1. Evolution of Capabilities and Business Models for Dynamic Local Content Nick Hopkins VP, Product Management Traffic.com, a NAVTEQ Company nhopkins@traffic.com

2. 2Introduction  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.

3. 3 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

4. 4 Emerging Forces of Change The Dynamic Content Evolution Consumer Demand Communications Devices Mobile Advertising

5. 5 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

6. 6Communications 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

7. 7Devices 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

8. 8 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

9. 9 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.

10. 10 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