Last week in a suburb of Detroit – Novi, to be exact – Telematics Update held their annual conference, bringing together a growing group of automotive and media professionals to discuss the ongoing hot topic – “the connected car.”
Nearly 2,000 professionals made the trip to Metro Detroit. For Paul and me, it was a quick 13 mile drive to what is a different world than the one we’re used to living in.
Joining us from the radio industry were….not many people. Of course, Dr. Ed Cohen from Arbitron was there (a fixture at these telematics conferences), as were NPR and iBiquity. We spent some quality time with Carl Rohling of TuneIn, a guy who believes in this space. Beyond that, not a radio person in sight.
Broadcast radio, that is.
Other “radio” brands were very well represented, however, including Pandora, Slacker, Rdio, Aha, and SiriusXM (a platinum sponsor). They all had considerable presence at Telematics Detroit. And notably, audio in many different forms was a hot topic.
We heard Nick Pudar (Director, Global Connected Services) from General Motors admit that while he was a little slow to get up to speed with iPads, “the connected car” is something that he – and the OEMs and Tier 1s – aren’t missing.
In fact, an ongoing theme at this year’s conference is just how telematics is solidifying in the minds, labs, pocketbooks, and hearts of automotive companies around the world. They are all moving ahead on all cylinders, and while each OEM has a different idea of what works and what doesn’t, they share the same vision about the value of this space. They realize that while they cannot move as quickly as the electronics industry, they are more agile than ever before. And the car makers (and the Tier 1s) are all too aware they have to keep pace with consumers who are ever-enamored with their smartphones and the concept of taking their content with them wherever they go.
Everywhere you went at this conference offered more proof that telematics is being driven by content, services, and distribution channels – especially the smartphone. And that continues to motivate us at Jacobs Media and jacAPPS to stay ahead of the pack.
Telematics is especially hot in the U.S. Kevin Link (how’s that for a great name for a “connected car” event?), SVP from Verizon, noted that Americans “get” what’s going on in the space. His data indicates that 84% of consumers in this country have some awareness of “the connected car.” In the rest of the world, it’s “single digits.” But innovators and forward-thinking automakers and media strategists can lead the way because “Customers don’t typically wake up in the morning and say, ‘Boy I wish I had telematics in my car.’”
One of the best panels was moderated by Strategy Analytics’ Roger Lanctot, one of the brightest minds at this event. He hosted three area auto dealers, along with the head of the Michigan Automotive Dealers Association. This marked the first year that car dealers were invited to participate in these conferences, and it turned out to be a riveting panel.
Had there been a few radio people in the room – including some GSMs and LSMs – I don’t think there’s any question that they would have enjoyed connecting these digital dots.
Everywhere you looked at Telematics Detroit 2013, it was about “the connected car” and its capabilities. As the photo montage above indicates, this is how it felt as conference attendees moved from exhibit to exhibit. Everyone has a plan, a concept, a platform, and a strategy for connecting consumers to their vehicles.
In Kevin Link’s presentation, he clearly made the case for the distinction between following trends and just being trendy. In the automotive space, it’s a lot like radio. Sometimes it’s difficult to tell the difference. So he broke down “connected car” components into five silos: safety/security, diagnostics, convenience (key fobs, remote features), navigation, and infotainment. And everywhere he looked at it, his bottom line conclusion is that it all comes back to…
…Infotainment. Content. Programming.
That’s because people don’t walk into car dealerships asking about security features or better “check engine light” diagnostics. But they are talking about their mobile entertainment and the features their next car will offer – embedded modems and smartphone connectivity are at the epicenter of this conversation.
As radio guys “sitting in” on these panels and conversations, it was a lot of education compressed into two fast-moving days. The more sessions we attend, the better we understand the mindset of the automotive companies and their suppliers. And the better we grasp how our apps – and apps like iHeartRadio and TuneIn – function and stand out in this space. A major reason why iBiquity continues to have presence at these conferences speaks to their ongoing commitment to make broadcast radio part of that conversation. Whether you love or hate their technology, whine about all those free spots you ran, or continue to believe that consumers are clueless about HD Radio, the fact is that it is playing a key role in how these platforms are developing.
Broadcasters owe it to themselves – and their stockholders, stakeholders, and family members – to immerse themselves in the telematics space. It won’t be long before quarterly investor calls will include questions that go beyond the future of AM radio, Rush Limbaugh’s antics, and political ad spending. Analysts are going to start asking about mobile strategies, connected cars, and how broadcasters will handle these challenges moving forward. And how will radio’s CEOs respond?
One bright spot for jacAPPS occurred while we were introducing ourselves to a Tier 1 supplier with a fascinating connected car technology. As she was looking at our business card, she exclaimed, “Oh, I know you guys – you do apps and you have the deal with Ford.”
Now at radio conventions, we expect some attendees to know who we are and what we do. At a telematics conference, this was a first. But as we walked the exhibit floor, observed panels, and networked at lunch, the faces looked more and more familiar to us because we’ve been attending these events, as well as CES, for several years time now.
And so it is with broadcasters who won’t be able to simply swoop into this space in a year or two and make an impact. There’s no crash course in building relationships, understanding automakers and their suppliers, and learning how telematics can lead to opportunities and partnerships. It takes time, it requires commitment, as well as recognition, realization, and the ability to see around corners.
Telematics is shaping up to play a major role in broadcast radio’s future. That’s why we attend these conferences. Spurred on by our Techsurveys, we continue to see evidence that screams that it’s paramount for broadcast radio to show up, learn, and let the telematics and automotive industries know we care, we’re engaged, we’re invested, and we wish to be part of this future.
I have never bought into the “radio was the first social media” nonsense. But there’s no disputing the fact that radio was the original dashboard entertainment medium. That’s something that everyone attending Telematics Detroit 2013 would agree on.
The question is whether broadcasters will be prescient enough to grasp a changing automotive ecosystem, and learn how to adapt to evolving technology and increasing consumer demand. I just bumped into 2,000 bright, enthusiastic professionals who got the memo.
Next year, put Telematics Detroit 2014 on your conference agenda. And as we have been reminding everyone in radio, buy, lease, rent, or test drive a “connected car.”
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BJ Shea says
Fred,
I recently test drove a Tesla electric car & it had an iPad sized screen in the dash. It also had it’s own free Internet connectivity (embedded modem?). It came pre loaded with Internet radio station buttons, plus Google Maps (Garmin, Magellan & Tom Tom beware). Sure, currently, the car is electric & expensive, and inaccessible to the average car buyer… but the connected dash isn’t. As a talent, all I can do is continue to come up with content, and not just on-air content. Our show currently offers 9-unique podcasts a week (not including the commercial free, song free morning show podcasts), video blogs, written blogs, content offerngs for Vine, Twitter, Instagram, Facebook, Pinterest, and Tumblr. We’ll soon offer a new website that will be an online companion to our Geek Centric (Creative Obscessors) podcast that will include more unique video, audio & written material from comic book writers, artists, web series producers, actors, writers, gamers & game developers, online bloggers & critics, movie & TV performers, producers, directors,and other support people. We’ve fostered relationships with the likes of Chris Hardwick, Kevin Smith and Wil Wheaton.
The ROI? Not much, if anything, but like you, Fred, I want to be ready for the day we all wake up to connected car and beyond. As a talent, what else can I do?
Fred Jacobs says
BJ. you are doing more than most. It’s about growing relationships and reflecting Seattle and the things your audience cares about. What can you give them that they cannot get anywhere else. Connect with as many as you can socially as well as at station events and personal appearances. Eye contact is important and something that Pandora and SiriusXM cannot do.
Valerie Shuman and I will be presenting at the Morning Show Boot Camp in Chicago in August. I believe it will be a helpful presentation for talent to better understand what’s going on in the “connected car” space.
Hope you enjoyed the Tesla. Most KISW fans won’t be driving one of them. But a Ford Fusion, a Toyota Camry, or a Chevy Cruze will be in lots of Seattle driveways in the coming years. A focus on the “center stack” and how radio can produce unique, different, and compelling local content will be a big part of where the conversation will continue.
Thanks for reading our blog, engaging, and caring.
Bob Bellin says
“…the fact is that it (iBiquity) is playing a key role in how these platforms are developing…”
Isn’t that like Anthony Weiner playing a key role in how social media in electoral politics is evolving? What place at the table does a poorly programmed and maintained medium with lousy reception, no standards and little or no localism have in developing the nuts and bolts of the center stack?
Whether you look at radio’s contribution on the product side, or iBuiquity’s on the technology side, HD radio is an outdated, poorly executed stab at something that many webcasters (including Clear Channel with iHeart radio) have moved way beyond. IF radio plans to compete with them, it had better find a more savvy representative than iBiquity and a better platform than HD radio. I can’t believe that we’re actually still talking about it!
Fred Jacobs says
Bob, I know that many broadcasters share some of your feelings about HD Radio. But I can also tell you that at these conferences, iBiquity is typically regarded as partners that matter. Say what you will, but they have worked the auto side of the street very well – and they are essentially the lone representatives of the radio industry.
I invite iBiquity to address your issues, but they are players in this space. Thanks for taking the time to write and opine.
Joe D'Angelo says
Automakers continue their rapid adoption of HD Radio Technology as they recognize the value that digital broadcast radio brings to their drivers. Combined, over 3,600 digital audio programs as well as a multimedia experience with images through Artist Experience and interactivity with iTunes Tagging round out a highly differentiated broadcast radio experience. Over 170 vehicles offer HD Radio Technology from over 33 manufactures. This has led to a new car being sold every 9 seconds with the technology; adding to the over 12 million already on the road. Recently Toyota and Lexus added new HD Radio based telematics services offered nationwide by Clear Channel Media and Entertainment. Mitsubishi will soon launch a similar service offered by Nokia and the Broadcaster Traffic Consortium. Forward thinking broadcasters have embraced HD Radio Technology and have enriched and expanded their service offerings to help ensure that terrestrial radio maintains a prominent position in future digital dashboards. As always, iBiquity remains committed to serving the needs of the broadcast community and welcome any questions or comments.
Fred Jacobs says
Thanks for the update, Joe.
Jacquelyn Bullerman says
This is a Pandora job posting for Program Manager in the local Detroit Market…
They are clearly focusing on the Telematics sector: https://hire.jobvite.com/CompanyJobs/Careers.aspx?k=Job&c=qhd9Vfwi&j=o6ZuXfwg&s=Indeed
Whoever owns the car dashboard in the future, wins.
Fred Jacobs says
Jacquelyn, thanks so much for sharing this. It’s more support about Pandora’s commitment to this space. Appreciate it.
Karole White says
With all kinds of fun goodies in the car…..Who’s paying attention to the road? I do not think lawmakers will allow more distractions in cars until they are totally self driving . Though we have the technology we do not yet have demand or infrastructure. MAB would like to represent radio at events like this. We’ll talk!
Fred Jacobs says
Karole, safety is part of the mantra that all automakers utter when they start talking telematics. They also profess that the consumers need great infotainment options as well as a great experience. Those are the three legs of the telematics stool. Radio needs to compete effectively on the dashboard, and as you suggest, it starts with being present. The MAB would be a solid fit at these conferences, and would demonstrate to the OEMs and Tier 1s that broadcast radio intends to remain a serious player in the car radio space that it pioneered. Thanks for taking the time.
Greg Smith says
“Automakers Get HD Complaints”
“iBiquity Senior Vice President of Broadcast Programs & Advanced Services Joe D’Angelo ticked off several: customers say the HD often echoes as if two signals are being received slightly out of time, or the audio sounds as if the station is skipping. Other complaints include the radio doesn’t pick up HD stations, ever. Or, the HD goes in and out.”
https://www.radioworld.com/article/radio-eyes-all-forms-of-%E2%80%98digital%E2%80%99/216113
I’de like to ask Joe (above) why the automakers continue to install HD Radio? Complaints have been verified, starting with BMW in 2007 with their HD Radio Troubleshooting Guidelines, along with other automakers including Volvo. iBiquity has done a major-disservice to the broadcast communty.
Fred Jacobs says
Thanks for the comment, Greg.