Incredimail 2012 Annual Report Download - page 28

To enhance our existing business, we intend to:
By investing in consumer research, we are able to better identify the specific needs of our targeted demographic segment. In addition, if
in the past, we had predominantly relied on the viral spread of our applications, since 2012 we have invested increasing sums in customer
acquisition for increased market penetration for our products. Employing this strategy for acquiring customers has been enabled by our back-
end
systems recently developed and constantly being improved. As users increase their mobile Internet interaction, which have been to a certain
extent at the expense of their desktop activity, it is becoming increasingly important for us to establish a mobile presence in general and for our
existing suite of products in particular. To that end, we introduced a mobile version of our Smilebox application for the iPhone in 2012 and
introduced our IncrediMail email client for the iPad in the first quarter of 2013 Finally, in order to reduce our dependency on a limited number of
products and to better serve our users and their needs, we intend to continue to enrich and expand our product suite.
In order to grow our business beyond organic growth and accelerate our ability to bring new products to our users, we have adopted a
strategy to invest in acquiring other products and extend the business. This strategy has resulted in the acquisition of Smilebox Inc. in 2011 and
SweetIM Ltd. in 2012. This strategy will enable us to further diversify our revenue base, better serve the needs of our users and reduce the time
required to bring these new products to market.
By focusing on our consumer and enhancing and extending our business, we believe we will be able to further grow our business by:
• invest in consumer insight enabling us to identify the specific needs of our targeted demographic segment;
•
continue and further increase our customer acquisition costs;
•
broaden the platform for our applications, embracing mobile platforms; and
• develop a more robust product line.
• Growing our user base.
Our effective viral marketing has resulted in millions of registered users who spread the word about our
products and services at relatively low marketing costs to us. On top of that, since 2012, in order to accelerate our growth we
have invested heavily in acquiring new customers, who may also contribute to viral growth to a certain extent.
•
Increasing the use of our products by our users.
By focusing on our consumers and their needs, we believe we can increase the
use of our products and subsequently the searching capabilities offered to them, thereby increasing our search generated
revenues.
•
Enhancing product offerings and increasing user sales.
Since the acquisition of Smilebox in 2011, our product sales have
increased, more than offsetting a decrease in premium revenues from our IncrediMail
communication client. We believe the
offering of our products on mobile platforms will serve to increase product revenues in the future. In addition, we believe that
another result of our consumer research will be to identify the premium products and services sought by our users. 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
offensive Internet marketing tools, which we believe encourages more use of our products 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 have enhanced our email client so that it incorporates the users’
Facebook feeds, and will look in the future to embrace other methods of communication. In addition, we have begun
incorporating new platforms for sharing photos, such as iPhones, and introduced our IncrediMail product for the iPad in the first
quarter of 2013. We intend to broaden this offering by enabling other platforms, such as Android and Windows Mobile, as well.
The Internet and the application stores available enable us to reach potential users throughout the world quickly and easily as
well as reduce the costs associated with sales and distribution of our products and services.
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