Viewbix Stock

Viewbix Inc. operates as a digital advertising platform that develops and markets a variety of technological platforms that automate, optimize, and monetize digital online campaigns.

The company's operations were previously focused on analysis of the video marketing performance of its clients, as well as the effectiveness of their messaging (Video Advertising Platform). With the Video Advertising Platform, the company allowed its clients with digital video properties the ability to use its platforms in a way that allows viewers to engage and interact with the video. The Video Advertising Platform measures when a viewer performs a specific action while watching a video and collects and reports the results to the clients.

The company and its subsidiaries (the Group), Gix Media and Cortex Media Group Ltd. (Cortex), operates in the field of digital advertising.

Segments

The company operates through the Search segment and the Digital Content segment.

The search segment develops a variety of technological software solutions, which perform automation, optimization, and monetization of internet campaigns, for the purposes of obtaining and routing internet user traffic to its customers. The search segment activity is conducted by Gix Media.

The digital content segment engages in the creation and editing of content, in different languages, for different target audiences, for the purposes of generating revenues from leading advertising platforms, including Google, Facebook, Yahoo, and Apple, by utilizing such content to obtain and route internet user traffic for its customers. The digital content segment activity is conducted by Cortex.

Search Platform

Gix Media's Search Platform allows for the referral of user traffic to Search Engines, such as Yahoo and Bing, where the Search Engines display the ads of their customers.

In addition, Gix Media provides user traffic referral services to Search Engines through the referral of traffic of browsers who engage content generated by Gix Media. This content is displayed on ad spaces that are purchased by the company by content recommendation companies (such as Yahoo!, Outbrain, Taboola and Gemini). When occasional users click on such content, Gix Media transfers user traffic to a Search Engine which contains search words that are related to the advertising content.

Through its Search Platform, the company provides services to leading search engines worldwide (Search Engines) by developing, marketing, and distributing software products to internet users.

Content Platform

Cortex's Content Platform produces engaging content and marketing material in various languages to various target audiences, in order to generate revenues from advertisements displayed together with the content, which are posted on digital content, marketing and advertising platforms. Cortex acts as a digital content platform that publishes content written by creative writers and editors which it employs. The content is displayed on several different content websites owned by Cortex, covering various subjects, including culture, history, trips, pets, entertainment and leisure, food, etc. Cortex developed capabilities that enables it and its customers to profit from the original content which it publishes by advertising the content on leading international websites.

The technological tools developed by Cortex allow businesses in the digital advertising market (search engines, ad exchanges, advertisers, content owners and brand owners) to earn more from their advertising campaigns and generate additional profit from their websites, both from its content and from its advertising.

Cortex developed different advertising systems and tools for content management, content distribution and campaigns and measurement of performance on the various platforms that display the content.

Business Model

The Search and Content Platform are operated through two models, direct and indirect:

Direct Model

Gix Media operates its Search Platform using a direct model whereby it refers searches that are conducted by users of its products, which are thereafter distributed to Search Engines directly by Gix Media.

Additionally, through the direct model Gix Media refers user traffic to the Search Engines by purchasing advertising space on leading publishing websites around the world using content recommendation companies, such as Taboola and Outbrain, such that user traffic referred by it to the Search Engines is created by users on the websites where the ad is displayed.

Cortex operates its Content Platform using the direct model through an Artificial Intelligence (AI) based system developed by Cortex, which connects user traffic and advertisers who advertise on the Cortex Websites through online, algorithmic, and customized advertising.

Indirect Model

Gix Media also operates its Search Platform using an indirect model, whereby it refers searches that are conducted by users of products developed by third party strategic partners, which are thereafter distributed to Search Engines by Gix Media. Gix Media engages with strategic partners who have similar products and allow these strategic partners to integrate Gix Media's technological tools into their own products in order to refer searches conducted by resulting users to the customers of Gix Media. Using this model, Gix Media shares revenues received from Search Engines with its strategic partners.

Strategy

The key elements of the company's strategy include growing through mergers and acquisitions; expanding product range, search platform; and expanding product range, content platform. The company intends to continue to enter into distribution agreements and collaboration agreements with distributors and partners in connection with its Search Platform, in various regions and territories, in order to facilitate the development, sales, marketing and distribution of its systems.

Products and Services

Add-ons to internet browser: Internet users download free browser add-ons, usually from browser stores. These browser add-ons enhance browser capabilities when activated by the user, and offer users services, such as file converters, video players, radio players, games, safe internet usage, different designs of backgrounds, different calculators and more. In addition, these add-ons allow the company to refer the searches of these users to the customers of the Search Engines.

Desktop and Mobile Apps: Free software products for the Apple and PC computers provide users services similar to the add-ons of the internet browsers. After the users download these software products, they grant permission to the company to refer the searches performed on these products to the Search Engines.

Mobile Devices Applications (launcher). This product is used as an external envelope for the operating system and enables the display of a different appearance and other options that do not typically exist in the standard system. For the purpose of solving this problem, the company develops applications for these launchers, which allow the user to receive a customized interface.

Native to Search: The Native to Search system is an automated system for the purchase and sale of ad spaces based on search terms. The process of referring searches to Search Engines starts with the purchase of ad space in leading content publishing websites by content recommendation platforms (such as Gemini, Yahoo!, Taboola and Outbrain).

When purchasing these ad spaces, it receives assistance from Search Ads, a system that it developed for the purpose of managing the purchase process. In addition, the company's self-designed system can also stop a purchase and change prices for the purpose of maximizing performance.

Search Systems

The technological backbones of the company's Search Platform involves the following key systems:

Online Campaign Management: This system runs various platforms and includes modules for measurement of campaign performance, Business Intelligence (BI) tools, and general management of campaigns for different customers. The system enables optimization and automation of internet campaigns by data and recommendations provided by the BI system.

AI Systems: Gix Media developed Artificial Intelligence (AI) systems which are used for the optimization of the appearance of the content displayed to users, including landing pages and the creation of landing pages. This system periodically analyzes and assesses the effectiveness of the content displayed to users. These AI systems extract and analyze data from the company's intelligence and fraud detection systems and automatically recommend the most effective and efficient content in real- time.

Intelligence System: This system automatically selects landing pages through a self-designed optimization tool from various web pages, specifically those treated as most applicable, in real time in order to improve the conversion rate of users' views to product installations.

Fraud Detection System: This system detects, through the use of an algorithm, fraud attempts to flood its systems with misinformation, including, for example, misinformation regarding the installation attempts of browser add-ons.

Proprietary BI System: This system was developed by Gix Media and includes three layers:

Infrastructure: This layer allows transmission of statistical data regarding various events according to certain criteria and/or requirements set by the company, including performance of online searches, performance of any action on ads, performance of an installation, etc. The infrastructure collects a wide variety of background data on any event and dozens of parameters that are registered and collected, which allows the performance of business and technical optimizations.

Data Processing and Storage: This layer allows the company to process the big-data it gathers on its platforms and to divide such data into interim tables based on different parameters. This stage is performed daily, by a tool that was developed by Gix Media. For this purpose, Gix Media uses a combination of in-house technology and external tools of leading companies, such as Microsoft and Google.

Data Presentation: This layer presents the data to Gix Media's customers in an easy, fast, and convenient manner, while combining other layers of information and integrating statistical models that were developed by Gix Media. The presentation tool that the company uses is Sisense, a popular BI platform, which is a tool used by leading companies in the industry around the world and ranked highly by the Gartner Company.

Automatic Creation: This system, known as Tabzmania, allows users to create browser add-ons, such as backgrounds, and, by using its extension, can create different types of add-ons for content websites. The system includes models, content creation, additions of applications and distribution of content.

Content Platform

The company's Content Platform operations focuses on the development of an AI-based software that connects internet and mobile users (the Users) who browse on the Cortex Websites (the Readers) to advertisers and who pay Cortex to display ads with the content published by Cortex on the Cortex Websites with online customized advertisements (the Software).

The Software that Cortex develops is primarily based on nine technological components: monitoring and Big Data, campaign management, content monetization, targeted AI tools to predict Google monetization, campaign launching, digital content management, digital content index and labeling, bidding management and ad optimization, and an A/B testing for performance comparison.

The software operates as one integral system that enables a smart connection between the traffic of Users and advertisers which are Cortex's customers. The business model used by Cortex on the Content Platform is the direct model.

The Software manages the traffic activities of Users to the Cortex Websites by re-directing their traffic from various online platforms (such as Yahoo, AOL, Zamenta, and Outbrain).

The algorithms that the company develops help analyze the historical results of a User's Conversions with respect to each advertiser and factor them together with the price per Reader that each advertiser pays.

Content Systems

The nine technological components of the Content Platform are as follows:

Monitoring and Big Data Systems: An important element in the company's online ad campaign management and monitoring its performance results is an accurate log of the activities on the Cortex Websites. When a Reader is directed from other media outlets to the Cortex Websites, this system measures and documents in automated codes the properties of the Reader, such as the Reader's IP address, geographic location, type of device used by the Reader and the Reader's operating system, all in a manner which is in compliance with the applicable privacy rules and regulations.

In addition, the Software identifies which advertisements were delivered to the Reader, the payment amount that the advertisers paid to Cortex for each ad read by the Reader, the length of time the Reader viewed the ad, and whether the Reader clicked the ad or not. This monitoring system allows the company to accumulate and analyze such data about any User in an optimal manner.

The company's big data servers are responsible for processing the information transmitted to them by the monitoring system and are responsible for regulating the rate of updates to the databases. Cortex has a backup system in the event that one of its servers fails. This system collects and summarizes the information in tabular form for further analysis, in accordance with data processing regulations.

Campaign Management System: The company purchases Readers' traffic through paid campaigns for the Cortex Websites, which in turn generates revenues by the exposure of the Readers to the ads. Accordingly, advertisers pay the company for each Reader exposed to the ads on the Cortex Websites.

The AI system that Cortex developed seeks to manage all of these campaigns without any human involvement, which contributes to its revenues and the economic success of the campaign. This system manages up to 100,000 campaigns simultaneously, and each campaign runs in different ad spaces (Yahoo, MSN, FOX, CNN, and others).

The company's technology must first predict a User's interaction with a given promoted content. The company's systems processes a significant number of records from the User databases and the data from its monetization system, which allows it to determine which campaigns should be promoted and which campaigns should be halted, as well as the optimal value of each campaign.

Content Monetization System: Cortex works with dozens of advertisers that promote ads, display native ads, and videos on the Cortex Websites. The ads are displayed pursuant to a real-time bidding process for each User who browses on one of the Cortex Websites.

Targeted AI tools to predict Google monetization: Cortex developed an AI tool that is capable of predicting the price that Google will pay for ads in a specific space, as a function of several features, including the campaign itself, Users' properties, the time of day, and the day in the week. When the tool sends bids to Google, it also sends encrypted third party data, which enables the company to re-identify the bids.

Campaign Launch System: While the company's AI system manages automated campaigns from start to finish, without human intervention, the creation of the campaigns still requires human intervention as campaigns of advertisers requires human-generated creative content in order to attracting Readers to interact with the promoted ads.

Cortex developed a dashboard that enables the Creative Team to focus only on the creative aspects of the campaign and later select in a simplified matter, based on data presented to it in the dashboard, which interfaces, countries and networks to present the campaign in, and when to launch the campaign.

Digital Content Management System: Cortex engages with creative content writers who produce dozens of articles for the Cortex Websites each week, publishing hundreds of articles a year that are read by hundreds of millions of Users.

Cortex developed a system to manage these articles, which includes version tracking, logs of changes, full back-up of the articles, and options to edit photos and text.

Digital Content Index and Label System: Cortex developed a tool that allows to re-use previously developed content of Cortex, which was saved in its databases, including the media that was already posted to the Cortex Websites and for which the copyright payments were already paid for.

Bidding Management System and Ad Optimization: Readers browsing the Cortex Websites are exposed to various ads, which are delivered to each Reader by the company's advertising bid system. In order to maximize its revenues, the company holds real time bidding campaigns between advertisers, for each ad that is displayed on the Cortex Websites. According to this criteria, the company's bidding system selects which type of ads to display on the Cortex Websites and which advertisers to include in each bid.

Cortex developed an A/B testing system which runs several A/B tests simultaneously to produce versatile data which enables Cortex to run bids between selected sub-groups of advertisers, display different ads, (iii) compare different partners of Google, (iv) check the contribution to the profit of a specific advertiser or ad, and (v) compare the performance of different configurations and designs of the web-pages in terms of performance.

Customers

As of December 31, 2022, Gix Media had one major customer, a reputable international Search Engine (Gix Major Customer). Cortex has one major customer from its Content Platform operations, Google, which it engages with through Total Media Ltd. (Total Media).

Marketing and Distribution

The company has a wide variety of products, and each product requires specific, tailor-made marketing and distribution models. It has advanced BI systems that improve constantly, which assist in distributing different products online, with a goal of maximum customization of the product to the end user. These BI systems were developed in-house by Gix Media and Cortex.

Gix Media also designs and implements an advanced self-service marketing and launch campaigns which market its products directly across the internet, in various languages and countries.

Competition

Some of its competitors are companies that are considerably bigger than the company with considerably higher budgets, such as Google, Meta, and Microsoft. The company also competes with the providers of the Search Engines themselves, such as Google, Microsoft, IAC, and Verizon Media.

Search Platform

The company's main competitors in this market include Ironsource, Perion, FireArc, Spigot, IAC, and AOL.

Content Platform

The company's main competitors in this market include Perion, Buzz Feed, Pub+, Novelty, Hive Media, and Kueez.

Government Regulation

The company is subject to U.S. federal and state laws regarding copyright infringement, privacy and protection of user data, many of which are subject to regulation by the Federal Trade Commission.

Intellectual Property and Other Proprietary Rights

The company has four patents that have been granted to it in the U.S.:

U.S. Patent No. 10,467,684: The granted patent relates to novel techniques implemented by the company, which enables businesses to configure their video players to incorporate interactivity functions, such as call-to-actions, into their video publishing and delivery workflows;

U.S. Patent No. 8,706,562: The granted patent relates to video e-commerce networking, modules and methods used to configure a video or playlist that is delivered to viewers where the content displayed in the video player is dynamic and could be customized based on the publisher site;

U.S. Patent No. 8,706,558: The granted patent relates video e-commerce networking, modules and methods to display a video or playlist that is delivered to a viewer where the content displayed in the video player is customized based on the publisher site; and

U.S. Patent No. 9,792,645: The granted patent provides a method to facilitate video interactions between a publisher and end users, and measures the data produced through that interaction.

Research and Development

For the year ended December 31, 2022, the company's research and development expenses included $3,255 thousand.