Connected and Self-Driving Vehicles Spark Industry Convergence

© 2018 Acxiom Corporation. All rights reserved. Acxiom is a registered trademark of Acxiom Corporation.
A CONSUMER RESEARCH STUDY FOR IN-VEHICLE SERVICES
Connected and Self-Driving
Vehicles Spark Industry
Convergence

2 | Connected and Self-Driving Cars Spark Industry Convergence © 2018 Acxiom Corporation.
EXECUTIVE SUMMARY
»» We live in a connected world where industries and organizations are partnering to serve the consumer.
»» Organizations are responding to major trends including the Internet of Things, urban mobility and the automotive
revolution that will lead to:
• More than 190 million connected vehicles by 2021.1
Connected vehicles keep consumers safe, share insights to make us better
drivers, provide passenger entertainment options, and connect with other smart systems.
• Massive growth in big data. Auto manufacturers (OEMs) should prepare to deal with massive amounts of data generated by
connected vehicles. From 2013 to 2018, annual mobile data usage generated by connected vehicles was forecast to grow 188%.2
To thrive, OEMs must manage and treat data as an asset for business innovation.
• Ready or not, self-driving vehicles are coming. Widespread connectivity is a prerequisite for the development of self-driving
vehicles. The automotive and technology industries are gradually moving forward with the development of self-driving vehicles by
2020 or sooner.
»» As part of a J.D. Power and Acxiom research study, consumers shared the following opinions about self-driving
and connected cars:
• In-vehicle services. More than one-third indicated they would probably pay for connected, in-vehicle services, while nearly 50%
thought the services should be included in the price of the vehicle.
• Ridesharing. 58% of respondents said ridesharing/car sharing services will have no effect on future vehicle purchases. However,
these services will lead to additional volume not present today with fleet and commercial vehicles.
• Data sharing. More than half of consumers are willing to share information about their driving habits in exchange for services.
Specifically, consumers are willing to share data in exchange for insurance and vehicle subscription discounts.
• Self-driving vehicles. More than two-thirds of respondents indicated they don’t yet trust a self-driving vehicle.
• Service bundling. Nearly 60% of consumers are interested in leases where the price includes the vehicle, insurance, connectivity
services, and fuel.
»» It is important for industries — automotive, insurance, and financial services — and the dealers or agents for
these industries to understand the smart services for loyal and engaged drivers. But the real key to success will
be building consumer trust, repositioning the consumer at the center, and preparing for data harvesting from
consumers and vehicles.

KEY TRENDS
The Internet of Things (IoT)
What’s the smartest piece of technology you own? Your watch? Your laptop? No, it’s
your vehicle.3
“Today’s vehicle has the computing power of 20 personal computers,
features about 100 million lines of programming code, and processes up to 25
gigabytes of data an hour.” 4
In addition, we live in a connected world — the Internet
of Things (IoT) — in which automotive and adjacent industries such as insurance and
financial along with dealers and agents are partnering to serve the consumer more
than ever before.
The Evolution of Urban Mobility
We cannot underestimate the impact of global urbanization on the automotive industry.
According to the United Nations, “By 2030, urban areas are projected to house 60
percent of people globally, and one in every three people will live in cities with at least
half a million inhabitants.” 5
How will this impact traditional auto manufacturers and
their partners? McKinsey Global Institute predicts: “The traditional business model of
car sales will be complemented by a range of diverse, on-demand mobility solutions,
especially in dense urban environments that proactively discourage private-car use.” 6
The 2030 Automotive Revolution is Fast Approaching
This technology and services revolution includes: connected vehicles, self-driving
vehicles, ridesharing (car sharing), e-hailing, subscription services (instead of buying/
owning), all-in-one leases and more.7
Furthermore, self-driving and connected vehicles
are disrupting traditional industry models, creating new and innovative partnership
opportunities between automotive manufacturers (OEMs), auto insurance providers,
and financial institutions.
© 2018 Acxiom Corporation.
- McKinsey Global Institute 8
This is the connected car — a
vehicle able to optimize its own
operation and maintenance as
well as the convenience and
comfort of passengers using
onboard sensors and Internet
connectivity.
“
“
A TECHNOLOGY EVOLUTION
FROM VEHICLE-CENTRIC TO
CONSUMER-CENTRIC:

KEY TRENDS (continued)
Auto Insurance Will Look Very Different by 2025
Self-driving vehicle technology could shrink the auto insurance sector by 71 percent — or $137 billion — by 2050.9
As such, the core business model for
traditional auto insurance carriers may be under threat of obsolescence, and manufacturers have the potential to become a viable alternative to cover
driving risk; or, insurance providers may partner with OEMs. For example, we may see policies/packages in which the OEM covers the technology when
the consumer allows the vehicle to self-drive; and a different package (provided by the insurance carrier) when the human driver takes over. If this situation
occurs, it will have a significant impact on insurance carrier revenue. It may also become a claims nightmare, as insurance carriers sort through who would
cover the claim depending on the driver’s exact situation.
Auto Shopping and Servicing Are Changing
New companies such as Carvana have emerged to offer consumers a shopping experience where they buy a vehicle completely online (avoiding trips
to dealerships) or have it delivered to their homes. In addition, companies are offering monthly ownership plans or subscription opportunities that include
“all-in-one” services such as a limited warranty, routine maintenance, and roadside assistance. These innovations will continue movement of business and
purchase models and shift the processes for how dealers, OEMs, and fleet management companies will work and partner with automotive, insurance, and
financial services providers.
IS YOUR ORGANIZATION READY?
Given these industry predictions and trends, how should your organization respond? What are consumers’ perspectives on connected and self-driving
vehicles? Is your organization prepared for “the vehicle of the future”? Remember: understanding customers is key because when you understand your
customers, you can earn their trust, their loyalty, and their purchasing power.
© 2018 Acxiom Corporation.4 | Connected and Self-Driving Cars Spark Industry Convergence

CONSUMER RESEARCH STUDY
In partnership with J.D. Power, Acxiom surveyed 2,582 consumers across all generations to understand what they want from connected vehicles and in-vehicle
services. This large-scale, online quantitative study included respondents ages 16 and older residing in the U.S. Sixty-four percent were female, with an average
age of 48. Consumers evaluated four key topics: connected vehicle services, data sharing, self-driving vehicles and ridesharing/car sharing. Here are some of the
key consumer insights the survey uncovered.
More than 1/3
of respondents
indicate that
they would pay
for in-vehicle
services.
There is more
interest in
the younger
generations to
pay for services
than there is in the
older generations.
More than 50% of
Boomers and Pre-
Boomers indicate
they would not
pay for services,
while less than
1/3of those
in the younger
generations say
the same.
However, with younger
generations purchasing fewer,
if any, vehicles, it becomes a
challenge to recoup initial or
ongoing costs.
of consumers want the
services included in the
price of their vehicle
Nearly
Approx.
A little
less than
1/2
1/4
1/3
of consumers want to
pay for services via a
subscription method
of consumers would prefer
a pay-per-use method to
in-vehicle services
CONNECTED VEHICLES
Q: How likely would you be to pay for in-vehicle
services? (diagnostic checks, vehicle de-activation,
recommendations for dining and entertainment)
Insight: More than one-third indicated they would probably pay for
in-vehicle services. Although expressing more interest, the younger
generation is buying fewer vehicles.
Conclusion: Opportunity exists to monetize in-vehicle services.
Q: How would you prefer to pay for the in-
vehicle services, and how much they would
you be willing to pay?
Insight: Nearly 50% thought the services should be included
in the price of the vehicle. Approximately one-third preferred a
pay-per-use model and were willing to pay $49 per use.
Conclusion: In the “Age of Choice,” consumers prefer access
to multiple payment models.

CONNECTED VEHICLES
Q: Would you prefer to access these services via the
vehicle’s infotainment system or your cell phone?
Insight: 20% want services locked in their vehicle under one account. More
than 30% would rather access services on their cell phones — the center of their
lives. Nearly 50% want flexibility such as one account that they can access via
different methods.
Conclusion: Consumers expect seamless integration and access to services
across all connected devices.
Both the vehicle's
infotainment system
and my cell phone
My cell phone
The vehicle's
infotainment
system
20%
47%
32%
Preference for Accessing Services
The automotive revenue
pool will significantly
increase and diversify
toward on-demand
mobility services and
data-driven services. This
could create up to $1.5
trillion — or 30 percent
more — in additional
revenue potential in 2030,
compared with about $5.2
trillion from traditional car
sales and aftermarket
products/services, up by
50 percent from about
$3.5 trillion in 2015.
“
“

CONSUMERS’ FIRST VEHICLE EXPERIENCE IS CHANGING
Q: Describe your usage of ridesharing and car
sharing services
Insight: Younger generations are more likely to use services, especially in
urban environments, and are also putting off car purchases, licenses, etc.
Conclusion: Ridesharing and car sharing are easy for people to adopt.
10%
14%
23%
41%
38%
1% 3%
8%
17%
13%
13%
25%
39%
5%
7%
16%
USE RIDESHARING USE CAR SHARING
Gen Z
(1995-
2004)
Gen Y
(1977-
1994)
Gen X
(1965-
1976)
Baby
Boomer
(1946-
1964)
Pre-
Boomer
(1945 and
earlier)
UrbanSuburbanRural
Ridesharing and car sharing usage
Younger generations, and individuals
in urban environments are more likely
to participate in ridesharing and car
sharing services
Especially in urban and suburban
environments, using these services
is much more economical and
commonplace due to the density of the
areas and hassles of car ownership.
Younger generations are
eschewing purchasing a car, or
even getting a license, for longer
and longer periods
Q: Will the impact of ridesharing/car sharing
affect your vehicle purchases in the future?
Insight: 58% of all respondents say that there is no effect.
However, 43% of GenZ may not need to own a car.
Conclusion: Younger consumers are willing to forgo
owning a vehicle which may decrease revenues for
automotive and insurance companies.
PROBABLY WOULD NOT DEFINITELY WOULD NOT
DEFINITELY WOULD PROBABLY WOULD
4%
8%
33%
54%
3%
12%
29%
56%
7%
18%
28%
47%
9%
27%
28%
35%
7%
42%
30%
21%
Gen Z
(1995-
2004)
Gen Y
(1977-
1994)
Gen X
(1965-
1976)
Baby
Boomer
(1946-
1964)
Pre-
Boomer
(1945 and
earlier)
Ridsharing/Car Sharing Affect
Future Vehicle Purchases

Q: Would you be willing to give up ownership and switch
to ride/car sharing if it reduced your monthly costs?
Insight: Due to high costs, younger generations are more willing to give up
owning a vehicle, using ridesharing and/or car sharing instead.
Conclusion: Understanding the consumer’s life stage is key to offering the
right services. For a specific life stage, the consumer may seek to continue
using ride/car sharing services or decide to purchase a vehicle (e.g., family
formation requires SUV or minivan purchased with subscription service).
NO EFFECT DON’T KNOW
MY HOUSEHOLD MAY NOT NEED AS MANY VEHICLES
I MAY STOP OWNING MY OWN VEHICLE
7%
6%
56%
31%
4%
8%
67%
21%
8%
13%
59%
20%
10%
20%
50%
20%
14%
29%
32%
25%
Gen Z
(1995-
2004)
Gen Y
(1977-
1994)
Gen X
(1965-
1976)
Baby
Boomer
(1946-
1964)
Pre-
Boomer
(1945 and
earlier)
Willingness to Give Up Owning
a Vehicle to Reduce Costs

CONSUMERS WILL SHARE INFORMATION IN EXCHANGE FOR BENEFITS
Q: How willing are you to share information about your driving habits with others in
order to receive services? (Diagnostic checks, dining recommendations, etc.)
Insight: More than half of consumers are willing to share information about their driving habits in exchange for
services. Younger generations are even more willing to share. Across all generations, security concerns must be
overcome in order to increase penetration.
Conclusion: Opportunity exists for new services to be offered in exchange for information. Consequently, we
may start to see more partnerships between OEM’s and insurers.
PROBABLY WOULD NOT DEFINITELY WOULD NOT
DEFINITELY WOULD PROBABLY WOULD
8%
33%
29%
30%
11%
33%
28%
28%
20%
43%
21%
17%
25%
44%
21%
10%
26%
57%
11%
5%
Gen Z
(1995-
2004)
Gen Y
(1977-
1994)
Gen X
(1965-
1976)
Baby
Boomer
(1946-
1964)
Pre-
Boomer
(1945 and
earlier)
Willingness to Share Driving Information Desired Benefits in Exchange for Sharing Information

CONSUMERS WILL SHARE INFORMATION IN EXCHANGE FOR BENEFITS
Q: How concerned are you with security issues posed by the increasing
integration of technology into vehicles?
Insight: Concern spans all generations with more than one-third saying they are “very
concerned.” Reinforcement of data and security practices is critical.
Conclusion: Data security will be more important than ever. Systems used by dealers, agents
and OEMs will store more information and require security at the business level.
Not at all
concerned
Somewhat
concerned
Very
concerned
36%
14%
51%
Data Security Concerns

CONSUMERS OPEN TO NEW OWNERSHIP OPPORTUNITIES
Q: What If you were to lease your next vehicle, how
interested would you be in an “all-in-one” lease?
Insight: All-in-one lease includes vehicle, insurance, connectivity services
and fuel. Nearly 60% of consumers are interested in an all-in-one lease.
Conclusion: Opportunity exists for leases that package multiple services,
including insurance.
Deﬁnitely
would not
Probably
would not
Probably
would
Deﬁnitely
would
20%
21%
20%
39%
28%
45%
65%
74%
78%
Gen Z
(1995-
2004)
Gen Y
(1977-
1994)
Gen X
(1965-
1976)
Baby
Boomer
(1946-
1964)
Pre-
Boomer
(1945 and
earlier)
Would be Interested in an All-In-One Lease
Q: How much of a discount on your
“all-in-one” lease would be acceptable for
you to share information with the vehicle
manufacturer and insurance company?
Insight: More than 50% of consumers are willing to
share their data for a 6% to 20% discount on their lease.
Conclusion: Consumers are willing to share relevant
data in exchange for a discount.
Nearly two-thirds (63%) of consumers
would be willing to share data for a
discount of 20% or less on their lease.
For the 9% of consumers stating "don't
know", demonstrating value in the data
could help determine what discount they
are willing to accept
22% of consumers would be willing to
accept a discount of 10% or less
Expected discount on an All-In-One
Lease for Data Sharing

SELF-DRIVING VEHICLES
An autonomous vehicle (also known as a driverless, self-driving or robotic vehicle) can sense its environment and navigate without human
input.12
For example, Ford and Domino’s have recently teamed up to test a self-driving pizza delivery service;13
and Audi announced it would
have an autonomous vehicle on the road by 2020.14
In our survey, we asked consumers about their understanding of self-driving vehicles in
their current state, since these technologies are still in development.
© 2018 Acxiom Corporation.12 | Connected and Self-Driving Cars Spark Industry Convergence
Q: How much would you trust the ability of an autonomous
(self-driving) vehicle to operate without a human driver’s input?
Insight: More than two-thirds of respondents indicated they probably or definitely
would not trust a self-driving vehicle.
Conclusion: The technology is not proven in the mind of consumers.
8%
23%
36%
32%
Definitely
would
Probably
would
Probably
would not
Definitely
would not
68%
Trust of Autonomous Vehicle
Q: For those who trust, please explain why you say you would
trust a vehicle to operate without a human driver’s input.
Insight: Responses include:
• “Safer than human drivers on the road”
• “They have matured to point of assured safety”
• “Fewer fatalities and lower insurance rates”
Conclusion: Early adopters see the opportunity for technology to improve safety.
Q: How would you spend the majority of your time riding in
an autonomous (self-driving) vehicle?
Insight: Half of respondents said they would spend their time watching the road.
This is a big trust issue that must be overcome.
Conclusion: Consumers don’t see what is possible yet with self-driving cars.
50%Watching the road
Reading, watching videos, surfing
the internet, playing games
Talking or text messaging with
family and friends
Sleeping
Working
Managing home life (e.g., paying
bills, scheduling appointments, ordering
Other
16%
12%
7%
7%
6%
3%
How Would You Spend Your Time

RECOMMENDATIONS
Given the previous insights from consumers, we recommend the following:
DEVELOP FLEXIBLE SERVICE OFFERINGS ALIGNED TO THE CONSUMER’S LIFE STAGE
Each generation we surveyed provided different responses about their requirements for in-vehicle
services. Your service offerings need to be flexible in terms of packaging and payment options.
OFFER AND COMMUNICATE THE BENEFITS OF DATA SHARING
Because data is a key driver for innovation, you need to establish methods for collecting
consumer data. In addition, to ensure consumers will opt in, you need to communicate the
benefits of data sharing in simple terms.
DEVELOP PARTNERSHIPS TO OFFER BUNDLED VEHICLE SERVICES
Some consumers prefer an “all-in-one” lease that bundles services including insurance,
connectivity and fuel. As a result, OEMs, insurance companies, and related service providers
should establish partnerships that deliver the consumer value and savings.
PROTECT CONSUMER DATA WITH ROBUST DATA SECURITY
Consumers expect their data to be protected and secure. Consequently, you need to provide
robust data security processes and technology to ensure that PII (personally identifiable
information) is only available to trusted parties. Choose partners that have an impeccable track
record of securing their clients’ data.
PLAN AND IMPLEMENT PROCESSES FOR ETHICAL DATA USE
Your organization must establish and maintain trust with consumers. As you collect data, you
must also implement processes for data governance to ensure information is used ethically.
SEEK HELP FROM TRUSTED PARTNERS WITH EXPERIENCE IN DATA-DRIVEN MARKETING
Choose partners with experience in designing complex, data-driven marketing solutions across
top OEMs and related industries.
Data is the fundamental
enabler of a multitude of
use cases that generate
significant economic value
for their holders. It also
requires a significant set
of back-end processes
and costly infrastructures
to be captured, secured,
analyzed, and leveraged.
As such, data is an asset,
an intangible, measurable
asset that is still partly
overlooked by large
automotive players, both in
terms of mapping available
assets and valuing them.
“
“

HOW ACXIOM CAN HELP
As you embrace the automotive revolution, Acxiom can help your organization:
• Better Understand Ethical Data Use. Consumers do business with brands they trust. Our data
stewardship capabilities help you put the right protections in place, so you can use data with
confidence to deliver exceptional customer experiences.
• Implement Data Monetization Best Practices. Many organizations are discovering they have
people-based data assets, but just because you have them doesn’t mean you’ll be able to effectively
leverage them. Data must be curated and easily connected so it can be activated. And you must
comply with global security and privacy regulations.
• Navigate the New Data Economy. Rapid innovation is producing an explosion of new data sources.
As the market for data expands, how do you find the best data to fuel your marketing strategies?
What are the smartest ways to monetize your valuable data assets? Whether you’re buying, selling,
or sharing data, Acxiom can help you navigate.
Acxiom solutions can help you better connect with the automotive consumer by helping your organization:
• Assert Your Automotive Leadership. We help eight of the top 10 automotive OEMs drive strategic
growth by maximizing returns from shifts in consumer data, changing product usage, and innovation
in adtech and martech.
• Become More Industry Forward. Acxiom solutions target where the industry is going, from mobility
and autonomous vehicles to redefining the matching process for sales leads and the use of data to
improve the customer journey.
• Establish Global Reach. Acxiom solutions deliver the highest quality data on more than 2 billion
consumers in 62 countries – approximately two-thirds of the world’s digital population.
• Activate Your Data. Acxiom activates data for automotive and services clients across our network
of more than 500 partners, including the largest marketing technology platforms, social networks,
premium publishers, and advanced TV providers.
• Enhance Your Consumer Insights. With our analytics expertise, we can find and predict future
purchases that drive incremental value for your business. We utilize omnichannel insights and
techniques specific to OEMs and their services.
1st
Matching accuracy across
all customer touchpoints
95%
US household Coverage
500+
Contracted & Pre-integrated
with digital and analytics
marketing platforms
95%
Accuracy matching
Offline to Online
5/5The Only Perfect Score
Forrester Customer WAVETM
Privacy & Security Score
DATA SERVICES
CONNECTIVITY
PRIVACY & SECURITY
SPEED, POWER,
AND PRECISION

15 | Connected and Self-Driving Cars Spark Industry Convergence © 2018 Acxiom Corporation.15 | The Age of the Omnichannel Integrator © 2017 Acxiom Corporation.
ACXIOM: THE DATA FOUNDATION FOR
THE WORLD’S BEST MARKETERS
Acxiom enables people-based marketing everywhere through a simple, open
approach to connecting systems and data that drives seamless customer
experiences and higher ROI. We believe data is the key to creating meaningful
interactions at scale between consumers and the brands they love.
VISIT: https://www.acxiom.com
EMAIL: info@acxiom.com

16 | Connected and Self-Driving Cars Spark Industry Convergence © 2018 Acxiom Corporation.16 | The Age of the Omnichannel Integrator © 2017 Acxiom Corporation.
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1
“Statista Digital Market Outlook,” Statista, 2017
https://www.statista.com/outlook/digital-markets
2
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“How the auto industry is preparing for the car of the future,” McKinsey Global Institute podcast, Dec 2017
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4
“What’s driving the connected car,” McKinsey Global Institute, Sept 2014
https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/whats-driving-the-connected-car
5
“The World’s Cities in 2016: Data booklet,” United Nations, 2016
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“Disruptive trends that will transform the auto industry,” McKinsey Global Institute, Jan 2016
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7
8
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10
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11
12
“Autonomous car,” Wikipedia, Jan 2017
https://en.wikipedia.org/wiki/Autonomous_car
13
“Domino’s and Ford team up to offer self-driving pizza delivery,” The Next Web, Oct 2017
https://thenextweb.com/artificial-intelligence/2017/08/30/dominos-and-ford-team-up-to-offer-self-driving-pizza-delivery/
14
“CES 2017: Nvidia and Audi Say They’ll Field a Level 4 Autonomous Car in Three Years,” IEEE Spectrum, Jan 2017
https://spectrum.ieee.org/cars-that-think/transportation/self-driving/nvidia-ceo-announces
15
“Monetizing car data: New service business opportunities to create new customer benefits,” McKinsey Global Institute, Sept 2016
https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/monetizing-car-data

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