Innovation- MXit by Herman Heunis

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Innovation- MXit by Herman Heunis

  1. 1.
  2. 2. MXit UP :<br /> Innovation, Youthful Fun & Connectedness<br />A Case Study from Southern Africa<br />Presented by Herman Heunis<br />Founder & CEO<br />Africa Media Leadership Conference<br />5 October 2009<br />
  3. 3. Topics<br /><ul><li>Background
  4. 4. User growth
  5. 5. Our eco-system
  6. 6. Business models
  7. 7. Projects
  8. 8. Social development in Africa
  9. 9. Challenges for social networking</li></li></ul><li>What is MXit?<br /><ul><li>Primarily a FREE mobile Instant Messenger</li></ul>but much more….<br /><ul><li>social networking
  10. 10. advertising
  11. 11. entertainment
  12. 12. dating
  13. 13. classifieds
  14. 14. education
  15. 15. TV interaction
  16. 16. counselling
  17. 17. mobile banking
  18. 18. micro transactions
  19. 19. location based
  20. 20. social development</li></li></ul><li>How does it work?<br /><ul><li>Not SMS based
  21. 21. Not an internet browser
  22. 22. Uses the phone’s internet capabilities
  23. 23. Software requires a phone capable of
  24. 24. Java
  25. 25. GPRS or 3G
  26. 26. Supports more than 1,940 different phones
  27. 27. Software is downloaded on the mobile phone from www.mxit.com/wap using the web browser
  28. 28. Software is FREE and no charge for messaging</li></li></ul><li>What is MXit?<br />
  29. 29. MXit components<br /><ul><li>Standard contacts when user registers
  30. 30. Info
  31. 31. Standard help
  32. 32. Standard message to entire user base
  33. 33. Tradepost
  34. 34. Sales portal for selling content
  35. 35. Joebanker
  36. 36. Your wallet
  37. 37. Xchange
  38. 38. Default classifieds
  39. 39. Gallery
  40. 40. Personal space </li></li></ul><li>The company<br /><ul><li>Vision</li></ul>“Provide people with free messaging to connect with people, products, services, information and entertainment, relevant to their lifestyles....”<br /><ul><li>Mission</li></ul> To secure a significant portion of the 4 billion mobile phone users in the world<br /><ul><li> Philosophy</li></ul>We do not compete, we create <br /><ul><li> Slogan</li></ul>“join the evolution” | “exit the ordinary”<br />
  41. 41. Total registered users worldwide<br />
  42. 42. Africa new user growth<br />(per week)<br />
  43. 43. Success factors<br /><ul><li>Brand new form of communication
  44. 44. Very cheap
  45. 45. Entertainment is embedded
  46. 46. Socializing capabilities (dating, new friends)
  47. 47. Single place of connectedness
  48. 48. Part of a big community
  49. 49. The youthfulness of the brand</li></li></ul><li>Primary building blocks<br /><ul><li>Very cheap messaging
  50. 50. Presence information
  51. 51. Group and broadcast communication
  52. 52. Multi-media enabled
  53. 53. Location Based Services (LBS)
  54. 54. Extensive user information available
  55. 55. Viral effect always present
  56. 56. Internet access
  57. 57. Transactional & billing possible </li></li></ul><li>Role players in the eco-system<br /><ul><li>MXit
  58. 58. Mobile operators
  59. 59. MXit community
  60. 60. Phone manufacturers
  61. 61. Content providers
  62. 62. Advertisers</li></li></ul><li>Role players<br />Challenges<br /><ul><li>MXit (the company)
  63. 63. Constant stream of new handsets
  64. 64. Competition – constant innovation
  65. 65. Mobile operators
  66. 66. Constant education
  67. 67. Mobile operators
  68. 68. SMS will eventually disappear
  69. 69. IM seen as erosion of SMS revenues
  70. 70. Under-utilized data networks
  71. 71. Voice revenues on plateau
  72. 72. MXit community
  73. 73. Wants to consolidate mobile applications
  74. 74. Price sensitive – wants everything for free
  75. 75. Lack of technology education</li></li></ul><li>Role players<br />Challenges<br /><ul><li>Phone manufacturers
  76. 76. Pressure to lower prices
  77. 77. Mobile operators
  78. 78. Content providers
  79. 79. Technology understanding mainly SMS/MMS
  80. 80. Ever-changing user habits
  81. 81. Advertisers
  82. 82. On verge of major paradigm shift
  83. 83. Mobile advertising still in infancy
  84. 84. Lack of technology understanding</li></li></ul><li>Business model<br /><ul><li>Our main drivers
  85. 85. Acquire new users
  86. 86. Retain users
  87. 87. Generate revenue
  88. 88. How we generate revenue
  89. 89. Advertising
  90. 90. Content sales
  91. 91. Subscriptions</li></li></ul><li>Advertising<br />Splash screens <br />
  92. 92. Advertising<br />Tradepost messages<br />
  93. 93. Advertising<br />Brand portals<br />
  94. 94. Advertising<br />Brand portals<br />
  95. 95. Advertising<br />Wallpapers<br />
  96. 96. Content sales<br />Skinz<br />
  97. 97. Current “projects”<br /><ul><li>Xchange
  98. 98. MXit Music
  99. 99. Multi-player games
  100. 100. Education initiatives
  101. 101. Competitions (writing, etc.)
  102. 102. User polls – market research
  103. 103. Counselling(drugs & Childline)
  104. 104. Voting – Pop Idols, Big Brother (TV)</li></li></ul><li>MXit Xchange<br /><ul><li>MXit Xchange - positioned as a mobile classifieds/ trading platform
  105. 105. Launched 16 weeks ago on 10 June 2009
  106. 106. 2,100 New postings each day
  107. 107. 330,000 Subscribers, organic growth at 3000 per day
  108. 108. 25,000 Inbox messages (enquiries) sent between users daily
  109. 109. Currently 10 full-time moderators
  110. 110. Mobile moderation tool allowing anywhere, anytime moderation from any phone</li></li></ul><li>MXit Xchange<br /> MXit Xchange Moderation Tool<br />
  111. 111. MXit Xchange<br />Posts<br /><ul><li>Graph shows visible post numbers after moderation
  112. 112. MXit Xchange currently charges 100 Moola (+-$0.12) per post
  113. 113. Last 15 days an average of 2100 new posts per day</li></li></ul><li>MXit Xchange <br />Messages<br /><ul><li> Messages are not billed at this stage
  114. 114. Users can send anonymous messages to one another to enquire about items
  115. 115. Total messages sent +676 000 in the past 33 days
  116. 116. Last 15 days an average of 24 933 messages sent per day</li></li></ul><li>MXit MusicOverview<br /><ul><li>Opportunity for unknown bands to deposit music on MXit website
  117. 117. Provide free portals to these bands
  118. 118. MXit users vote - songs migrate up charts based on votes
  119. 119. Once on certain level – start selling songs
  120. 120. Share revenue with bands </li></li></ul><li>MXit MusicComponents<br /><ul><li>MXit Music mobile</li></ul>Voting, previews & download tracks via mobile phone<br />Consists of:<br /><ul><li>Playlist - Top 40 bands on MXit based on votes
  121. 121. Auditions - All tracks uploaded available
  122. 122. Warehouse - All formerly Top 40 tracks available
  123. 123. Featured bands - Famous bands signed to MXit Music
  124. 124. Hot or not - Semi-famous bands
  125. 125. MXit Music web</li></ul>Band registrations, band page & preview tracks via the webpage<br />
  126. 126. MXit MusicStats<br /><ul><li>MXit Music currently has 746 000 registered users
  127. 127. MXit Music monthly averages (past 3 months)
  128. 128. New users: 22 000 p/m
  129. 129. Votes: 63 000 p/m
  130. 130. Currently 526 bands activated on MXit Music</li></li></ul><li>Reaching our community<br /><ul><li>Standard contacts
  131. 131. Info text messages
  132. 132. Tradepost text messages
  133. 133. Chatrooms – text messages
  134. 134. Portals
  135. 135. Splash screens, skinz and wallpapers – message in graphics
  136. 136. Multi-player games
  137. 137. Loyalty schemes - micro transactions (MiMoney & Moola)
  138. 138. Our forum
  139. 139. Message to user base
  140. 140. New ideas
  141. 141. CRM
  142. 142. Competitions (writing, etc)
  143. 143. User polls on MXit – market research
  144. 144. Voting – Pop Idols (TV)</li></li></ul><li>Social development in Africa<br /><ul><li>The PC - not the silver bullet for Africa
  145. 145. Mobile phone is “King” – why?
  146. 146. Cheap
  147. 147. Mobile
  148. 148. Short learning curve
  149. 149. Lots of potential
  150. 150. Focus areas
  151. 151. AIDS awareness
  152. 152. Health assistance (malaria, etc)
  153. 153. Education
  154. 154. Text books on MXit
  155. 155. Communication between schools and pupils
  156. 156. Agricultural
  157. 157. Population involvement</li></li></ul><li>Social networking<br />Challenges<br /><ul><li>Privacy issues
  158. 158. Regulation and laws
  159. 159. Law enforcement lacking
  160. 160. User education
  161. 161. Dangers of SNS
  162. 162. Physical/virtual world discrepancies
  163. 163. Users think virtual world is the “Wild West”
  164. 164. Fierce competition
  165. 165. User changing habits </li></li></ul><li>Future interests<br /><ul><li>More variety of content
  166. 166. User and market research
  167. 167. CRM via MXit
  168. 168. Closer TV and radio interaction
  169. 169. Create sub-communities on MXit
  170. 170. Multi-player games
  171. 171. News and content gathering
  172. 172. More educational and social development </li></li></ul><li>Social networkingThe future<br />“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.... <br />Twentieth-century news organizations are an afterthought, a lonely remnant of a not-too-distant past.” <br /> (Robin Sloan ,Museum of Media History, Epic 2004)<br />
  173. 173. MXit Lifestyle<br />[ Thank You ]<br />[ MXit Lifestyle]<br />Riesling House, Brandwacht Office Park<br />Trumali Road, Stellenbosch, 7600<br />PO Box 12302, <br />Die Boord, <br />Stellenbosch, <br />7613, <br />RSA tel: +27 21 888 5000<br />fax: +27 21 888 5099<br />Thank You<br />Email: herman@mxit.com<br />MXit Lifestyle<br />Riesling House, Brandwacht Office Park<br />Trumali Road, Stellenbosch, 7600<br />PO Box 12302 <br />Die Boord <br />Stellenbosch <br />7613 <br />RSA Tel: +27 21 888 7000<br />Fax: +27 21 883 8123<br />

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