Group 1 - The core issue of in-car advertising has led to a significant increase in consumer complaints, with a 210% year-on-year rise in complaints in 2024, making it the second-largest consumer rights concern after battery safety [1] - Consumers are primarily concerned about driving safety and the perceived infringement of personal ownership and privacy rights due to in-car advertisements [1] - Car manufacturers are motivated to push in-car ads to reach potential buyers and explore new revenue streams through software services amid intense market competition [1] Group 2 - In-car systems have unique advantages over mobile ads, as they can gather rich contextual data, which allows for targeted advertising based on vehicle status, such as maintenance needs or low battery levels [2] - The market penetration rate of smart connected vehicles in China is expected to exceed 80% by 2026, yet the software revenue for most domestic car manufacturers remains low, at only 1% to 3% [2] - Companies like Tesla and Li Auto have made progress in monetizing in-car systems, with Li Auto's "Task Master" feature allowing users to earn points by watching ads, achieving a participation rate of 34% [2] Group 3 - The optimal model for in-car commercialization should be seamless, where users do not perceive the commercialization, indicating a need for innovation in service and revenue generation [3] - Car manufacturers face new challenges in balancing service convenience for users with their own revenue generation, exploring alternatives to advertising for income [3] - As the penetration of smart vehicles increases, the establishment of regulations and standards for in-car advertising is urgent, with the EU already working on regulations that require user consent for ads [3]

Core Insights - The "advertising incident" involving Deep Blue Automotive has sparked significant discussion within the automotive industry regarding the potential of software services as a new revenue source amid declining hardware profits [2] - The event highlights the anxiety faced by automakers during their business model transformation, particularly as the market penetration rate of smart connected vehicles in China is expected to exceed 80% next year [2] - The challenge lies in effectively monetizing in-car systems while ensuring a positive user experience [2] Advertising Monetization - In-car advertising is supported by a robust commercial logic, as the central control screen of smart vehicles serves as a focal point for user attention, similar to smartphones [3] - Chinese car owners spend an average of 87 minutes in their vehicles daily, creating significant commercial value through attention economics [3] - Deep Blue Automotive's CEO stated that targeted advertising based on user behavior can enhance marketing efficiency, as internal statistics show that about 50% of target users missed promotional offers [3] User Experience Challenges - There is a delicate balance between advertising methods and user experience, as intrusive ads can provoke negative reactions from users [4] - A survey indicated that 68% of respondents accept passive advertising formats that do not interfere with driving, while 92% oppose ads during navigation [4] - The industry faces a common challenge in balancing data utilization for targeted advertising with privacy protection [4] Software Commercialization Disparities - The automotive industry's software commercialization shows a stark divide, with pioneers like Tesla achieving significant results, while most domestic automakers see software revenue at only 1% to 3% [5] - Subscription models are becoming mainstream among high-end brands, but they require strong brand premium capabilities [5] - Advertising revenue sharing is another explored avenue, with companies like Li Auto implementing light ad placements that yield limited revenue [5] User Demographics and Preferences - Different user demographics exhibit varying tolerances for in-car advertising, with younger users (ages 25-35) showing higher acceptance but demanding higher quality ads [6] - This shift in user mindset indicates that in-car advertising must evolve to be more refined and intelligent [6] Creating a Sustainable Ecosystem - The exploration of in-car profitability models must focus on creating user-recognized value, as highlighted by Mercedes-Benz's CTO [7] - Intelligent service scenarios, such as offering car wash appointments during bad weather, can blur the lines between advertising and service, increasing user acceptance [7] - Building an open ecosystem is crucial for expanding revenue bases, as individual automakers have limited user scales [8] Regulatory and Standardization Needs - The establishment of industry standards for in-car advertising is becoming urgent, especially as more vehicles become connected [8] - The EU is already working on regulations requiring explicit user consent for in-car ads and providing easy opt-out options [8] Future Outlook - The transition from "functional vehicles" to "smart vehicles" necessitates trial and error in business model exploration, similar to the internet industry's evolution from free to paid services [9] - Successful business models must be built on user value, with the potential for suitable profitability models emerging in the next 3-5 years as technology matures and user habits evolve [9] - The Deep Blue Automotive incident should be viewed as a starting point for industry reflection and progress, emphasizing the importance of maintaining the core value of providing safe and comfortable mobility experiences [9]