”Google’s and Nokia’s decision to provide free turn-by-turn navigation applications to users is posing a major competitive challenge to navigation application providers,” said Gerrit Schneemann, analyst for portable navigation and Location Based Services (LBS) at iSuppli.
“These application providers require revenue from the sales of navigation applications to the smart-phone and PND markets. Because of this, these companies now are seeking to enhance the usability of their offerings and to extend them into as many other mobile sectors as possible. Navigation application providers and PND makers believe social networking sites like Facebook and MySpace provide a way accomplish both goals.”
The stakes are high, with worldwide shipments of connected PNDs and GPS-enabled smart phones capable running such applications set to rise to 443.1 million by 2014, up from 141.6 million in 2009, as presented in the figure.
Source: iSuppli, USAGPS smart phones will account for the vast majority of this segment, with shipments rising to 436.6 million units in 2013, according to iSuppli’s Wireless Systems service.
Integrating social networks
More and more navigation applications are being released with integrated social networking functions. Navigon in February announced that the next version of its iPhone application will feature a Twitter and Facebook tie-in, which will allow users to broadcast their location, destination and estimated time of arrival to friends and followers.
A similar feature was announced by Verizon Wireless for its VZ Navigator 5.0 navigation application.
At CES 2010, ALK Technologies announced LiveLink—a feature in the CoPilot Live navigation application that allows CoPilot users to share their locations with friends on Facebook.
Last year, during Nokia World, the Finnish handset maker announced Lifecasting with Ovi, which allows users of enabled handsets to include location information while updating their Facebook status.
Telmap and Intrinsyc, on the other hand, are partnering with LBS provider GyPSii to integrate GyPSii’s OpenExperience Applications Programming Interface (API) to provide customers of the Telmap 5 application and upcoming Destinator versions with location-based social networking features.
On the PND side, Best Buy’s Insignia-branded connected PNDs have been on the market with Twitter integration. In this case, an update is posted to the user’s Twitter account when starting to navigate to a location. Another update is posted when the user arrives.
Using existing networks
The integration of social networking content and functions is beneficial for both application providers and end users as it presents an extension of the usability of the navigation application into other mobile applications.
Application and device providers have been striving to engage their customers beyond the purchase of the application for multiple reasons. Not only does engagement form a closer relationship with the customer, it is also a way to monetize additional services by selling to the existing clientele.
Integrating Facebook, or any other social networking platform, allows users to connect with an already existing network of persons that they actually know and care about. There is no need to become part of a new community; instead, the existing network is carried to a new platform that can be used to create new content.
The important part is that the user brings a social network to the table and is not confronted by a community created by somebody else. This becomes a valuable, personalized feature for each user.
New marketing channel
While users are able to extend to new applications their existing connections, navigation software providers or dedicated device makers can raise awareness of their own applications with the integration of social networks.
By simply having one user integrate content via a social network plug-in, the user’s friends become aware of that particular application. This free marketing can, in return, lead to new customers.
Social networks, on the other hand, welcome this development with open arms because it is a way for them to expand their networks’ usability beyond an online or even mobile application. Since most social networks are still in the process of finding the right business model to monetize their ever-growing user base, increased availability and exposure will only increase the services’ value.
Navigating to social networking success
“The integration of navigation and location content in social networks is the logical next step in a mobile space that continues to move toward mashed-up contextual content, which is highly personalized for each user,” Schneemann said.
“Such integration allows users to easily populate their existing social networks with new location-aware, real-time content, enhances their experience of the social network, and at the same time extends the usability of their navigation application or device.
“Providers also benefit from such integration. Navigation providers are able to show increased usability of their product, while at the same time reaching potential customers without having to invest heavily in advertising or marketing. Similarly, social networks are extending their reach into new realms of the mobile space. The most notable conclusion from this trend, however, is that location is becoming increasingly important not only for traditional LBS but also for other social applications.”
Source: iSuppli, USA
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.