Questions to Offer Yehudai co-CEO innerActive (solution for content and advertising)
Can you tell us more about your service?
innerActive tag line is simple: we better monetize the mobile media content (games, applications & video) – everything except the mobile web – thus making it free. Unlike other services, we do not license or sell ad-server rather manage an "Ad-funded AppStore", including all content relationships and optional ad sales. innerActive key contribute is its real-estate: the ad-ready content which is already implemented with our technology and the managed platform. The service is simple, creating and managing for the portal, community or operator an end-to-end ad-funded content channel.
What is your business model?
The business model is varied, from a revenue share model on ad revenues coming from the content to fix-cost service powering ad-funded content sections. In today's reality we maintain 100% flexibility with our clients. The ecosystem involves several players: the channels (like the recent ICQ deal), the ad agencies (like mbrand3 in France) and the content publisher (like Playtomo). The idea behind the service is to open the market for new end users who are reluctant to pay for premium content and looking for casual, high-quality alternatives. Also, this model allows content publishers to run a "2nd round" of their back-catalog after extracting the premium users.
What are the projects, additional features you're preparing?
The idea is to add as many more types of ad-funded content. The next step is to add downloadable and streaming content ad supported. We can learn from the ICQ deal that it's very important for the community to offer a wide range of content to its users while marinating its high quality.
What are the current users' feedback, your learnings on the service's usage?
The interesting part is to see how well the users respond. We were afraid, at the beginning that users would stay away from the ads, but using our unique non-intrusive ads and in-game product placement we see the users returning to the games and re-playing them. On average, the user plays the free game ~10 times a month for as long as 3-4 months. This type of user behaviour wasn't recordable until now.
In addition, we have users' demographics profile and it's exciting to learn that 60% of the ad-funded players are female, 16-34 years old!
Looking at the advertising effectiveness, the click-through rate is around 15% – very high in comparison to the web and high even to the mobile media. I think the key point here is not just enabling "click to WAP", ut rather offering advertising polls, coupons and surveys within the content itself.