Innovation- MXit by Herman Heunis

MXit UP :
Innovation, Youthful Fun & Connectedness
A Case Study from Southern Africa
Presented by Herman Heunis
Founder & CEO
Africa Media Leadership Conference
5 October 2009

Topics
Background
User growth
Our eco-system
Business models
Projects
Social development in Africa
Challenges for social networking

What is MXit?
Primarily a FREE mobile Instant Messenger
but much more….
social networking
advertising
entertainment
dating
classifieds
education
TV interaction
counselling
mobile banking
micro transactions
location based
social development

How does it work?
Not SMS based
Not an internet browser
Uses the phone’s internet capabilities
Software requires a phone capable of
Java
GPRS or 3G
Supports more than 1,940 different phones
Software is downloaded on the mobile phone from www.mxit.com/wap using the web browser
Software is FREE and no charge for messaging

What is MXit?

MXit components
Standard contacts when user registers
Info
Standard help
Standard message to entire user base
Tradepost
Sales portal for selling content
Joebanker
Your wallet
Xchange
Default classifieds
Gallery
Personal space

The company
Vision
“Provide people with free messaging to connect with people, products, services, information and entertainment, relevant to their lifestyles....”
Mission
To secure a significant portion of the 4 billion mobile phone users in the world
Philosophy
We do not compete, we create
Slogan
“join the evolution” | “exit the ordinary”

Total registered users worldwide

Africa new user growth
(per week)

Success factors
Brand new form of communication
Very cheap
Entertainment is embedded
Socializing capabilities (dating, new friends)
Single place of connectedness
Part of a big community
The youthfulness of the brand

Primary building blocks
Very cheap messaging
Presence information
Group and broadcast communication
Multi-media enabled
Location Based Services (LBS)
Extensive user information available
Viral effect always present
Internet access
Transactional & billing possible

Role players in the eco-system
MXit
Mobile operators
MXit community
Phone manufacturers
Content providers
Advertisers

Role players
Challenges
MXit (the company)
Constant stream of new handsets
Competition – constant innovation
Mobile operators
Constant education
Mobile operators
SMS will eventually disappear
IM seen as erosion of SMS revenues
Under-utilized data networks
Voice revenues on plateau
MXit community
Wants to consolidate mobile applications
Price sensitive – wants everything for free
Lack of technology education

Role players
Challenges
Phone manufacturers
Pressure to lower prices
Mobile operators
Content providers
Technology understanding mainly SMS/MMS
Ever-changing user habits
Advertisers
On verge of major paradigm shift
Mobile advertising still in infancy
Lack of technology understanding

Business model
Our main drivers
Acquire new users
Retain users
Generate revenue
How we generate revenue
Advertising
Content sales
Subscriptions

Advertising
Splash screens

Advertising
Tradepost messages

Advertising
Brand portals

Advertising
Wallpapers

Content sales
Skinz

Current “projects”
Xchange
MXit Music
Multi-player games
Education initiatives
Competitions (writing, etc.)
User polls – market research
Counselling(drugs & Childline)
Voting – Pop Idols, Big Brother (TV)

MXit Xchange
MXit Xchange - positioned as a mobile classifieds/ trading platform
Launched 16 weeks ago on 10 June 2009
2,100 New postings each day
330,000 Subscribers, organic growth at 3000 per day
25,000 Inbox messages (enquiries) sent between users daily
Currently 10 full-time moderators
Mobile moderation tool allowing anywhere, anytime moderation from any phone

MXit Xchange
MXit Xchange Moderation Tool

MXit Xchange
Posts
Graph shows visible post numbers after moderation
MXit Xchange currently charges 100 Moola (+-$0.12) per post
Last 15 days an average of 2100 new posts per day

MXit Xchange
Messages
Messages are not billed at this stage
Users can send anonymous messages to one another to enquire about items
Total messages sent +676 000 in the past 33 days
Last 15 days an average of 24 933 messages sent per day

MXit MusicOverview
Opportunity for unknown bands to deposit music on MXit website
Provide free portals to these bands
MXit users vote - songs migrate up charts based on votes
Once on certain level – start selling songs
Share revenue with bands

MXit MusicComponents
MXit Music mobile
Voting, previews & download tracks via mobile phone
Consists of:
Playlist - Top 40 bands on MXit based on votes
Auditions - All tracks uploaded available
Warehouse - All formerly Top 40 tracks available
Featured bands - Famous bands signed to MXit Music
Hot or not - Semi-famous bands
MXit Music web
Band registrations, band page & preview tracks via the webpage

MXit MusicStats
MXit Music currently has 746 000 registered users
MXit Music monthly averages (past 3 months)
New users: 22 000 p/m
Votes: 63 000 p/m
Currently 526 bands activated on MXit Music

Reaching our community
Standard contacts
Info text messages
Tradepost text messages
Chatrooms – text messages
Portals
Splash screens, skinz and wallpapers – message in graphics
Multi-player games
Loyalty schemes - micro transactions (MiMoney & Moola)
Our forum
Message to user base
New ideas
CRM
Competitions (writing, etc)
User polls on MXit – market research
Voting – Pop Idols (TV)

Social development in Africa
The PC - not the silver bullet for Africa
Mobile phone is “King” – why?
Cheap
Mobile
Short learning curve
Lots of potential
Focus areas
AIDS awareness
Health assistance (malaria, etc)
Education
Text books on MXit
Communication between schools and pupils
Agricultural
Population involvement

Social networking
Challenges
Privacy issues
Regulation and laws
Law enforcement lacking
User education
Dangers of SNS
Physical/virtual world discrepancies
Users think virtual world is the “Wild West”
Fierce competition
User changing habits

Future interests
More variety of content
User and market research
CRM via MXit
Closer TV and radio interaction
Create sub-communities on MXit
Multi-player games
News and content gathering
More educational and social development

Social networkingThe future
“It is the best of times. It is the worst of times. In the year 2014, people have access to a breadth and depth of information unimaginable in an earlier age. Everyone contributes in some way. Everyone participates to create a living, breathing mediascape. However, the press as you know it has ceased to exist....
Twentieth-century news organizations are an afterthought, a lonely remnant of a not-too-distant past.”
(Robin Sloan ,Museum of Media History, Epic 2004)

MXit Lifestyle
[ Thank You ]
[ MXit Lifestyle]
Riesling House, Brandwacht Office Park
Trumali Road, Stellenbosch, 7600
PO Box 12302,
Die Boord,
Stellenbosch,
7613,
RSA tel: +27 21 888 5000
fax: +27 21 888 5099
Thank You
Email: herman@mxit.com
MXit Lifestyle
Riesling House, Brandwacht Office Park
Trumali Road, Stellenbosch, 7600
PO Box 12302
Die Boord
Stellenbosch
7613
RSA Tel: +27 21 888 7000
Fax: +27 21 883 8123

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Innovation- MXit by Herman Heunis

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Innovation- MXit by Herman Heunis — Presentation Transcript