How to Build an App Startup in a Weekend
This past Saturday, I had the opportunity to spend a couple of hours with the folks participating in the Twin Cities Startup Weekend at CoCo MSP. The Startup Weekend event organized by Shane Reiser had over 100 participants, which formed into 12 different teams with the task of creating a start-up in a weekend.
I arrived while the teams were eating lunch, and caught Jeff Pesek’s discussion on the future of Minnesota’s startup community. Next I had the opportunity to hear Kim Garretson of Ovative Group say a few words, including my favorite quote of the day on how local startups get “Minnesota niced” by top Minnesota corporations who take their meetings, but never buy whatever the start-ups are selling. To end the lunch presentations, I then provided my remarks on the topic of innovation, and its role in tech start-ups.
After lunch, I had the opportunity to meet with a few of the startup teams-
- FlightCrowd- W3i’s own Jeff Bollinger was in the team that built FlightCrowd, a social application that connects you to interesting people already on your flight.
- LocateMyDeal – My friend and very talented iOS app developer Aaron Kardell was in the LocateMyDeal start-up team.
- Qonqr- There was a little buzz building about the new start-up called Qonqr, so I asked Shane Reiser to introduce me to the team just before I had to leave. I’m thankful Shane provided the intro, because this location-based mobile game ended up being the winner of Startup Weekend. Qonqr is a location-based, Risk-like, mobile game played out over the face of the earth! Players are operatives who must capture geographic zones by deploying nanobots to help their army defeat the opposing armies and qonquer the world. Successful deployments, recruiting, and squadron coordination result in experience points that, over time, promote the operative through higher and higher ranks, providing more powerful nanobot options. Monetization opportunities include player purchased virtual armament upgrades and local businesses paying for the opportunity to be a featured battleground. Game interface for field operatives will be mobile devices, and the Command Center will be accessible from the web.
- Polywiks- Polywiks is a social gaming app utilizing real-time voting records, so you can follow every politician’s actual decisions in office, similar to daily status updates, and vote on whether or not you would do the same thing.
- Speed Watch– Speed Watch is an iPhone and iPad app that clearly tells you the speed limit of the road you are currently on, and notifies you when the speed limit changes.
Although I was initially a bit skeptical about the whole format of Startup Weekend, I would highly recommend you participate the next time they are in your city.
Tips On Advertising In iOS Or Facebook Social Apps
[Originally posted on ClickZ on September 7th 2010]
Are you thinking about how you can annoy people less and be more effective with your advertising? If not, start paying attention, because your competition is.
Digital marketers are shifting their advertising strategies on how they reach people in social apps. The old, impression-based advertising model in social apps doesn’t work because it annoys people. Ever wonder why the cost of Facebook display ads is so low? People do not want to be interrupted by display ads when they are trying to play games with their friends. The same goes for display ads located within social apps in mobile. The mobile ad networks and publishers provide good air cover to help prop up their rates, but it is commonly accepted by most insiders that the majority of mobile ad impressions are going unsold. Marketers are finding that the right advertising strategy for social apps is to stop annoying people and to start focusing on ways to integrate with actual social activity.
Here are four examples of brands connecting with people through their true social activities:
Activity-Based Advertising on iPhone AppsBravo badges in Foursquare: In January, Bravo created badges that Foursquare users could earn by checking into locations linked to shows like “Top Chef” and “The Millionaire Matchmaker.” The Foursquare app saw a 31 percent increase in downloads those two weeks.
Powermat on MyTown: Powermat, a company specializing in wireless charging stations, worked with Appssavvy to advertise in Booyah’s MyTown. The Powermat campaign included a first-of-its-kind sweepstakes promotion on MyTown to enter to win Powermat’s Wireless Charging System for iPhone by physically interacting with Powermat products in-store. Powermat saw an increase in recall of 38.2 percentage points to 43.3 percent.
Activity-Based Advertising on Facebook Applications
Cascadian Farm virtual good on FarmVille: Zynga, developer of the famous Farmville app on Facebook, launched a number of activity-based campaigns. Recently, over 310 million Cascadian Farm organic blueberries were planted by FarmVille players.
MTV interview on Social Interview: Appssavvy also created a campaign for MTV that ran on Social Interview. A Facebook application, Social Interview has an audience of more than 11 million monthly active users and was used to promote MTV’s new original comedy, “The Hard Times of RJ Berger.” More than two-thirds of Social Interview users who saw the “Hard Times” branded interview clicked to start the application – nearly seven times the average engagement rate.
As Damon Burrell, VP, marketing, at MTV Networks puts it, “Currently there is a fundamental shift going on in digital marketing, which we are embracing, especially as it relates to social media. The Hard Times of RJ Berger on Social Interview exemplifies this shift, as true engagement isn’t about users clicking on a banner and coming to our site, but rather integrating them into the experience and providing something of value.”
The trend toward activity-based advertising in social apps is not only a win for marketers, but it helps the publisher maintain a high level of engagement with its audience. As most social app developers will tell you, their most important measure of success is how large and how active their audience is in engaging with their social app. That’s why application metrics sites like AppData for Facebook focus on the amount of active users of a unit of time, and not just the number of installs of a particular app.
When developing your advertising strategies for social apps, be sure to connect with people while the social activity is taking place in the app.
Full Interview On How to Promote Apps On UNTETHER.tv (Video)
The full interview of Rob Woodbridge and I discussing how to promote apps on UNTETHER.tv.
15 Tips from Game Developers to Increase App Usage
[Originally posted on ClickZ on August 10th 2010]
Increasing app usage is essential to a thriving app business. Studies show that it costs five times more to attract new customers than it does to get repeat customers and less acquisition costs equate to higher profits. One reason is that current customers are easier to convert as they gain trust and experience the value of the app. To measure success, a game developer uses this rule of thumb: more than 50 percent of total revenue should be from repeat players, and second purchases should be 30 to 40 percent of sales, according to Lisa Marino, chief revenue officer at RockYou.
Here are some tips to increase app usage and safeguard an app business used by game developers:
- Know the users/players: While planning an app, determine the target audience and what features will be sticky for that audience. Pretty basic, but it’s the key to building and marketing an engaging app.
- Entertainment value: Again basic, but it’s much easier to increase application use with strong entertainment value. Incorporate human triggers: lust, mystique, prestige, alarm, power, vice, and trust. A narrative will increase interest in the app as well as rules, time pressure, ranks and levels, marketplace, different environments, and winning assets.
- Tips about use (a start to advancing the user through the app): Reveal the rules as necessary, educate the user about app usage, reveal secrets or hints on improving the experience, or add features for additional interest (be sure to inform the user). Continued feedback accelerates mastery and increases application use.In Bookworm, basic rules are presented to the player prior to the start of app play.
- Creating a community: Not only does it defray distribution costs, creating a social outlet for the audience increases buzz about the app. App promotion could include sending requests to friends or getting friends to work together to win a prize or achieve a goal.Apps like Resident Evil 5, Unreal Tournament III, Guitar Hero/Band Hero, and Mercenaries have features where the user gets a friend to join as they play through the normal game mode. This fosters community by encouraging play with others (regardless of their location or progress within the game). Facebook is a great place to start a community and then promote the app profile in the app to increase friends.
Many games, like Bejeweled, have started Facebook pages for passionate app users.
- Collecting: Most people love to collect; it is innate in our nature. Provide opportunities for players to collect something to gain bragging rights with their friends.Games like LittleBigPlanet encourage players to collect as many items as possible. Some of these items improve the user’s status by changing the way the character looks. Players who have obtained items difficult to acquire will generally flaunt their success by dressing their avatars with these items.
- Exchanges: Two-player games or teams encourage engagement by adding a social element and increasing competition. Exchanges can include: taking turns, making allies, getting app usage advice, sharing weapons or accessories, etc. Is there a way to add a social element to the app?The best game to demonstrate this is Nintendo’s Pokémon games. Each player is allocated only a certain number of items (in this case, Pokémon). In order to collect them all, the user must trade with other players. Some Pokémon will change forms while being traded, while others are simply not available unless traded. This also fosters community by forcing trades between players.
- Customization: The more a user can customize the app and the interface, the more invested the user is in the app. Tests show that creating a character for the opponent instead of just labeling the opponent as the “computer” will create more player involvement.Customization is a game marketer’s friend. The Sims is a good example; games have slowly integrated the ability to create a custom character or shape experience to preferences. Games like Guitar Hero allow players to create a custom star. Customization gets as detailed as settings for four points on the cheek and three points on the chin for each character. Playing with the customization, players have recreated their favorite heroes/villains as well as creating self portraits to immerse themselves further in gameplay.
- Points: Can some scoring method be built into the app to challenge the user to increase app usage? Psychologically, redeemable points drive loyalty as users equate earning points (especially to earn something) to not wasting time.PlayStation and Xbox use a trophy/achievement system to encourage users to compete against friends to see who can score higher or complete more objectives.
- Create competition among friends using visible metrics: People are social beings; the more interaction the user has with the app, the more engaged the user will be. Some additional features could include:
- Friend walls
- Customization
- User vs. user engagements
- Instant messaging interfaces
Console apps use messaging systems for players to keep in touch and send app invites. For example, while playing Teenage Mutant Ninja Turtles: Turtles in Time, the user can send a message to other friends requesting they join them in play. When friends are offline, messages can be sent through the app system similar to e-mail. In many cases, players on the friends’ list are more apt to check their gaming message box over their traditional e-mail box. For example, the app’s messaging box is used as a means to set up times to play apps with friends at a later point.
- Messaging when inactive: It’s important to build rapport and maintain relationships. Be sure to build a messaging platform into the app. Make messages interesting: new features, promotions, cross-selling opportunities, etc. Don’t drop the connection with the user if at all possible, but beware not to message too much to cause irritation.
- Fresh content: Continue to perfect the app and use messaging to tell users when there is something new. Many games now utilize downloadable content (aka DLC) to expand the experience for gamers with brand new content, like additional stories, side quests, characters, or costumes. Sony’s Heavy Rain released a brand new side story as downloadable content, allowing the gamer to broaden their experience with the game for a nominal fee.
- Incentives for returning: Give the user a reason to return – bonuses, additional app usage tips, special privileges, etc. Nintendo’s Animal Crossing is a perfect example, always giving players reasons to return. Depending on the date that the user fires up the app, they experience different events, meet new characters, or find new collectibles, like bugs or fish.
- Accessible: Build the app for multiple platforms to ensure continued use. With the introduction of smartphones and now the iPad, loyal players want to engage where and when they have free time.
- Mashups: If possible, build ways that an app can be repurposed/embedded on other sites, blogs, or apps. Can you create a teaser app with content from the app?
- Syndicated: For speed to market, a sure bet is leveraging the success of an established brand.Many apps are syndicated. If you grew up in the 1980s, you’ll recognize Mario and Sonic. Both mascots are still heroes to the current generation. Mario was a villain (Donkey Kong Jr.), a Plumber, a Doctor (Dr. Mario), a racer (Mario Kart), and more. While Sonic’s resume isn’t nearly as impressive, Sega managed to slap Sonic in more titles than most people realize. In the Dreamcast Title Shenmue, players collected Sonic the Hedgehog action figures. Keeping this brand recognition, both Sega and Nintendo have managed to chain games together around a character. When players hear the names Mario or Sonic, sales are guaranteed.
Now that you have a checklist and some examples, build features to increase app usage into the app design or add them as the app gets more traffic; and they become the foundation to a thriving app business. As revenue increases, you may want to buy traffic for your app.
Why universal iPad/iPhone apps are good for users but bad for a developers’ rankings
An app developer of iPhone® and iPad™ apps, Evan McMahon of Veiled Games.com, pointed out something to consider when doing app development for the iPhone and iPad—the app only counts on the ranking for the iPhone or the iPad, splitting the count for a universal app.
In the end, all apps want to score it big in the iPhone app ranks. Evan pointed out that there is an additional consideration when designing a universal app (a single application that can be run on the iPhone as well as the iPad), and the way it is counted in the ranking. With a universal app, purchases on the iPhone count for iPhone rankings only, purchases on the iPad count for iPad rankings only, and purchases in the iTunes desktop application count for iPhone rankings only. Also, if the intended use for the app is iPad and purchased through iTunes, it is counted as an iPhone app. Therefore, creating a universal app creates value for the user as they can use the app on both the iPhone and iPad, but as a developer, creates a possible disadvantage since it splits the count in the rankings.
Another situation that arises from this scenario is the inability to create different price points for the iPhone and iPad app to capitalize on the different price tolerances of the two markets.
Creating a universal app is advantageous to the user, but as a developer attempting to optimize the revenue generated from the app, the developer must choose the most effective pricing and sales strategy possible. It is a difficult balance for developers who want to provide the most utility for users while fully monetizing the investment in the application.
Creating a universal app and how it affects your app ranking is another thing to consider when doing app development for iPhone and iPad apps. Please comment if you have additional tips for app developers.
Insight on How to Increase Mobile App Distribution Based on Android, Blackberry and iOS Application Research with Consumers
[Originally posted on ClickZ on July 13th 2010]
Through increased understanding of what drives users to heavy mobile app consumption, a more effective marketing plan can be created and executed to increase Android, BlackBerry, and iOS app distribution. My company conducted mobile app distribution research with both B2B mobile app developers/marketers and B2C mobile app users in an effort to understand more about successful distribution tactics. The results are useful as you develop a kick-ass distribution plan.
This month’s column covers the results of our B2C mobile application research focused on Android, BlackBerry, and iOS applications. The results of the B2B mobile application research were covered in my last ClickZ column.
B2C Mobile Application Research Summary
Method
This data was derived from 448 valid and fully-completed responses to our mobile app survey. The survey was hosted online with links distributed through a third-party site. Recipients of the survey link were asked to participate in the survey and received $2 for completion.
Purpose
This survey seeks to quantify aspects of mobile app discovery, acceptable ad formats, app purchases, and Web search from the three leading U.S. smartphone players: Apple (including iPod touch), Google, and RIM.
Criteria
Due to the difficulties in obtaining Android respondents, the survey company focused more than half of their efforts on targeting Verizon customers. Valid users included only those that correctly answered trap questions and met minimum qualifications. User composition by primary device was: 130 iPhone, 103 BlackBerry, 100 iPod touch, and 115 Android. All were from the U.S. All have an app-capable device. All have at least one app installed on their primary phone.
Quantity of Apps on Smartphone
Tip: Make the iPhone your starting point. Currently, iPhone users are the largest, most passionate user group and install the most applications.
How many apps do you currently have installed on your primary phone?
- 1 to 5 (24 percent)
- 6 to 10 (21 percent)
- 11 to 15 (16 percent)
- 16 to 20 (15 percent)
- 21 to 30 (10 percent)
- 31+ (13 percent)
Twenty-three percent of all users have 21 or more apps installed (heavy app users). IPhone owners have the highest ratio of heavy app users (iPhone – 34 percent, Android – 30 percent, iPod touch – 21 percent, and BlackBerry – 7 percent). These figures are reasonably consistent with the secondary research reviewed.
How many apps do you download per month to your primary device?
- None (7.61 percent)
- 1 to 3 (51.23 percent)
- 4 to 10 (29.31 percent)
- 11 to 20 (6.94 percent)
- 21 to 30 (1.79 percent)
- 31 to 50 (1.57 percent)
- 51+ (1.57 percent)
Forty-one percent of all users install four-plus installs per month. IPhone owners rank the highest in achieving this minimum (iPhone – 48 percent, iPod touch – 43 percent, Android – 38 percent, BlackBerry – 29 percent).
Role of the Desktop Computer in Mobile App Discovery
Tip: Syncing is a routine behavior, so marketing via the Web is a viable distribution tactic with links back to the App Store. Don’t ignore the influence of desktop websites to mobile app discovery in your mobile distribution plan. Submit free copies of your app along with marketing information to the various mobile app review websites. Users prefer to search the App Store for your app, so make sure the keywords most commonly used for your app quickly bring up your app in search results.
Syncing their mobile device with desktop computer: Eighty percent of Apple mobile device users fully sync at least once per month. Sixty-two percent fully sync at least once per week. These figures are relatively the same between the iPod touch and the iPhone. It would appear that Apple mobile device users are familiar with syncing and for most it is a routine behavior.
Downloading apps using desktop software: Ninety-two percent of Apple mobile device owners understand that you can download apps using the iTunes desktop software (96 percent for iPhone, 86 percent for iPod touch). Seventy-two percent download at least one app per month using this method (76 percent for iPhone, 64 percent for iPod touch). Forty-six percent download at least one app per week using this method (48 percent for iPhone, 40 percent for iPod touch).
Preferred method for downloading an app discovered while using their desktop computer:
Apple mobile device owners:
- 56 percent prefer to search the App Store from their mobile device for the app
- 17 percent prefer to use the iTunes desktop software
- 13 percent prefer to have the download link sent via e-mail
- >7 percent prefer taking a picture of an app’s designated bar code, receiving a link via SMS
- >7 percent prefer receiving an alert via a mobile app
BlackBerry owners:
- 42 percent prefer to search the App Store from their mobile device for the app
- 40 percent prefer to have the download link sent via e-mail
Android owners:
- 72 percent prefer to search the app store from their mobile device for the app
- 11 percent prefer to have the download link sent via e-mail
Mobile App Purchases and Advertising Formats
Tip: Offering the mobile app for free increases distribution. IPhone app users are most willing to pay $0.99. Users are receptive of an ad-supported model. Users are also receptive to paying for additional features. IOS app marketers are successful with the freemium model.
Installing free apps as a substitute for paying: Most users would prefer to install three free apps (52 percent) over paying $0.99 for an app or premium feature (42 percent). IPod touch, Android, and BlackBerry users all shared this preference (58 percent, 53 percent, 55 percent, respectively), whereas iPhone users preferred to pay the $0.99 (54 percent compared to 43 percent to install three free apps).
The remaining users (6 percent) selected the other option, which asked them to submit their own custom answer. The general response was that these users would simply avoid apps that require some form of payment.
Ad formats for free apps: Users showed a strong interest in new advertising formats when asked to select their top three options in supporting free apps.
New advertising formats:
- Submit a rating and a review for an app I like every five uses (25 percent)
- Complete a short survey every five uses (24 percent)
- Select and install a free app from a recommended list after every five uses (21 percent)
Existing advertising formats:
- See a 20 second ad once during each use (33 percent)
- See persistent small ads during use (24 percent)
- Select and install a free app from a recommended list in exchange for a virtual good (16 percent)
Influences to purchasing a paid app or extra feature: Forty-two percent of all users have purchased an app or extra feature, after first trying the free version of an app. Apple mobile devices show a much higher composition of users that made such purchases (iPhone – 55 percent, iPod touch – 49 percent, Android – 27 percent, BlackBerry – 34 percent).
Users ranked what motivates them to purchase a full version app or an extra feature (selecting all that apply):
- Expanded features and capabilities (77 percent)
- Remove ads (44 percent)
- Trial expired (35 percent)
- To support the developer (22 percent)
- Curiosity (16 percent)
Mobile App Discovery
Tip: Appearing in the top 25 and category lists is essential for effective mobile app distribution. Users prefer to find apps using the top 25 and category lists in the app stores. Popularity (past 24 hour downloads) and total following (overall active users) are the two preferred options for sorting apps from a list. It’s no surprise that in our B2B survey, incented app distribution was the most effective type of advertising for mobile app marketers. This is generally the low-cost, predictable, high-volume source of distribution. Since search is also important, paying close attention to keyword and description SEO tactics is important in your app marketing campaign.
Methods tried by users for finding new apps (select all that apply):
- Categories (57 percent)
- Search (57 percent)
- Featured – new (52 percent)
- Top 25 overall (52 percent)
- Features – what’s hot (48 percent)
- Featured – personalized recommendations (e.g., Apple’s Genius) (18 percent)
- Ads in other apps (12 percent)
Apple mobile devices have the top two selections being categories and top 25 overall (iPhone Top 25 – 65 percent, iPod touch Top 25 – 63 percent, iPhone Categories – 61 percent, iPod touch Categories – 64 percent). IPhone users are far more likely to try a personalized recommendation solution than other device owners (iPhone – 27 percent, iPod touch – 17 percent, Android – 12 percent, BlackBerry – 15 percent).
Methods preferred by users for finding new apps (rank order):
- Most popular topics (7.3)
- Ads in other apps (7.0)
- Featured – personalized recommendations (5.2)
- Search (4.5)
- Featured – what’s hot (3.9)
- Featured – new (3.3)
- Top 25 overall (2.3)
- Categories (2.6)
There was no significant variance between devices.
User preference toward different sorting options in their app store (rank order):
- Buzz – media mentions and links (7.2)
- Recommendation – based on other apps you have installed (7.1)
- Discount (6.8)
- Newest (4.9)
- Expert’s rating (4.9)
- Friend’s rating (4.8)
- Everyone’s rating (3.8)
- Total following – active users (3.4)
- Popularity – past 24 hour downloads (2.1)
The order is consistent between devices, but on Android, the Everyone’s Rating option is noticeably closer to the Total Following option (Everyone’s Rating – 3.6, Totally Following – 3.5, Popularity 2.0). It’s noticeable that several very popular sorts are not yet available in Apple’s App Store (Total Following, Friend’s Rating, and Expert’s Rating).
By understanding user preferences, you can put a more effective mobile app distribution plan together for your Android, BlackBerry, or iPhone app marketing campaign. Hopefully this application research gives you some ideas on elements that are important in your marketing and design tactics. Be sure to read last month’s column on B2B mobile application research and its implications. If you have any thoughts on how to get top iPhone apps, please leave your comments below.
Tips for Promoting Apps Using Twitter
Twitter works. Read on to find out how I used Twitter to successfully launch my company’s new app promotion business, Apperang; along with other tips from a top tech journalist on how to use Twitter for app promotion.
I read Twitter Means Business by Julio Ojeda-Zapata on vacation in Mexico. Julio is a nationally recognized tech journalist (for example, see his post about his recent appearance on TWiT) who covers tech news for the St. Paul Pioneer Press.
A quick tangent on my Mexico trip before I continue…
I knew Nokia was #1 in global market share for mobile phones, but I haven’t traveled outside of the U.S. much over the past year so this hadn’t really sunk in. I was amazed at how many low-end Nokia feature phones there were in Mexico. For example, I sat on a ferry ride next to a young guy who worked for mobile game company Gtech. In my extremely choppy Spanish and his choppy English, we discussed the difference in iOS versus Android, and games built for feature phones. Pretty funny discussion on who’s the target market for various phones.
I was late to adopt Twitter… Why?
I was down on social media after watching Facebook transition from its initial early adopters to its current position of mass consumer penetration. Through the transition to the mainstream, Facebook ended up becoming a pretty worthless professional tool for me. I’ve always been a LinkedIn fan, but I find LinkedIn tends to be where relations go to die versus to develop.
What caused me to finally pay attention to Twitter?
I was urged by friend and fellow Minnesota tech entrepreneur, Philip Hotchkiss, to adopt Twitter for professional purposes about a year ago.
How did I get started?
I started following individuals I came across during my general professional life.
Eventually, the number of relationships I followed became hard to manage so I started building Twitter lists on key conversations I like to participate in, such as app marketers, app developers, tech media, and Minnesota tech.
What did I miss during the Twitter early days?
By being a late adopter to Twitter, I missed out on some of the early business success stories. Julio’s book did a great job of retelling these early stories. Here are a few excerpts that specifically apply to app developers:
Evernote’s stellar customer service, for Windows apps and other OS apps, fix problems before most users even notice them. “Twitter has proven invaluable for identifying problems with its software, if a bug crops up, Evernote will hear about it, almost instantly,” comments Andrew Sinkov, Evernote Marketing Director (page 58). Evernote built a strong following due to its popularity with the web-tech set. Tweets help identify bugs, as well as capture usage ideas, as a vehicle for new product/feature communication, and a polling medium to get user feedback.
Promoting the MyLite iPhone App- Graeme Thickens and DoApp: “He (Graeme Thickens) used his @DoApp identity as a sort of news feed to keep followers apprised of developments in iPhone application development, which was a superhot subject in the consumer-technology universe” (page 57). Thickins searched for mentions of DoApp on Twitter and asked for permission to post some of the more creative tweets. Users were finding all kinds of interesting uses for the myLite program, which is a combination strobe, emergency flasher, and rock-concert lighter. Nearly two dozen uses were identified including: a radiologist setting it to red for use in the x-ray room; and a WVA medic using the emergency flasher at night festival “so other members of rescue and fire could find me in a dark sea of people.”
Amy Worley, Director of Digital Marketing, H&R Block, used Twitter to increase awareness of their desktop software (page 41). Worley was on a crusade to publicize the company’s digital offerings, including its TaxCut options, for doing taxes online. She used Twitter to broadcast tax tips like tax deductions commonly missed or W-4 tips. She also used Twitter to answer tax questions, creating a two-way conversation with users. Twitter evolved to become an integral part of their marketing efforts showing that H&R Block is a true advocate for the taxpayer.
My own personal Twitter business success story
While on vacation in Mexico, I joined my fellow colleagues at W3i in launching Apperang, a service which pays consumers to try iPhone and iPad apps.
A couple of weeks prior to the launch, I used Twitter to reach two app developers, which resulted in their participation in the public launch of our iOS app promotion service before we were even live. I found that many app developers are hard to reach, and Twitter is a very useful tool for engaging in conversations with them.
Perhaps even more telling of the business value in using Twitter, as a part of our launch, was how an unsolicited tweet was able to connect me to a writer at TechCrunch named, Gagan Biyani, which ultimately landed us a story in Mobile Crunch. This was no small feat for a company headquartered in central Minnesota, far from Sillicon Valley. Later on, several other tech blogs followed on the TechCrunch coverage and they wrote their own stories. The post Biyani wrote ended up being among the most popular in Mobile Crunch for the entire week – during a week that was competing for coverage against the iPhone 4 launch. Not only was it good industry buzz that resulted in several leads from additional new app developers who wanted to participate in our app promotion service; but it helped provide a big organic boost in early adopters on the consumer side of our service as well, which has provided great feedback while we are in our public beta phase.
I would highly recommend Julio’s book for anyone involved with using Twitter for business purposes. I am also looking forward to reading Julio’s new book when it is published on how businesses are using the iPad.
If you are an app developer interested in tips around the business of apps, I would recommend following @W3i, or if you are interested in following me personally, @robertjweber. Please comment if you have any interesting stories on how you used Twitter to grow your app business.
iPhone, Android, and Blackberry App Marketing Research
[Originally posted on ClickZ on June 15th 2010]
With the proliferation of mobile applications, the age-old marketing problem of discovery is now paramount. What can you learm from mobile app marketers across various operating systems like iPhone (iOS), Android, and Blackberry?
My company conducted mobile application research with both B2B (define) mobile app developers/marketers and B2C (define) mobile app users in an effort to understand the successes and challenges developers face when vying for the top spot in various app stores. The results are useful as you develop your plan to market mobile apps.
This month’s column will cover the results of my company’s B2B mobile application research. The results of the B2C mobile application research will be covered in my next column.
B2B Mobile Application Research Summary
Method
This data was derived from 33 survey responses to our Mobile App Monetization and Business Model research. The survey was hosted online with links distributed through third-party sites and personal e-mails. Recipients of the survey link were asked to participate in the survey and received a white paper as an incentive.
Purpose
The purpose of the application research was to uncover app marketing techniques employed to drive mobile app discovery and downloads of native apps developed for the top mobile platforms in the U.S.
Criteria
A respondent was required to be a developer of native mobile apps for iPhone, iPod Touch, Android, and BlackBerry devices. Each of these platforms offer a proprietary “app store” to developers for managing the discovery, download, and monetization of apps developed on their respective platforms. Most respondents to our survey were iPhone app developers (53 percent) that develop native iPhone apps as their primary business (47 percent).
App Store Rankings
Tip: Learn how rankings in each app store work and how they affect the number of installs an app receives. Many of the top apps are using mobile app advertising campaigns to get them to the top of the ranking. Try flighting – run promotion to get to the top and then stop promotion and let it ride until the app drops below the top rankings, then run promotion again. Other app stores to consider are: Handmark, Handango, GetJar, and carrier app stores (long approval time).
Each of the three app stores addressed in this application research (i.e., Apple iTunes App Store, Android Market, BlackBerry App World) have specific methods for ranking mobile apps. Only half of the respondents to this survey had a clear understanding of how rankings impact the number of installs they receive. Most BlackBerry and Android developers don’t know their peak popularity ranking in their respective app stores. IPhone developers have a better understanding of where they fall within the various rankings.
iPhone: Fifty percent of iPhone developers have achieved peak popularity in the App Store for a free iPhone app. Twenty-eight percent have made the top 100 list for a paid app.
Android: Thirty-six percent of Android survey respondents have achieved peak popularity in the top 100 rankings for a free Android app. Most Android developers (90 percent) don’t know their peak popularity ranking for a paid app and 63 percent don’t know their peak for a free app.
BlackBerry: Two out of nine BlackBerry respondents have achieved peak popularity rankings in the top 100 for both free and paid apps. Seventy-eight percent don’t know what peak popularity ranking they’ve achieved.
Business Model
Tip: Understand how pricing will affect your demand. Offering a mobile app for free can rapidly grow your user base; however, to sustain your business you must have a source of revenue. Charging for your app is one option, other options include: ad supported, selling virtual goods for micro payments, and sponsorship. Run tests to optimize pricing.
Revenue from paid apps is the primary business model of most of our respondents (43 percent), followed by ad-supported free apps (22 percent). The three most important factors in determining the business model of their apps were: user acceptance/experience (81 percent), revenue-per-install (71 percent), and quality reporting (33 percent).
For the majority of respondents (81 percent), user experience and not revenue-per-install, was the more important factor in determining the business model of their app.
Advertising Techniques
Tip: Paid search is only one option. Because mobile advertising is experiencing slow adoption from major brands, much of the mobile ad inventory is affordable (think remnant). Also, once you have an application with a large user base, use cross promotion to introduce a new application. Cost effective tactics are PR, blogger outreach, social media, and the elusive viral marketing.
Most survey respondents have tried at least some form of advertising. The three most common practices were: offering ads within another mobile app (35 percent), mobile keyword search (26 percent), and ads on a desktop website (22 percent).
A significant number (30 percent) of respondents aren’t using any of the common advertising techniques to drive demand for their mobile apps. This could mean that they either aren’t advertising at all or are experimenting with entirely new and different techniques altogether. However, if we take into account that 42 percent indicated that they don’t spend any money on advertising, we can safely conclude that this 30 percent simply doesn’t advertise.
Although survey respondents have tried most of the common app advertising techniques, most (52 percent of ad techniques) yield average results.
User Engagement
Tip: Don’t forget, retaining the user is as important as acquiring the user – depth of content and fresh content are both important to engage users. It’s easier to plan engagement features into the development of the app than to try to retrofit. And you can’t improve what you don’t measure. How to measure: segment subscribers by multiple variables, prioritize segments, determine variables to measure, run A/B tests, roll out across segment, and continue to optimize. Reports can include: device reports by vendor and model, traffic reports on how content is being consumed, destination reports to identify potential partners, or places to run ads.
Most respondents are satisfied (52 percent) with how their apps were rated in the app store. However, 48 percent see that their ratings either need improvement or are not important.
When we asked app developers what they valued most, increased usage ranked highest (48 percent). Given the option of increasing usage of an app by 10 percent or increasing the number of installs by 10 percent, developers would rather increase usage. This is consistent with earlier responses, which indicated that 81 percent of developers value user experience and user acceptance over revenue-per-install.
Marketers are just beginning to get an understanding of how to get top iPhone apps. Hopefully this application research will give you some clues on elements that are important in your marketing and design tactics. Stay tuned for next month’s column on the results of the B2C application research of 448 U.S. smartphone users. If you have any thoughts on how to get top iPhone apps, please leave your comments below.





