The Future = Location Presentation

8/2/2019 The Future = Location Presentation

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George Filley

VP and General Manager

Internet/Wireless Group

May 2008


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Mobile Information Revolution

In December 2007, Nielsen mobile reported over 20 million unique users ofmobile mapping, local search, and social networking applications.

LocallyRelevant Dynamic

Deeper andRicher

CommunityGenerated

LOCATION


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Application Categories - Share of Downloads / Revenue

0% 10% 20% 30% 40% 50% 60% 70%

Location Based Services

Chat/Community

Personal Organizer/Tools

Music

Sports

Weather

Wallpaper/Pictures

Maps/Directions

Entertainment

Storefront/Shopping

Share of Downloads Revenue Share

Location Based Services App is themost popular download category in

Q1 2008 with 43% of all downloadsto mobile phones and 62% of totalrevenue

The LBS application share has beengrowing. Q1 2007 LBS accountedfor 21% of downloads and 31% ofrevenue.

Consumer Reception To LBS

Source: Nielsen Mobile Applications Report Q1 2008

No GPS

GPS

Share of Downloads: The total number of Applications downloaded for each Title,

Category or Type expressed as a pe rcentage of All Applications Downloadedduring the reporting period.

Share of Revenue: The total revenue from application download for each Title,Category, Type or Carrier expressed as a pe rcentage to all revenue from all

Application downloads.

US Mobile Subscriber universe includes post-paid, non-corporate liable subscriber

from the top 4wireless p roviders (Cingular, Sprint Nextel, T-Mobile, Verizon)


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Evolution of Mobile LBS From A User Perspective

Near Future

-2 years

Now

Turn by turnnavigation


Local search withlocation

Vertically EnabledLBS

HardwareValueHigh

Services Pricing Availability

Premiumprices

Limited to decks of 2Carriers


Local search withlocation

Basic map viewerLBS

Falling prices fornavigation

Selectedsubsidized services

5 Top Carriers ondeck

Off-deck emerging

Ubiquitous Pay to use

Subsidized services

ContentValue

High


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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 dont really want to pay

Consumer experiences/education with content on the Internet hastrained them that they dont have to pay full boat for content /services


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The Hybrid Business ModelMaybe

Willing ToPay

Willing To

Pay IfConvinced

of Value

ExpectService To

Be Free

DifficultVery

DifficultExtremelyDifficult

SearchDirectory

Navigation

Games

Tracking(Enterprise)

Tracking(Consumer)

SocialNetworkingU

serWillingnessToPay

Complexity

Subsidization Breakpoint


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Consumer Receptivity to Location Ads

Source: Arbitron National In-Car Study 2003; and NAVTEQ and IPSOS Understanding UnLtd. 2007

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 decisionsand ideal venue for delivery of advertising


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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 voiceinteractivity will eliminate the need forbanner ads

WAP advertising growing rapidly and 5:1more 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

Horizontal(Point to Point)

Vertical(Context)

I Am Here, What is Where?

Better Here to There

Traffic

JunctionViews

3D CityModels

Mass Transit Lines

Pedestrian Paths

Neighborhood Boundaries

Speed Zones

Travel Guides

Fuel Prices

Parking Availability

Events

Weather

vertical enabler = new

usage of new service

horizontal enabler =

more usage of current

service
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NAVTEQ Role In Supporting Developers

2006: Created NAVTEQNetwork for DevelopersEcosystem

2003: Launched LBSChallenge for Developersin North America

2006: Launched LBSChallenge for Developersin Europe

2008: Launched LBSChallenge for Developers

in Asia

2007: Executed !stConnections ConferenceFor Developers in NorthAmerica and Europe

2003 2004 2005 2006 2007 2008
http://developer.navteq.com/site/global/home/p_home.jsp


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Free sample data including

beta versions on new content

Developer guides, webinars,whitepapers, proprietaryresearch

Forums, newsletters, blogs

One-on-one technical

assistance available

NN4D: Best In Class Technical Support

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 enabledevelopers in the creation of unique / differentiated solutions.

Stay tuned for expanded support capabilities in 2008.

www.navteq.com/developer

The Future = Location Presentation

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