Earlier in the week, Google acquired Waze for a sum believed to be more that $1 billion. Some say that the sum was too high, but given the role that Waze’s services will play in augmenting Google’s, it shouldn’t be a surprise. This is because Waze will take Google a step closer to its next goal; from mapping users’ activities online to mapping their movements. The integration of Waze with Google seemed inevitable given how a few months ago the company’s CEO was in complete praise of Google’s policies and how Waze will fit better with it.
If all goes according to plan, users will soon be using a Google search bar to surf the web (which has already been achieved today) and Waze to scour the real world tomorrow. With the acquisition complete, Google now has the ability to maintain its indigenous maps in real time and also the added advantage of the Waze app, which collects data from every user using the app to navigate, thus not only mapping the street view but also capturing their intent in progress. Collecting real time data from users will help the application in acquiring data pertaining to roadblocks and construction sites, thus making Google’s navigation services as realistic and engaging as possible.
Advertisements form the key for generating revenue for any app and thus a shrewd app strategy is imperative, according to Waze’s CEO. Monetization should never be the motive in such cases as that will only spoil the user experience and discourage users from running the app. According to Waze CEO Noam Bardin, creating an ad network that specializes in providing real time data that the user finds useful was Waze’s primary motive before the acquisition. Google Maps on mobile clearly lacks the ability to provide data on nearby restaurants and services. Waze is looking towards supplementing Google in this area.
Waze spent more than a year and half working on the ad platform. Dedicating almost 10% of the workforce towards this, Waze often used Israel (its native country) as a testing ground for its ad network. Waze strived to make a model analogous to Groupon, but in the course of the project learned that Waze as a service shouldn’t be involved in the transaction, but play the role of the media/press. As for the future, Bardin said that he wanted Waze to be an app that will take you places, whether an individual was jogging, walking or driving in search of a restaurant after finding an ideal place to park.
