Do you really mean business in LBS?

Transcription

1 Do you really mean business in LBS? Galileo Application Days - Brussels, 3 March 2010 Laurent De Hauwere, Managing Partner

2 PTOLEMUS is named after Ptolemy, the geographer who created the first map of the world 2

3 Our expertise lies at the core of networks, content and devices and moving objects The Mobility Ecosystem Geo-located devices Geolocated devices Localized content & services Content aggregators and suppliers Vertical application providers Content & Devices Networks Wireless connectivity Network operators Telecom vendors Regulators Moving objects Builders of moving objects Builders of moving networks Operators of moving networks Travel / transportation We define a moving object as any individual, vehicle or thing that can move and be equipped with wireless connectivity We define a moving network as any transportation network 3

4 Mobile is becoming located 4

5 and location is becoming mobile 5

6 In 3 years, Apple has conquered 20% of the smarphone market High Android iphone OS Circle size is proportional to number of applications available today on OS' app. store Arrows indicate trend in 2009 LBS capabilities Palm OS Symbia n 5500 Low Window s Mobile LIMO RIM % 20% 30% 40% 50% Evolution of worldwide smartphone market share in Q vs Q Sources: PTOLEMUS, OS owners, Gartner

7 Why has Steve Jobs succeeded In our view, he has learned the lessons of the Apple Macintosh defeat against Microsoft Creating an ecosystem is stronger than creating an environment however excellent it is With the iphone, he has actually built an environment and an ecosystem

8 Why the iphone LBS revolution has taken place Location completely integrated in iphone's API and user interface Extremely easy implementation for developers Strong level of acceptance by end- users Positioning data free from Google No variable usage costs for application developers Map provided for free by Google No fixed costs for developers, encouraging the launch of free LBS applications Availability of Skyhook hybrid location data High level of accuracy, notably in cities where 90% of usage takes place Very fast fix, essential for mobile use

9 Apple has kept improving its location technology

10 As a result, location-based applications now represent to 6% of all apps Source: Skyhook, January 2010

11 The LBS industry is growing fast Market for consumer LBS (Euros in millions) LBS has gone beyond the hype and disillusionment phase Source: Gartner 11

12 The LBS industry is not yet mature Cash flows can be very high and then turn negative The difference between a premium product and a commoditized product is often... 6 months, sometimes 1 year Central to these business model changes will be the facts that location is becoming connected and connectivity is becoming mobile The impact of Google's announcement of free navigation on Android TomTom: -33% or 780 million lost Garmin: -21% or 1.1 billion lost Oct. 12th: Leaks in certain Droid documents Oct. 28th: official announcement 12

13 It took a year for competitors to copy TomTom's connected PND model LIVE

14 Behind cash flow lies value i.e. benefits The 7 benefits of location 14 Know where I Positioning need to go Know what's is a big ingredient Positioning is a small ingredient Simplified user experience around me Know where I am Let others know where I am Know where Positioning others are Know where is the service things are

15 Why location-specialized players are not always the best placed to generate money from location Location is like communication, network effects are essential - If you are the only one to have a fax machine, it is not very useful - If you are the only one who can report / check your location, it is not very useful Partnering is essential "Location" is not a USP! Probably the opposite! - People will fly away from applications that are mainly about revealing their location Integration is essential - People accept or will accept to be located for a clearly identified and justified purpose USP: Unique Selling Point

16 23 ways to monetize LBS on mobile Through end-users (1/2) Free promotion period: Coyote Free to sell something else: Nokia Free empty: Tie-a- Tie Paid-for: Navigon Shopping-mall: Molinker Upsell later: NAVX 16

17 23 ways to monetize LBS on mobile Through end-users (2/2) Subscription-based: based: amaze Time-based freemium: Financial Times Level-based freemium: itraffic All-included with time- bomb: TomTom LIVE Feature-based freemium: RunKeeper Download-based freemium: :? 17

18 23 ways to monetize LBS on mobile Through users' company / organization or other third parties (1/2) Sell raw data to 3rd parties: Ringful Users as probes to reduce own data costs: Inrix Use data to sell another product: TomTom IQ Routes Voucher code for another product Provide discount based on number of users Sell statistics to 3rd parties: Medscape Offer free mobile application with other paid-for products 18

19 23 ways to monetize LBS on mobile Through users' company / organization or other third parties (2/2) 2) Sponsored local search: Pages Jaunes Banner advertising: TweakerSoft Licensing content: Navteq SMS target advertising Space rental on platform: Layar 19

20 Progress towards the connected car is a unique opportunity for the location industry The LBS industry can take benefit from its relative small size 2013 estimated revenues for selected telematics markets (Europe, in millions) The location industry is not mature and still very small compared to adjacent sectors such as the car industry or the insurance industry We believe that the connected car vision is about to become a reality PND vendors can address new multi-billion market opportunities -Embedded in-car navigation -Roadside assistance -Fleet / asset tracking -Car insurance (PAYD) They can leverage their strong agility, brand names, hardware and software development capabilities and existing connected platforms Non connected Portable navigation Connected Overall, EU connected telematics market will represent approx. 25 billion in years Embedded navigation Fleet & tracking Roadside assistance Car Insurance Road charging e Call Source: PTOLEMUS 20

21 Eat or be eaten... Maps Content SW Platform Device Telco End user Traffic Other 21

22 5 pillars of Location-Based Services in 2010 Connectivity Not only positioning Partnership Rich & Relevant Content Business Model 22