Navteq will be powering Nextar's new 43LT GPS navigation unit and serving location-based ads within the technology.

Navteq will provide Nextar users lifetime free traffic with advertising and special promotions that are based on location. No activation or subscription is required as the feature is an ad-funded traffic service from Navteq.

"Navteq LocationPoint Advertising offers location aware application publishers and device manufacturers a turnkey approach for subsidizing high value content services, while enabling advertisers to reach and engage consumers where and when they are making purchasing decisions," said Christopher Rothey, vice president of market development and advertising at Navteq, Chicago.

"It gives Navteq customers, like Nextar, the ability to uniquely differentiate their offerings while providing a valued service to their end users," he said.

"Through Navteq's advertising-based model, device makers are able to offer dynamic content to drivers while on the go. This includes merchant information, such as retail coupons, as well as real time traffic information-- both of which are personalized and geographically relevant to the driver."

Founded in 1985, Navteq is a global provider of digital map, traffic and location data.

Headquartered in Southern California, Nextar, is a global designer and marketer of consumer electronics including digital photo frames, portable navigation devices and Bluetooth.

Mr. Rothey said location-based advertising will continue to become an important area of mobile marketing.

"As more and more device manufactures adopt Navteq's LocationPoint Advertising platform, this medium will be of increasing importance to mobile marketers," he said. "Navteq is working closely with application publishers, device manufactures and advertisers who are seeking exposure in a mobile environment.

"Given the potential scope and availability of location-aware devices, location based advertising will become a critically important channel for mobile marketers."

Mr. Rothey said Navteq has received interest from marketers and brands focusing on consumers who are on the go.

"While we cannot name specific promotions, many application publishers and device manufacturers are working with us to realize advertising capabilities," he said. "We have received particular interest from advertisers in categories targeting consumers-on-the-go. This includes fuel, food and drink, convenience, grocery, pharmacy, auto services, lodging, banking and retail shopping.

"National and international brands can benefit from making one, easy buy for highly-targeted campaigns, while regional and local businesses can benefit from the highly specific in-market and in-neighborhood targeting that our GPS-based technology provides."

In July, Navteq offered driving tips and traffic information to traveling consumers (see story).

Earlier this summer Navteq announced it signed an agreement to supply map data and content to Samsung Electronics.

Samsung Electronics will have access to all 76 countries in the Navteq map database. The agreement also allows Samsung Electronics the rights to utilize Navteq content including Visual Content, Speed Limits, Extended Lanes and Navteq Discover Cities (see story).

Mr. Rothey said location based services will change mobile commerce.

"By targeting consumers in precisely the right place and time, response rates, store traffic and revenue can be maximized for the mobile advertiser," he said. "Early adopters have gained an understanding that this medium can hit their target market in an exceedingly precise manner."