Maps are only growing in importance as they become the primary portal on mobile phones for a growing list of information and services. As Apple showed us last year, it's critical to own maps - and to do maps well, particularly as a growing percentage of time is spent discovering, accessing, and engaging content within maps. With that said, it's not immediately clear to me what justifies a $1B+ (reported) price tag for Google’s acquisition of Waze, but I'll assume they did great due diligence or offered a high price to get a deal done.
For instance, many companies do acquisitions for audience, but Google's audience - even just on Android or Google Maps is substantial. Waze's website says 30M users; other sources say 50M. Apparently, engagement among users is high ... but is it well distributed? Are there enough active users in each market for the same excellent experience?
However, Waze does add new features that Google Maps doesn't already have e.g., the ability of users to report traffic issues, police cameras, broken down vehicles - you name it. Layering user-generated content into maps in real time in a way that makes sense and is useful to everyone at that place at that moment is not typical. Mobile needs to be highly contextual in ways people are beginning to understand, but are really struggling to implement well. It also increases speed to market if Google/Android team were otherwise developing this on their own.
With maps integrated into every retail, travel, banking, insurance, (ok go down the list) app on your phone, I don’t think any company can have too much map technology, or too many engineers/developers for maps and navigation technology.
At Google I/O, the company managed to impress on a lot of fronts, enough that its stock began to climb as investors realized that Google is keeping up with — and in some cases, staying in front of — its digital platform competitors Apple, Facebook, and Microsoft. The new developer tools and resources announced will certainly lead to better apps, be developed more quickly, and be capable of generating more revenue. And consumer experiences in mobile, Google Maps, and the browser are about to get significantly more useful and elegant.
But one announcement debuted at I/O that doesn’t move the needle for Google — at least not as much as it could have — is the Google Play Music All Access pass. Despite the convoluted moniker, the service is straightforward: Pay $9.99 a month (in the US for now, more countries to come), and you’ll have unlimited access to a cloud-based music library with intuitive features that allow elegant discovery, consumption, and sharing of music.
If it sounds familiar, it’s because it is. The service can’t differentiate on its music library because the best it can do is license the same library that Spotify and Rdio already offer. All Access also creates playlists for you based on your music tastes as expressed by you directly or learned from your listening patterns and friends. That should also sound familiar because the same value is contained to various degrees in Pandora, iTunes, and Amazon Cloud Player.
Bottom line: Despite working really hard, the best that Google can do in music is to catch up to everybody else in the field. And that’s precisely what the company has done.
Unlike Ovi a couple of years ago, this brand will speak for itself. This is all about interaction with places around you, about context. Thanks to a best-of-breed product experience, Nokia is well positioned to deliver the most differentiated location experience.
During “Mapplegate” at the launch of iOS 6, my colleague Ted Schadler explained why it was a strategic imperative for Apple to do its own maps. However, at that time, most consumers and observers were comparing only Apple and Google Maps. The harsh reality was that Nokia couldn’t leverage its strength in the location-based space without an umbrella brand like “here.”
Make no mistake: This is not “HERE by Nokia” or any other form of sub-brand. This is an independent brand. Why? Because the opportunity is bigger than just Nokia.
This is about addressing different types of connected devices — not just mobile phones but also tablets, connected cars, and wearables. As such, “HERE” could play a pivotal role in helping Nokia leverage tomorrow’s new mobile form factors.
Now that Apple has apologized and the uproar over Mapplegate is starting to subside, it's time to step back and focus on why Apple had to do what it did. The fact is, Apple had to replace Google Maps for three reasons:
iPhone map users are too valuable to leave to Google. According to ComScore, the iPhone users account for 45% of all mobile traffic on Google Maps, with the remaining 55% coming from Android. This means approximately 31 million iPhone users access Google Maps every month. iPhone users also use Google Maps more intensively than Android users. On average, iPhone users spend 75 minutes per month in Google Maps versus 56 minutes per month for Android users. And iPhone users access Google Maps more frequently than Android users, averaging 9.7 million visits daily versus 7.1 million visits for Android users. Given this data, Apple has a vital strategic interest in moving its iPhone users off Google Maps and onto an Apple mapping solution. Doing so not only deprives Google of its best users but also gives Apple the customer base they will need to drive adoption of new location-based services.
Maps and navigation are not yet mainstream, but they are more useful as product features anyway. This means that location is no longer a service like maps or navigation but is increasingly an enabler of new product experiences.
Location and maps are increasingly becoming features of new mobile products and services.
Location will happen automatically, behind the scenes. Adjustments will be invisible from a user perspective (think about the automatic weather update on your home screen widget).
Relevancy of local data will improve quickly. The era of basic point of interest (POI) information is over. Enriching addresses with more accurate information on opening hours, real-time data (traffic information, promotions, etc.), product/brand data, dynamic data (consumer reviews, inventory information) will deliver greater consumer benefits.
New algorithms will bridge the physical and digital worlds. Coupling more accurate local data with user context and other sources of information will foster the development of crowdsourcing and predictive analysis (e.g., predicting traffic congestion or air quality monitoring). Moving forward, these new algorithms will have far-reaching consequences well beyond mobile.