National Study Shows GPS Adoption Rates Relatively Low, but Offers Recommendations to Accelerate Market Penetration

ROCHESTER, N.Y. – August 15, 2007 – According to a new Harris Interactive® technology research study, one in six (17%) U.S. adults currently own or use a GPS location device or service. Among GPS owners, the most widely used devices were small handheld systems (34%) and portable car-mounted GPS systems (33%). Other systems used include GPS-enabled PDAs or laptop computers (26%), cars with integrated GPS systems (25%), cell phones (13%) and other (7%).

"Despite advances in the technology, improvements in usability, dependability and falling prices, overall penetration remains relatively low for GPS services. At the same time, nine percent of adults indicate that they are very or extremely likely to purchase in the next 12 months," said Milton Ellis, Vice President of Technology Research, Harris Interactive. Ellis suggests that "GPS providers may be able to increase adoption rates by promoting popular features of GPS systems, targeting users of online mapping services and increasing awareness of real-time automatic route recalculations and traffic reports available on many dedicated GPS devices."

GPS systems can offer real-time information at a moment’s notice – helping drivers avoid traffic and navigate in unfamiliar areas. Key features for GPS owners include automatic route recalculation for driving errors (with 81% finding them extremely or very useful) and real-time traffic update (75%). Other key features rated useful by GPS owners are multiple destination routing (73%), voice guidance and alerts (71%) text to speech capability (71%), inclusion of points of interest such as hotels or restaurants (63%), proximity alerts (57%), 2D and 3D maps (57%) and Bluetooth interface (45%).

There are a few features that GPS owners may not take advantage of with their GPS system. Just over two-thirds (68%) say that digital picture slideshows are not useful on GPS, and even with the popularity of digital music, a substantial majority (69%) feels that digital music capability on a GPS is not very useful or not at all useful.

Online consumers frequently turn to websites that allow them to view maps and get directions online. The study shows that in the last 30 days a majority (83%) of online adults have used at least one Internet mapping website.

"Websites that offer static maps and directions to those who are searching online are a real marketing opportunity for GPS providers," said Ellis. "Users who access websites for directions can arm themselves with a print out to get them to their destination. But if they get caught in traffic or they make a wrong turn, a GPS system can provide solutions. And, marketing this advantage to online users while they are planning a trip will help GPS providers connect with a large audience of potential buyers."

While some cell phones offer turn-by-turn instructions, similar to handheld GPS systems, awareness of these services remains relatively low with about one in five (19%) adults saying they are highly aware (8% extremely aware and 11% very aware) of the service.

Approximately one in six (15%) who have a cell phone are interested in getting GPS service on their next cell phone, with half of them citing that having GPS would make them feel more secure knowing where they are at, regardless of city (53%) or that it would help them to find alternative routes around traffic congestion (47%). Thirty-eight percent say that providing fast and direct turn-by-turn directions to business meetings/appointments is a benefit, while one-third say they would never have to stop and ask for directions (33%) or get lost in an undesirable part of town (29%).

This survey was conducted online within the United States between May 29 and June 5, 2007, among 1,325 adults (aged 18 and over), 1,092 of whom are currently cell phone users and 227 are current GPS owners. Figures for age, sex, race, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online. Online population weights were applied to responses from the online "mapping" questions.

All sample surveys and polls, whether or not they use probability sampling, are subject to multiple sources of error which are most often not possible to quantify or estimate, including sampling error, coverage error, error associated with nonresponse, error associated with question wording and response options, and post-survey weighting and adjustments. Therefore, Harris Interactive avoids the words "margin of error" as they are misleading. All that can be calculated are different possible sampling errors with different probabilities for pure, unweighted, random samples with 100% response rates. These are only theoretical because no published polls come close to this ideal.

Respondents for this survey were selected from among those who have agreed to participate in Harris Interactive surveys. The data have been weighted to reflect the composition of the U.S. adult population (with the exception of the questions pertaining to online use/behavior, which reflect the U.S. adult online population). Because the sample is based on those who agreed to be invited to participate in the Harris Interactive online research panel, no estimates of theoretical sampling error can be calculated.

The Harris Interactive Technology Research group doesn’t just monitor and measure the industry. It interacts with the thought leaders who drive technology, telecom and e-business everyday and provides insights from a variety of vertical perspectives. Using the group’s unique knowledge, experience, and expertise in both the telecommunications and information technology sectors, Harris Interactive asks the right questions, confirms business issues, and designs and implements studies to provide clients with actionable results.

Harris Interactive is the 13th largest and fastest-growing market research firm in the world. The company provides innovative research, insights and strategic advice to help its clients make more confident decisions which lead to measurable and enduring improvements in performance. Harris Interactive is widely known for The Harris Poll, one of the longest running, independent opinion polls and for pioneering online market research methods. The company has built what it believes to be the world’s largest panel of survey respondents, the Harris Poll Online. Harris Interactive serves clients worldwide through its United States, Europe and Asia offices, its wholly-owned subsidiaries Novatris in France and MediaTransfer AG in Germany, and through a global network of independent market research firms. More information about Harris Interactive may be obtained at www.harrisinteractive.com.

To become a member of the Harris Poll Online and be invited to participate in online surveys, register at www.harrispollonline.com.

Tracey McNerney

Harris Interactive

585-214-7756