#mbc2016 arie frenklakh, mmdsmart: money for nothing: strategies to monetize your user base

May 2016

Money for Nothing; Smart Strategies to Monetize

Your Mobile Network

Mobile Apps market. 2018 forecast.

• 2.5 Billion Smartphone users, about 1/3 of the world’s population.

• Over 200,000 apps available on App stores, 300 Billion installations;

Each Smartphone user will install 120 apps.

• Mobile apps revenue will reach US$ 100 Billion.

A2P market. 2018 forecast.

• 2.3 Trillion A2P messages will be sent

by mobile apps companies.

• A2P revenue will reach US$50 Billion.

• 81% of users sometimes prefer SMS

messages over other types of

communication.

Marketing Funnel

Marketing Funnel

• Mobile has key role: 68% of users checktheir phones handsets at least everyhour; 20% check phones every 10minutes or less.

• With shorter attention spans andmultiple demands on user attention, weneed to make an impact to engage ouraudience.

• Wanted: an unimpeded connection withusers to drive engagement, conversion,retention and advocacy.

Engagement

Conversion

Retention

Reach

Are you effectively using your messaging resource?

Messaging is the core enabler in the digital economy

How to Reach your User

How to Reach your User

Trusted Communications Channel

SAP Consumer Research:While user adoption of mobile apps grows, SMS, whichpre-dates the smartphone by decades, still serves as atrusted communication channel.• ICON OVERLOAD: 68% have apps they don’t need.

• 81%: SMS is sometimes preferable to mobile app• SMS IMPACT: 75% state that SMS can improve the

brand experience• SMS IMPROVES SERVICES: 64% think businesses

should use SMS more for customer interactions• On average 16% of consumer SMS use is with

businesses.

Consumers interact with brands on a one-to-one basis via SMS many times a day.

Monetize Your Messaging App

A2P messaging traffic continues to grow butuncertainty regarding its effectiveness and ROI• GSMA: Most mobile network operators don’t

have a strategy to monetize A2P messaging.• Gray routes account for 2/3 of A2P SMS traffic• Huge numbers of unverified or dormant numbers

Users are bombarded with apps and information.How can our message be effective?

Efficient Messaging

• Optimize network management to increasemessage delivery

• Use smart message routing to optimizeperformance

• Opt for certified delivery to ensure yourmessage is reaching your targets

Build a smart messaging strategy

Increase Reach - Smart Activation, Viber example

Increase Reach – Activation flow

A2P Vendor 1

A2P Vendor 2

A2P Vendor 3

$0.0587% reach

$0.0483% reach

$0.0255% reach

Increase Reach – Traditional Approach

A2P Vendor 1

A2P Vendor 2

A2P Vendor 3

$0.0587% reach

$0.0483% reach

$0.0255% reach

Increase Reach - Smart Activation

A2P Vendor 1

A2P Vendor 2

A2P Vendor 3

$0.0587% reach

$0.0483% reach

$0.0255% reach

Increase Reach – more users, better monetization

Traditional Approach• 1000 users registered• 870 users activated• $50 activation expenses• $0.057 user activation cost

Smart Activation• 1000 users registered• 990 users activated• $41 activation expenses• $0.042 user activation cost

Build an Integrated Strategy

• Simple SMS messages with key information atcritical times are important for consumers. i.e.;purchase tracking, alerts and notifications,monetary transactions.

• Consumers choose the best channels that fit theirneeds, apps that work best, removing icons thatthey deem unnecessary.

• In the survey, 83% of users welcome company-based SMS messages.

Use messaging to promote, re-engage and driveconversion for your apps

Push Engagement - Engage. Me Demo

Push Engagement - Engage. Me Demo

Push Engagement – happy users, better monetization

3 Winning Strategies

1. SMS Messaging remains a trustedcommunication channel. Don’t neglect it,experiment with different models and constantlyevolve.

2. Understand: The best customer experience isbased on timeliness, ease and simplicity.Sometimes an app will work; sometimes SMS willbetter serve the need.

3. Work with messaging experts to analyze yourneeds and develop a strategy to monetize you’reA2P messaging.

Connect. Engage. Smile.

MMDSmart

• Leading provider of Voice, A2P Messagingand Online fax solutions

• Every day, we connect millions of calls,send millions of SMS messages and deliveralmost a hundred thousand sensitive faxes

• Global network of more than 200interconnections, 70 employees withoffices in Tel Aviv, Kiev, and Hong Kong

Connect. Engage. Smile.

Arie Frenklakh

• CEO and Founder ofMMDSmart

• Senior Director, Viber,Monetization department

• Senior Director, SanDisk andmSystems MNO Division

Thanks for your Attention!Спасибо за внимание!

Arie FrenklakhCEO and Co-Founder of MMDSmart

Tel: +972-54-9222203E-mail: arie@mmdsmart.com

www.mmdsmart.com