In early September, we announced Garmin’s upcoming 2x5 and 7x5 portable navigation devices ("Garmin GPS – New navigators with reality view and lifetime traffic"). Primed for the holiday buying season, these devices go on sale in October with several notable improvements, such as reality view and three-dimensional buildings when available. However, it was the free traffic service that caught our attention. Turns out "free" is open to interpretation.

On the new Garmin units with lifetime traffic, text-based advertisements can appear onscreen when the vehicle is stopped for 10 seconds, or if the user taps on an icon at the bottom of the screen on the traffic page. These promotions will be delivered via RDS, the radio data service that enables car stereos to display a radio station name and current song. A Garmin rep explained that the ads will be four to five static words at the bottom of the screen. And no, the traffic service can not be turned off with these Garmin devices—unless it is a top-tier unit and you subscribe for a fee to MSN Direct services.

How GPS ads work
Map giant and ad service provider Navteq explains that its clients, such as Garmin, may deliver ads based on their own needs, suggesting greater variety and possibly intrusiveness in the future. Navteq says ads could appear based on destination decisions, current location, and time intervals. Navteq is focused on nine core advertising categories: Auto services, banking, convenience stores, food & drink, fuel, grocery, lodging, pharmacy, and shopping outlets. Hotel chains, large retail outlets, and restaurant chains have signed up already. By selecting an ad, the user may receive a list of advertiser location, with the ability to call, show on a map, or route.

Navteq is working with other interested GPS manufacturers, and it seems a good bet that similar, location-based advertising will appear on other devices in the year ahead. There is considerable consumer interest in traffic services, and this approach enables the companies to provide a premium service at an affordable price. According to research commissioned by Navteq earlier this year, traffic information has the highest perceived value and the greatest impact on consumers of all dynamic content types including gas prices, parking information, and movie times. Likewise, in Consumer Reports research, we have found traffic is a highly sought feature.

The age of geo-targeted advertising has begun
The proliferation of marketing has found another way to encroach itself into our personal space, now riding co-pilot and suggesting stops along your route. If they are not intrusive, advertisements may be a welcomed concession for some motorists to gain traffic information without paying a monthly subscription fee. But for those drivers who do not live near a major metropolitan area, or on a given trip do not need such information, this is at best an annoyance and at worst a distraction.

The ability to turn off the ads, and subsequently the traffic service, would be a positive feature. Likewise, I could see value in selecting the ad categories, such as restaurant and even food type. If you are on a long-distance road trip, an incentive to stop at one restaurant over another may be welcomed.

As GPS navigators become more connected, ad targeting has the potential to become more personal. After all, a GPS device knows an awful lot of about you. It knows where you live, the length of your commute, where you are going, time on the road, and time of day. It is conceivable that programming could allow for coffee break ads mid-morning, restaurant pitches at common meal times, or hotel recommendations after a long day on the road.

The initial advertisers are major chains, like BP and Walgreens. There is an economy of scale by servicing major brands, as they have thousands of businesses throughout the country. However, a focus on such nationwide franchises can only hurt the local Mom and Pop stores—the same ones that add such regional charm to road trips.

Rival Navigon has taken a different approach: free traffic without advertising. Last year, we tested the Navigon 5100 with free traffic service, and the company is preparing to apply that philosophy to a new line of devices. For $230, the Navigon 2200T will include a traffic receiver and free real-time traffic.

Taking place in 2054, the film “Minority Report” revealed a future where targeted ads could literally follow you through a city. How rapidly we advance. We now have ads that can ride along during your commute and family vacation, joining those broadcast over the radio and displayed on roadside billboards.

We will begin testing the new Garmins and Navigons this month when they go on sale.

Is advertising an acceptable trade off for traffic or other services? Tell us what you think in the comments below.

—Jeff Bartlett

For more information on portable GPS navigation systems, see our Ratings and buying advice and watch our video guide. Discuss GPS devices in the forums.