TeleNav 2015 Annual Report Download - page 10

Table of Contents
are on the go. The convergence of better mobile devices and faster connectivity has enabled developers to create, and consumers to interact with,
content that is instantly delivered to mobile devices.
Mobile advertising provides advertisers with a number of benefits over traditional advertising media and PC-
based online advertising, such
as anytime, anywhere access, personalization, location targeting and relevance. The development of the mobile advertising ecosystem has
mirrored the development for online PC-based advertising. However, a key differentiator of mobile advertising is the ability to identify the
location of the user. Location is a powerful indicator of an individual's interests and likely actions. Therefore, advertising delivered to mobile
devices has the potential to increase the impact and relevance of an ad to the user. With mobile advertising, an ad can be targeted to a consumer
who is in close proximity to a specific location, such as a retail store, or to a consumer who may live in an area that advertisers wish to target
based on demographics or other characteristics. Given the benefits of mobile advertising as compared to traditional offline advertising and PC-
based online advertising, we expect and market studies indicate that marketers will continue to shift their advertising budgets to mobile.
Industry challenges
The mobile advertising marketplace is a dynamic, fast growing industry with many new participants. Advertisers are transitioning
significant portions of their marketing budgets to the mobile marketplace where many of the traditional approaches to engaging customers are
different and the means to reach their customers presents new challenges. These advertisers need to be able to conduct ad campaigns that achieve
favorable return on investment, or ROI. ROI typically includes elements related to message reach, audience targeting capabilities and campaign
effectiveness measurements. The mobile advertising marketplace is comprised of application developers, advertising networks, mobile agencies,
advertising exchanges and demand-side platforms, among others. This environment is becoming nearly exclusively “programmatic,” meaning
that advertisers are buying impressions across exchanges in real time based on their desired audience. The various market participants tend to
focus on specific elements of the marketplace and each try to deliver unique technology offerings to assist advertisers. Some focus on targeting,
others audience data and still others, including Thinknear, on the location information that makes the mobile marketplace distinct from all other
advertising opportunities. Tracking the performance of ads in applications and user interactions with those ads is difficult and requires significant
technological capabilities and know-how.
Our competitive strengths
Our mobile advertising solution combines the large and growing pool of mobile impressions marked with location information, a unique
ability to focus on particular audiences, and dynamic user content customizable based on location.
We have developed a number of techniques that allow us to differentiate between ad impressions that include highly-accurate location data
and those that are inaccurate. Our proprietary Location Score Index measures the accuracy of location information within advertising
impressions and the most recent index showed that only 37% of impressions were highly accurate. Our ability to effectively filter out inaccurate
data is a key competitive advantage in the rapidly shifting mobile advertising space.
Because of our ability to identify real-time and historical location data, as well as our ability to ingest contextual targeting data, we can
focus our ads on specified demographics and advertiser defined customer segments. For example, an ad delivered in a geographic area where it
happens to be raining can provide a rain-related message. An ad for sunblock can be limited to areas with a high level of sunlight and ultraviolet
radiation. In addition, it is our ability to do this at significant scale that allows advertisers to reach their target audience.
Our services and products
Our advertising services are built around the ability to provide sophisticated location-based advertising in a manner that allows advertisers
to connect with consumers on mobile devices. For example:
Creatives - We run a wide range of creatives, including static, dynamic and rich media content. Our creative allows national advertisers to
easily “localize” their content without having to create thousands of individual campaigns. Our creative focuses on leveraging location data to
incorporate local context such as distance to a store location, information on where to purchase a product or nearby events that could impact the
potential consumer.
Targeting - We offer a variety of targeting tools to our advertising clients to improve the performance of the campaigns. Our targeting
includes both audience-focused tools centered on reaching specific customer segments and proximity based tools focused on driving foot traffic
to retail locations and other direct-response related metrics.
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