Free Off-Board Navigation: Going Direct to Consumers with Advertising-funded Nav

LocatioNet, an Israeli-based company, has adopted a business model that offers "free" off-board navigation. It is an advertising-funded model that has complete voice-guided navigation. I spoke with CEO Ofer Tziperman for a brief overview of the company’s "amAze" solution and indeed came away "amazed." Of course, navigation is not in itself that exciting anymore but I was impressed at the integration of the satellite data that is available for major cities. The user experience is much richer than I expected…similar to what you might have experienced when you first saw Google StreetView. I think you will find you are better oriented, but then, I’ve used remotely-sensed data for so many years that I’m biased.

LocatioNet says they now have a critical mass of users in several countries and Tziperman believes the time has finally arrived for both consumers and carriers to accept the ad-funded model. More announcements will be forthcoming at CTIA in early April.

What’s most intriguing about this model is Tziperman’s concept that LocatioNet can "white-label" the solution such that any company can offer the service and control the ad dollars. For example, if a major retailer like Wal-Mart, Best Buy, Macy’s or IKEA wanted to offer they own navigation service, they then become the conduit through which suppliers promote their products. Electronics manufactuers and clotheirs can buy ad space, as illustrated by the graphic (above right) and for the service provider it becomes a revenue generator and not just a marketing expense. And for the service provider, LocatioNet does all the heavy navigation lifting on the backend and maintains only one set of street, POI, and image data for their clients on their servers.