over-the-top b2c mobile messagingmno b2c mobile messaging will grow at avg. cagr=33% from 2012...
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Over-the-Top B2C
Mobile Messaging
B2C mobile messaging is a multi-billion dollar market in growth mode and is used by businesses to attract, retain, and engage with customers for both marketing and non-marketing/CRM purposes.
B2C Messaging Today
Financial Services Retail
Sports Entertainment Healthcare
SMS & MMS are not able to service the rapidly growing B2C mobile messaging market adequately—a market ripe for disruption.
SMS & MMS Can’t Keep Pace
High Cost
Rudimentary Analytics
International Fragmentation
MNO Rules and Regulations
Unbrandable Short Codes
App Publishers Need Additional Revenue Models
WIZ Has the Solution
OTT Networks
WIZ enables the new revenue-generating category of OTT B2C mobile messaging. Because WIZ circumvents the MNO SMS network, it offers cost savings, richer messages, and better analytics than SMS.
Reduced Costs Alpha Sender IDs Rich Analytics New Revenue
Connects businesses to consumers via OTT (WiFi, 3G/4G) networks
Reduces costs signi!cantly via bypassing MNO SMS networks
Allows global alpha SMS sender IDs and enables replies to alpha IDs, a powerful branding advantage
Delivers rich analytics, reporting, and targeting based on smartphone APIs
Provides new non-advertising revenue source for global smartphone application publishers
WIZ connects SMS/MMS message aggregators to OTT mobile messaging apps on smartphones via industry standard MNO interface.
WIZ Message Cloud
Partners/Receivers
Any mobile app with wide distribution
SMPP
message cloud
Customers/Senders
Any SMS aggregator
MNO B2C mobile messaging will grow at avg. CAGR=33% from 2012 reaching $83B by 2016. OTT messaging will take $42B from MNOs during 2012-2016.
B2C and OTT Explode Overall SMS/MMS in decline
75
125
175
225
2011 2012 2013 2014 2015 2016
SMS+MMS
P2P
Revenue ($B)
B2C and OTT sustain major growth
0
25
50
75
100
2011 2012 2013 2014 2015 2016
B2C
OTT
Revenue ($B)
2016: $83B
2012-2016: $42B (total)
peak: $197B
15% decline
49% decline
peak: $165B
CAGR 33% (avg.)
2016: $84B
2016: $167B
The competition doesn’t have WIZ’s “special sauce”.
Competition App/Consumer
Reach
SMS Aggregator Ease of Adoption
• Many-to-Many (Reach 3rd party OTT messaging, other apps with broad distribution)
• Use existing API
• One-to-One(Reach your own app only)
• New API required
WIZ Unique Selling Points
WIZ has a unique architecture, feature set, and business model.
Increased gross margins for SMS aggregators without changing their existing MNO interface
SMS Bypass
Enables much greater app/consumer reach than with current 1:1 push noti!cations model and injects new revenue streams into mobile app developer community
Industry-!rst alpha branded sender ID and reply to capabilities increase consumer brand engagement with B2C mobile messages
Many-to-Many B2C Push Branded Sender ID and Reply-To
One-to-One push noti!cations are a proven and exploding market (from zero in 2010 to $2B+ in 2014). WIZ signi!cantly expands the push noti!cations market with our Many-to-Many model.
WIZ Enables “Many to Many” One-to-One
Massive installed base
Many-to-Many
Customers (Message Senders)
• Global mobile message aggregators
• Global brands
Partners (Message Receipt Enablers)
• Global app publishers
• Mobile device OEMs
• Developers
Businesses pay to send messages, SMS aggregators collect revenue from business senders and share with mobile network operator (MNO), and MNO collects lion’s share of revenue.
Business Model (Today)
Businesses (Message Senders)
SMS Aggregators
Mobile Network Operator
20-30% 70-80% of revenue of revenue
Message Receiver
WIZ Business Model
SMS Aggregators
25% 25% of revenue of revenue
Businesses pay to send messages, SMS aggregators collect revenue from business senders and share with WIZ and partner app publisher (a new revenue stream). SMS Aggregators revenue share and gross margin increased signi!cantly.
50% of revenue
Businesses (Message Senders)
App Developers
SDK
WIZ Message Cloud is fully operational today, processing rich media messages for thousands of WIZ Messenger users globally.
WIZ Today
Message Cloud
iPhone Windows Phone
Android
WIZ Today
Today’s fully operational WIZ P2P cross-platform push noti!cations cloud and WIZ Messenger app will reduce time to market for the WIZ B2C cloud and mobile SDK.
Windows Azure Cloud architecture provides ease of scalability, high availability, and business-grade infrastructure (server, O/S, application) management
Scalable Architecture
Phone number validation during registration, back-end system token based signing, HTTPS for all external communications
Push Noti!cations, group chat, online status, rich media, read receipts, SMS messaging (Android), guaranteed delivery, auto-contact import, HTTPS encryption
Secure by Design Feature-Rich
The Dynmark/WIZ relationship is valuable (First trial partnership): an on-going commercial relationship provides many bene!ts and key commercial advantages moving forward.
Dynmark and WIZ
Leading U.K. SMS aggregator and mobile marketing !rm
• $1.2M to build WIZ
• Spun-off all WIZ IP into an independent company
• WIZ IP resides outside U.S.
• WIZ initial trial partner
WIZ founders have in-depth knowledge and relationships within SMS aggregator industry which will drive WIZ message volume.
Q412 Q113 Q213 Q313 Q413
Core Dev Team Hired
WIZ Beta Release WIZ GA Release
Trial Partner Integration
WIZ Cloud API and Agent Development + QA
Additional Partner Recruitment (Message Aggregators, App Publishers)
Bug Fixing and Enhancements (Reporting, Analytics, Alpha Send and Reply, iOS)
Commercial Expansion
Sept. 2012
WIZ SMS Agent on
Google Play
WIZ Demo
Roadmap and Milestones
Current investment requirements will enable WIZ to realize the 15-month roadmap.
CTO Hired
Developer Marketing
MMS API
Commercial Launch: Android
Build Developer Portal
Q114
Numbers
2012 2013 2014 2015
Revenue 0.0 14.0 86.4 136.7
Gross Pro!t
0.0 7.0 43.2 68.3
EBITDA -0.2 3.5 36.4 60.7
P&L Forecast ($US M)
Commercial launch in 2013 followed by commercial expansion in 2014. Partners bid on price per message by country to create a competitive bidding exchange starting in 2014.
Funds Required: $3M
Use of Funds
• Hire core team (12)
• New of!ce
• Product development and operations for commercial launch
Numbers
Commercial launch in 2013 followed by commercial expansion in 2014. Partners bid on price per message by country to create a competitive bidding exchange starting in 2014.
2012 2013 2014 2015
ARPU $1 $1 $2 $2
Active Users (millions)
-- 30 50 74
WIZ Gross Revenue/Message ($US)
-- .008 .006 .005
Messages/User/Month
-- 10 26 33 0
2
4
Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414
Quarterly Messages Processed
messages (billions)
WIZ's founders are subject matter experts in mobile messaging and application development ecosystems.
Founders
Martin Barclay B.A.Sc., MBA, P.Eng. VP of Product & Developer Ecosystem Head of Developer Marketing, Americas, Nokia 2008- 2011, Director Product Marketing Ubiquity Software (acquired by Avaya) 2005-2008.
Oscar Jenkins MBA CEO Founded Nethead (aka X-Stream Networks - !rst Free UK ISP) in 1993, (acquired by Liberty Surf in 2000 for $75m). 2001 founded mobile messaging !rm Dynmark International. 2011 launched Dynmark USA.
Doug Tucker, BSEE CTO CTO Tatara Systems, CTO Avaya/Ubiquity Software, CTO MCK Communications, CTO VideoServer
linkedin.com/in/oscarjenkins
linkedin.com/in/mgbarclay
linkedin.com/in/dougtucker
www.wiz.co www.dynmark.com