Appel à contributions
Dossier to be published in No. 105 – 1st Q. 2017
Future of automotive:
Impacts of digitization
Ed: Samuel ROPERT (IDATE, Montpellier, France)
In the first half of 2016, car manufacturers saw a record-breaking 45.6 million sales worldwide, an increase of almost 4 percent, according to WardsAuto. With this constant growth, the final score will come in at nearly 93 million vehicles sold this year and at this pace, annual global sales could even top 100 million by late 2018.
Automotive is one of the oldest industries and will face numerous stakes in the near future, in terms of environment, security, urbanization with smarter cities especially in developing regions, etc.
Today, automotive industry is at the core of different revolutions regarding motorization (electric car introduction), digitalization of its products and societal behavior modifications (car sharing).
Digitalization enables connecting vehicles and providing innovative applications such as driver-related (telematics) and mobile Internet-like (infotainment) services. Connected car services represent a promising market: according to IDATE, in 2020, 420 million automotive will be connected; representing a 34% CAGR on the 74 million connected vehicles in 2014. This market should benefit from the different regulations around the globe, promoting more security on road.
But the revolution is a bit further. The headlines rely on the self-driving vehicles which are on everyone lips in the industry. Self-driving cars will be at the “crossroads” of different stakeholders’ strategies, and it could therefore represent the new battlefield.
Moreover, these transformations should modify the traditional barriers. Connected cars services have already seen the emergence of new car manufacturers like Tesla, LeEco (which has raised 1.08 billion USD to finance a smart factory) or BYD. Autonomous car has already introduced new entrant manufacturers which are already in advanced on the technological perspectives. The strategy of each car manufacturer will have to manage the reasonable arrangements with the digital big names, the GAFA and Internet platforms, the telcos, in addition to their peers, new entrants and traditional suppliers.
Finally, servicization will also have impacts on the customer loyalty as not only the product (the car) will be transformed, but also the consumption model with the development of various offerings of “car as a service”, mainly led by hailing car service emergence (Uber, Lyft and Didi at first).
Hence, autonomous vehicles are on the tracks to be a strong game changer in the coming years with massive impacts on everyone’s lives.
In this context, the DigiWorld Economic Journal special issue aims to gather articles that show the changing landscape of the automotive market, and how this is impacting the ecosystem from both traditional players’ (automotive manufacturers) and new entrants’ (internet giants or ride hailing players) perspectives.
The following topics are targeted in particular:
• What are the lessons/findings of the actual connected cars market (type of agreements with telcos, business models, interest of the consumers for the various applications and services) ?
• What are the drivers and hurdles to the development of autonomous cars (technical, legal, security, privacy reasons, or cultural, etc.)?
• What are the importance of the public policies and regulatory issues?
• What may be the importance of the technical developments like 5G and V2V/I standards?
• How will automotive manufacturers be transformed into mobility service providers? How long will it take to do so?
• What will be the place of Internet giants (GAFA) players? Do they represent a real threat or the ideal partners of auto manufacturers?
• Do we have to expect a consolidation of the car industry due to the connected/self-driving car?
• How will “smart city” and smart car be linked?
• How will third party business sector (banking, insurance) be impacted?
• Beyond transportation, what would be the other societal impacts of autonomous vehicles?
Please send submissions (in the form of full papers)
by 15th January 2017 to:
Dossier to be published in No. 104 – 4th Q. 2016
The changing landscape of advertising:
from traditional to digital
Eds: Soichi NAKAJIMA (IDATE, Montpellier, France),
Florence LE BORGNE (IDATE, Montpellier, France)
& David BOUNIE (TELECOM PARISTECH, Paris, France)
Global advertising expenditure is on course to grow 4.6% to $579 billion this year (2016), up from 3.9% growth last year (2015), according to a report by ZenithOptimedia in March 2016, to which IDATE largely agrees. There are several reasons for such optimism, including special events such as the US Presidential election, Olympic Games and the UEFA Football Championships, and expected recovery from markets affected by the financial crisis.
The main driver of advertising looking ahead, however, will undoubtedly come from digital advertising. IDATE forecasts the digital advertising spend worldwide to surpass 125 billion EUR in 2016, to reach 186 billion EUR by 2020, representing a CAGR of 10.3%. By then, it will have overtaken the TV advertising market which should only represent 178.3 billion EUR in 2020, with an average 2.6% annual growth rate.
One of the reasons for this gain in traction of digital advertising is the changing consumer behavior surrounding the Internet. The ubiquity of Internet devices such as smartphones and tablets as well as the traditional PC allows for multi-screen Internet access, helping to increase Internet penetration and is also pushing user behavior from traditional content generation to more user generated contents.
The technologies surrounding digital advertising is also improving, with the implementation of better audience measurement techniques. This, combined with the emergence of programmatic platforms enables advertisers to generate higher ROI (return of investment) for their advertising budget, through better targeted advertising which matches the demographics and interests of the users, making the ads more relevant and engaging. In particular RTB (real time bidding), a real-time, programmatic advertising space auctioning technology, is driving the digital display advertising market. Needless to say, the behemoths of Internet advertising, Google and Facebook, continue to lead the drive.
Then what of the media companies? Simply put, the TV industry is losing out, with the shift of audience from traditional to digital platforms, to the likes of Netflix or even YouTube for those who now prefer to watch user generated contents or new professional formats specifically developed for Internet consumption and/or suited to small screens. But, more broadly, the other media players (radio stations, newspapers and magazines) are all impacted by the migration to online consumption. Even if they can reach a large audience with their web sites, a digital user brings far less money than a user in the traditional world. Advertising revenue per user can be 10 times lower online than for its physical counterpart.
Still, media players can also benefit by shifting more of its resources from traditional to digital platforms. This will be key for them to make sure that they stay in the game. It is worth noting that the increasing video audience is one of the main driving forces of digital advertising, in addition to social platforms and mobile devices which allow for more precise and cost efficient targeting.
Further, a potential major game changer could also be the use of Internet technologies in the TV industry. In particular, the introduction of programmatic advertising on TV could lead to a renewed interest for broadcast.
In this context, the DigiWorld Economic Journal special issue aims to gather articles that show the changing landscape of the advertising market, and how this is impacting the ecosystem from both traditional players’ and new entrants’ perspectives.
The following topics are targeted in particular:
• Can the online technologies improve and ensure effective targeting?
• To what extent will media players benefit from the development of digital advertising?
• What can programmatic technologies bring to both Internet and TV advertising?
• Can the use of the second screen contribute to the improvement of TV advertising?
• What are the potential drivers to the development of more targeted advertising (technical, legal, privacy reasons, etc.)?
• What are the main technological barriers to be overcome to ensure a sound development of online advertising (ad viewability, ad fraud, ad blockers, etc.)?
• How will the current changes impact both traditional and new players within the advertising value chain?
Please send submissions (in the form of full papers)
by 15th October 2016 to:
Submission of papers
All papers submitted for publication will be reviewed by at least two referees/experts using the "double blind" system.
Proposals must be submitted in Word format (.doc) and should not exceed 6,500 words – including the abstract and references.
As far as possible, the publisher recommends that you insert some illustrations (tables, diagrams) in the paper, in order to facilitate the general comprehension.
Please ensure that they are readable in grey scale, and that they are of high-definition, in order to guarantee the printing quality.
Bibliographical references should be included at the end of the article. Should these references appear in the text, please indicate the author's name and the year of publication in brackets.
Our DigiWorld Economic Journal also welcomes submissions for extra papers - off dossier - that typically cover innovative issues in the sector of the telecoms, internet and new media. If your paper is selected by the Editiorial committee, it will be submitted to the double-blind review process.
On the other hand, should you wish to propose a short paper (1500 to 3000 words maximum) for the "Features" rubric, offering factual analyses of recent developments in the fields of regulation and competition, firms and markets, technical innovations, public policies and use logics, please contact us.
Book reviews are also very welcome should they are in connection with our usual thematics.