2014 ios Automotive App Study June 2013 - July 2014
Table of Contents Introduction...1 Methodology...3 2014 Brands...3 Market Overview...4 Automotive App Market US...4 Year-Over-Year...5 Decommissioned apps...6 Trends...7 Connected Consumers...7 Alternative Fuel...8 Year of the Truck...9 Languages...10 MY Updates...11 The Market Breakdown...13 Luxury and Mass-Market Overview...16 Luxury Overview...17 Luxury YOY...18 Mass-Market Overview...19 Mass-Market YOY...20 Recommendations...21 App Publishing & Management...22 Model Apps...23 Connected Apps...24 Appendix A...25
Introduction BiTE s unparalleled experience working with some of the biggest automotive brands in the business makes us uniquely suited to analyze the shifting trends in the automotive app market. This is our second year conducting an exhaustive analysis of the state of mobile automotive apps in the US App Store. We ll take you through the results of our 2014 US automotive app market research, exploring what s changed since 2013, and what s on the horizon. We examined over 500 apps, from model-specific to media, In-Vehicle-Infotainment to specialty vehicle. This year the number of apps increased as expected, keeping pace with the reinvigorated automotive market. At the same time, we watched the focus shift to reflect the changes in consumer attitudes and the overall automotive marketplace. With alternative fuel vehicle purchases on the rise and expected to double by 2022¹, the number of alternative fuel apps has risen accordingly. With connected vehicles becoming increasingly prevalent in the market, we re seeing more connected apps. These allow consumers to check their text messages hands-free, stream music, make restaurant reservations or check local gas prices. In the coming pages we ll give you a complete overview of the app market, from YOY comparisons to how consumer attitudes are changing the apps themselves. Then we ll present detailed recommendations and analyses based on the data. Joseph Farrell Chief Strategy Officer Brant DeBow Chief Technology Officer BiTE interactive www.biteinteractive.com ¹Martin, Richard. Electric Vehicle Market Forecasts. Navigant Research. April 9, 2014. Web. August 2014. http://www. navigantresearch.com/research/electric-vehicle-market-forecasts 1
In Jumpstart s 2013-2014 study of industry trends, they found that 76% of in-market auto shoppers use a smartphone or tablet while researching a vehicle. What s more, 45% look up information on a mobile device while at a dealership. 21% of shoppers even request quotes from mobile devices. 1 Mobile-optimized sites and mobile apps are essential tools for all OEMs, reaching customers from the planning stage to the point of sale. ¹n.p. Looking Back/Looking Ahead: 2013-2014 Industry Trends and Highlights (Jumpstart Automotive Group Insights Book). Jumpstart Automotive Group. February, 2014. Web. August, 2014. http://www.jumpstartautomotivegroup.com/ press-and-insights/reports/jumpstart-automotive-group-insights-book 2
Annual US Automotive Mobile Apps Research Update METHODOLOGY BiTE reviewed the 2013 data, first determining which apps were still available in the US App Store. Our research team removed any decommissioned apps from consideration, and updated information on all surviving apps, including new apps released since last year s study. Each of the 569 apps was downloaded and analyzed, with the resulting information collated and interpreted. 2014 Brands LUXURY Acura Audi BMW Cadillac Infiniti Jaguar Lexus Mercedes-Benz Tesla Volvo MASS-MARKET MINI Chrysler Dodge Fiat Jeep RAM Ford Honda Hyundai Kia General Motors Buick Chevrolet GMC Mazda Mitsubishi Nissan smart Subaru Toyota Volkswagen 3
Market Overview AUTOMOTIVE APP MARKET US Over the past year, the US app market continued to grow, with the total number of OEM automotive apps in the US App Store reaching 569 as of July 15, 2014. 4
YEAR-OVER-YEAR The total number of automotive apps increased 30% from 2013, with luxury brand apps increasing by 17.5% and mass-market increasing by 40%. 5
DECOMMISSIONED APPS The US App Store has now reached 1.2 million apps, making discoverability a huge concern for any brand. Developing an app management and publishing strategy is critical to reaching consumers in the increasingly crowded automotive app ecosystem. The OEM apps market is maturing, and we re seeing a shift to higher-value marketing apps that better serve prospective and current owners. Model specific, connected and service-oriented apps have increased while outdated apps have been removed. 139 (31% of the 2013 total) apps were decommissioned over the past year; in the mass-market category, the majority of those were for iphone, while luxury brands decommissioned primarily ipad apps. 64 luxury and 75 mass-market apps were decommissioned respectively. BMW had the largest number of decommissioned apps for the entire automotive category which consisted mainly of clean-up and removal of older apps. Review and removal of older apps is a best practice to alleviate App Store clutter. 6
Trends CONNECTED CONSUMERS Connected apps and In-Vehicle-Infotainment have risen in the past year. Connected apps now account for a full 15% of the US automotive app market, and we expect that number to keep rising. Apps like Toyota s Etune, Kia s UVO and NissanConnect offer streaming radio, socialmedia integration and hands-free texting along with more service-oriented features like traffic reports and navigation. Some apps allow you to lock and unlock your car, or gather data to let you view your driving habits. Currently focused on infotainment, vehicle management and service, these connected apps are bridging the gap between the time consumers spend in their car and the rest of their digital lifestyles, providing the kind of services and connectedness you wouldn t expect behind the wheel. GSMA estimates by 2020 the penetration of integrated connectivity will reach almost 100% of new passenger vehicles in the US¹. ¹n.p 2025 Every Car Connected: Forecasting the Growth and Opportunity. GSMA. February 2012. Web. August, 2014. http://www.gsma.com/connectedliving/gsma-2025-every-car-connected-forecasting-the-growth-and-opportunity/ 7
ALTERNATIVE FUEL Considering the significant increase in alternative-fuel vehicles, it was no surprise that their apps nearly tripled in the past year from 9 in 2013 to 25 in 2014. The majority of these apps are for luxury brands but that will change as more mass-market, alternative-fuel vehicles enter the market. The apps are dedicated to explaining the emerging technology, showcasing new models, comparing a user s current car usage against a hybrid or electric model, and providing connected services like charge indicators and station locations. Vehicle-specific apps: Educational apps: Connected apps: Nissan Leaf Mercedes-Benz Vito E-CELL Nissan Feel Electric MyFord Mobile Plug-in Hybrid Tesla Model S Volvo C30 Electric Prius Plug-in BMW i3 Become Electric 360 Film HondaLink EV BMW i Remote North America 8
YEAR OF THE TRUCK This year, Jean-Claude Van Damme helped draw the world s attention to Volvo Trucks with an ad that went viral and brought this niche, specialty category into the public eye. The automotive app market reflected this newfound popularity with a slew of B2B apps dedicated to specialty vehicles like trucks and vans. Volvo Trucks and Mercedes-Benz lead the pack in bringing these new apps to the market. Over 5% of OEM apps are now dedicated to specialty vehicles (trucks, vans, construction). 9
LANGUAGES Top-tier luxury brands increased their language offerings on many of their existing apps. However, the majority of mass-market apps continue to offer content solely in English. This oversight is a missed opportunity to connect with potential buyers in their language. Consumers are more likely to remain loyal to a brand that offers apps relevant to their needs. 10
MODEL YEAR UPDATES Last year, the majority of model-specific apps were reserved for new vehicles, and this trend continues into 2014. There was a subtle shift by a few brands (most notably Chrysler, Jeep, Land Rover and Subaru) to templatize model apps and deliver additional models in a more manageable and cost-effective method. Unfortunately, while templating offers benefits to both OEM and the consumer, it requires consideration and judicious use of dynamic content to clearly differentiate between models and to target specific consumers. Of the templated apps we studied, Subaru currently offers the best combination of targeting and engagement. Mobile apps should be designed for both engagement and retention. The majority of model-specific apps blend simple brochureware displayed in a mobile environment with hints of a true, engaging mobile app experience. From an engagement perspective, automotive apps deliver well on 360s, colorizers and videos. A few brands are starting to use sound and music as well as visuals and interaction to engage their users. The number of apps that deliver truly engaging and interactive mobile features and technology is still limited but has increased yearover-year. Many of the automotive apps miss opportunities to drive leads and sales. While build tools are becoming common, only a few brands include comparison tools or test drive request tools. Within the Web environment, years of research and analytics have identified the primary research and lead generation tasks undertaken or valued by consumers on the path to purchase. Given the current organization of content within the mobile apps, it s clear analytics on usage and research into mobile-specific sales drivers is still in its infancy. Key analytics for mobile are still being defined for this channel and learning those primary tasks will be critical for future evolution. 11
Looking up information while on a dealership or lot via smartphone 1 Given the high mobile usage by consumers on dealership lots, apps often lacked useful functions like inventory searches, price estimators and information on incentives and rebates. What we hoped to see in our research but didn t was an all-encompassing, adaptive approach to the consumer. An integrated approach would allow one app to serve the consumer from prospect to purchase to ownership. This multi-layered content delivery system would provide consumers with the right content at the right time and location regardless of their position within the sales cycle. Content would change based on true engagement. All this would allow for continuity and communication between the consumer and the brand through the sales and ownership/repurchase cycles creating an evolving, 1:1 relationship. ¹n.p. Looking Back/Looking Ahead: 2013-2014 Industry Trends and Highlights (Jumpstart Automotive Group Insights Book). Jumpstart Automotive Group. February, 2014. Web. August, 2014. http://www.jumpstartautomotivegroup.com/ press-and-insights/reports/jumpstart-automotive-group-insights-book 12
App Branding and Findability - Helping consumers find your app IN THE APP STORE This year, OEMs are more consistent in using their brand identity in app names, but are still in need of clear and concise app nomenclature and visually consistent icons. Lack of consistency renders finding and understanding the purpose of the apps more difficult for the target consumer. Findability is further hampered by the releases of third-party and dealer apps, and by the sheer volume of apps available for download in the US store (over 1.2 million at time of publication). Given the huge number of apps that appear when a consumer searches for a vehicle name or an OEM brand in the App Store, it s no wonder many find it difficult to determine which apps are official. Plus, model apps are often offered by model year, frustrating consumers and causing confusion as to which MY to choose and which app to download. OEMs often label apps based on various business areas or subsidiaries, and the lack of consistent authorship is yet another point of customer confusion. Apps for Mercedes can be found under Daimler AG, Mercedes- Benz Financial, Mercedes-Benz Research and Development NA, Mercedes-Benz USA, LLC, Mercedes-Benz (X country) and others. Apps for Kia Motors are often published under agency names rather than under the Kia brand. Unless the consumer knows the exact name of the app locating the correct app can be difficult and frustrating. A surprising 29% of apps listed in the US App Store belong to non-us markets. Removal of these apps from the US store would alleviate some of the current clutter. The number of apps for sales personnel, dealer conferences, travel management and other internal uses increased over the last year. These vital apps should be released using Apple s ios Enterprise program. Enterprise apps are more secure since they are hosted by the enterprise. Further, they are much faster and easier to update since they are not reviewed by Apple. Finally, a large number of dealer apps have been released to market in the US App Store over the last year*. Consumers will need to sift through these dealer apps to discover the OEM apps they desire. Similar to the debate around dealer websites, these apps make it increasingly difficult to differentiate the official OEM apps from dealer apps. Branding often looks similar and nomenclature can be misleading, making it difficult for consumers to find the app they need. * A sample of dealer apps were downloaded and reviewed as part of this study. Dealer apps were not counted as part of the OEM app market. 13
CROSS-CHANNEL INTEGRATION Additional research was conducted to determine findability of apps within OEM US websites, in order to better understand cross-channel integration best practices and opportunities for improvement. 37% of researched brands provide access to mobile apps within two clicks of either global or primary navigation (notable examples include: Jeep, Mercedes-Benz, Cadillac and Nissan). Other brands promoted mobile and app access with dedicated pages or content in other areas of the site, but this content proved hard to find without a using the site s search. Surprisingly, while download brochure is common throughout vehicle sections of brand websites, only two brands are currently providing direct access to mobile apps within those areas: Audi and smart. Providing a direct link to consumers eliminates the confusion and frustration of having to remember the app name and search through the App Store to find it later. For both ios and Android, one of the simplest ways to provide access to mobile apps is by using Smart App Banners on appropriate pages. These provide consumers a direct opportunity to download the appropriate app when viewing the sites on a mobile device. As most OEMs are still working to publish mobile apps for a majority of their vehicles, the Smart App Banners provide a flexible alternative, and can Only 37% of researched brands provide easy access to mobile apps on their websites. either directly link to a model-specific app or link to model-specific information in a full line-up mobile app. Given most of the current mobile apps have limited ability to generate leads, a hesitancy to include or promote mobile apps is understandable but should be a priority as new apps are released. 14
THE MARKET BREAKDOWN Unsurprisingly, model and brand apps comprise a full 31% of the app market. Disregarding the foreign app category, connected apps are next with a 15% share. 15
LUXURY VS. MASS-MARKET BREAKDOWN Luxury and mass-market brands had similar percentages in each of the app categories, with only a slight differentiation in sports, other (specialty) vehicles, games and OEM-internal. Luxury Mass-market 16
LUXURY OVERVIEW There are 235 luxury-brand apps in the current market, accounting for 41% of the total US automotive apps. 17.5% increase YOY 23% Universal, 43% ipad, 34% iphone Mercedes-Benz leads market with 88 apps (26% new) Tesla added to 2014 study Cadillac & Infiniti account for only a small percentage of app market 17
LUXURY YOY Overall, with the exception of BMW* and Volvo, all luxury OEMs increased their number of apps. Acura, Audi, Land Rover** and Mercedes-Benz saw a significant increase YOY * Though the number of BMW apps decreased overall (-23), BMW released 11 new apps since last year s study. The overall reduction reflects a large clean-up of old and outdated apps. ** Land Rover, a subsidiary of Jaguar, is not listed a separate OEM in our study, but the large number of newly released Land Rover apps was a notable change YOY. 18
MASS-MARKET OVERVIEW Mass-market brands are represented by 334 apps, a 40% increase YOY 27% Universal, 33% ipad, 40% iphone Subaru* was added while Suzuki and Isuzu were removed. Hyundai leads the pack in iphone apps. Toyota is the volume leader, with Hyundai, Volkswagen and Subaru closely behind. *Subaru was not included in our 2013 research and does not have YOY data. 19
MASS-MARKET YOY Mitsubishi, Hyundai, Toyota and Volkswagen had the largest increase of apps in market. Ford, Buick and MINI decreased YOY Toyota and Volkswagen decommissioned the most apps, but still retain high market share due to their release of new apps. 20
Recommendations 21
APP PUBLISHING & MANAGEMENT How can you help consumers find and connect with your apps? 1. Create guidelines for publishing apps. All apps should have same author (Hyundai), easily recognizable by consumers. Create a centralized, mobile app management team and process within corporate. 2. 3. Remove any inappropriate and lowervalue apps from the US App Store. Foreign apps should be placed in the appropriate stores for that market 4. 5. Remove OEM-internal apps from the App Store and re-release as Enterprise apps. Ensure app nomenclature and icons designs are consistent and clear and within brand guidelines, with easily identifiable branding elements. 6. 7. Use Consider cross-channel integration strategies and make your mobile apps easily accessible from desktop, mobile websites and other marketing channels. Smart App Banners to facilitate direct app downloads when consumers are viewing your site on a mobile device. Translate mass-market apps into Spanish. A study conducted by BiTE interactive found Spanish-English bilingual consumers were far more likely to engage with, and remain loyal to a brand that chose to translate mobile content into their primary language of Spanish (see appendix A). 22
MODEL APPS Move away from one-off mobile, brochureware apps and create an integrated, cross-channel mobile strategy and dynamic content management plan. 1. 2. Consider removing MY-specific apps (e.g. 2013, 2014) in favor of one app per model. Users can simply select model year within the individual app to view specific info. 3. 4. Engage users with interaction, sound and technology rather than simply descriptions and pictures. Ensure content is shareable on social media platforms. 5. 6. Model-specific and location-based push notifications on the dealer lot using ibeacons ($1000 cash back or 1.0% financing on the prospect s chosen vehicle). Implement content strategies that drive engagement and leads within the apps, but remain cost-effective. Multi-layered, content delivery system with global content management. The app and content will adapt based on the consumer s position within the sales cycle. (prospect, lead, owner, replacement purchaser). Notifications based on interaction and app usage. For example, prospect submits a lead to request a quote. The app follows up with a notification to schedule a test drive at the nearest dealership. 7. More sophisticated approach to content based on analytics and sales matchback. 23
CONNECTED APPS True dynamic content and 1:1 communication 1. 2. Connected apps offer technology at the consumer s fingertips but should offer a single, integrated app rather than separate apps based on vehicle, service or finance. Drive setup at dealership using technology to scan VIN, register app and select preferred dealer location. 3. Cross-channel integration and promotion of connected apps on owner s website sections, email and other channels. This creates an opportunity to begin targeted conversations with owners. 4. 5. Apps should contain VIN-specific information that updates based on recalls, owner s usage, dealer or service visits, country-specific content or language. 6. 7. Offer notifications based on usage. For example, vehicle owner uses connected app to schedule service. On the day of scheduled service, owner receives a notification in the app of the service with a link for directions to dealership. Create more sophisticated demos like Kia s UVO and Toyota s Entune Simulators. Create seamless content integration between owner, device and vehicle. 24
Appendix A 25
US Spanish Speakers and Brands Study Results (Summary) BITE INTERACTIVE RESEARCH Audience 212 total English- and Spanish-speaking respondents 189 said they speak both Spanish and English fluently, and identify Spanish as their primary language 23 said they speak Spanish better than English About 50% (104) aged 18-34 Slightly more female than male (113 to 99, respectively) More than 3 out of 4 (79%) make under $80,000 a year. 45% make $40,000 or under per year. More than 2 out of 3 (over 67%) have at least some type of college education Attitudes Nearly 1 out of 4 respondents (22.2%) said they would be much more interested in learning about a brand and its offerings if that brand offered an app in Spanish. Almost 50% said they would at least be slightly more interested (47.7%). Amongst 18-34 year olds, this response is more pronounced. Nearly 30% said they would be much more interested, and almost 2 out 3 (63.5%) would at least be slightly more interested. Nearly half of 18-34 year olds do not feel brands are doing enough to make their apps accessible to Spanish-speakers (45.2%). Overall, more than 1 out of 3 feel the same way (36.8%). Top complaints about apps translated into Spanish: Lack of thought when translating and/or sense checking (36.8%) 52.9% of 18-34 year olds indicated this as a problem Lack of correct punctuation such as accents and/or special characters (26.9%) 36.5% of 18-34 year olds Translated text is cut off (18.4%) 29.8% of 18-34 year olds 26
BiTE interactive www.biteinteractive.com info@biteinteractive.com (310) 935-1581 2014 by BiTE interactive