Mobile Navigation Driven By Ads

    September 18, 2007

U.S. and European mobile subscribers who use maps on their handsets will total more than 43 million in 2012, according to Berg Insight.

That is an increase from four million in 2007 and equals a 60 percent compound annual growth rate.

"Record shipments of personal navigation devices in Europe and the US have introduced the benefits of GPS for motorists," said Andr Malm, a telecoms analyst at Berg Insight.

"Now the major players in the mobile industry are in hot pursuit of delivering the same experience for pedestrians, commuters and travelers on the handset display," he said.

Revenue from mapping subscriptions and advertisements is projected to reach $625 million by 2012 from 96 million in 2007, a compound annual growth rate of 39 percent.

Mr. Malm said that ad-supported mapping services will be required to stay competitive.

"Maps are already available free of charge from a host of sources on the Internet," he said. "Soon navigation will reach that stage, too, pulling away the very foundation for premium-rate mobile propositions."