Transcript Document

George Filley
VP and General Manager
Internet/Wireless Group
May 2008
Mobile Information Revolution

In December 2007, Nielsen mobile reported over 20 million unique users of
mobile mapping, local search, and social networking applications.
Locally
Relevant
Dynamic
LOCATION
Community
Generated
Deeper and
Richer
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Consumer Reception To LBS
Application Categories - Share of Downloads / Revenue

Storefront/Shopping
Entertainment
Maps/Directions
No GPS

Wallpaper/Pictures
Weather
Location Based Services App is the
most popular download category in
Q1 2008 with 43% of all downloads
to mobile phones and 62% of total
revenue
The LBS application share has been
growing. Q1 2007 LBS accounted
for 21% of downloads and 31% of
revenue.
Sports
Music
Personal Organizer/Tools
Share of Downloads: The total number of Applications downloaded for each Title,
Category or Type expressed as a percentage of All Applications Downloaded
during the reporting period.
Share of Revenue: The total revenue from application download for each Title,
Category, Type or Carrier expressed as a percentage to all revenue from all
Application downloads.
Chat/Community
Location Based Services
GPS
0%
10%
20%
30%
Share of Downloads
40%
50%
60%
70%
US Mobile Subscriber universe includes post-paid, non-corporate liable subscriber
from the top 4wireless providers (Cingular, Sprint Nextel, T-Mobile, Verizon)
Revenue Share
Source: Nielsen Mobile Applications Report Q1 2008
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Evolution of Mobile LBS From A User Perspective
Hardware
Value
High
Services

Turn by turn
navigation

Turn by turn
navigation
Local search with
location
Basic map viewer
LBS

Turn by turn
navigation
Local search with
location
Vertically Enabled
LBS

-2 years
Now



Near Future


Content
Value
High
Pricing



Premium
prices
Availability

Limited to decks of 2
Carriers
Falling prices for
navigation
Selected
subsidized services


5 Top Carriers on
deck
Off-deck emerging
Pay to use
Subsidized services

Ubiquitous
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The Scope Of LBS Services
Mobile Resource
Management
Asset/ Salesforce
Tracking
Show Location on Map and
Track Movement in Real Time
Fleet Management
Entertainment
Information
Services
Personal
Security
Find A Friend
Navigation
Track My
Movement
Locate Another Person Within a PreDefined Geographic Area (opt-in)
Location Based
Games
Social Networking
Turn by Turn Driving/ walking
Instructions
Traffic/Weather
Alerts
Traffic/weather reports delivered on
demand or automatically
POI Look-up
Points of interest located based on
location
Enterprise
Text Messaging
Location Based
Advertising
Location is key for application to function
Location is an enhancement to the application
Show Location on Map and
Track Movement in Real Time
Locate My
Child
Show Location of My Child (no
opt out)
Emergency/
Roadside
Assistance
Emergency/ Roadside
assistance dispatched based
on location of wireless voice
call
Location Based
Commerce
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End User Expectations for Mobile LBS




“I want to be able to access it from anywhere”
“I want the information to be delivered to me in real time”
“I want to be able to share the information with my friends at my
discretion”
“I don’t really want to pay”
Consumer experiences/education with content on the Internet has
trained them that they don’t have to pay full boat for content /services
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The Hybrid Business Model…Maybe
Tracking
(Enterprise)
User Willingness To Pay
Willing To
Pay
Games
Tracking
(Consumer)
Navigation
Willing To
Pay If
Convinced
of Value
Subsidization Breakpoint
Search
Directory
Social
Networking
Expect
Service To
Be Free
Difficult
Very
Difficult
Extremely
Difficult
Complexity
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Consumer Receptivity to Location Ads

NAVTEQ research shows:
− Consumers are overwhelmingly willing to accept ads in exchange for valued content
and applications
− Ads are not typically recognized as advertising when embedded within the results page

Arbitron research finds that the drive home is a key venue for impulse purchase decisions
and ideal venue for delivery of advertising
Source: Arbitron National In-Car Study – 2003; and NAVTEQ and IPSOS Understanding UnLtd. 2007
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Emergence of Mobile Subsidization Trend

Connectivity costs are dropping

Device capabilities are increasing
− Processing and displays enable rich
(higher value) advertising
− Audio, touch screens and voice
interactivity will eliminate the need for
“banner” ads

WAP advertising growing rapidly and 5:1
more valuable per impression than online

Mobile advertising on WAP and some on games

Strong advertiser demand for new and innovative advertising forms
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Innovation Around Location
Junction
Views
3D City
Models
Traffic
Better Here to There
Horizontal
(Point to Point)
Weather
horizontal enabler =
more usage of current
service
Speed Zones
Mass Transit Lines
Neighborhood Boundaries
Pedestrian Paths
Vertical
(Context)
I Am Here, What is Where?
Fuel Prices
Parking Availability
Travel Guides
Events
vertical enabler = new
usage of new service
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NAVTEQ Role In Supporting Developers
2008: Launched LBS
Challenge for Developers
in Asia
2006: Created NAVTEQ
Network for Developers
Ecosystem
2003: Launched LBS
Challenge for Developers
in North America
2003
2004
2005
2006
2007
2008
2006: Launched LBS
Challenge for Developers
in Europe
2007: Executed !st
Connections Conference
For Developers in North
America and Europe
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NN4D: Best In Class Technical Support
• Free sample data including
beta versions on new content
• Developer guides, webinars,
whitepapers, proprietary
research
• Forums, newsletters, blogs
• One-on-one technical
assistance available
http://www.navteq.com/developer
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The End Game

Its all about location and business model flexibility.

NAVTEQ will continue to innovate around new content to enable
developers in the creation of unique / differentiated solutions.

Stay tuned for expanded support capabilities in 2008.
www.navteq.com/developer
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