• thinkLA is a nonprofit association founded to promote Los Angeles as a network of creativity and innovation in media, marketing, and advertising.
• The members are the power people in LA's creative, entertainment, & digital marketing including ad and PR agencies.
• thinkLA stages conference like Motor City West in several different market segments
Significance of this conference:
• The conference management team sold out the event on a Friday afternoon - easily 300 people in the room.
• The conference content hit on the State of the Industry from Motor Trends Editors to AutoDisruptors to, Carlabs with a machine learning bot named Carla coaching you on how to find the car you want.
• Auto marketing is alive in LA when a conference like this "works" so well.
Get the Takeaways
• The Future of Cars is Now.
• How people will move about in the future is central strategic focus
• What is the focus of every Asian OEMs and autonomous vehicle developers?
• The LA World Affairs Council staged The Future of Asia Conference in late Sept.
• Agenda featured expert panel focused on the future of cars in Asia & U.S.
The Significance of the Panel Presentation at this Conference:
• Understand future of vehicle technology, manufacturing, and utilization by Asian auto makers
• Note particularly how the 2 Chinese OEMs see future market, development & manufacturing.
See the summary of the insights, observations, & assessments by 3 expert panelists.
1. Live Streaming of programming content is hot.
2. Controlled Ad Viewing on Specialty Programming platforms (Crackle).
3. Mobile viewing of movies,car ads,& news growing: Blocking still a constraint.
4. Influencer Marketing is powerful means to increase audience.
5. Two new programming sites producing own content – Crackle & EPIX.
6. Charity Site, Pixhug, becoming an effective way to raise money for causes.
7. Lots of focus in panels on Millennials and their viewing practices
8. Monetizing video is big challenge even in TV.
9. TV production companies & studio obsessed with Story Telling.
10. VR has big future but viewer access using the “boxes” is challenge.
For more detail on a least some of what came down in presentations
• Blockchain Tech to be Auto Lending Game Changer: Mashes up cryptography & peer-to-peer networking.
• Creates a shared database of transactions & other information.
• A blockchain is an ever-lengthening chain of blocks of data.
• Toyota Financial Services has used Blockchain & smart contracts.
• Delinquent auto loans automatically transfer ownership & loanee can’t use the car.
• All parties to know all about auto loans, rates, apps, stips, & fine print.
• Blockchain could reduce need for businesses to organize as companies.
• Collaborators will work together as free agents instead of under bosses.
• Blockchain could replace bankers, accountants, & lawyers, escrow accounts, insurance, & verification of payments & performance of contracts.
• Truth-telling feature of Blockchain makes it enormously useful to banks.
• Ethereum, goes beyond ledger function; Works more like Google Docs—shares SW that can be used by all but is tamperproof.
Start getting up to speed on BlockChain with an in-depth Bloomberg article.
• Car dealerships are target for hyperlocal media & suppliers of digital marketing technology & services,
• After steady growth to record 2015, auto sales now sluggish, & dealership consolidation continues.
• Researcher Borrell projects dealerships to spend $14 B on digital & online advertising in 2016.
• Dealers shifting to Digital & Mobile-Spend over 60% of media budget online
• Borrell’s survey reveals that dealers cutting back on traditional media.
• Kia dealer confessed spending majority of digital budget on search
• Dealers frequently do not have resources to do analytics on display or brand tracking
• Have relied on OEM's data analytics & customer experience surveys.
Find David Card, Street Fight’s director of research, and his complete Need-to-Know article
• BC Canada company, PAL-V, says it going make a car fly soon.
• Public is psyched: Google traffic of over 135,000 monthly searches.
• CEO claims company most likely to deliver a "real" flying car.
• Work is done to create flying car that meets regs & safe to fly.
• Creating flying car with solid appeal in North American market place.
• PAL-V has been the quietest player in the market World-wide.
• PAL-V Limited Edition model will be available to 90 buyers, 25 in NA.
More info & video on PAL-V in North America
Contact Mark Jennings-Bates, VP Sales.1 250 859 4893
Who wrote this great article? Aswath Damodaran, Professor of Finance at the Stern School of Business at New York University, where he teaches corporate finance and equity valuation
Aswath wrote a very comprehensive, analytical, and probably brilliant article about Ride Sharing in Seeking Alpha in August.
He is basically saying that disruptive Ride Sharing has got to make money
Summary or Significance of What He said:
• Disruption is easy but making money off disruption is difficult, and ride sharing companies would be exhibit 1 to back up the proposition.
• While the ride sharing option is here to stay and will continue to grow, ride sharing companies still have not figured out a way to convert ride sharing revenues in profits.
• I have argued every young growth company has a bar mitzvah moment, a time in its history when markets shift attention away from surface measures of growth to more operating substance (evidence that users are being monetized).
• This may be premature but I have sense that the bar mitzvah moment has arrived or will be arriving soon for ride sharing companies.
This article is must reading for all automotive startups so go get it
• Japan to get power for hydrogen cars from sewage sources
• Japan & Toyota in major push to market hydrogen-powered cars
• Most hydrogen in U.S. is produced from natural gas
• In California, 20 retail hydrogen stations now open; 16 more coming.
• Biogas major source of hydrogen from waste water treatment plants, landfills, manure
• California is one of the most biogas-rich states in the nation
• Toyota has already sold over 1,000 Marai with 2,000 on order.
For a complete briefing,
see in-depth online article from LA Times. > Getting High on Hydrogen: California Market to be big with some help from Japan.
What is the new editorial platform all about on Automotive Digest?
With the launch of the new AutoDisruptor editorial platform, Automotive Digest has begun a series of editorial and content posting about many of the the 150 postings as we are watch, study, communicate and cover these automotive startups every day.
Serving 150 AutoDisruptors
We hope that this special coverage will help these startups to compete by using new, innovative, and integrated marketing tools, channels, and platforms.
A core objective is to help extend the reach to each company’s audience and to educate that target market about the innovative technology and the breakthrough products and services of these 150 AutoDisruptors.
Find out about Skurt.
This coverage of the newly launched car rental app, Skurt, is an example the focus is help increase market awareness, new business development opportunities, & to provide communications resources as is the recent posting all about Roadster.
Declining gas prices have stalled Green Car Sales
75% of Hybrid Trade-ins went home with all gas car
Drivers consume nearly 10 M barrels of a gas every day
Hybrids save people about $400 a year in fuel costs
As regulators demand more efficient vehicles, gas vehicles will decline
Gas or Carbon tax may be answer but electric must create more value
• DOT, EPA, & California Air Resource Board said the manufacturers have brought rapid innovation and technology to the market.
• 54.7 MPG target looms over the Industry with constant threat for Feds & fines.
• Report says OEMs have developed more technology to improve fuel economy & GH gases than previously thought.
• Concern that Fed pressure should not weaken demand for SUVs & trucks [Dan Becker, Center for Auto Safety]
• The technology from engines, transmissions, & control technology in EVs & Hybrids is enabling OEMs to beat expectations.
See & Know
how well the OEMs are doing with meeting forthcoming fuel standards.
Car Buying site sets up an arrangement that enables an expert to help and coach a consumer buy a car.
Service matches car buyer with an expert who buys & sells cars every day.
Cars4Real.com is the first online car buying service to offer consumers real purchasing power.
Cars4Real Experts seeks to give the customer the negotiating info they would need to go in and get the best deal.
Site Founders have been able to recruit Cars4Real Partner Experts across 16 states to assist car buyers.
Service gives the user purchasing power based on their individual financial and credit worthiness.
Get more of the "real" story of Cars4real
Uber is gearing up to upend the auto loan market.
Making big push into Trillion $ auto financing market.
Endgame of Uber's auto market disruption is a world where you never own a car again.
Uber has fleet discount deals with all the major manufacturers.
Wants more Ubers on the road by any means necessary in newer cars.
Created Xchange Leasing last year as a wholly-owned Uber subsidiary.
Changing car ownership for drivers with flexible options for access to a car to earn extra income.
By end of 2016, Uber expects 100,000 cars will have been provided globally
Be an UberReader and go to CNBC site for more about auto funding
Peer to Peer car shoppers buy & sell pre-owned cars in 16 metros in 9 states without going to a dealership for test drive or delivery.
The entire buy, sell, & finance of the transaction done on a smart phone or PC.
Offers test drive with car inspection & money-back guarantee as a trusted brand.
Beepi algorithm enabling people to buy/sell cars in previously hidden market.
Streamlined financing with Chase & credit unions. Ally Financial does leasing. Can pay with credit card or Bitcoin
Buying process is started & finished online with delivery to the home or office.
Find more on how Beepi is disrupting the preowned car market
Blockchain technology was created to support the currency Bit Coin.
Appears the rapid adoption by banks, securities, insurance changing things.
Blockchain has never been hacked so this may be the solution to car hacking.
Blockchain Technology is coming to automotive if not already here.
Savings being experienced by banks will come to automotive systems.
Insurance companies using BT to sell insurance & mutual funds means F&I applications.
Airline loyalty programs to be migrated to OEM and dealer loyalty programs.
People are turning to Blockchain for solutions and auto will soon.
Get up to speed on BlockChain
from Business Week article May 23 issue
Toyota seeks to take back Green Image claimed by Tesla.
Toyota hopes hybrid-gas-electric car will get 45 mpg.
Marai creates its own electricity on demand to power motor.
Hydrogen powered vehicle can be fueled in 5 minutes.
Problem: no H2 fueling stations, only 16 in the U.S.
Will give Toyota the Opp to regain green image & spotlight.
Cost of the Marai: $57,500 or lease for $500/month.
First Element Fuels building 19 H2 Fueling station in CA with Toyota loans.
Shunning electrics because of battery constraints.
See Forbes well done article for more
Vroom business model similar to UC Retailers except refurbishes & guarantees
Competitors are Beepi, Shift, & Carvana.
Seeks to make used car purchase amazing mechanically & cosmetically.
Specializes in accident-free, low mileage, & inspected used vehicles.
Removes hassle, haggle, & hard sell; Works to get car out the door quickly.
Logistics algorithm provides inventory management like factory assembly line.
Needs to move volume because overhead higher than online providers & dealers.
Delivery is free and soon to be in 24 hours with company drivers .
Zoom in on this Vroom story to learn how more disruption is coming to traditional UC market.
Manufacturers are testing cars in public covering thousands of miles & seeking data.
Here project called “George” is gathering data that will enable other cars to us mapping by using motion tracking inertial system to capture yaw, roll, & pitch a 1oo times.
Need to provide highly detailed maps so that robotic vehicles can operate safely in all environments as a reality check.
GPS receiver in George vehicles collecting longitude, latitude, & elevations over and over resulting in as much as 2 B individual pieces of data daily.
Hundreds of Gigabits of data are providing detailed 3 dimensional image of car’s route are used to analyze and process this data.
An autonomous vehicles must be able to determine its precise location and to ultimately maintain its own maps.
LIDARs systems captures a depth map that records distinctive shapes & distances of roadside scenery that correlates with vehicle own LIDAR unit.
Automatic braking, lane control, & overtaking will enable technology to give vehicles full autonomy.
To source a comprehensive briefing on how HERE is testing autonomous vehicles.
Silicon Valley’s VC white males are getting increasing heat about the fact that less than 10% of senior management are women.
Most prominent VC investor, Chamath Palihapitiya, is shaming SV companies to do as his company, Social Capital, is doing by having a woman CEO..
Has surveyed 71 companies and his company is #1 in diversity ranking.
Workplace diversity has apparently not been a priority among VC firms in Silicon Valley.
Social Capital is out to solve and fix global problems and issues.
Chamath has shook up and polarized SV establishment; Calling them “Soulless Milquetoast”
91.8% of Silicon Valley VC management is male.
Go get the complete Wall Street Journal story
One Third of population or 222M in U.S. & rich countries are over 60.
These people spend $4T per year and number(s) are growing.
Only 31% of companies are focusing sales & marketing on this market
Why is this? Young people dominate marketing, agencies, & media-buys
Older Car Shoppers are going to reshape the automotive business landscape
Biggest challenge: What is “old” anymore? 60 is the new 40 & so on.
Automobile & health care industries are “on” this Grey Market with a Silver Rush
Marketers are discretely learning in early stages of a market revolution
What You Can do: Go to startling Economist article “The Grey Market” and alarm your marketing department.
The common ledger technology of Blockchain programming is enabling multiple users to work on shared computer documents in finance and everywhere.
Wall Street has tested the use of Blockchain technology in record keeping, credited default swaps, repo trades, and even funds transfers in financial transactions.
The Depository Trust and Clearing Corp which is the center of Wall Street’s trading infrastructure is working to apply Blockchain Digital Ledgers to the $2.6 Trillion Market.
Automotive industry insider and Hi-tech savvy executives and analyst are saying the Blockchain Technology will transform automotive industry CRM. DMS, and Auto finance for starters.
If this be the case, look for massive changes, opportunities, mobile applications and a complete transformation of the automotive market from Leadgen to vehicle remarketing.
To see how WS is using Blockchain Technology.
TrueCar has made a dramatic change about who they thought they were.
TrueCar’s new management team has completely changed its core business model from being for the “car shopping consumer” to “The dealer is our customer”.
TrueCar has ironically made this change look problematic & tenuously challenging by declaring that the new business model strategy is a WIN-WIN for dealers and car shoppers.
The Significance of it all:
Maybe three Questions:
Will the dealer body believe the new Pledge and adopt the TrueCar pricing model?
Will the Car Shopper and all those TrueCar affiliate members be OK with this new strategy?
Will this new strategy enable TrueCar to finally make a profit?
Carnegie Mellon study determined:
For the study, dozens of GPS apps collected location based coordinates of where people were every three minutes.
Significance of the Study:
1) 90% of people feel they have lost their privacy
2) 73% of time, the user location was shared with an advertiser
3) Advertisers pay 10-20% more for online ads that include location based info.
4) Many displayed ads are based on info about where user has been.
5) Many location based software cannot be uninstalled, such as Google Play
6) Few users take action to prevent apps gathering personal data
See and stream
as sourced from the Wall Street Journal article.
Auto dealers have been burdened with the storage and maintenance of the paper records of sales and service transactions for years.
An Executive MBA team from Rochester Institute of Technology’s Saunders College of Business seeks survey information from dealership management for a graduate research project in order to come up with a solution.
Significance & A Solution:
This team is researching alternatives to the current practices utilized by single and multiple rooftop operations for the retention and retrieval of deal jackets and service orders
What do they need from you?
Answer a survey on current practices used for document storage & collect information on a proposed solution to the problem.
Who should do the quick survey now? --- Get Free $5 Starbucks or Dunkin' Donuts Gift Card
CFOs, GMs, Principals, Office or Service managers
Situation: Intel, Microsoft, and others are taking virtual reality to a new level with the deep sensing capabilities that capture high resolution images. The imagined future of gesture based computer interfacing with augmented reality is being realized.
Significance of Augmented Reality: Intel is now building an augmented reality headset. This means that Intel's RealSense 3D camera technology would be used in such applications as autonomous vehicles, webcams on computers, smart bike helmets, wearables and holding a smartphone over a print magazine page to see car advertisements come to life.
Microsoft put its augmented reality camera on sale this past week and is collaborating with Intel to move beyond personal computing.
Get smart about Augmented Reality
by going to recent articles in the WSJ, Fortune, and TechCruch