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Velti Launches Advanced PaymentsFirst Program in the Industry to Speed Developer ROI in Response to Free Spree in App Stores (October 24, 2011)
SAN FRANCISCO, CA and PALO ALTO, CA -- (Marketwire) -- 10/24/11 -- Velti plc (NASDAQ: VELT), a leading mobile marketing and advertising technology provider for brands, advertising agencies, mobile operators and media, found more than 39.5 percent of apps within the Apple App Store are now free, an increase of 27.4 percent from a year ago. A similar trend within the Android marketplace was also found -- 65.2 percent of apps are now free, an increase of 6.8 percent from a year ago. In an effort to meet demand coming from in-app ad revenue, the Velti Mobclix Exchange launched the first ever Advanced Payments program to ensure developers recoup their investment in the first 15 days and never have to wait up to 90 days to receive payments for ads that appear in these free apps.
As part of Velti's continued mission to help publishers maximize their app monetization potential and make the revenue process more efficient, Advanced Payments is the first payment process to offer Net 15 and Net 30 payment cycles. Developers choose which payment plan works best for their needs and pay a pre-payment fee to participate in the program. With new financial and reporting features, the Velti Mobclix Exchange dashboard lists all pending payments and invoices.
The explosive growth of free apps has created an increased reliance on ad dollars to generate revenue. Advanced Payments is a response to this increase and the inability of major ad networks to provide inventory to fill all the available ad impressions in new apps. Velti's Mobclix estimates iAds can fill only 10-20 percent of available ad inventory in apps.
"This program shortens the time that developers can recoup some of their investment and it brings more advertising inventory to the table," says Krishna Subramanian, CMO of Velti. "Mobile developers are leading the mobile app explosion. They should have more insight into revenue predictability, including when they can expect to be paid."
The traditional in-app advertising payment process is part of a lengthy 90-day cycle: brands and advertisers first pay agencies, then agencies pay ad networks, ad networks pay ad exchanges and finally ad exchanges pay developers. With Advanced Payments, the Velti Mobclix Exchange consolidates payments by paying developers before receiving payment from demand partners on the exchange, a significant departure from the usual way of handling payment. As a result, developers know when they will be paid and can plan on app monetization as a viable income.
"Having a reliable revenue stream is crucial to any company's success but for publishers that work independently, receiving payment for work done is especially important. We rely on ad networks to pay us in a timely manner and it's very frustrating when payment is delayed," says Michael Sanford, CEO of Flipside5. "Advanced Payments allows us to focus on growing our business as quick as possible. Not only will we get paid quicker, but we'll also have more control throughout the entire process."
For more information on Advanced Payments, please visit www.mobclix.com/payments.
About Velti Mobclix Exchange
The Velti Mobclix Exchange (www.mobclix.com) is the only real-time bidding mobile ad exchange that connects the best ads with the best apps -- every time. The Velti Mobclix Exchange was designed exclusively for the mobile market, enabling publishers to make the most money possible and giving ad networks access to the most sought-after inventory on the market. Only the Velti Mobclix Exchange offers everything publishers and ad networks need including access to premium apps and publishers, the highest fill rates in the industry, advanced targeting capabilities and one-on-one support.
Located in Palo Alto, CA, the Velti Mobclix Exchange was founded in September 2008 and is a wholly-owned subsidiary of Velti (NASDAQ: VELT), a leading global provider of mobile marketing and advertising technology. Velti's Mobclix Exchange was a TechCrunch50 finalist, Seedcamp 2008 winner, two-time AlwaysOn Global Winner and has won the coveted ad:tech Limelight award.
Velti is the leading global provider of mobile marketing and advertising solutions for brands, advertising agencies, mobile operators and media. Velti's technology platform enables targeted promotions, analysis, and ongoing customer relationship management via mobile devices. Velti plc is a Jersey-registered company and trades on the NASDAQ under the symbol VELT. For more information, visit www.velti.com.
Velti®, the Velti logo, mGage® and 5ML are trademarks of Velti Plc.
NOTE ABOUT FORWARD-LOOKING STATEMENTS:
This press release contains forward-looking statements regarding the expected benefits of Velti's Advanced Payment Program. When used in this press release, the words "anticipates," "estimates," "may," "can," "will," "believes," "expects," "projects," "intends," "likely," similar expressions and any other statements that are not historical facts are intended to identify those assertions as forward-looking statements. Any such statement may be influenced by a variety of factors, many of which are beyond the control of Velti, that could cause actual outcomes and results to be materially different from those projected, described, expressed or implied in this press release due to a number of risks and uncertainties. These risks and uncertainties include -- but are not limited to -- risks associated with our ability to provide additional insight into revenue predictability, enhance the revenue stream for our application developers, and provide control over the application development process. Further information on these and other factors that could affect the company's results is included in our annual report on Form 20-F and in our registration statement on Form F-1 filed with the Securities and Exchange Commission and in other filings we may make with the Securities and Exchange Commission from time to time. Velti assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Velti plc Contact:
Wilson W. Cheung
Chief Financial Officer
Paul W. Clausing
Vice President, Finance
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