Unidentified Analyst: Okay, last one. So in Q1 that we’re just finishing now, you’ve been rolling out these Connected Rewards programs. Have they all been successful and sort of how do you judge the success of a program or develop some sort of return on investment for your mobile gaming publisher to show them that this is really economic for them?
Dennis Becker: Right. So we’re really starting to scale the programs which is going to give us, I think, more reliable information in terms of how the return on and again, the return on spend is right now it’s the game publisher paying us to bring them game players from brands. And what we’re seeing in the early data is that on the brand side, when the brand markets games, the consumers are very responsive. And in many cases, the consumers that are responding to those game promotions were consumers that weren’t even responding to the brand’s offers. So it’s still early, but we see very positive results from the campaigns you’ve run so far suggesting that the brands promoting games is hitting a chord with these consumers because that’s their preferred form of entertainment in many cases.
And the brands are going to measure that in the form of do the consumers, when they receive these promotions, stay in the brand’s loyalty program? Do they stay in the SMS program? And then if they do and they’re giving an incentive to try out a game, are they redeeming those incentives, et cetera? That’s all looking very positive. On the game publisher side, there’s a lot of different ways that game publishers monetize their games, and there’s a lot of different genres of games as well. There’s role playing games, there’s puzzle games. So far, we have been getting reorders, which means we’re out there running cross promotions. The game publishers are getting players, and they want to keep investing in this channel. The economics are still early.
How much are the game publishers willing to pay in order to make sure that they’re paying x amount of dollars to us to bring them a player? Is that a positive return for them? All the early indicators suggest that it is, but we’re still just at the beginning because, like to your earlier question, it’s not just about getting the player to play the game. It’s getting them to continue to play the game, to drive retention, to drive activity. And we think that these brand offers and promotions are an effective currency to build value there. So thus far, the way I would answer that question is it’s early, but so far, we’re seeing really positive results on both sides because the brands and the game publishers we’re working with are continuing their programs and expanding them.
Operator: Our next question comes from Bob Burlaker with 45th Parallel Capital.
Unidentified Analyst: Hi, Dennis. I think this is probably a question for Kim, but I’m just trying to get an idea of how not only the current customers for Connected Rewards, but those that are prospects are really reacting to the offering itself. I know I believe you guys usually start out with trials or pilots or whatever it is and I’d like to get an idea of how they react to those. And are those turning into then, longer term contracts or are you still at pilot stages? That’s kind of all one question and I have a couple more follow up, but go ahead. If Kim can answer that, that’d be great.
Kim Carlson : Sure, absolutely. So, as we indicated last quarter, with all of the disruption imposed with all the privacy protections, particularly by Apple in the mobile advertising industry, game publishers are really aggressively seeking new ways to acquire new users as well as monetize their big audiences of mobile game players. So far, the response has been that our solution, Mobivity’s Connected Rewards, provides a very unique ability to help them find unique and net new audiences for their games as well as serve these real world instant gratification rewards in game that drives higher retention and game spend, which is what they would call their monetization. Our early results are suggesting that our solution is addressing these main points for mobile game marketing and therefore we’re seeing accelerated demand by game publishers to leverage our Connected Rewards.
We did just attend GDC last week, which is called Game Developer Conference in the Bay Area and the consistent response we keep hearing is that new acquisition and monetization strategies are desperately needed. Again, going back to what is going on with privacy restrictions on device IDs, really, and the ability to target. So we are hearing a resounding yes from developers who want to find net new audiences. I’ll also touch on what Dennis mentioned a minute ago. We are getting rebuys from game developers, which means this addresses your question. Typically what a game developer will do with a new channel is they’ll give us a test budget and on a negotiated price and budget they’ll evaluate how we’re performing for them. And the performance is usually on two things, retention rate, so how the players that we deliver to them are retaining in the game as well as purchase value.
So how many purchases are being made in the game. And the early results are that they’re seeing their KPIs on those two metrics being hit to the point where they’re rebuying and giving us more budget. And frankly, they’re giving us more budget month over month. So we’re seeing an acceleration of budget commitment from these game developers because we’re hitting their defined KPIs on the two things I mentioned, which is retention rate and in our purchase value. So we’re definitely seeing that momentum. And I will just add that what we also hear is that finding iPhone users or iOS users is dramatically more problematic than Android right now because of those privacy issue we’ve talked about now for two quarters. So I’ve been in the mobile space and gaming marketing for ten years, and I’m happy to say that our solution is definitely an attractive one right now, where the ecosystem sits.
