In a new report, research firm IMS Research belives that consumers are not ready to pay for apps in their car.
A poll of of 2,250 people across the United States, United Kingdom and Germany showed that only 28 percent of respondents would be willing to pay for apps in the car, if they were available.
Results from the survey also showed that a ‘willingness to pay’ for apps doesn’t always equate to extra revenue. The survey showed that 55 percent of smartphone and tablet owners would be willing to pay for apps, but in actuality nearly 70 percent have never paid for an app.
From bad to worse, tthe survey also showed that nearly 60 percent of respondents would prefer to get a car specific app through their smartphone app store rather than from a portal from the vehicle manufacturer.
But not everything is negative in the findings of the survey. According to IMS Research “The survey showed that if apps were available in the car, driving specific apps (such as navigation) would be most popular and something consumers would be willing to pay for.
Furthermore, this is a nascent market and consumer perception may change as familiarity increases. Finally, monetising the in-vehicle experience isn’t the only reason to offer in-car apps. By engaging with drivers through apps on a daily basis, auto makers may find they increase brand loyalty, which is perhaps a more valuable commodity in the longer term.“