Incredimail 2014 Annual Report Download - page 35

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Distribution
As the vast majority of desktop applications remain largely undiscovered, developers are initially met with distribution challenges.
Buying traffic is necessary but extremely complicated, and developers often find themselves lost between different technologies and platforms.
We have a powerful self-service installation platform that enhances the integrity of the installation process. Our solution is HTML
-
based and fully customizable. In addition, our platform incorporates a unique proprietary accelerator for faster downloads and higher conversion,
including built-in A/B testing capabilities enabling developers to adjust their install funnels and increase completion rates.
We offer our clients a wide range of competitive marketing services to further increase the distribution of their offerings. We employ a
highly skilled search engine marketing and partnership team to personalize and enhance the distribution process. Additionally, we employ
sophisticated business intelligence systems to monitor the life-time-
value ("LTV") and return on investment performance, allowing us to
measure and analyze the success of various marketing tactics at any given time. Based on this analysis, our marketing team creates and updates
individual marketing plans to help optimize distribution.
Monetization
Publishers and developers face increasing challenges monetizing their offerings. This is partly because most consumers find that the
free version of a given software product adequately meets their needs. Accordingly, most app developers do not earn sufficient revenue to
sustain a standalone business.
We provide a broad spectrum of solutions for our clients' monetization challenges. Through a sophisticated, data driven
recommendation engine, we offer clients the ability to easily incorporate targeted ads into the download and installation process of their products
thereby further increasing monetization opportunities. The engine allows for funnel monetization opportunities on post-
install and uninstall
pages, as well. Altogether, the engine provides end users with more relevant offers, ultimately increasing end user satisfaction and monetization.
Through our search agreements with the world's leading search providers such as Microsoft, Google, Yahoo and Ask, we enable our
clients to monetize their search assets. Publishers and developers may incorporate a search box into their offerings that is powered by our search
providers, who in turn pay us fees for searches emanating from such search boxes. Depending on the payment model adopted, we pay our clients
a fee on a pay-per-search or revenue sharing basis for search activity emanating from the incorporated search boxes.
Optimization
Most app developers are small businesses without analytical capabilities or the required funds to improve funnel conversion, create the
necessary systems for tracking revenue per user, or implement traffic acquisition with positive return on investment.
Our analytics platform enables clients to manage their distribution and monetization activities and better optimize their offerings.
Through the platform, we provide our clients with real-
time analytics, custom reports, and advanced optimization and editing tools, which
together act as a springboard to higher conversions and increased return on investment.
Other advertising and other revenues
We offer advertisers the ability to monetize their web properties with Display Advertising through our ad network. This offering is
predominantly to our search revenue affiliate network and reliant on the acceptance of our resetting the home page of the users of their
products. These revenues are therefore highly correlated with our revenues from search.
Consumer Products
In the past Perion had developed and acquired a numbers of downloadable consumer software products. While these products currently
account for only approximately 3% of our revenues, they are profitable and provide insight into the world of software developers and the
challenges they face in distributing, monetizing and optimizing their software. These products also keep us in tune with the end user and their
experience in downloading software.
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