The End of Free Maps
Well, folks, I hate to throw cold water on everyone’s party where street maps and satellite imagery are free through Google Maps, MSN Virtual Earth, etc. but I fear a backlash some day. Nothing is free, really. The current explosion of mapping applications through search engine stalwarts like Google, et. al. gives me pause. The street data from NAVTEQ and Tele Atlas wasn’t acquired at no cost; the satellite data from DigitalGlobe’s satellites and others wasn’t free; the mapping servers by Telcontar were not given to the search guys free of charge, and those nifty Pictometry visuals of buildings takes more than just someone with an Instamatic.
Now, we are led to believe that advertising will pay for all of this wonderful free stuff and it might, for a while. But eventually there must be some return to reality and the thought goes that advertising goes in cycles. Right now, internet advertising is increasingly taking away dollars from print publications (no problem here, especially from this publisher).
Today, the Wall Street Journal reports that AOL is switching some of its "paid" services to its "free" site in hopes of bolstering revenue through additional advertising. The article suggests that AOL will cannibalize some of its own revenue because members may feel like they can get most of their services for free now, such as email, news, etc.
Eventually, the chicken does come home to roost and I wonder just how long the gravy train will continue, if I can mix metaphors for a bit. Geospatial data such as street centerlines are expensive to acquire and maintain. If you buy an in-vehicle navigation system, you’ll pay $2000 or more. Want to buy a Garmin GPS for your car instead; it’s still $1000 or more. Go to Google to get a map…it’s free. Uh, wait a minute…it’s the same data. Am I just paying for the fact that no ads accompany the in-vehicle navigation system? Maybe, but sooner or later somebody is going to pay to get good data. Maybe that in-vehicle system will be free too because you’ll have to look at ads from Hilton or Marriott. Don’t laugh..it could happen…and soon.
But there is no bottomless pit for advertising spending. At the first sign of another economic downturn, the first thing to get cut is advertising dollars. Let’s see just how long "free" lasts then. It may be a "nickel a click" to get that map next time around.
