Evolution of Capabilities and Business Models
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Evolution of Capabilities and Business Models for Dynamic Local Content Nick Hopkins VP, Product Management Traffic.com, a NAVTEQ Company [email protected] Introduction.

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Introduction

Evolution of Capabilities and Business ModelsforDynamic Local ContentNick HopkinsVP, Product ManagementTraffic.com, a NAVTEQ [email protected]


Introduction

Introduction

  • NAVTEQ is a leading provider of comprehensive digital map information for automotive navigation systems, mobile navigation devices, Internet-based mapping applications, and government and business solutions.

    • NAVTEQ maps achieve over 90,000,000 touch points every day.

  • NAVTEQ creates the digital maps and map content that power navigation and location-based services solutions around the world.

  • NAVTEQ is a Chicago-based company founded in 1985 with approximately 2,200 employees located in 144 offices in 27 countries.

  • 650 traffic-dedicated employees with 26 traffic operations centers across the U.S.

  • NAVTEQ is the only provider of one stop, end-to-end traffic solutions to customers and commuters.


The static location data market

The Static Location Data Market

The Static World: Learning From The Past

  • Prevalent business models for static data in mobile systems have been fee-based (either transaction or subscription fees)

  • Price held back mobile consumer adoption

    • High cost associated with creating and distributing high-quality local data (most notably, mapping data)

  • Increased competition and advances in technology

    • Prices came down

    • Ushered in the rapid rise of navigation units

  • Response to consumer fee fatigue driving development of new successful models for dynamic content


Emerging forces of change

Emerging Forces of Change

The Dynamic Content Evolution

Consumer Demand

Communications

Devices

Mobile Advertising


Consumer demand

Consumer Demand

The Real World: Learning From The Present

  • Consumers increasingly can access, and are beginning to expect, free integrated local content

  • MapQuest, Google, Yahoo!, and Microsoft

    • Only the strong will survive!

    • A life and death game of leapfrog

  • Expectations quickly become demands

  • If it’s free on the Web, it’s almost impossible to charge for it on mobile


Communications

Communications

The Connected World: A Glimpse Of The Future

  • Cost effective delivery of dynamic content to devices has been dominated by RDS--until recently

  • Satellite Radio, HD Radio, MSN Direct, and 3G Cellular introducing new levels of both capability and competition

  • This has three effects:

    • Decrease in cost of dynamic content delivery

    • Increase in capacity for richer and more engaging content

    • Increase in value of mobile channels, especially cellular, as ultimate local advertising platform


Devices

Devices

The Connected World: A Glimpse Of The Future

  • Devices will continue to evolve

  • High resolution color displays, multimedia capability, and powerful processing are becoming standard

  • Easier content integration with richer and engaging user interfaces

  • Openwave and ZenZui are redefining the mobile user interface


Mobile advertising

Mobile Advertising

The Commercial World: Business Models For The Future

  • The evolution of communications and devices has spawned increased mobile advertising acceptance

  • Consumers are now widely acknowledged as accepting of advertising in exchange for valuable free content

  • Wireless carriers, formerly the biggest barrier to mobile advertising models, are jumping into the space

  • Advertiser demand for this new channel is moving beyond experimentation into become the next standard component of any campaign


The first mile down the road

The First Mile Down the Road

  • Taking the first steps down this path

  • Evolving the model across many fronts

  • How or when will this evolution will take hold? It is clear that it will happen

  • Eyes are on the road with a keen focus on:

    • Enhancing dynamic local content

    • Innovating technology

    • Expanding delivery channels

    • Evolving business models.


Where will the road lead

Where Will The Road Lead?

  • The marriage of dynamic local content and advertising is a near-perfect one

  • The ad model itself, by removing the price barrier to adoption, creates reach

  • Dynamic content increases ad value by encouraging frequent use and continuous engagement

  • Location increases ad value by getting the advertiser’s message to the consumer at the right time and place to maximize the likelihood of response

  • Survival depends on achieving the delicate balance between unobtrusiveness and effectiveness


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