“A large portion of the PND makers we work with use Clear Channel Radio’s Total Traffic Network so creating this bundle makes perfect sense,” said Attila Kátai, Chief Content Officer of Nav N Go.
According to a NAVTEQ study conducted in November 2007, 92% of in vehicle navigation system users say they are very interested in real-time traffic for their navigation device.
Nevertheless traffic-enabled navigation solutions are just starting to take off. In July, CCTTN announced its service was available to “half a million paid subscribers”; and in September NAVTEQ said its service was “available to over 1 million drivers”.
In the PND market the take rate of traffic information has been rather low due to the cost of such add-ons. However, Navigon - which uses Clear Channel - recently added free lifetime traffic to all its PND range. Even more important, Garmin, in partnership with NAVTEQ, introduced in September free real-time traffic information subsidized by location-based advertising in a range of low to high end navigation products: the nüvi 2x5 family, nüvi 755T, 765T and 775T. The nüvi 2x5 family, starting at a suggested price of $199 is likely to represent a significant chunk of the PND market for the holiday season, further pushing Garmin’s competitors to add traffic, hence the partnership between Nav N Go and Clear Channel.