potentially with discount offers) along the driver's route. Here’s another example: Let’s say you need to do some grocery shopping after work. After you arrive at Safeway and park, you’ll be able to see the latest deals that Safeway store is offering right on your console.

Now that I have explained how in-car advertising can improve your connected car experience, I encourage you to learn more about this technology and Telenav by visiting the Products and In The News sections of our website. Also, you can watch this video.

 

*2018 Pandora® Annual Report
**Monetizing Car Data, McKinsey & Company September 2016

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