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Evolution and Business Model of Mxit: From Instant Messaging to Social Networking

Mxit, launched in January 2005 as a paid mobile instant messaging service, has transformed over the years into a popular social networking site with 4 million users globally. Initially developed as a multi-player game, it now thrives on advertising revenue and offers unique features like "Splash Ads" and interactive campaigns with sponsored athletes. Despite its strengths, including adaptable software and a built-in payment model, Mxit faces challenges such as the lack of user-generated content and infrastructure dependency. The platform's future hinges on adapting to competition and user needs.

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Evolution and Business Model of Mxit: From Instant Messaging to Social Networking

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Presentation Transcript

  1. New Media Business Models

  2. BackGround • Mxit began as paid for mobile instant messaging service in in January 2005. Initially it was developed as a multi-player game that eventually whittled its way down to a social networking site (Heunis2010). • 4 million users worldwide

  3. Business Model • Free to sign up. • At the moment Mxit gets most of its money from advertising. As it is a private company most of the financial records are in fact held confidential. • Users send SMS to receive Moolah. Send an SMS. Credits on Mxit • “Splash Ads”

  4. Nike campaign • This was followed by footballers sponsoring training tips, and creating real time drills which users can take on to the pitch with them • Fans could also ask Nike sponsored footballers questions and could host mobile and video blog. • The ad campaign ended up reaching over 500 thousand users on the Mxitplatform.

  5. Strengths • Very adaptable software – integrates well across different platforms • Built in payment model – SMS • Slow growth of internet in SA allows for mobile technology to take off. • Youthfulness of the brand • MxitExchange – 750 000 users – Classifieds

  6. weaknesses • Mxit doesn’t generate its own content. Makes it more expensive to run • Moolah is clunky to operate. • In English, not adaptable to Non-English speaking countries • Needs a good telephonic network - infrastructure

  7. Opportunities • Allowing independent software developers to use the Mxit platforms • Broad multi – player games (Heunis 2010). • Data Costs are coming down - Video, more data more room to maneuver • Educational Aspects

  8. Threats • Smart Phones • BBM • Staying relevant (loss of “cool” factor”).

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