We provide one of the most popular content distribution platforms, worldwide,
centered on self-expression, attracting both creators looking to promote their
content and consumers who utilize such content to express their identity, feelings,
tastes and interests. Users primarily access our content via our smartphone
app, called Zedge, which offers an easy and modular way to customize smart phones.
Depending on the phone’s mobile operating system, our Zedge app users
are able to select personalization content from all or some of the following
categories: ringtones, alarms, notification sounds, wallpapers, home screen
widgets and app icons. In each category, we offer a wide array of high-quality,
free content and content recommendations.
According to a 2014 study conducted by Business Intelligence, mobile users want
highly personalized smartphone experiences. Furthermore, in January 2016, Flurry
Analytics revealed that personalization apps saw their sessions increase more
than 332% in 2015. Although much of this growth was attributable to Emoji keyboards,
the appeal for personalization is evident from their research. We believe that
our Zedge app’s popularity stems from its ability to fulfill the demand
for smartphone personalization by offering a large and diverse content catalogue,
providing an intuitive and user-friendly experience and rendering the content
in a customized and personally relevant manner. To this end, we invest heavily
in both product design and development and the underlying technology required
to satisfy our user’s expectations. As a result of our Zedge app’s
large, active user base, we offer advertisers, marketers, consumer brands and
content providers, including, musicians, artists and brands a powerful way to
engage with their prospects and customers.
Our Zedge app does all of this without handing over core elements of the native
operating system to a third party or overwhelming the user with a myriad of
complex options. Once installed, the app does not require the user to utilize
or install additional apps. As a result, the app provides an intuitive experience
that allows the user to maintain the control that we believe he or she desires.
In addition to our Zedge app, we introduced a standalone wallpaper app in iTunes
in March 2016 that offers free wallpapers, a standalone ringtone app in iTunes
in December 2016 that offers free ringtones and a premium ringtone app in April
2017 that features for-purchase remixes of music from chart-topping artists.
We generate over 90% of our revenues from selling our advertising inventory
to advertising networks, advertising exchanges, and direct arrangements with
advertisers. Advertising networks and advertising exchanges are third-party
technology platforms that facilitate the buying and selling of media advertising
inventory from multiple ad networks. The price of advertising inventory is fixed
on an advertising network whereas the price for inventory is determined through
bidding on an advertising exchange. Advertisers are attracted to us because
of our sizable user base and our focus on mobile phone personalization. The
remainder of our revenue is primarily generated from our managing and optimizing
the advertising inventory of a third-party mobile application publisher, as
well as overseeing the billing, collections and reporting related to advertising
for this publisher.