Strategic Analysis of Next-Gen Mobile Marketing

Strategic Analysis by Frost & Sullivan
www.frost.com
Next-Generation Mobile Marketing:
Redefining Mobile Search and Discovery For a Disruptive
Consumer Engagement

frost.com
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

frost.com
contents
VI. How Xploree Drives App Re-engagement............................................................................11
Mobile App UsageTrends............................................................................................................ 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

4
frost.com
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.

5
Next-Generation Mobile Marketing: Redefining Mobile Search and Discovery For a Disruptive Consumer Engagement
Exhibit 1: Next Generation Mobile Marketing: Mobile DataTraffic, Global, 2014-2020
2.5
4.2
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
MobileDataTraffic(Exabytes)
Year
Global Mobile Data Traffic (Exabytes)
Note: All figures are rounded, the base year is 2014. Source: CiscoVNI, 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
CumulativeAppDownloads(Billion)
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.

6
frost.com
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
User
Intent
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.

7
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

8
frost.com
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.

9
Essential Elements of Hyper-Intelligent Mobile Marketing Solutions
Exhibit 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

10
frost.com
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.

11
Exhibit 6: Next Generation Mobile Marketing: Key Features of Xploree, Global, 2015
TIME
CONTEXT
FREQUENCY BEHAVIOR
LOCATION
HYPER-CONTEXT
“USER
INTENT”
CROSS APP
SEARCH
INTENT
CROSS APP
REACH &
INTENT
Hyper-Context “User Intent”
Combining contexts
Cross App Reach & Intent
One app to reach all others
Cross App Search Intent
One 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

12
frost.com
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
80
86
20
14
0
10
20
30
40
50
60
70
80
90
100
2013 2014
TimeSpent(%)
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.

13
• 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: KeyPointTechnologies
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.

14
frost.com
• 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
RevenuePotential($Million)
Users
Total Yearly Revenue Potential ($ 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.

15
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 Key
PrestoTile
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: KeyPointTechnologies
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.

16
frost.com
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, KeyPointTechnologies
Coupon Usage, Search Intent, Relevancy Score, and Engagement Score
Exhibit 13: Next Generation Mobile Marketing:Total Impressions Data for March andApril 2015 for Xploree,
Global,2015
Total Engagements
March 27
35,479
295,608
412,020
COUNT
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.

17
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 IntentAnalysis for March andApril 2015 for Xploree,
Global,2015
Coupon Usage
March 27
3.76
15.18
71.75
12.00
Measurement(%)
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.

18
frost.com
Exhibit 15: Next Generation Mobile Marketing: Observed Sessions onVarious Apps with Xploree Keyboard
for April 2015, Global, 2015
WhatsApp
UCBrowser
Paytm
Facebook
mCent
Contacts
Chrome
OperaMini
Messaging
GooglePlayStore
GoogleApp
Launcher
UCMini
GoogleSearch
Phone
Messanger
TouchWizHome
Freecharge
Launcher3
400,000
350,000
300,000
250,000
200,000
150,000
50,000
0
100,000
APR-15
Exhibit 16: Next Generation Mobile Marketing
M-commerce
32%
Gifting
19%
Food Delivery
Marketplace
24%
Restaurants
10%
e-Healthcare
3%
Search
2%
e-Services
10%

19
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.

For information regarding permission, write:
Frost & Sullivan
331 E. Evelyn Ave., Suite 100
MountainView, CA 94041
SiliconValley
331 E. Evelyn Ave., Suite100
MountainView, CA 94041
Tel 650.475.4500
Fax 650.475.1570
San Antonio
7550 West Interstate 10,
Suite 400
San Antonio,TX 78229
Tel 210.348.1000
Fax 210.348.1003
London
4 Grosvenor Gardens
London SW1W 0DH
Tel +44 (0)20 7343 8383
Fax +44 (0)20 7730 3343
877.GoFrost
myfrost@frost.com
www.frost.com
Auckland
Bahrain
Bangkok
Beijing
Bengaluru
Buenos Aires
Cape Town
Chennai
Dammam
Delhi
Detroit
Dubai
Frankfurt
Herzliya
Houston
Irvine
Iskander Malaysia/Johor Bahru
Istanbul
Jakarta
Kolkata
Kotte Colombo
Kuala Lumpur
London
Manhattan
Miami
Milan
Moscow
MountainView
Mumbai
Oxford
Paris
Pune
Rockville Centre
San Antonio
São Paulo
Seoul
Shanghai
Shenzhen
Singapore
Sydney
Taipei
Tokyo
Toronto
Valbonne
Warsaw
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that
addresses the global challenges and related growth opportunities that will make or break today’s market participants. For more than
50 years, we have been developing growth strategies for the Global 1000, emerging businesses, the public sector and the investment
community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing
competitive intensity, MegaTrends, breakthrough best practices, changing customer dynamics and emerging economies?

Strategic Analysis of Next-Gen Mobile Marketing

Recommended

Recommended

More Related Content

What's hot

What's hot (18)

Viewers also liked

Viewers also liked (11)

Similar to Strategic Analysis of Next-Gen Mobile Marketing

Similar to Strategic Analysis of Next-Gen Mobile Marketing (20)

Strategic Analysis of Next-Gen Mobile Marketing