Yes, a lot of iPhone apps have been downloaded, but….

February 26th, 2009 The Insider Posted in Mobile Advertising, Mobile Application Technologies, Reach No Comments »

Great brief in the February 20th PC World article entitled, “App Store Grows, but Apps Are Seldom Used” – the article focused on data revealed by Pinch Media which offers a hosted analytics solutions specifically for iPhone applications.  The company collected data from “a few hundred” applications in the App Store that use its hosted analytics product. Applications that use the analytics offering include those that have been the number-one paid and free applications available in the store.  Here’s a sampling of the findings per the article:

  • Users who download free applications from the App Store, only 20% use the app the next day, and far fewer do as the days pass. For paid applications, the return rate is only slightly better: 30% of people use the application the day after they buy it. The drop-off rate for paid applications is about as steep as for free applications after the first day.
  • Generally, 1% of users who download an application turn into long-term users of it, Pinch found. Pinch has noticed some differences based on the kind of application. For example, sports applications get more use than others in the short term, while entertainment applications tend to keep users for longer than others.
  • Pinch has discovered, or at least confirmed, some other interesting usage trends as well. Developers have a far greater success rate once they rise to the top of the store, which Apple ranks based on popularity. Once applications hit the top 100, the number of daily new users increases by 2.3 times, Pinch said.
  • Also, free applications tend to get more use than those that cost. Users run free applications, on average, 6.6 times as often as paid applications, Pinch said.

I suspected as much, but app store data is hard to come by as Apple does not reveal insights other than  total downloads and segmented top download lists and companies like Pinch are few and far between. To date, most iPhone developers have been adding simple tracking methods within their apps on their own accord so the data available to advertisers is limited and hard to come by. Aggregated iPhone analytics is a niche “industry” whose time has come so that Media planners can get a better sense if the “channel” is working or not.  Companies to watch include -Pinch Media, Flurry, Medialets and Admob to some extent.  

From a marketing perspective, brands looking to make any real impact with an application really need to focus on the Media plan surrounding the launch of a new application to get the app ranked on Apple’s top 100 or better lists as it appears this is the make or break bar to hit in terms of a tipping point.

This brings up another issue – driving traffic to iPhone applications isn’t exactly a well known science yet.  Yes, many marketers are realizing you can deep link to an application from the Web to the iTunes page where the app resides, but others are incorrectly thinking they can buy their way into sponsoring the featured apps section within iTunes.

The net net of this post is this – if you are brand considering investing in an application be sure your expectations are grounded in reality.  The iPhone is great indeed, but remember its total global share is maybe 1-2% and it appears consumers are only interested in taking a peek and then walking away.  
 
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App stores galore! Marketers to take on additional complexities and costs.

November 4th, 2008 The Insider Posted in Handsets, Mobile Application Technologies, Mobile Content 1 Comment »

Last month, RIM announced that it would be launching its own versions of online and on-device application storefronts for its Blackberry devices.  Dubbed the “Blackberry Application Storefront,” the online store is slated to appear in March of 2009.  It is unknown as to when the on-device portals may launch as RIM has stated that they would work with individual Operators to create customized storefronts.

Android’s application store currently featured on T-Mobile’s G1 handset has had some modicum of initial success albeit not quite on the level with the iPhone.  We will have to wait until next quarter’s earnings to see some hard numbers from T-Mobile regarding G1 sales and application downloads.

Apple’s well publicized application store is still cruising along with approximately 200 million downloads via 13 million iPhones sold and counting as of their recent Q4 fiscal quarter announcement.  

Nokia’s global application storefront, MOSH, which features  applications built using J2ME, Flash Lite and Symbian as well as other technologies is much more open than the aforementioned stores.  As of this posting, the MOSH download counter was at 94,653,057.


The emergence of application stores built around a specific handset and/or operating system will only continue to create additional complexity within the Mobile Marketing ecosystem and will certainly add to the costs of developing and promoting custom applications that run on the various platforms.

Marketers already struggling to keep up with MMA/Carrier off-deck compliance regulations, application testing guidelines and emerging technologies will now be tasked with familiarizing themselves on who to turn to have custom app work completed on their behalf.  Perhaps more importantly, marketers will also need to uncover the best ways to advertise their new apps across the various distribution outlets.  Other considerations will include;

  • SDKs, SDKs, SDKs= $$$ in terms of acquiring in-house development talent
  • Analytics – reporting from the various storefronts will differ – some firms provide app usage analytics.
  • Accounting for the disparate revenue-share agreements 
  • Application maintenance, QA and hosting costs
  • In-application advertising – how it works, what it costs, etc..
  • Merchandizing costs at the various outlets
  • Nuances of storefront vetting process – especially with Apple.

SIDE NOTE:  I have heard anecdotally that custom iPhone app development can run into the low six-figures.  

 
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Burger King launches mobile game – tactically the right move?

April 23rd, 2008 The Insider Posted in J2ME, Mobile Advertising, Mobile Games, Shortcode Marketing 1 Comment »

This past Monday, Burger King (NYSE: BKC) announced their new multi-level mobile game named BK CITY. The company’s press release states the game, which was developed by mobile game developer Mobliss, will feature a host of mobile-centric features including user-to-user text messaging. The game is available on nearly 200 handsets and will cost $2.99 per month. The game can be downloaded across various Carriers by texting the keyword “KING” to 90210 or by visiting the Burger Website link – HERE.

Sounds interesting and might be worth downloading to check it out, but from a mobile marketer’s perspective let’s discuss a few things about this idea.

First of all a big HIGH-FIVE to Mobliss for scoring a very memorable 90210 shortcode to promote this game and I assume other titles in their portfolio. (Quick shortcode ownership search on the CSCA site..HERE.).

Now, I can appreciate Burger King looking for new, hip ways to build awareness, loyalty, etc..etc around their brand and the KING character that dominates their campaigns these days. However, the question that first arose in my mind due to experience working with other forward thinking brands in the Mobile Channel was - was this money well spent in terms of a tactic? Here’s my line of thinking on this one.

Let’s assume that this game is NOT prominently featured on any Carrier deck for a moment as the company’s press release did not explicitly say the game was available FROM the Carrier’s (deck), but rather “across a variety of national Carriers.” This can be interpreted to mean that the Carriers approved the distribution of this game via various off-deck methods such as a keyword text trigger and via a website. That said, Burger King is going to have to find creative ways (and invest a few dollars) to generate some serious traffic to their website where the game is featured and ensure that any in-store signage, print and possibly TV ads have a very effective call-to-action. I have no idea what volume of web traffic Burger King generates, but I think the off-web promotions will make or break this campaign for a number of reasons:

  • still to this day a very small percentage of U.S. wireless subs actually participate in MO-based (aka send keyword via SMS to a shortcode) mobile marketing campaigns. The MMA’s 2007 Mobile Usage and Attitude Study pegged the percentage of U.S mobile subscribers who participated in mobile marketing campaign at slightly over 5%. (25-44 yr olds slightly higher at around 8%) – the study further claimed that these participants favored mobile sweepstakes programs (45%) and alerts (33%) over game downloads (21%).
  • the required MMA and Carrier compliance language can seem daunting to consumers at the point of download
  • downloading a game to a handset can be a cumbersome task to those who have not done so before in an off-deck environment. Conversion rates between the initial MO – the double optin that will be required due to premium charge and the actual download will be low.

Add to the list of adoption hurdles the fact that the game costs money – a recurring subscription nonetheless!! – and because of this fact the Company is going to have convince consumers (especially the 15-34 demo) that this game is worth it. How does the company intend to induce trial??? (Discussion for another time). Recurring premium subscription models can get messy, especially if consumers start calling their Carrier to complain about mounting fees they claim not to know anything about (wink, wink) Once complaints start rolling in, the Carriers get ancy and can threaten to turn off the program.

In closing – it’ll be interesting to see the results of this campaign in a few months time. I’m betting that the $2.99 subscription will soon be dropped.

OTHER NOTES:

Game downloads here in the U.S. have not lived up to their hype as the number of consumers who have played a downloadable game hovers around the 20% mark according to a recent MMetrics survey. PLUS, most games that are downloaded come directly from a Carrier deck. Couple this with the fact that those games that have consistently been at the top of the download charts for mobile have been casual games such as Tetris and/or an adaptation of a popular game franchise – e.g. Guitar Hero.

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