Scout Advertising gives brick and mortar advertisers a
unique ability to reach consumers within 100 meters of any
ROI is easily measured by whether or not customers then
drive to the store
SUNNYVALE, Calif., Oct. 16, 2012 (GLOBE NEWSWIRE) --
TeleNav®, Inc. (Nasdaq:TNAV), the leader in personalized
navigation, announced today that it has acquired Local
Merchant Services, Inc., d.b.a. ThinkNear, a privately held
hyper-local mobile advertising company located in Los
Angeles, California, for consideration of $22.5 million,
consisting of approximately $18.5 million in cash, plus
restricted stock and assumed options. The acquisition, which
closed on October 10, 2012, added ThinkNear's team of
twelve employees, including its two co-founders, to
Telenav's mobile local advertising group.
Telenav will combine ThinkNear's targeting technology
with the existing Telenav Drive-To Advertising™ solution to
create a new mobile local advertising platform called Scout
ThinkNear - Hyper-Local Targeting
ThinkNear helps advertisers reach consumers within 100 meters
of any location, which is more precise than the zip code and
designated market area (DMA) targeting typically offered by
most ad networks. The ThinkNear network reaches tens of
millions of customers across more than seven billion
impressions per month. The precision and scale of ThinkNear
allows advertisers to take advantage of the most distinctive
aspects of mobile phones, which more than 85 percent of
American adults now own.
ThinkNear's targeting technology also enables Situational
Targeting™, which takes into account where consumers are,
what they are doing, and what is happening around them. For
example, a sports memorabilia store can target an NFL fan
with an advertisement for a nearby sale on branded jackets,
blankets and umbrellas while the fan is tailgating on a cold
and rainy day. Hyper-local Situational Targeting provides
consumers with ads that are more relevant to their real-time
needs and interests as they go about their day.
The ThinkNear network and Situational Targeting have helped
advertisers, including dozens of recognized brands, secure
click-through rates four times higher than the industry
average and equally high conversion rates.
"Real-time location is a nuanced and difficult problem
and we have spent almost two years working on the technology
to do it right," said Eli Portnoy, CEO and co-founder of
ThinkNear who will be joining the Scout Advertising team.
"We have built technology to target mobile consumers
based on true location and real-time context across billions
of monthly impressions."
Mobile Internet Usage Increases but Mobile Advertising ROI
According to Internet research firm comScore, mobile Internet
usage is expected to overtake desktop Internet usage by
2014. However, despite the ongoing growth in consumer
mobile Internet use, sixty-two percent of marketers surveyed
by the Association of National Advertisers say the inability
to prove ROI of advertising on new media platforms is a top
concern. Recent reports from research firm eMarketer
showed that mobile advertising accounted for less than one
percent of total ad spending, or $1.45 billion, in the U.S.
"Most mobile ad networks struggle with targeting because
they are trying to apply online technologies in the mobile
space," said Dariusz Paczuski, vice president of
products, marketing, and monetization at Telenav. "This
is frustrating for brick and mortar advertisers because,
although the growth in mobile Internet use is astounding, the
ROI for mobile has been difficult to measure. We now solve
that problem by driving more customers at scale with
hyper-local targeting and measurable results."
Scout Advertising - A New, Combined Platform
Telenav's existing search and navigation-based Drive-To
Advertising platform reaches 34 million customers and
provides advertisers with the industry's only measurement
platform that captures the "drive-to" rate; the
number of users who viewed an ad and then clicked on it to
drive to the advertiser's business location. With
drive-to rates, advertisers know exactly how many users are
taking action to drive to a location, giving companies the
ability to measure true ROI.
"We work with national advertisers who have come to
realize that mobile isn't just about impressions,
it's about driving and measuring the number of new
customers," Paczuski continued.
Scout Advertising will combine ThinkNear's Situational
Targeting technology with Telenav'sDrive-To Advertising
measurement to give advertisers access to a comprehensive
solution delivering billions of hyper-local impressions per
"We are extremely excited to combine ThinkNear's
technology and expertise with our own to provide an even more
comprehensive solution for advertisers to reach and drive
more customers," stated Paczuski. "This is a
platform built from the ground up to leverage the mobile
experience. We will help advertisers reach the right people
while deploying the right mobile measurement tools. We expect
this to change the game for advertisers. We are 100 percent
focused on providing them with a clear and remarkable ROI on
their mobile advertising spend. The proof will be the
increase in customers driving to their front door."
For more information regarding Scout Advertising, visit http://advertising.scout.me.
Advertisers or agencies interested in learning how Scout
Advertising can fit into their mobile advertising strategy
can call 1.877.628.2371 or e-mail
This press release contains forward-looking statements that
are based on Telenav management's beliefs and assumptions
and on information currently available to our management.
Forward-looking statements include information concerning
Telenav's anticipated integration of ThinkNear,
capabilities of a combined service offering, benefits to
advertisers of that combined service offering and anticipated
business activities. Actual events or results may differ
materially from those described in this document due to a
number of risks and uncertainties. These potential risks and
uncertainties include, fluctuations in Telenav's
quarterly and annual operating results; Consumer acceptance
of Scout by Telenav, Scout for Cars and other Scout
applications; the introduction of new products by competitors
or the entry of new competitors into the markets for
Telenav's services and products; competition from other
market participants who may provide comparable services to
subscribers; Telenav's inexperience in the mobile
advertising market; Telenav's success in integrating
ThinkNear, its employees and services; Telenav's ability
to estimate and sustain or increase its revenue and
profitability; Telenav's ability to attract, migrate and
retain new advertisers; Telenav's ability to issue new
releases of its products and services and expand its product
portfolio; changes to current accounting standards which may
have a significant, adverse impact upon Telenav's
financial results; the impact of current or future
intellectual property litigation and claims for
indemnification and litigation related to U.S securities laws
and economic and political conditions in the US and abroad.
We discuss these risks in greater detail in "Risk
factors" and elsewhere in our Quarterly Report on Form
10-K for the fiscal year ended June 30, 2012 and other
filings with the U.S. Securities and Exchange Commission
(SEC), which are available at the SEC's website at
www.sec.gov. Given these uncertainties, you should not
place undue reliance on these forward-looking statements.
Also, forward-looking statements represent our
management's beliefs and assumptions only as of the date
made. You should review our SEC filings carefully and with
the understanding that our actual future results may be
materially different from what we expect.
About Telenav, Inc.
Telenav's mission is to help make people's lives
easier, less stressful, more fun, and more productive while
they are on the go. Our personalized navigation services help
people make faster and smarter daily decisions about where to
go, when to leave, how to get there, and what to do when they
We aim to be everywhere people need us. Our partners are
wireless carriers, automobile manufacturers and original
equipment manufacturers (OEMs), app developers, advertisers
and agencies, as well as enterprises large and small. Our
partners include AT&T, Bell Mobility, Boost Mobile, China
Mobile, Ford, NII Holdings, QNX Software Systems, Rogers,
Sony, Sprint Nextel, Telcel, T-Mobile UK, T-Mobile US, U.S.
Cellular, Verizon Wireless and Vivo Brazil. You can also find
us in mobile app stores and on the web at www.telenav.com and www.scout.me.
"Telenav," "Scout," "Scout
Advertising," "Situational Targeting,"
"Telenav Drive-To Advertising," the Telenav and
Scout logos, "telenav.com" and
"scout.me" are registered and unregistered
trademarks and/or service marks of Telenav, Inc. Unless
otherwise noted, all other trademarks, service marks, and
logos used in this press release are the trademarks, service
marks or logos of their respective owners.
CONTACT: Media Contact:
Mary Beth Lowell
The Blueshirt Group for Telenav, Inc.