Jonathan Reich: Sure. So the product is a free product insofar as users do not have to make an in-app purchase in order to create AI art. They do need a balance of an in-app currency called a Bolt or Bolts and they can acquire those either through rewarded ad experiences or through in-app purchases or through subscribing to the Zedge app. So it’s not necessary that they make an in-app purchase. But if they don’t make an in-app purchase, the only way that they can accumulate more art is through watching rewarded ads and securing the benefits associated with those ads. And we’ve only rolled this out in Tier-1 or well-developed markets. We’re planning on rolling it out in other markets in the not-too-distant future. And we are viewing this as both a growth driver for new users as well as a re-engagement tool for existing Zedge customers with an associated revenue benefit.
We’re going to have to take a look at the data and how this evolves over time to determine whether we focus more heavily on growth initially or more heavily on revenue and the like. And we’ve got the infrastructure in place to test, analyze results and then react quickly based upon the various tests that we undertake. And over time, we may prioritize different goals based upon region.
Allen Klee: Okay. Great. I had a question related to GuruShots generators of photos shifting them to your marketplace to try to sell them. I think you just announced setting that up. I don’t know if it’s too early to talk about what’s been happening there. But if you have any commentary on that yet? And maybe a theoretical or philosophical thing, but to what degree do you think that the issue is supply versus the issue of enough people interested in buying things? Like is it an issue if you create more supply, there will be more demand? Or would you have to create the demand? Or how do you think about those things?
Jonathan Reich: As you know, we just announced the availability for GuruShots players to market and sell their content in the Zedge app yesterday. So it’s obviously very early. And we will continue to improve upon that process to minimize friction and enable those GuruShots players with an income stream with the least amount of hurdles. Having said that, as with any marketplace, there always needs to be a healthy balance between supply and demand. And we think that the addition of this new content, if you will, is something that will contribute to achieving that overall goal. We also have said in the previous earnings call that one of the areas that we are very focused on is in building out our data team and its capabilities.
And theoretically speaking, that will mean that we will be able to segment users more efficiently than where we are today and avail the best content to those various user segments in a fashion which really optimizes our marketing and product marketing inventory in order to improve the contribution of Zedge Premium to the overall revenue pie that we have in our business.
Allen Klee: That’s great. So one of your initiatives this year is to increase your paid marketing spend, a lot of that getting targeted to GuruShots. Is it too early or any commentary on what kind of returns you’ve preliminarily seen from those marketing dollars?
Jonathan Reich: Yes, it’s too early. What I can say is if you rewind the clock to 2020 to 2021, there was a lot less effort needed in order to grow user base. You just would go into platform, defined a lookalike audience and so to speak, begin to scale from there. Of course, I’m simplifying things. When Apple came in and sort of changed the rules of the game in order to limit what data is available, that process has become more complicated and has resulted in our case, in our beginning to test a wider array of acquisition platforms and use the benefits of data in order to optimize those user acquisition campaigns. I think it’s important to conceptualize that with user acquisition as one expands into new platforms, it is really so to speak, a search type of experience.