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Apple?s mobile strategy still missing location data piece

While Apple continues to invest in the mobile space, the company is missing the strong location data play that is necessary for monetizing mobile?s built-in location capabilities. 

Apple recently confirmed that it acquired C3 Technologies, adding to a stable of mapping technology firms that also includes Poly9 and Placebase. Location ? which includes mapping and navigation ? is one of the core building blocks of mobile marketing because where someone is, highly predictive of what they are interested in.

?Delivering really valuable experiences for consumers on mobile that correctly provides context about the physical world is the key to a great user experience in mobile, and ultimately to monetization,? said Alistair Goodman, CEO of Placecast, San Francisco.

?Acquisitions like these could lead to breakthroughs in rich augmented reality experiences ? the ability to visualize a street scene, overlay data about it, and even insert relevant deals or advertising,? he said.

?What?s missing so far in Apple?s acquisitions is the location data layer ? amassing large amounts of information that can be attached to C3?s beautiful maps. It will be interesting to see how Apple addresses this challenge.?

Apple did not respond to a request for comment by the press deadline.

Feature-rich mapping
Apple needs to address mapping, navigation and location as these are increasingly important features of smartphones that consumers want and use frequently.

Apple acquired mapping technology firm Placebase in 2009 and last year scooped up Poly9, which focuses on three-dimensional technology similar to C3. The C3 acquisition also reportedly took place last year but was only recently confirmed by Apple.

The news follows the recent acquisition of mapping firm Telmap by Intel as companies increasingly grasp the importance of location to a mobile strategy.

?If you look at what Android and Nokia offer, they offer more feature-rich mapping,? said Noah Elkin, principal analyst at eMarketer, New York. ?Of all the things that were updated with iOS 5, maps did not get a significant refresh.?

The mapping technology acquired by Apple could be integrated with the recently introduced Siri. The personal assistant service uses voice activation technology, enabling users to ask for and receive directions, among other things.

In addition to being useful when users are walking down a street and need directions, such integration could also come in handy when users are driving.

Automotive manufacturers are increasingly equipping new automobiles with the ability to synch with smartphones, giving drivers a way to leverage the music, mapping and navigation capabilities of the phones.

?Car manufacturers are recognizing that people are going to want to use their phone as the primary connection in the car and are less interested in wanting to pay for a separate infotainment system,? Mr. Elkin said.

While Google has openly courted the automotive industry, Apple has not been as clear about its interests here, per Mr. Elkin.

?Voice, map and navigation are all being very closely tied together in whatever context you are using your mobile phone,? Mr. Elkin said. ?Any time you are thinking about mapping and mobile devices, the way they are becoming more integrated with automotive in-car systems, mapping is going to be essential to that.

?Combining mapping and content is the key thing for someone who is driving around,? he said.

?They want to know where the nearest hotel or gas station is and want to find the information quickly without taking their eyes off the road.?

Google free
Apple?s move into mapping technology is also seen as a potential way for the company to become less reliant on Google?s own mapping technology.

?Ultimately, Apple likely wants to cut ties with Google entirely ? acquiring Placebase, Poly 9 and now C3 all in the mapping space is a clear indication that Apple wants to own the technology inside its own walled garden,? Mr. Goodman said.

?And in the case of C3, it?s a really sexy user experience ? something Apple prides itself on.?

It all boils down to the importance of location to mobile and the interest in monetizing these features.

?Mapping, navigation and traffic are all must-have consumer applications,? Mr. Goodman said. ?They are frequently used by consumers, and the challenge has always been: how do you monetize them?

?Once Google started giving it all away for free, companies in this space have all found homes in big companies or shut down,? he said.

Final Take
Chantal Tode is associate editor on Mobile Marketer, New York