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Strategic Analysis by Frost & Sullivan

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Next-Generation Mobile Marketing:Redefining Mobile Search and Discovery For a Disruptive Consumer Engagement

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contents

1. Introduction and Overview ...................................................................................................... 4

Introduction ................................................................................................................................. 4

II. The Existing Mobile Marketing Market .................................................................................. 4

Defining Existing Mobile Marketing .......................................................................................... 4

III. Challenges for the Existing Mobile Marketing Industry ....................................................... 5

Targeting and Monetization in Existing Mobile Marketing ..................................................... 5

Summary of Challenges .............................................................................................................. 6

Capturing User Intent ............................................................................................................ 6

Lack of a Differentiated Search and Discovery Experience ............................................... 7

Fragmented User Experience Delivered by Marketers on Mobile Applications................ 7

Difficulty in Mobile Application Marketing ........................................................................ 7

Ad Technology in not Searchable ......................................................................................... 7

IV. Need for Next-generation Mobile Marketing ....................................................................... 8

Existing Mobile Marketing – A Compromise for Brands and Marketers ................................ 8

Next-generation Mobile Marketing ........................................................................................... 8

Search & Discovery ..................................................................................................................... 8

Essential Elements of Next-generation Mobile Marketing Solutions ..................................... 9

V. Platform Spotlight: Xploree .................................................................................................... 9

Introduction to Xploree .............................................................................................................. 9

How it Works and Key Benefits .................................................................................................. 10

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VI. How Xploree Drives App Re-engagement ...........................................................................11

Mobile App Usage Trends............................................................................................................ 11

Apps Dominate the Mobile Web ........................................................................................... 11

Key Challenges for Mobile Apps ........................................................................................... 12

Key Strategies for Driving App Engagement ........................................................................ 12

Driving App Discovery and App Re-engagement with Xploree ............................................... 13

Benefits of Xploree’s Intent-driven In-app Marketing Capabilities ................................... 13

VII. Revenue Potential of Xploree ...............................................................................................13

VIII. The Results .............................................................................................................................15

Xploree Search and Discovery Platform ................................................................................... 15

Xploree – Important Stats and Report ..................................................................................... 15

Click-through Rates ............................................................................................................... 15

Total Impressions ................................................................................................................... 16

Coupon Usage, Search Intent, Relevancy Score, and Engagement Score .......................... 16

Why Relevance and Engagement matter more than CPCs and CPMs? ............................. 17

Application Usage .................................................................................................................. 17

Discovery in Conversation ..................................................................................................... 17

V. The Last Word ...........................................................................................................................19

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All rights reserved © 2015 Frost & Sullivan

I. IntroductIon and overvIew

Introduction

The “next generation” of mobile marketing involves redefining the existing mobile customer engagement model to allow marketers to leverage a predictive and intent-based targeting mechanism to deliver relevant brand messages to consumers on their mobile devices. This Frost & Sullivan insight presents an overview of the existing environment, as well as future requirements, for global mobile marketing markets. It highlights the key challenges of existing mobile marketing, and discusses the need for next-generation mobile marketing solutions that deliver compelling opportunities for brands and marketers to effectively connect with consumers. Finally, it presents an overview of Xploree, an innovative search and discovery platform that provides unique benefits for mobile marketing and marketing ecosystem participants.

II. the exIstIng MobIle MarketIng Market

Defining Existing Mobile Marketing

Mobile marketing is the process of promoting a product, service, or idea through mobile communication channels to induce consumers to buy, interact, or support the item being marketed on their mobile devices.

Traditionally, the following have been the primary channels of mobile marketing:

• Messaging-based mobile marketing

• Mobile Internet-based display marketing

• Mobile video marketing

• In-application mobile marketing

Existing mobile marketing is the process of promoting a product, a service, an idea, or an organization through mobile communication channels to induce mobile users

to buy, interact, or support the item being advertised.

The two dominant forms of mobile marketing messages delivered via current mobile marketing channels include: 1) Branding Content, where the intention is to convey a brand’s message to consumers; and 2) Performance Content, where the intention is to drive user interaction or traffic to the brand or marketer’s website to promote application downloads or acquire customer data for follow-up marketing.

As consumers’ “digital attention” continues to shift toward mobile, brands can ill afford to ignore the mobile marketing opportunity. There are various attributes that make mobile an attractive channel for digital marketing. In particular, the mobile environment offers multiple ad formats, location-based capabilities, mobile data analytics platforms, integrated mobile commerce capabilities, and the availability of self-serve solutions to help brands and marketers execute mobile campaigns.

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Next-Generation Mobile Marketing: Redefining Mobile Search and Discovery For a Disruptive Consumer Engagement


Exhibit 1: Next Generation Mobile Marketing: Mobile Data Traffic, Global, 2014-2020

2.54.2

6.8

10.7

16.1

24.3

36.1

0

5

10

15

20

25

30

35

40

2014 2015 2016 2017 2018 2019 2020

Mo

bile

Dat

a T

raff

ic (

Exa

byte

s)

Year

Global Mobile Data Traffic (Exabytes)

Note: All figures are rounded, the base year is 2014. Source: Cisco VNI, Frost & Sullivan

Exhibit 2: Next Generation Mobile Marketing: Cumulative Application Downloads from Leading App Stores, Global, 2013-2020

232.0

344.1

481.9

644.4

827.1

1033.9

1261.3

2015 2016 2017 2018 2019 2020

Cum

ulat

ive

App

Do

wnl

oad

s (B

illio

n)

Cumulative Application Downloads from Leading App Stores (Billion)

2014

Year

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

1400.0

Note: All figures are rounded, the base year is 2014. Source: Frost & Sullivan

III. challenges for the exIstIng MobIle MarketIng Industry

Targeting and Monetization in Existing Mobile Marketing

Historically, mobile marketers have targeted content by attributes such as device types, high-level location (geo-fencing and geo-targeting), content, and application types. In these scenarios, marketers rely on the established statistical association between device attributes and the audience types to deliver content. Mobile marketing solution providers have refined this technique and started to leverage additional attributes to deliver relevant information. However, despite the advancements in targeting and placement mechanisms in recent years, there are still several notable market needs that have yet to be addressed.

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Summary of Challenges

A fragmented user experience, ineffective app discovery and promotion, limited product differentiation, and the inability to effectively capture “user intent” are some of the key challenges with existing mobile marketing platforms. The current approach of determining what a user is “likely” to buy is not very effective and, in fact, quite similar to basic online marketing workflows. For example, the present set of mobile technologies can provide a good understanding of a consumer’s general profile; however, existing mobile marketing platforms have been challenged to truly understand a mobile consumer’s “intent.” While app developers can use the underlying marketing identifiers to anonymously identify a user, doing so across different mobile environments to deliver engaging mobile content can help increase effectiveness of mobile content. Thus, the next generation of mobile marketing involves redefining the mobile customer engagement model to adequately capture “intent,” which allows marketers to present the right offer, at the right time, in the right environment.

Exhibit 3: Next Generation Mobile Marketing: Key Challenges in Existing Mobile Marketing, Global, 2015

Key Challenges in Existing Mobile Marketing

Capturing UserIntent

Lack of Differentiated

Search and Discovery Experience

Fragmented User Experience

Delivered by Marketers on

Mobile Applications

Difficulty in Mobile

Application Marketing

Ad Technology is not

Searchable

Summary of Challenges

Source: Frost & Sullivan

capturing user Intent

The data sets used most often to develop user profiles include demographic information and psychographic consumer attributes such as age, gender, ethnicity, household income, education levels, marital status, and primary location for residence. All of these attributes are then used to determine what ad could appeal to the user, even though the user may not be interested in the shown product or service at that particular moment. Thus, a “push-based” approach to mobile marketing isn’t always the most efficient way to leverage the mobile channel. A combination of predictive pre-targeting, based on a user’s intent (determined by analyzing their interactions across different mobile apps, services, and environments), will be critical for the growth of next-generation mobile marketing. Technologies that can aggregate and link usage data in a privacy-protected, cross-platform manner can enhance current mobile marketing. Ideally, such technologies will follow users through their journey from app to app, and deliver unique, personalized experiences based on how they engage with various applications.

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lack of a differentiated search and discovery experience

According to Google, more Google searches take place on mobile devices than on computers in 10 countries, including the US and Japan. However, the search experience has simply migrated from desktop to mobile without customization for the mobile environment. In particular, allowing consumers to easily discover offers relevant to their real-time needs in mobile has largely been missing from existing search-based mobile marketing. The search experience in mobile continues to become more local with popular mobile services such as Yelp Inc., Amazon, eBay, Alibaba, Craigslist, Pandora, and many others absorbing the users’ search needs and containing the search activity within their environments. There is a clear need for solutions that can capture real-time user intent, based on user interactions across various mobile apps and services, and hence deliver optimized ad targeting and improve brand engagement in the mobile environment. The recently announced Google “Now on tap” service allows users to discover relevant information without leaving what they are doing on their mobile phones. This is an example of the move in the direction of hyper-context.

fragmented user experience delivered by Marketers on Mobile applications

In the current mobile marketing environment, brands deliver targeted marketing messages powered by the data collected from user interactions within specific apps. Multiplicity of such app-specific marketing channels prevents marketers from generating a consistent view of user behavior across different mobile apps (and websites). The lack of a cookie-like framework exacerbates this issue in mobile. Most existing marketing campaigns are direct-response initiatives, where consumers interact with an ad and are led to a separate landing page or application to retrieve, consume, and share information about the advertised brand. This is a five- to seven-step process, which leads to a broken consumer experience. Minimizing the number of steps—or hops—it takes to retrieve information from within a mobile app is a critical requirement for the mobile marketing industry.

difficulty in Mobile application Marketing

Despite having access to more than 3.0 million applications across the various operating systems, a large majority of smartphone consumer have less than 30 third-party apps installed on their mobile handsets at any given time. Additionally, app engagement times skew heavily in favor of a very small set of applications; with the top five applications consuming nearly 90% of consumers’ mobile app engagement time. Therefore, app discovery and increasing app engagement times have emerged as the key challenges for app owners. Initiatives such as Google’s App Index can help address this challenge. However, as mentioned, app and content discovery services from Google are confined largely to the search experience. Allowing consumers to discover relevant brands, products, or new services while remaining in their current Web or app experience can increase app engagement time and make the user more receptive to learning more about the advertised brand. While Google Now on tap service will allow users to discover relevant information from within their current mobile experience, publishers have to work with Google policies and integration pieces to allow Google to deliver this type of experience.

ad technology is not searchable

Mobile marketers have adopted a “shoot-and-wait” strategy in which they upload a campaign, specify a set of targeting parameters, bid against specific inventory (in an ad exchange environment), and then hope that the user will find the displayed ad relevant and will engage with the brand. Improper message placements, the inability for consumers to bookmark or flag a relevant offer for viewing at a later time, and a push-based approach to mobile

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marketing (versus allowing consumers to actively seek campaigns based on their needs in a particular moment) are some issues with the present set of mobile marketing technologies. For example, if a consumer wants to book a flight, there is really no way for the consumer to reach out to an active campaign in a user-initiated manner at a specific moment when they want to book the flight ticket. A higher engagement rate and better relevancy can be achieved only when the user needs intersect with the right brand messaging at the right moment.

Iv. need for hyper-IntellIgent MobIle MarketIng

Existing Mobile Marketing – A Compromise for Brands and Marketers

Smartphone usage patterns are summarized well in this statement by Google: “The old days of predictable, periodic media sessions have been replaced by numerous short bursts of digital activity throughout the day. The old model was a four-course meal in the same restaurant. Today’s is a series of constant bite-sized snacks all over town.” Most existing mobile marketing solutions miss this market reality and are focused on replicating the online ad content experience via display and rich media content in mobile. These solutions are not well suited to effectively target the dynamic “mobile moments” generated by consumers.

Hyper-Intelligent Mobile Marketing

There is a clear and present need for hyper-intelligent mobile marketing solutions that can help deliver the right brand offer to users based on what they want at a particular moment. Currently, marketing and brand campaigns are constrained by the limitations of the available marketing platforms in terms of their ability to help reach the right user, at the right time, with the right type of offers. Hyper-intelligent mobile marketing solutions should bring value to consumers by helping them discover services and products that they actually need, as opposed to attempting to predict what a consumer might need based on various first and third-party data sets. For example, a user standing in front of a retail store may not have an intent to buy from that store, while a user chatting with a friend a few miles away may have expressed a need to purchase home supplies. Therefore, location-based marketing is more “hope driven” while “intent-based” marketing is more actionable and is of service to the user.

In addition to appropriate targeting, next-generation mobile marketing solutions should be multilingual (in order to allow brands to get maximum coverage for their products in different geographies) and allow consumers to discover new services, as well as increase engagement, on the same device with existing apps. Other important challenges include coverage (inventory levels), compatibility with multiple mobile environments, enhanced reporting and feedback, and self-serve capabilities.

Search & Discovery

In the US alone, mobile search continues to grow exponentially. However, marketers are unable to offer relevant content to users in the exact moment of their needs. Search companies understand the importance of relevancy and immediacy and are already integrating search as a service with third-party apps. Technologies such as Yahoo Search SDK, Siri or “OK Google” are enabling users to search for a specific need, making things a little easier for its users. Soon Google plans to add “buy” buttons to pages showing search results for products available for online purchase. The buttons, which will take shoppers to another Google product page where they can actually discover and make a purchase, will first appear on searches performed on mobile devices.

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Essential Elements of Hyper-Intelligent Mobile Marketing SolutionsExhibit 4: Next Generation Mobile Marketing: Prerequisite for Successful Platforms to Provide Most Impact, Global, 2015

Prerequisites for Successful

Mobile Marketing Platforms

Effective, Intent-based

Targeting

Self Serve Capabilities

Coverage and Compatibility

Enhanced Reporting

and Feedback

Multi-Lingual Capabilities

Simplicity and Ease of

Use


A brief description of each of these requirements is presented below.

• Effective, intent-based targeting: Determining consumer immediate or current needs through intelligent, predictive technologies is essential for success of mobile marketing.

• Multilingual capabilities: Multilingual capabilities, for intent determination, are essential for achieving global scale.

• Simplicity and ease of use: It is critical to deliver a satisfactory consumer experience through non-intrusive, non-interruptive, relevant marketing messages.

• Coverage and compatibility: A wide reach, facilitated by the ability to serve marketing messages within multiple types of mobile apps and Web environments, helps deliver improved results.

• Self-serve capabilities: Easy-to-use, buy-side interfaces to help brands and mobile marketers manage campaign creation, execution, and reporting processes are important to drive traction of mobile marketing.

• Enhanced reporting and feedback: Transparent, timely, and relevant reporting to help brands determine the performance of their mobile campaigns is an essential requirement of next-generation mobile marketing solutions.

v. platforM spotlIght: xploree

Introduction to Xploree

Xploree is a next-generation mobile marketing solution that can help address the key challenges associated with the current mobile marketing mechanisms. It is a mobile search and discovery platform that offers unified hyper-context and intent precision on multiple screens, multiple apps, and in multiple languages. As the industry’s first user-initiated, hyper-contextual platform with language intelligence that conveniently connects mobile

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device users with brand offers and services in the exact moment of need, Xploree can help deliver significantly improved results when compared to the current mobile marketing mechanisms.

Exhibit 5: Next Generation Mobile Marketing: Search and Discovery Capabilities of Xploree, Global, 2015

Xploree Capabilities

Search Discovery

• Enables brands to reach consumers during the search intent.

• Cross-app search on m-commerce apps, app and music stores, infotainment apps, etc.

• Premium opportunity for brand connect.

• Enables brands to reach consumers during conversations.

• Wide reach of apps, including Facebook, Twitter, WeChat, WhatsApp, email clients, etc.

• Non-intrusive, non-interruptive, user-initiated interactions.


How it Works and Key Benefits

The keyboard application on the mobile device sees a combined user base of ALL mobile services, including Facebook and WhatsApp. This makes the keyboard one of the most used mobile applications. The keyboard also occupies a third of the screen real estate. Due to these characteristics (high engagement rates and high screen real estate), Frost & Sullivan believes that the keyboard is an effective platform to build innovative consumer experiences. However, the keyboard has not seen any true innovation with the exception of Swype that was introduced more than eight years ago. Industry participants that can leverage this lethal combination of user base, engagement rates, and cross-app data sets related to consumer interaction with various apps will be uniquely positioned in the global search and discovery space.

By using the keyboard as a platform to collect and process relevant information about consumers’ interaction across different apps, Xploree can deliver compelling marketing experiences for the users based on how they engage with different apps. By analyzing user interactions with their mobile keyboards in real time, and by combining that with its proprietary technology, Xploree can achieve “intent-based” targeting. Importantly, Xploree can do this across multiple types of application environments, including mobile search, mobile instant messaging, mobile email, mobile commerce, and mobile app stores. The solution is a win-win for the ecosystem participants, including brands, device OEMs, mobile operators, and, ultimately, consumers.

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Exhibit 6: Next Generation Mobile Marketing: Key Features of Xploree, Global, 2015

TIME

CONTEXT

FREQUENCY BEHAVIOR

LOCATIONHYPER-CONTEXT

“USERINTENT”

CROSS APPSEARCHINTENT

CROSS APPREACH &INTENT

Hyper-Context “User Intent”Combining contexts

Cross App Reach & IntentOne app to reach all others

Cross App Search IntentOne search across all platforms


Exhibit 7: Next Generation Mobile Marketing: Benefits of Xploree for Brands, Consumers, and OEMs and MNOs, Global, 2015

Xploree Benefits

Brands Consumers

• Guaranteed way of reaching consumers at the right moment of user intent, thus driving ad effectiveness.

• Multiple call-to-actions to drive engagement - including click-to-call, coupons, video, and app installs.

• Experience useful search and discovery without exiting the app, and remain in control of the ad experience.

• Strict privacy controls, opt-in, opt-out features, quick opt-outs (such as incognito mode on browsers).

OEMs & MNOs

• Create new revenue streams and deliver unique consumer experiences.

• Other benefits include easy integration, market reach through support for 120 languages, and meaningful customer data


vI. how xploree drIves app re-engageMent

Mobile App Usage Trends

apps dominate the Mobile web

Frost & Sullivan’s research indicates that consumers spend more time on mobile apps than on the mobile Web in several regions globally, and mobile app usage continues to increase dramatically across the globe. Depending upon the application type, 15 to 50% of the total app engagement time for popular mobile applications is spent

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in content creation, where users are either typing an instant message, posting to social networks, sending tweets, or uploading digital content or files to online destinations, such as photo sharing apps.

Exhibit 8: Next Generation Mobile Marketing: Time Spent on Apps vs. the Web, Global, 2015

8086

2014

0

10

20

30

40

50

60

70

80

90

100

2013 2014

Tim

e S

pent

(%

)

Year

Time spent in Mobile Web (%) Time Spent in Mobile Apps (%)

Note: All figures are rounded, the base year is 2014. Source: Flurry Analytics, Frost & Sullivan

key challenges for Mobile apps

While mobile apps have clearly emerged as the preferred channel for digital content and services, there are several challenges associated with mobile apps that haven’t yet been addressed by the existing mobile marketing platforms. These challenges include:

• Driving repeat app usage: Frost & Sullivan’s research indicates that a handful of mobile apps garner the large majority of consumers’ app usage time. A significant percentage of mobile apps that are downloaded on smartphones are used less than five times every month. Therefore, increasing app usage is a key challenge for mobile app providers.

• Augmenting retention rates: According to a 2014 report from mobile marketing firm Swrve on success of mobile apps, only 26% of users are active 24-48 hours from the first session, and after seven days the retention rate drops to 13%. Increasing the consumer retention rates is a major challenge for app developers as well.

key strategies for driving app engagement

The following mechanisms can be used to drive app engagement and improve customer engagement with mobile apps.

• Deep linking is one of the most effective ways to get the user to a specific place within an app that might be most relevant to the users’ current task or engagement.

• Push notifications can be effective since they show up on the best real estate on mobile—the home screen—but if not done right, can be annoying to users.

• In-app messaging can compromise the overall mobile user experience, but can be effective when it is highly relevant and contextual to the experience.

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• Incentives can prompt app usage, according to Google. Discounts and special promotions are often appreciated by users, as research suggests consumers are more likely to click on offers that help them in some way.

Driving App Discovery and App Re-engagement with Xploree

benefits of xploree’s Intent-driven, In-app Marketing capabilities

Xploree can help drive app discovery and engagement by presenting users with relevant, contextual information. For example, if a consumer is conversing on a messaging app and discussing a product relevant to an e-commerce app provider, the user could be presented with recommendations, leading either to the provider’s App Store page to download the app or with a deep link to get to the action in one click. All this can be done without requiring the user to exit the messaging app that they may be using, which significantly elevates the brand engagement opportunity (as the user receives the information in the app itself). Therefore, by helping app developers market their apps to those users who are conversing or searching for information very specific or close to their app themes, Xploree can help drive app discovery in an unobtrusive way.

Exhibit 9: Next Generation Mobile Marketing: Example of Xploree Search Capabilities, Global, 2015

Source: KeyPoint Technologies

It is important to note that driving app re-engagement is one of many use cases supported by Xploree. Xploree is a comprehensive, user intent-based search and discovery platform that helps brands and marketers deliver marketing messages and offers in various forms, in real time, according to consumer interests.

vII. revenue potentIal of xploree

Estimating the revenue potential for Xploree involves: 1) calculating the potential opportunities for delivering intent-based marketing messages to consumers, 2) determining Xploree’s ability (or success rate) to successfully capture user intent and displaying relevant marketing messages against the identified consumer needs, and 3) estimating the cost to brands/mobile marketers for displaying messages via the Xploree platform. Additional details of the methodology for estimating Xploree’s revenue potential are below.

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• Frost & Sullivan has estimated the aggregate time spent by users in content creation (typing an instant message, posting to social networks, sending tweets, etc.), since this time represents the potential opportunities for delivering marketing messages through the Xploree platform. This model also accounts for the variations in content creation time across different mobile applications when estimating the total time spent by mobile users in content creation (for example, users spend more time in content creation in instant messaging apps than on music streaming apps).

• It is assumed that Xploree has a well-developed marketer ecosystem that allows Xploree to display relevant brand marketing messages against the majority of the identified opportunities. This is roughly analogous to the “fill rate” metric that is used in the existing digital advertising market, where fill rates determine the success rate in delivering relevant ads against the ad request coming in from qualified inventory.

• Various other aspects, including revenue per minute and successful capture of user intent (which measures Xploree’s ability to capture the user intent), have been estimated. All these metrics are used to arrive at the total revenue potential for Xploree for 1 million, 10 million, and 50 million users.

Exhibit 10: Next Generation Mobile Marketing: Total yearly Revenue Potential for Xploree for 1 Million, 10 Million, and 50 Million Users, Global, 2015

0

50

100

150

200

250

300

350

1 Million Users 10 Million Users 50 Million Users

Rev

enue

Po

tent

ial (

$ M

illio

n)

Users

Total Yearly Revenue Potential ($ Million)

Note: All figures are rounded, the base year is 2014. Source: Frost & Sullivan

As shown in Exhibit 10, Xploree can generate revenue of approximately $300 million in a smartphone-dominated market by acquiring 50 million users. It is important to note that there are other possible use cases for Xploree that have not been considered in this analysis. For example, Xploree can support branded content or branded keyboards, which can expand the total revenue potential of Xploree. For communication apps such as WhatsApp and other instant messaging programs, there are short durations of wait periods when users are waiting for the other person (that they are chatting with) to reply. These short “mobile interludes” present an opportunity for Xploree to provide relevant, appealing content to consumers at opportune moments when the platform can get the undivided attention of users.

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vIII. the results

Xploree Search and Discovery Platform

Xploree provides consumers with a hyper contextual search and discovery experience. Marketers benefit from being in close proximity to the users’ intent.

Exhibit 11: Next Generation Mobile Marketing: Delivering Relevant Offers through Xploree, Global, 2015

Presto KeyPresto Tile

Xploree Display Inventory Action

Presto Tile Tap on Presto Key that glows > Presto Tile with info/offers displayed

Call To Actions - No specific BUTTONS Tap on the promo image to access URLs, call or video.

Presto Key The key that glows when an intent match is done by Xploree

Surprise Me option on Presto Tile Tap to get in-app services/content for intents matching the top trends

Source: KeyPoint Technologies

Xploree – Important Stats and Report

Some data from the Xploree beta release (across several metro cities in India) is highlighted below. The duration of data collection and observation is in the range of 30-40 days during the months March and April, 2015.

click-through rates

Exhibit 12 presents a comparison between the CTR of standard digital display ads worldwide to Xploree’s click-through rate, which is a measure of the clicks on Presto Tile and Presto Key. Clearly, the CTRs for Xploree are significantly higher than the industry average.

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total Impressions

Exhibit 12: Next Generation Mobile Marketing: CTR for Standard Digital Display Ads and Xploree, Global, 2015

Digital Display Formats CTR

Standard banners 0.12%

Mobile 0.14%

Rich Media 0.44%

Videos 0.39%

Xploree 26-29% (CTR of Presto Tile)

7-9% (CTR of Presto Key/User Intent Score)

All figures are rounded, the base year is 2014. Source: Frost & Sullivan, KeyPoint Technologies

coupon usage, search Intent, relevancy score, and engagement score

Exhibit 13: Next Generation Mobile Marketing: Total Impressions Data for March and April 2015 for Xploree, Global, 2015

Total Engagements

March 27

35,479

295,608412,020

CO

UN

T

1,800,000

1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

108,261

1,085,508

1,546,300

April 20

Total Relevant Impressions Xploree Usage


• Coupon Usage: denotes the percentage of times coupon code was copied using Xploree (avail rate was not measured)

• Search Intent: is a measure of percentage of search sessions out of total sessions by user with Xploree keyboard.

• Relevancy Score: is percentage of total number of brand connect opportunities created by Xploree across all conversational sessions.

• Engagement Score: percentage of total interactions by users with the Presto Display Inventories by the total impressions landed for the display inventories.

The brand connect opportunities span key glow, Presto tile impressions. Around 30 brands representing various categories were part of the Xploree beta. Frost & Sullivan’s analysis shows that for every 5 new brands added to Xploree’s inventory, there would be an increase of about 13 to 15% in the number of impressions.

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why relevance and engagement matter more than cpcs and cpMs?

Measuring cost per clicks (CPC) and cost per impressions (CPM) have been the traditional ways to gauge the effectiveness of a mobile advertising campaign. Accelerating with the current mobile growth, evolving context aware technologies and enhanced mobile data capabilities makes it easier for us to wean off dependencies on CPCs and CPMs. Understanding the consumers’ journey, preferences and intent is more important. Bridging the gap between intent and action with relevancy and engagement are the most effective ways to drive meaningful conversion. With new measurement metrics that are more meaningful to users and businesses, Xploree is disrupting the mobile search and discovery ecosystem.

application usage

Xploree discoveries are available cross-app, cross-platform. WhatsApp has been the most used application over the observed months.

Exhibit 14: Next Generation Mobile Marketing: Search Intent Analysis for March and April 2015 for Xploree, Global, 2015

Coupon Usage

March 27

3.76

15.18

71.75

12.00

Mea

sure

men

t (%

)

80.0

70.00

60.00

50.00

40.00

30.00

20.00

10.00

0.00

3.99

14.70

70.20

9.97

April 20

Search Intent

Engagement ScoreRelevancy Score


discovery in conversation

Xploree enables discovery of content, apps, services and offers during user conversations on mobile and during the ‘mobile interludes’. Xploree leverages the unmatched opportunity during the ‘mobile interludes’ (few moments of idle-time where a user waits for the other to interact or continue a conversation on a messaging app) to engage, inform, recommend and reward the user. The advantage to the users being:

• User stays within the messaging apps and does not lose context

• User discovers content or services that match user’s intent and location

Some of the categories that were matched to user intent during conversations are shown in Exhibit 16.

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Exhibit 15: Next Generation Mobile Marketing: Observed Sessions on Various Apps with Xploree Keyboard for April 2015, Global, 2015

Wha

tsA

pp

UC

Brow

ser

Payt

m

Face

book

mC

ent

Con

tact

s

Chr

ome

Ope

ra M

ini

Mes

sagi

ng

Goo

gle

Play

Sto

re

Goo

gle

App

Laun

cher

UC

Min

i

Goo

gle

Sear

ch

Phon

e

Mes

sang

er

Touc

hWiz

Hom

e

Free

char

ge

Laun

cher

3

400,000350,000300,000250,000200,000150,000

50,0000

100,000

APR-15


Exhibit 16: Next Generation Mobile Marketing

M-commerce32%

Gifting19%

Food DeliveryMarketplace24%

Restaurants10%

e-Healthcare3%

Search2%

e-Services10%


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v. the last word

frost & sullivan

• Increased content viewing on smartphones and tablets has helped drive the growth of mobile marketing. However, the present set of technologies may not be enough to deliver on the promise of mobile. The industry needs efficient, next-generation discovery and search mechanisms to address the key challenges in mobile marketing.

• The “next generation” of mobile marketing involves redefining the existing mobile customer engagement model to allow marketers to leverage a predictive and intent-based targeting mechanism to deliver suitable brand messages to consumers on their mobile devices

• Xploree is a next-generation mobile marketing solution that can deliver integrated, cross-channel, cross-media brand engagement through innovative, immersive, and non-intrusive discovery and search. By leveraging advanced pre-targeting and language intelligence capabilities, Xploree can serve the unmet needs of brands and marketers.

• By adopting a new approach to mobile marketing that is focused on capturing user’s intent at a particular moment in time, and by delivering highly relevant content and offers in a non-interruptive, simple and pleasing manner, Xploree has the potential to be a game changer for mobile marketers.

• With Xploree, OEMs and mobile operators can generate additional premium revenues from their application initiatives. They can also deliver a differentiated customer experience.

• Frost & Sullivan believes platforms such as Xploree can help increase the overall value of mobile marketing by consistently delivering above-average results for mobile marketers. As customers demand more from their marketing partners, solutions such as Xploree will be in greater demand.

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