This is another very clear example of that the business strategy isn't always obvious, and it's not necessarily a straight line.
Owning Microvision, is like owning a pipeline company to move information, and information and advertising is the big-money commodity. I like where I am.
Thanks JT.
Toronto Star -- More at the source.
During this year's CES, Panasonic demonstrated technology that lets a driver order and pay for fast food through a head-up display in their vehicle before pulling off the road to collect it. (ALEX WONG / GETTY IMAGES)
Sat., Jan. 14, 2017
The next frontier in digital advertising may be your car’s windshield.
The advent of connected cars is creating a new sales battleground, and using a vehicle’s windshield may be the next way to pitch more products and services to consumers. McKinsey & Co. estimates that mobile and data-driven services in vehicles will generate $1.5 trillion (U.S.) by 2030. At least part of that will be spent projecting information to drivers and passengers right before their eyes.
“When you think of a person driving and what your needs are when you’re on a typical trip, it’s food, it’s fuel and it’s rest stops,” said John Butler, a Bloomberg analyst. “Owning the inside of the car is critical, it’s really where the money is made. The real value is locked up in the ad opportunity.”
Here’s how a smart windshield may work: A driver who’s close to running out of gas would see an alert pop up that notes the fuel situation and offers to find a nearby gas station. The car’s virtual assistant offers a choice, again on the windshield, of two options, including directions to a station where the driver is eligible for a free cup of coffee — an ad placed by the gas company that fits with the driver’s buying patterns, also known by their smart car.
Panasonic Corp. demonstrated technology at CES, the consumer electronics show in Las Vegas last week, that lets a driver order and pay for fast food through a head-up display before pulling off the road to collect it. Pairing such offerings with other connected subscription services could generate hundreds of dollars in additional recurring revenue per car each year, according to Tom Gebhardt, the head of Panasonic’s automotive business in North America.
“When you start doing payments out of the vehicle, you have to secure those payments somehow, so we’re matching the facial recognition with your credit card,” he said. “We’re really investing in an integrated solution, merging the infotainment system, the instrument cluster and the heads-up display.”
Corning Inc. is starting to sell carmakers the glass used in Apple Inc.’s iPhones for windshields and in-car entertainment systems. The company said the durability and thinness of the glass means that any image projected onto it is sharper than onto a typical windshield. While the product is less than 25 centimetres wide, Corning is working to expand it to a full windshield-size display.
“They could be here in less than two years,” Corning chief technology officer Jeff Evenson said in an interview Thursday. “We’re making the car much more active to set things up for these kinds of services.”
Turning a car windshield into a billboard is part of broader efforts by automakers and tech companies to transform vehicles into connected devices. Multiple companies at CES this week have announced deals and partnerships that use software, digital voice technology and cloud computing to handle everything from automatically scheduling a maintenance appointment to ordering a takeout pizza while on the road.
Automakers such as BMW AG, Hyundai Motor Co. and Toyota Motor Corp. already offer basic head-up displays near the windshield in some models that show information such as the vehicle’s speed. Google parent Alphabet Inc., through its Waze navigation app, suggests nearby restaurants and points of interest during your drive, as does TripAdvisor Inc. The next step is merging these two ideas: projecting points of interest onto your windshield.
Eventually mapping and navigational data could be superimposed onto the road in front of the driver, much in the way that Google Street View currently displays information about an area on a static image. BMW, Volkswagen AG and Daimler AG acquired Nokia Oyj’s HERE mapping unit in 2015 to ensure they were no longer dependent on Google for maps. Intel Corp. announced Tuesday it had acquired a 15-per-cent stake in HERE.
“This is exactly the sort of thing the high-end carmakers are promoting as part of their highly integrated, immersive ‘cockpit’ concepts,” said Richard York, an executive at chip designer ARM Holdings who is responsible for automotive sales.
The question of how the technology is regulated remains open, given concerns about driver distraction. For now, suppliers are eager to promote head-up displays as safety tools. For example, the speed and location of vehicles in a car’s blind spot might be projected onto the windshield.
“We’re going to bring the safety aspect of the vehicles” into the augmented-reality products, said Joseph Yoon, head of LG Electronics’ automotive research and development team.
Boosters also say a windshield display is a safer alternative to drivers taking their eyes off the road to glance down and tap a dashboard infotainment system or check a smartphone. For many years, BMW, Volkswagen and Jaguar Land Rover Automotive worked with Munich-based startup Metaio GmbH to investigate possible applications for augmented-reality technology in cars, according to a source familiar with Metaio’s business.
The main hurdle to superimposing an enhanced image for the driver was the “tracking problem” — establishing the direction of a driver’s gaze and adapting the image projected onto the windscreen accordingly, the person said. Metaio was acquired by Apple last year and ended its contracts with the carmakers. Panasonic’s Gebhardt said his company had mastered the technology and is seeking a customer willing to deploy it in a car.
People usually understand information presented in an augmented-reality format more quickly than on paper or a smartphone, according to Sunny Webb, who leads Accenture’s research and development efforts in augmented and virtual reality. That makes AR an appealing medium through which to present location-based ads, as well as safety and contextual information to drivers.
“Being able to overlay content in a windshield is a really interesting application,” she said. “There’s a lot of energy going into how to distribute content to passengers and drivers.”
Meanwhile, Harman International Industries Inc., the in-car infotainment systems giant in the process of being acquired by Samsung Electronics Co., is moving into head-up displays. In December, it announced an investment in Navdy Inc., a San Francisco-based maker of a projection display that sits on the dashboard in front of the windshield and provides navigation guidance, car behaviour data and smartphone alerts. The two companies will start selling a jointly branded head-up display this year.
Automotive supplier Magna International Inc. also is likely to unveil an augmented-reality product with a major German carmaker this year, according to a person familiar with the plan.
Automakers also are considering the ability to push content such as video in front of passengers in addition to mapping or road services as a way to generate more revenue from each vehicle.
“We want to have our direct customer relationship delivering premium services to them and being their direct contact,” Klaus Froehlich, BMW’s head of research and development, told reporters at CES. “That’s the clear goal for a premium car manufacturer.”
