How Does Viber Make Money? The Viber Business Model In A Nutshell

Viber is an instant messaging and VoIP platform created by Talmon Marco and Igor Magazinnik in 2010, acquired by Japanese eCommerce giant Rakuten in a deal worth $900 million. Viber generates revenues via Viber Out, which allows users to call friends, family, or colleagues in 60 countries around the world using VoIP (charged at $5.99/month); Viber for Business, an advertising solution for businesses who want to connect with their target audience through instant messaging and through Viber stickers.

Business Model Element	Analysis	Implications	Examples
Value Proposition	Viber’s value proposition centers around providing a secure, user-friendly, and feature-rich communication platform. For users, Viber offers free text messaging, voice and video calls, and multimedia sharing, making it easy to connect with friends and family globally. Viber emphasizes privacy and security, with end-to-end encryption for messages and calls. The platform also offers additional features like stickers, games, and public chats to enhance user engagement. Viber Out allows users to make affordable international calls to non-Viber users. Overall, Viber aims to offer a seamless and secure communication experience, making it a preferred choice for personal and business communication.	Provides a secure, user-friendly, and feature-rich communication platform. Offers free text messaging, voice and video calls, and multimedia sharing for global connectivity. Prioritizes user privacy and security with end-to-end encryption. Enhances user engagement through features like stickers, games, and public chats. Viber Out enables affordable international calls to non-Viber users. Attracts users seeking a seamless and secure communication experience. Serves personal and business communication needs.	– Viber’s value proposition aligns with the need for convenient and secure communication tools. – Privacy and security features appeal to users concerned about data protection. – Additional features and Viber Out create opportunities for user engagement and revenue generation.
Customer Segments	Viber serves two primary customer segments: individual users and businesses. Individual users include people seeking free and secure communication with friends and family, both locally and internationally. Businesses comprise organizations looking for communication and engagement solutions to connect with customers, clients, and employees. Viber offers various features and tools tailored to meet the needs of both segments, including Viber for Business services designed to enhance customer engagement and support.	Serves two main customer segments: 1. Individual Users: People seeking free and secure communication with friends and family globally. 2. Businesses: Organizations in need of communication and engagement solutions for customer, client, and employee interaction. Offers features and services catering to the unique needs of both segments. Provides Viber for Business services to enhance customer engagement. Addresses personal and business communication needs.	– Catering to both individual users and businesses diversifies Viber’s customer base. – Tailored features and services meet the specific communication needs of each segment. – Viber for Business services create additional revenue opportunities and support business engagement.
Distribution Strategy	Viber’s distribution strategy is digital and mobile-focused. Users can access Viber through its mobile app, available on iOS and Android devices, and its desktop application. The platform provides a seamless user experience across devices, allowing users to send messages and make calls from anywhere. Viber also offers a web version for users to access their chats and messages via a web browser. Additionally, Viber utilizes partnerships and collaborations with mobile carriers to promote its services and expand its user base.	Relies on a digital and mobile-focused distribution strategy. Offers a mobile app for iOS and Android devices and a desktop application. Ensures a seamless user experience across devices for convenience. Provides a web version for accessing chats and messages via a web browser. Collaborates with mobile carriers to promote services and expand the user base. Offers accessibility and convenience for users through digital platforms.	– Digital distribution simplifies access to Viber’s platform, eliminating the need for physical distribution channels. – Mobile-focused accessibility allows users to communicate from anywhere, enhancing user engagement. – Partnerships with mobile carriers promote user acquisition and growth.
Revenue Streams	Viber generates revenue primarily through Viber Out, a paid service that allows users to make international calls to non-Viber users at affordable rates. Viber also earns revenue from advertising and promotions within the platform. Businesses can advertise their products and services to Viber users through sponsored content and advertising campaigns. Additionally, Viber offers Viber for Business services, which include chatbot development and customer engagement tools, generating revenue from business clients seeking communication solutions.	Relies on revenue streams from: 1. Viber Out, offering affordable international calls to non-Viber users. 2. Advertising and promotions within the platform for businesses. 3. Viber for Business services, including chatbot development and customer engagement tools. Diversifies income sources through international calling, advertising, and business solutions. Supports accessibility with affordable international calling options.	– Viber Out provides a steady source of revenue from users seeking affordable international calling. – Advertising and promotions offer opportunities for additional income within the platform. – Viber for Business services create a B2B revenue stream and enhance business engagement.
Marketing Strategy	Viber’s marketing strategy includes app store visibility, online advertising, partnerships, and community engagement. The platform ensures visibility on app stores to attract new users. Online advertising campaigns target potential users, emphasizing Viber’s features and benefits. Partnerships with mobile carriers and device manufacturers promote pre-installation and usage. Community engagement involves fostering a strong user community and leveraging user-generated content to promote the platform. Additionally, Viber may run promotional campaigns and special events to engage users and incentivize referrals.	Utilizes app store visibility, online advertising, partnerships, and community engagement for marketing. Ensures visibility on app stores to attract new users. Runs online advertising campaigns highlighting Viber’s features and benefits. Collaborates with mobile carriers and device manufacturers for pre-installation and usage promotion. Fosters a strong user community and leverages user-generated content for promotion. Conducts promotional campaigns and events to engage users and incentivize referrals.	– App store visibility increases the chances of attracting new users. – Online advertising campaigns create awareness and highlight Viber’s value proposition. – Partnerships with mobile carriers and device manufacturers expand the user base. – Community engagement enhances user loyalty and promotes user-generated content.
Organization Structure	Viber operates with specialized teams dedicated to product development, engineering, marketing, sales, partnerships, customer support, and business operations. Product development and engineering teams focus on enhancing the platform’s features and technical infrastructure. Marketing and sales teams promote Viber’s services and partnerships. Partnership teams collaborate with mobile carriers and device manufacturers. Customer support teams assist users with inquiries and support services. Business operations teams handle financial aspects, strategic planning, and overall company direction.	Employs specialized teams for product development, engineering, marketing, sales, partnerships, customer support, and business operations. Ensures continuous improvement of platform features and technical infrastructure. Promotes services and partnerships through marketing and sales efforts. Collaborates with mobile carriers and device manufacturers through partnership teams. Provides user support through dedicated customer support teams. Manages financial aspects, strategic planning, and company direction through business operations teams.	– Specialized teams contribute to platform enhancement, user satisfaction, and operational efficiency. – Marketing and sales teams drive user acquisition and revenue generation. – Partnership teams facilitate collaborations with mobile carriers and device manufacturers. – Customer support teams play a crucial role in maintaining a positive user experience.
Competitive Advantage	Viber’s competitive advantage lies in its secure communication platform, user-friendly interface, global reach, and diverse feature set. The platform’s focus on privacy and security, with end-to-end encryption, appeals to users concerned about data protection. Viber’s availability across multiple devices ensures seamless communication. The inclusion of additional features like stickers, games, and public chats enhances user engagement. Viber’s global reach and accessibility make it a preferred choice for international communication. Furthermore, Viber’s partnerships with mobile carriers and device manufacturers strengthen its market presence.	Derives a competitive advantage from: – Offering a secure communication platform with end-to-end encryption. – Ensuring a user-friendly interface and seamless communication across devices. – Providing additional features that enhance user engagement. – Global reach and accessibility make it suitable for international communication. – Partnerships with mobile carriers and device manufacturers strengthen market presence. – Strong focus on privacy and security builds user trust.	– Privacy and security features attract users concerned about data protection. – User-friendly interface and seamless communication enhance the user experience. – Additional features contribute to user engagement and platform stickiness. – Global accessibility appeals to users with international communication needs. – Partnerships expand Viber’s reach and pre-installation opportunities.

Table of Contents

History of Viber

Viber is an instant messaging and VoIP platform created by Talmon Marco and Igor Magazinnik in 2010.

At the time, Marco was in a long-distance relationship and noted that communicating with his girlfriend in Hong Kong while based in New York City was rather expensive. This inspired him to find a cheaper alternative.

He reached out to entrepreneur and businessman Igor Magazinnik whom he met while serving in the Israeli Defence Forces. Before establishing Viber, the pair created P2P file sharing service iMesh which would ultimately provide the capital necessary to launch their new venture.

Once in operation, Viber was funded exclusively by friends and family for the first two years. The pair also hired developers in Cyprus and Belarus to keep costs low. The app was immediately successful, with the iOS version receiving 350 million downloads in the first six months. Viber users could easily call each other and synchronize contacts with their cell numbers. This was in stark contrast to competitors such as Skype that required users to create a buddy list of registered contacts.

In 2014, Viber was acquired by Japanese eCommerce giant Rakuten in a deal worth $900 million. The platform has 250 million active monthly users worldwide, with many concentrated in Russia, Eastern Europe, the Middle East, and some Asian countries.

Viber revenue generation

Marco and Magazinnik intended for Viber to remain free. However, several revenue generation strategies were implemented after it was acquired in 2016.

Following is a look at each.

Viber Out

Viber Out allows users to call friends, family, or colleagues in 60 countries around the world using VoIP. The company notes that collectively, these countries represent more than 75% of the global population.

To access the service, users receive a one-week free trial to make unlimited calls. Thereafter, Viber will charge $5.99/month.

Alternatively, users can purchase pay-as-you-go credit to make international calls. This credit can then be exchanged for call minutes which vary from country to country.

Viber for Business

Viber for Business is an advertising solution for businesses who want to connect with their target audience through instant messaging. Some of the more notable organizations to use this service include Coca-Cola and the World Wildlife Fund (WWF).

Viber for Business caters to the complete user journey of each customer:

Attract – marketing teams can reach a wide audience with in-app ads, stickers, offers, and targeted messages.
Interact – enabling customer segmentation to customize marketing messages.
Transact – here, Viber makes the process of making an in-app purchase effortless.
Stay in contact – to build a long-term relationship, merchants can then follow up with further ads, messages, and promotions to reward loyalty.

Prices for this service are charged monthly and specific to the business and geographic region.

Viber stickers and games

Viber stickers are a colorful way for users to express themselves in a chat.

Users can create their own stickers for free or pay for stickers in the Sticker Market. Most paid sticker packs are available for around $2.

Single and multi-player games are also offered on the platform. Again, some are free while others are available for a fee.

Key takeaways:

Viber is an instant messaging and VoIP platform founded by Talmon Marco and Igor Magazinnik. The idea for the platform came at a time when Marco was in a long-distance relationship and paying for expensive international phone calls.
Viber Out is a monthly subscription plan allowing users to call non-Viber users in 60 countries across the world. The company also sells pay-as-you-go credit to users which are exchanged for call minutes.
Viber for Business is a complete instant messaging marketing solution for businesses. Prices are available upon request.

Key Highlights

Viber and its Messaging Platform: Viber is an instant messaging and VoIP platform established by Talmon Marco and Igor Magazinnik in 2010. The platform offers a communication solution that includes messaging and voice calls.
Acquisition by Rakuten: Viber achieved substantial success and was eventually acquired by Japanese eCommerce giant Rakuten in 2014 in a deal valued at $900 million.
User Base and Popularity: Viber boasts 250 million active monthly users globally. It has garnered significant popularity in regions such as Russia, Eastern Europe, the Middle East, and parts of Asia.
Founding Inspiration and Background: Talmon Marco, driven by the need for affordable long-distance communication, founded Viber. His experience of being in a long-distance relationship and desiring cost-effective international communication inspired the creation of Viber.
Viber Revenue Generation Strategies: Although Viber was initially intended to remain free, the acquisition by Rakuten led to the implementation of several revenue generation strategies.
Viber Out: Viber Out is a service that enables users to make VoIP calls to non-Viber users in 60 countries across the globe. Users receive a one-week free trial, after which they can subscribe for unlimited calls at $5.99/month. Alternatively, users can purchase pay-as-you-go credits for international calls.
Viber for Business: Viber for Business offers an advertising solution for businesses aiming to connect with their target audience through instant messaging. This service caters to various stages of the user journey, including attracting, interacting, transacting, and maintaining contact with customers. Pricing for this service is tailored to each business and its geographic region.
Viber Stickers and Games: Viber offers a range of stickers that users can utilize to express themselves during chats. Users can create their own stickers for free or purchase sticker packs from the Sticker Market, with prices typically around $2. Additionally, Viber features both single-player and multiplayer games, some of which are free, while others are available for purchase.