Incredimail 2013 Annual Report Download - page 30

In the past we relied primarily on "viral marketing" to increase the popularity of our legacy products. When an existing user sends an
email with IncrediMail or Molto,
or an instant message enriched by SweetIM content, or digital photo creations generated by our Smilebox
software, there is an embedded link that allows the recipient to download our products. We also acquire users from downloads initiated through
word of mouth. Although viral marketing is still a contributor to the overall growth in popularity of our legacy products, its effectiveness has
declined over time, and in 2011 we began investing in advertising to continue to grow our user base.
In January 2014, following the acquisition of ClientConnect, we launched our CodeFuel solution.
CodeFuel is a leading self-
service
platform with simple integration and robust, built-
in analytics that empower digital businesses to optimize distribution and maximize revenue.
With the launch of our CodeFuel solution, we have evolved into a global media and Internet company that powers innovation. We now focus on
providing online publishers and app developers advanced technology and a variety of intelligent data-
driven solutions to monetize their
applications or content and expand their outreach to larger audiences. Consequently, we have refocused our marketing strategy on increasing
developer and advertiser awareness of our CodeFuel solution.
We believe that our historical track record of converting registered users to transacting customers represents a convincing validation of
our experience and know-
how as developers, and in doing so confirms our position as providing effective solutions to our developer clients.
When we use the term "registered user" in this annual report, we mean a user who has downloaded a product and completed the registration
process. Registrations are not necessarily indicative of the number of individuals using the product or services, as a user may register more than
one time and a particular product or service may be resident on a computer but not actually be used.
For a breakdown of total revenues of our legacy business by category of activity, see Item 5.A “Operating Results — Revenues ."
Markets
In the past, our legacy desktop products primarily serviced consumers coined "second wave adopters", characterized as individuals who
are over 40 years old and who are looking for computer applications that assist them in effectively utilizing their time while being simple and
safe. With the shift in focus to mobile products, we have extended our market to younger consumers who are excited about new technology
offerings and extremely responsive to the quality of the particular offering.
With our acquisition of ClientConnect and the subsequent launch of our new CodeFuel solution, we have concentrated our focus on
targeting software developers and digital businesses, providing effective distribution, monetization, and optimization solutions. These developers
and digital businesses, in turn, target consumers.
Our Opportunity
. Our experience and success as developers allow us to best understand the needs of publishers and to enable other
developers to succeed. Honed through our own products, our technology-
based solutions platform provides us with the opportunity to allow
developers to focus on what they do best, creating great digital content and applications. Our team brings decades of experience, operating and
investing in diversified digitally-enabled businesses, and we continue to innovate and create value for developers.
Productivity tools . We aim to maintain and enrich our legacy product suite, which will serve as a real-
world testing grounds and proof
of concept for the solutions we provide to other software developers.
Strategy
Our Life Cycle Management ("LCM") solutions currently encompass the entire lifecycle of online publishers' and developers' content
and applications. Our objective is to become a market leader of LCM solutions for online publishers and developers. To achieve this goal, we
intend to enhance our existing business and extend it by way of acquisitions. To enhance our existing business, we intend to:
•
broaden our software developer base and deepen our connections with existing developers, by increasing marketing efforts and
adding methods of advertising to reach out to more software developers of high
-
quality digital content and products;
•
expand our existing LCM platform and develop new platforms that will offer an even wider array of applications and features to
software developers for distribution, monetization and optimization of their offerings;
•
advance our technological capabilities by continuing to invest in research and development efforts, which serve as the basis for our
efforts to further enhance our existing LCM platform and develop new platforms for software developers; and
• broaden the platform for our solutions by embracing mobile platforms.
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