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Manalto distribution deals multiply as social media markets expand

Manalto has consolidated its global footprint for cloud-based services with a string of distribution agreements ahead of a boom in the social media sector, where marketing spending is forecast to total $17.3 billion in 2019.
Manalto distribution deals multiply as social media markets expand

Manalto (ASX:MTL) has consolidated its global footprint for cloud-based services with a string of distribution agreements ahead of a boom in the social media sector.

New commercial deals for Manalto have expanded its presence across the UK, Europe, Asia, North America and Australia as forecasts have called for social media marketing spending in the U.S. alone to increase from a level of US$7.5 billion in 2014 to US$17.3 billion in 2019.

By 2017, social network ad spending will reach US$36 billion, representing 16% of all digital ad spending globally.

In anticipation of this boom, the company has made substantial headway in recent weeks expanding its international commercial connections and accessing new markets.

This effort has most recently included a deal with Luxemburg-based LuxCloud for the distribution of Manalto’s Soshlr product, which delivers savings to small businesses by efficiently manage multiple social media pages from a single dashboard.

The LuxCloud arrangement makes Soshlr available to an international suite of small to medium-sized businesses, including HOT Telecom (Israel), Hosting.co.uk (UK), Protagonist (Netherlands) and TechnoMania (Lebanon).

This deal builds on distribution agreements signed recently with European cloud-based solutions company Top Cloud XL and U.S.-based cloud service commerce leader AppDirect, which powers the largest network of marketplaces in the sector, reaching about 30 million small businesses worldwide.

AppDirect’s distribution platform allows Manalto to join Microsoft, Google and Box.

As with LuxCloud, the AppDirect deal enables businesses to browse, purchase and manage Soshlr as Manalto rolls out new premium add-on features that will expand base license fees, enhancing value, retention and revenue for resellers.


Manalto products

Targeted at small and medium-sized businesses, Soshlr delivers time savings and single visibility of social media activity across Facebook, Twitter, LinkedIn and Instagram.

The purpose-built package is packaged and provisioned for resellers such as service providers, telecommunications companies and hosting companies, with upsell paths in a range of A$36 to $3,000 per annum.

In a macro sense, its development is supported by trends in the global hosting industry which signal a growing imperative to add revenue streams with cloud-based business applications.

Manalto also generates revenue through its Enterprise solution, a social media technical support product distributed direct to market via large, decentralised enterprise partners with an expansive social media presence.

Enterprise sales efforts since August have resulted in 1,188 licenses contracted with an estimated 36,310 addressable licenses on trial across businesses such as hotel groups, luxury brands, entertainment companies and restaurant groups.

In September, Manalto sealed its first major enterprise deal with leading U.S. franchise organisation, the Dwyer Group, which appointed the company as its technology provider to underpin social media management.

An initial contract with Dwyer’s Grounds Guys brand will support about 190 units, but this presence is expected to be expanded with a rollout of Manalto technology across a further six Dwyer brands.

Soshlr has established a presence spanning the UK, Europe and Asia, while Enterprise Solution is active across North America and Australia and has begun branching into the UK and Europe.


Group strategy

Manalto’s cloud-based software systems address an existing and growing challenge for organisations in managing increasingly complex, large and fragmented social media strategies.

This challenge results in inconsistent branding for companies and requires a comprehensive approach to end-to-end online communications management that streamlines sales and marketing channels at scale.

The company’s products achieve this by interacting with major social media platforms to provide a central infrastructure that efficiently manages and controls multiple social media assets operated by multiple outlets.

Manalto has embraced the growing need to address social media inefficiencies with two products and a tiered approach that enables greater capacity and leverage to extend the reach of its solutions to businesses with either a large or small-scale social media requirements.

The company’s push to diversify its customer base internationally reflects the global nature of the social media industry and the increasing need to organise the various channels companies employ in this space.


Analysis

The latest distribution deals make significant strides in the further internationalisation of Manalto’s social media management solutions on the cusp of a global surge in marketing spending within the sector.

In particular, the AppDirect deal opens up the company’s Soshlr technology to the largest network of marketplaces in the sector, reaching about 30 million small businesses worldwide.

This firmer footing for increasing sales growth is further underpinned by ongoing work to expand services and add premium features which can generate additional cashflow.

Small and medium enterprises are increasingly purchasing bundled cloud-based businesses applications from resellers, with sales values expected to increase from US$6.3 billion in 2015 to US$12 billion in 2018.

Manalto maintains an edge in this context by diversifying its product offering to allow for deeper levels of control and access while custom building solutions for quick integration into various business strategies.

The company’s data access layer is abstracted from individual networks allowing for rapid addition of new platforms.   


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Newswire
February 02 2017

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