Incredimail 2014 Annual Report Download - page 19

Download and view the complete annual report

Please find page 19 of the 2014 Incredimail annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 166

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166

Our business may not be able to compete successfully against competitors because competition in the mobile advertising industry is
intense, and competitors may offer solutions that are perceived by customers to be more attractive than those offered by us.
Competition for mobile advertising budgets is intense, as is competition for broader advertising solutions such as data management
platforms. Our mobile marketing business operates in a dynamic market that is subject to rapid development and introduction of product and
service offerings, changing branding objectives and evolving customer demands, all of which affect the ability to remain competitive. We expect
competition to increase as the barriers to enter this market are low and consolidation of ad networks and ad exchanges is increasing. The
introduction of new revenue acquisition management solutions by our competitors, the market acceptance of solutions based on new or
alternative technologies, or the emergence of new industry standards could render our self-serve platform obsolete. Our self-
serve platform is a
centralized programmatic media buying across multiple traffic sources brining order to our customer's mobile marketing efforts. Advertisers
struggle with inefficient and disorganized practices of media buying, campaign measurement and optimization. Our self-
Serve platform was
created to resolve these mobile advertising challenges. In addition, the growth of in-
house marketing and user acquisition teams within
companies otherwise dependent on our services would minimize the need for our fully managed services, which provides the same features and
benefits as of our self-serve platform, but with the added support of our experienced account managers.
Competitors for our self-service solutions include other companies that offer similar self-
service and data management platforms that
allow advertisers to purchase inventory directly from advertising exchanges or other third parties and manage and analyze their own consumer
data and third party data. As our self-
serve platform evolves and we introduce new technologies and functionality, we may face competition
from new sources or technology that allow developers to generate revenue from their apps without our assistance. Changes in standards in the
advertising world could also cause us to incur additional development costs and any failure to quickly adapt to such changes could adversely
affect the profitability of our mobile marketing business.
We may not be able to enhance our self-
serve platform to keep pace with technological and market developments in our evolving
industry.
To keep pace with technological developments, satisfy increasing developer requirements, maintain the attractiveness and
competitiveness of our mobile advertising solutions and ensure compatibility with evolving industry standards, we will need to regularly
enhance our self-
serve platform and develop and introduce new services on a timely basis. We also must update our software to reflect changes
in advertising networks' application programming interfaces ("APIs"), technological integration and terms of use. The success of any
enhancement or new solution depends on several factors, including timely completion, adequate quality testing, appropriate introduction and
market acceptance. Our inability, for technological, business or other reasons, to timely enhance, develop, introduce and deliver compelling
mobile advertising services in response to changing market conditions and technologies or evolving expectations of advertisers of mobile
applications or mobile device users could hurt our ability to grow our mobile marketing business.
Our mobile marketing business depends on ad networks and exchanges for mobile advertising opportunities to deliver our developer
clients' advertising campaigns, and any decline in the advertising opportunities these venues provide could hurt our business.
We depend on ad networks and exchanges to provide us with advertising space on which we deliver ads. The future growth of our
mobile marketing business will depend, in part, on our ability to enter into successful relationships with ad networks and exchanges. Identifying
these venues and negotiating and documenting relationships with them requires significant time and
resources. If we are unsuccessful in
establishing or maintaining our relationships with these networks and exchanges on commercially reasonable terms, or if these relationships are
not profitable for us, our ability to compete in the marketplace or to grow our revenues from our mobile marketing business could be impaired.
These relationships may not result in additional clients or enable us to generate significant revenues from our mobile marketing
business. The contracts governing these relationships are typically nonexclusive and do not prohibit the relevant network or exchange from
working with our competitors or from offering competing services. The tools that we provide to advertisers of mobile applications allow them to
make decisions as to how to allocate advertising inventory among advertising networks. Ad networks and exchanges may change the price at
which they offer advertising opportunities to us. In addition, ad networks and exchanges may place significant restrictions on the advertising
presented on their offerings. These restrictions may prohibit ads from specific advertisers or specific industries, or they could restrict the use of
specified creative content or format. If ad networks and exchanges decide not to make advertising available to us for any of these reasons, decide
to increase the price of their advertising space, or place significant restrictions on such, the revenue from our mobile marketing business could
decline or our cost of acquiring inventory could increase. In addition, a third party acting as a mediator on behalf of advertisers of mobile
applications, or any competing mediation tools embedded within a developer's apps, could result in pressure on us to increase the prices we pay
for advertising opportunities for that inventory or otherwise block our access to such, without which we would be unable to deliver ads on behalf
of our advertisers of mobile applications.
15