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Infotainment Systems Are the Future of Automotive Sales, Report Finds

Catering to consumer preferences pays off, according to Gracenote

A new automotive report by Gracenote, the content data business arm of Nielsen, says the best way to capture consumer interests is to capitalize on infotainment system preferences.

“By optimizing the native in-car infotainment experiences people want, auto brands can gain the power to influence decision-making and drive more revenue,” according to a Nielsen press release.

The Gracenote report is based on input from 4,000-plus consumers across the U.S., Germany, Japan and South Korea. According to the report, 94% of surveyed consumers would consider switching from using their smartphones for in-car entertainment to the in-dash system if the offerings were improved.

“This level of interest points to opportunities for manufacturers to attract customers, leading to increased monetization through channels including in-car advertising, referrals and analytics data,” said Nielsen. “Notably, 60 percent [of customers] say that infotainment systems play a critical role in their decisions on which cars they want to buy or lease.”

According to the report, 82% of drivers would also be interested in curated entertainment packages.

Having the ability to discover content more easily would also be a boon to automakers, Nielsen says, as only 45% of surveyed consumers say they know exactly what they want to listen to when they start a drive.

Other key findings of the report include:

  • 67% of vehicle owners want their in-car infotainment system to organize available content regardless of source (e.g. AM/FM radio, podcasts, streaming audio);
  • 63% want infotainment systems to provide personalized content recommendations based on listening behavior;
  • 51% want access to summaries and alerts for news, live sports scores and stats; and
  • 28% want access to more news and talk content in their vehicles

“Consumers want to easily navigate the wealth of available audio, video and sports content from various sources in their cars — and automakers are responding,” said Trent Wheeler, head of product innovation at Gracenote, in the press release. “By delivering personalized entertainment experiences through their native infotainment systems, car brands can build new relationships with their customers and ultimately, jumpstart recurring revenue streams.”

To download the free report, click here.

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