The Mobile Location

Awareness
Opportunity

April 23, 2
007
 Background
Zoombak: consumer oriented location awareness
products and services

True Position: a leading wireless location solutions

provider for carriers

Not currently an advertising or media company.

 Goal

1. Introduction to Location Awareness

2. Food for thought on why advertisers and
marketers should care and pay attention
to what’s going on
 LBS and Location Awareness

Mobile Location Awareness: Mobile devices or systems

that through use of some technology know the bearers
current location
Location Based Services: services provided as the result
of having location awareness to users capable devices
and systems
 Where is GPS Now?
Category Leading Players Latest Stats Navigation or
Tracking
Ready
Garmin 7.6M* sold in U.S. in 2007 100%

TomTom 9.5M* sold in U.S. in 2007 100%

Vehicle ~7-10% new car take rate 100%

Manufacturers Available in ~70% of
vehicles sold*
In ~3% of all U.S. cars
ATT (GSM) 70 Million (subs) Small but
growing fast,
T Mobile (GSM) 28.7 Million (subs) 300% CAGR*
Verizon (CDMA) 65.7 Million (subs) Nearly all with
GPS, but not all
Sprint (CDMA) 53.8 Million (subs) app enabled

*Sources: ABI Research, Navteq, Garmin, TomTom SEC filings

 Growth in Location Awareness

WW GPS in Handsets WW LBS Subscribers

Million Million
300 300
600 560
250
500
26% CAGR
400 200

300 150

175 100
200

100 50 43.2
16
0 0
2007 2012 2007 2008 2011

Berg Insights, January 2008 Gartner: Feb 2008

 Catalysts For Growth
The promise of ubiquitous and useable location
awareness has been talked about a lot before,
some reasons it may actual arrive this time:
– E911 (US and elsewhere)
– 3G data networks
– Handsets shipping with GPS
– PND sales and move toward the connected PND
– Ubiquitous coverage through GPS alternatives
 Catalysts For Growth

Indoor Reach Triangulate

• Consumers expect position from
‘location’ to work anywhere TV Broadcast
and everywhere the device Signal
or system works
Triangulate
• GPS does not work well
position from
indoors or in dense urban
areas, new companies are Wi-Fi Signals
arriving to fill this need.
• In January 2008 Apple Triangulate
announced it would be position from
using SkyHook in the proprietary
iPhone transmissions
 Catalysts For Growth
Location Brokering • In the past year we’ve seen big
investments in mobile and LBS
related initiatives from a wide variety
Open handset alliance
of leading players
• FCC spectrum auction could act as
further catalyst
Investment in the
networked car

NuviFone

$8B investment in
LBS

“Core Location” in
iPhone SDK
 Advertisers

Q. Why is all of this

important to me as an
advertiser?
A. Because (most) people
don’t live their lives
behind a computer
monitor. And as great as
many digital advertising
capabilities are, they are
limited in this respect
 Davos January 2008
“The arrival of a truly mobile Web, offering a
new generation of location-based
advertising, is set to unleash a ‘huge
revolution’.”

“It's the recreation of the Internet, it's the

recreation of the PC (personal computer)
story and it is before us -- and it is very
likely it will happen in the next year”
Eric Schmidt, CEO Google
 Geospatial Advertising
Why limit all the capabilities of digital
advertising to the world of web servers?
 Advertising
Location awareness can move many digital
advertising practices to the next level:
• Targeting
• Measuring ROI
• Search
 Ad Targeting
The importance of a hyper targeted ads, and the
degree of match or correlation between the
advertisers product and the reason the ad
impression was generated cannot be
underestimated
More information, and targeting from that
information, without question, results in higher
value
– According to Revenue Science behavioral targeting
rates are 15x higher than non BT ads
 Ad Targeting
Annualized Ad Revenue Per Average Monthly Unique
Source: Morgan Stanley, Nothing but Net Report

Search – Market Share

1.7% 9.1% 17% 68.1%

n er
r le
a ce W
a
s oft D oo oo
g
ySp m e net icr
o
ebM Yah 8 G
i C
2 M .62 T .42
M 7W .6 5 2.2
. 3 2 3 .25 .4 $8 $1
$ 1 $ 1 $ $ $5

Display ads endemic/niche-ness

As degree of match between the advertisers product and the reason the
ad impression was generated increases, so does revenue per user
 Interest=
Behavioral
Targeting
Location
awareness = new
powerful targeting
options

Delivery based on
where you are now
or where you’ve
been.
Interests=live football
ROI
Cost Per…
Location StoreVisit=no
awareness = new
return on
investment metrics

Advertisers only
pay when real in
store foot traffic is
generated

StoreVisit=Yes
PageRank=
PlaceRank
“Links” are
occurring everyday
as people with
location aware
devices “vote” with
their feet as they
visit or chose not
to visit places
 Privacy

“Internet users have consistently

demonstrated a willingness to trade
information for features they find useful.
So long as sites do not overreach, we
expect this trend to continue, with
yesterday’s outrage becoming tomorrow’s
hot feature.”
- JP Morgan Nothing But Net 2008 Update
Questions