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Apr. 15, 2013
Telenav Press Release:  

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Scout Advertising Study Demonstrates the Importance of Location in Mobile Advertising
Mobile GPS app usage reveals trends in the distances people across the U.S. are willing to drive to get to various types of businesses

Sunnyvale, California — April 15, 2013 — Telenav®, Inc. (NASDAQ: TNAV), the leader in personalized navigation, today released data* from Scout Advertising showing just how far Americans across the country are willing to travel to go to restaurants, gas stations, coffee shops, banks and other types of businesses. As summarized below and illustrated in an accompanying infographic, average travel times based on driver behavior in 15 cities show that preferences vary significantly by location and category. In general, differences in preferences and behavior ultimately impact how far consumers are willing to travel and the optimal geo-fence that advertisers should use when targeting customers. Understanding the local nuances impacts the performance of mobile ads and Scout Advertising believes advertisers should be aware of these trends in order to localize their marketing campaigns effectively.

The Caffeine Fix

When it comes to their morning routine, Seattle-ites are known for their love of coffee. Living in the birthplace of Starbucks as well as with an abundance of local coffee shops and coffee stands, people in Seattle traveled the shortest distance on average (2.4 miles) in order to find their preferred coffee shop. Surprisingly, coffee aficionados in Boston, a Dunkin Donuts stronghold, have to work a little harder for their coffee fix. On average, they drove over twice that distance (5.4 miles) to get their cup of Joe.

Grub on the Go

As Seattle is to coffee, New York City is to pizza. New Yorkers generally have pizza readily available and only drove around 3.3 miles on average to grab a slice. Chicagoans had to travel a little longer, however, going 5.5 miles for their deep-dish delight. Pizza lovers might want to avoid Memphis, where drivers drove long distances, going 11.5 miles for a slice of pepperoni.

Access to fast food also varies across the country. Consumers in Chicago needed to travel 4.5 miles on average to find a drive-thru pleasure. Fast food junkies might opt for the Bay Area, where consumers only had to drive 2.2 miles on average to get their fast food.

And for sandwich addicts, Phoenix and Seattle might be two of the best places to visit, where drivers only had to drive two miles or less to find the closest sandwich shop (1.9 and 2.0 miles, respectively).

Retail Therapy

How far are shopaholics willing to go to find the perfect pair of pants? Shopping is easy in cities like Los Angeles, Houston, New York and Chicago where people traveled five miles or less for retail therapy (4.3, 4.5, 4.8 and 4.8 miles, respectively). Not so in Dallas, Phoenix, the Bay Area and Seattle, where people drove, on average, over seven miles (7.1, 7.4, 8.2 and 8.5 miles, respectively) to their preferred shopping center.

Fill 'er Up

Across the U.S., people will drive just over five miles on average to fill up at their favorite gas station. In Houston, however, drivers traveled more than seven miles (7.1) on average to fill up, more than double that of San Diego drivers (2.7 miles).

"Location is an extremely powerful tool for targeting mobile ads, but most advertisers are still applying a one-size-fits-all approach when it comes to location targeting," said Eli Portnoy, general manager of Scout Advertising. "To succeed with location, advertisers need to understand local trends in consumer behavior. For example, I live in Los Angeles and it makes no sense to show me an ad for coffee in Pasadena because I will never drive the nine miles it would take me to get there. That would take me over an hour."

Scout Advertising leverages proprietary location data collected from 13 years of experience in location services. That data is used to ensure national advertising campaigns are delivered with local relevance in mind. By leveraging location targeting that is specific to individual cities and categories, Scout Advertising is able to help brick-and-mortar brands and their agencies reach their audience with effective mobile campaigns and drive more customers from across thousands of mobile applications.

"Mobile is exploding and advertisers are finally realizing the value that location can bring to their campaigns," said Portnoy. "But as technology advances, the days of cookie-cutter geo-fence strategies are waning. This study is just a sample of some of the data that we analyze in order to better recognize trends and assist advertisers with better targeting. Ultimately, it's about understanding local markets, delivering a measurable ROI, and driving more customers for advertisers."

*GPS usage data was collected anonymously from mobile applications powered by Telenav. Scout Advertising is a business unit of Telenav.

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About Scout Advertising

Scout Advertising provides brands and agencies with a unique ability to target, engage, and measure success with mobile users. We deliver national campaigns with local context and we help brands reach their users where it matter most. We leverage proprietary first party data to power better targeting, content and measurement for mobile local campaigns. We drive customers.

More information is available at advertising.scout.me/.

About Telenav, Inc.

Telenav’s mission is to help make people’s lives less stressful, more productive, and more fun when 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 arrive.

Investor Relations

Cynthia Hiponia and Alice Kousoum

The Blueshirt Group for Telenav, Inc.
408.990.1265
IR@telenav.com