Summary
- Expansive market opportunity with impressive growth metrics forecast for social media, mobile, e-commerce, and multilingual internet users
- FotoYapp, which officially launched Sept. 4th at Mercedes-Benz Fashion Week in NYC, provides consumers, brands and Influencers a unique value proposition by putting context with content that is unlike anything else on the market
- Attractive business model with clear paths to monetization, lots of expansive opportunities, and well positioned for growth having recently formed a number of noteworthy relationships
- Numerous value creating catalysts are expected to take place before the end of the year
- With a valuation of only ~$15 million, I believe that there is a compelling opportunity for technology speculators
We're all familiar with the expression a picture is worth 1000 words. Well, what do you think of taking that idea to the next level? Kicking it up a notch by aggregating media and putting context with content.
Let's go through a quick example. I'm not sure about you, but I'm a sports fan, and I can only read in English. Some of my favorite players or athletes don't always communicate in English, and a lot of their fans don't either. Despite living in 2014, and being able to communicate with people across the world instantaneously, it's not always so easy to do so in practice. Wouldn't it have been cool to instantaneously communicate with fans all around the world during the World Cup regardless of what language they write in - to break down language barriers?
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Source: FotoYapp
That's what Yappn Corp. (OTCQB:YPPN) has been working on that, having just launched their innovative social platform, FotoYapp, Sept. 4th at Mercedes-Benz Fashion Week in NYC.
No other company is offering a platform like Yappn's. Instagram, Vine, Pinterest, SnapChat, Facebook, Twitter and all of the rest in the social photo imaging and video companies haven't yet succeeded in aggregating content with context - and that's really important not only to consumers, but to advertisers and brands. With a valuation of only ~$15 million valuation, I believe there is a compelling opportunity for technology speculators.
By the end of this article, you should have a firm idea of whether or not you're interested in the company, and how you want to proceed (or not) with an investment, long or short.
I've tried to be as thorough as possible given the nature of this company, but if anyone has any questions or comments, please feel free to post below or message me. Feedback is appreciated.
Further to this introduction, please watch this YouTube video about Yappn.
The Internet and Languages
The last barrier to communication is language. No longer is device, location, or connection an issue for the digital user.
English is no longer the language of the Internet. Over 73% of the world's internet users are speaking another language other than English
The top online growth languages between 2001 and 2011 were:
- Arabic: 2,501.2%
- Russian: 1,825.8%
- Chinese: 1,478.7%
- Portuguese: 990.1%
- Spanish: 807.4%
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Source: Internet World Stats
According to the U.S. Census Bureau, as of 2011, over 66 million people or 21% of the U.S. population do not speak English at home, with an estimate of 115 million over the next five years.
Over the past 10 years, the U.S. population that speaks a language other than English as a first language has increased 26.8%.
So in terms of language development and business, advertisers need to be aware of this and make sure that their messages are reaching the widest audience possible. Advertising in only English in the United States isn't a very prudent practice anymore.
To see many more metrics on social media in general, as well as mobile growth metrics, please read either this article or this article.
What is Yappn and what does the company do?
Source: Yappn Corp.
Despite me being most excited about FotoYapp (which only just launched in the iTunes Store and Google Play Store), Yappn represents a much more comprehensive offering.
It is a real-time multilingual services company that amplifies customer brand messaging, helps conduct commerce and provides customer support by globalizing these experiences with its proprietary approach to language.
Yappn has developed cost effective, unique, and proprietary technology tools and services that enhance a brand's messaging, media, e-commerce and customer support platforms. Yappn believes that through its services, device, location and connection are no long issues for digital users to communicate.
Redefining global social marketing, Yappn provides a set of stand-alone commercial tools for brands providing easy to implement and cost effective globalization solutions that are complementary, not competitive to today's top social media networks such as Twitter, Facebook, Pinterest, Instagram, Flickr and YouTube, web, mobile, video players, blogs, online broadcasting, private networks and event virtualization.
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Source: Yappn Corp.
A few examples of how Yappn has integrated into existing online platforms:
- Globally translated Twitter chats (NYSE:TWTR)
- Multilingual Facebook posts
- Live online video captioning
- Real-time global Q&A
- Flash viral events
Services
Yappn's real-time services are offered in nearly 70 languages to support brand and individuals' marketing objectives, commerce revenue goals and customer support objectives by making language universal for all users.
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Source: Yappn Corp.
Marketing
The company offers the following marketing services: 1. Chat Platform; 2. Engagement Events; 3. Flash Viral Videos; 4. Social Media Walls; 5. Video Closed Captioning; 6. Virtual Tradeshow
Chat Platform
The Yappn chat platform provides users a real-time chat experience that reaches a global audience in nearly 70 languages.
For example, Yappn built a "Fan Page" for musician Steve Aoki with real-time chat for his fans to interact directly with him and each other on a global scale. Aoki tours and does shows around the world and has a truly global fan base which the chat platform allows all of his fans to connect with him and one another in a truly authentic manner.
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Source: Steve Aoki
Engagement Events
Yappn has hosted custom branded Twitter Q&A sessions, which allow for real-time multilingual events to activate on a global scale for individuals, and most lucratively, brands.
Here's an example from the Chris Bosh Twitter event:
Flash Viral Video
Yappn created content for Disney's Frozen, hosting a flash viral event where viewer's directly engaged in a live event and received an exclusive content reward for their participation. In this case, an exclusive link to the Demi Lovato song, Let It Go.
Source: Yappn Corp.
Social Media Walls
The concept behind the social wall is to aggregate major social media accounts for fans and consumers to interact with one another in almost 70 languages.
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Source: Sky Blu
Video Closed Captioning
The ability to provide a live-event video closed captioning in almost 70 languages. Yappn has provided services for live video, red carpet movie premiere events including The Wolverine and Iron Man 3.
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Yappn is also capable of providing closed captioning on post production video for new and old feature films.
Virtual Tradeshow
Yappn can provide customers with a virtual trade show experience for their audience. The services range to fit the customer's specific needs, possibly including closed captioned video of conference speakers, with moderated Q&A, a branded discussion area for exhibitors and attendees, and the aggregation of social media streams providing attendees with real-time information. Here is an example from the ADPM Expo 2014:
Source: Yappn Corp.
e-Commerce & Customer Support
Yappn firmly believes that its translation technology is the most accurate and cost-effective option for both small and large brands to communicate and conduct business internationally.
Its core technology IP and device detects an online and/or mobile users' language and then offers the user the content in their native language - users can switch languages in mere seconds. Yappn has helped brands reduce their translation expenses and increase their quality of service. Using Yappn's technology brands can connect to customers in nearly 70 languages, and don't need to spend large amounts of money on translators who have their ability limited by only being able to converse in just a few languages, limiting their market opportunity.
With respect to user language preference when engaging in e-commerce and other online opportunities, users have indicated that they have a strong preference to engage and complete transactions online in their own language. Here are some metrics on e-commerce and language:
- Out of the 2.3 billion Internet users, only 540 million speak English
- Prime markets for e-commerce growth are China and Eastern Europe
- 71% of consumers spend most or all of their time on websites in their own language
- Only 53% of users would accept an English version if their language was unavailable
- 433 of the top 1,000 global websites addressed a single market in a single language
- 56% say the ability to obtain info in their own language is more important than the price
- 72% of consumers say they are more likely to purchase online if into was in their language
Sources: Common Sense Advisory, The Gallup Organization, Miniwatts Marketing Group
Yappn can specifically help increase brand presence by allowing global market reach. The brand or individual can immediately become international by serving customers or fans in almost 70 languages, thereby vastly improving the relationship, amplifying their reach, and increasing e-commerce revenue.
Yappn technology is capable of offering shopping carts and catalogs in the consumer's primary language. Based entirely from the client's existing infrastructure. The result is a custom store that provides the same experience of the existing English based store, into multiple stores based on geography and language.
In addition, Yappn's goal is to become a key player in helping businesses from emerging markets expand their sales into new global regions to create new revenue growth, specifically mentioning China and Eastern Europe.
Clients & Partners
Current clients include Wutang Clan, theAudience, New Era, Wizard World, Steve Aoki, Marvel Studios, Wheels Up, Rock Smith, Good Life Network, Walt Disney, Oakley, FOX.
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Source: Yappn Corp.
Yappn is targeting Influencers, brands, advertisers, companies, and individuals to provide any or all of the services they offer.
Some partners include mBooth, VOX Inc., TopFan, Getty Images, IMG Fashion (a division of IMG Worldwide LLC), and Shark Branding.
I would like to highlight a couple of those partners.
Source: Getty Images
First, Getty Images. The announcement of the completed a business agreement with Getty Images allows Yappn to now offer "Influencers" (celebrities, athletes, and other key personalities) authenticated access to photography through the Getty Images platform, and consumers access to a number of select databases. The implications of this are immense, and unprecedented.
If you're not familiar with Getty, it's the world's largest stock photo agency. Getty represents ~65% of market sales. More often than not, whenever a media outlet is covering a story either through print or television, you'll be seeing an image from Getty.
For example, let's use football because the season just kicked off. The way things work, players don't have access to any photos of themselves taken during their games. They could call up their agent, who could call up the respective photo agency to get the images, but that takes time. More often than not, if a player who say, scores a TD wants to post a photo of that, he'll grab it off ESPN. Now though, through FotoYapp, athletes will have access to all of their own images instantaneously right after they've been uploaded to the Getty database and can choose whatever image suits them best.
Just as Twitter has empowered people by giving them their own voice through 140 characters or less, FotoYapp in partnership with Getty Images can now empower Influencers to take control of their own media and make it more accessible to a global audience at the same time. If you look at most athlete's Twitter profiles, there will be lots of personal photos of them but not a lot of photos of them doing their job. That's because of the current media distribution channels. Yappn, through FotoYapp and in partnership with Getty Images wants to change that.
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Source: Shark Branding
I also wanted to highlight Yappn's newest partnership with Shark Branding, founded and run by Daymond John. For those not familiar with Daymond John, he is a brand builder, entrepreneur, and business leader. Best known for being the founder, president, and CEO of FUBU, and you might also have seen him on the hit ABC show, Shark Tank. Daymond will become a business partner and shareholder in Yappn.
Shark Branding and Yappn will partner to accelerate Yappn's ongoing sales, revenue programs, brand and communication strategy. Shark Branding is going to work on bringing Yappn's technology to its impressive list of brands and clients (corporate clients include Jamba Juice, Shopify, Reebok CrossFit 5th Ave, Resultly and various Shark Tank investments, and talent management clients include Pitbull, Lil Jon, Selita Ebanks and CeeLo Green). Shark Branding will also assist in developing new engagement and revenue programs for FotoYapp.
"Partnering with Yappn is a step into the innovative and growing business vertical of real-time language services, which excites me and Shark Branding," said Daymond John. "There is an inherent business and global communication need for the technology that Yappn provides, and I'm looking forward to seeing what this partnership can do for not only our brand relationships, but the industry as a whole."
FotoYapp
The idea for FotoYapp is simple - to take ANY media (over time, photo, videos, collections of photos and videos, or text-over, .wav, .mp4) and share them with regular social media and the rest of the world.
Now let's look at FotoYapp…
Source: FotoYapp
These screenshots are from iOS and Android devices and show the launch icon for FotoYapp of their respective screens.
Source: FotoYapp
This screenshot is taken directly from the homepage of the app. Each horizontal strip of photos is a different 'feed' which the user can organize however they like. In the case of the example, the top strip is images uploaded directly by the user; the second line of photos is the Getty Images feed; the third, Getty Pics of the Day; and the remaining are people are brands that the user has 'followed'.
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