Incredimail 2011 Annual Report Download - page 25

Search generated revenues
We offer our users the ability to search by collaborating with premium search companies, currently almost exclusively Google Inc., and to receive a portion
of the revenues generated by these companies through the search process.
On December 27, 2010 we signed a new search distribution agreement with Google, effective January 1, 2011 and expiring January 31, 2013, which replaced
the previous agreement we had with Google. We are unable to disclose many of the terms of this contract. However, while there are several changes in this new
agreement when compared to the one previously in place, the results produced by this new agreement are materially similar to those of the prior agreement. Google’
s
coverage and service offering is the one most suited to our global distribution and provides the best monetization opportunity for our products. Nonetheless, we will
continue to explore opportunities to work with the other search providers.
Other advertising and other revenues
Finally, we utilize the distribution of our products and their presence in the user’
s desktop to generate other advertising revenues from methods such as
display ads and banners, as well for generating revenues by collaborating with other companies to offer their products to those that download our products.
For a breakdown of total revenues by category of activity, see "Item 5.A Operating Results — Revenues."
Our Products
Our products are currently available in ten languages in addition to English. Prices and license fees for our premium products range between $5 and $60,
varying based on market, length of license period and whether the products are offered together. We offer the following products, all of which may be downloaded
over the Internet through a personal computer running on a Microsoft Windows operating system:
Communication vertical:
•
Enhancing product offerings and increasing user sales.
Over recent years our premium product sales have declined. We believe that another result of
our consumer research will be to identify the premium products and services sought by our users and better identifying their value. Although we
believe that a majority of our revenues will continue to be generated by advertising in general, and search generated revenues in particular, we believe
that there remains a real opportunity to grow our premium product sales significantly.
•
Enhancing the consumer experience.
We have always attempted to provide a positive experience to our users. As we further emphasize this aspect, we
will continue to design our products and services and market them to address users’
aversion to spam, spyware and other perceived offensive Internet
marketing tools, which we believe encourages more use of them and increases user loyalty.
• Continuing to focus on the online consumer market.
Email remains a prominent communication medium and sharing digital photo creations has
become a popular way of expression. We intend to enhance our email client so that it embraces other methods of communication; instant messaging,
social networks, etc. and incorporate new platforms for sharing photos such as smart-
phones and tablets. The Internet allows us to reach potential
users throughout the world quickly and easily as well as reduces the costs associated with sales and distribution of our products and services.
•
IncrediMail
®
Xe
is our communication client, available over the Internet free of charge, which is used for managing email messages and Facebook
feeds, and which has the following main features:
o
pre
-
prepared backgrounds and letterheads;
o
animated notifiers;
o
emoticons (animations that are intended to convey emotions);
o
3D effects;
o
handwritten signatures;
o
a web gallery with additional animations, notifiers and email backgrounds;
o
sound effects;
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