Telenav, like other LBS companies, also makes money by charging for services, such as an enhanced in-car navigation service for US$4.99 per month and one that lets enterprises track their employees. But Dhanani expects the industry to make even more of its revenue from advertising in the next few years, reaching as much as 70 percent. McCall, of PlaceIQ, disagreed.

"That's still going to be a big market, but the LBS market ... is just going to be so much bigger because it's going to be inherent into so many other things," McCall said.

The IDG News Service