Phorm Corporation Limited

Interim Results for the Six Months Ended 30 June 2014 - Seite 3

Our system is extremely powerful, yet complicated. In order to operate it successfully in China, which is substantially larger in scale than Turkey, we need to deliver rapidly on a number of fronts including: recruitment, sales management, advertising operations, performance management and data science.

In terms of recruitment, a key challenge in China is recruiting and training world class staff who can acquire the operational experience necessary in a very short period of time. This includes staff in advertising sales, advertising operations, technical ISP sales, network deployment and senior local management.

Sales staff need to be trained up to explain the benefits of a product which we believe is truly different from anything which the industry has so far encountered. They then need to go through the process of meeting with and educating clients on our proposition and taking them through to the order stage. We are seeing encouraging responses so far as manifested by the significant sales pipeline, which has developed in a short space of time.

Similarly, the range of options available for utilising the power of the system to reach the client's desired audience to an unprecedented degree also means that the appropriate level of staff in advertising operations needs to be recruited and trained accordingly. In addition, we have been focusing on developing a management model, which allows us to supervise operations from our operations centre and thereby upscale significantly, efficiently and effectively.

The scale at which we are now operating in China makes it critical that we measure performance in real time and optimise our performance across numerous campaigns, time zones and language barriers. We are now running both test campaigns with new customers and full commercial campaigns with advertisers, who have rebooked following positive results. As the test campaigns with new customers come to their conclusion, the extent to which we have managed their performance will dictate the propensity of advertisers to renew their custom and increase scale, making this function critical. Performance management is now a dominant focus within the group.