Connected vehicles are changing how people think about mobility. They also have important implications for marketers, who are experimenting with ways to tap the data they produce to engage consumers and drive new revenues.

Connectivity has become a major focus in the automotive industry. The ability to integrate vehicles with the internet-of-things (IoT) universe brings opportunities for enhanced services and personalization, but marketing executives like VMLY&R’s Aleks Niestroj think that there’s still progress to be made before cars go from “connected” to “smart.”

Over time, Amazon, Google, and others will introduce more head-unit and built-in voice functionality—and sew up more partnerships with automakers—to embed their technology in infotainment systems and connected car platforms. Already, a growing number of cars are coming equipped with built-in voice control, whether it be Alexa, Google Assistant, Samsung’s Bixby, manufacturer-based, or something else.

Similarly, a survey by Infosys published in October 2019 found that connected cars, security systems, emergency service capabilities, smart buildings and other business-focused applications would be among the top beneficiaries of 5G. CES offered a small glimpse into some of these applications.

Notably, AT&T has emerged as a leader in the B2B 5G service space, particularly among connected cars, fleet management, monitoring devices, session-based tablets, and other embedded connectivity. AT&T may eventually produce stronger performance figures outside of the consumer space, but that is beyond the scope of this forecast. Other Providers and MVNOs.

Automotive’s reduction in digital ad spend comes down to the massive, pandemic-driven slump in car sales in the US. According to automotive research firm Edmunds.com, auto sales in the US hit a 30-year low in April 2020, down 53% from the year prior.

Connected cars. Even as the pandemic has slowed auto sales, the share of connected cars on the road is set to continue to jump. Opportunities for customers to pay using their connected cars grew in 2020 as well, thanks to a slew of partnerships, including a high-profile tie-up between ExxonMobil, Amazon, and Fiserv that enables in-car fuel payments.

Generations of Canadians have a ritualistic dedication to searching for deals across the border, hopping in cars for day trips for lower prices on most goods, especially alcohol and gasoline. It is relatively simple for a country where 90% of its population lives within 100 miles of the US border. With the advent of online shopping, the trend continues.