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An extract from Contagious Magazine's "Mobile Apps" report

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  • 1.mobile apps / index / p.02INDEX /MOBILE APPSCHAPTERS01 / pages 3-406 / pages 26-30 01 /INTRODUCTIONAPP STORES INTRO02 /02 / pages 5-607 / pages 31-34 TIPS 1 TIPS FOR BRANDS / PART 1LANDSCAPE / DEVICES 03 /by John Cecil-Wright TIPS 2 08 / pages 35-36 04 / CONSUMERSLOOKING AHEAD03 / pages 7-9 05 /TIPS FOR BRANDS / PART 2 CASE STUDIES09 / pages 37-38by Alexander Fairfax 06 /NUMBER CRUNCHING APP STORES 04 / pages 10-14 07 /10 / pages 39-40LANDSCAPE / CONSUMERS DEVICES REFERENCES & LINKS 08 / FUTURE05 / pages 15-25BRANDED APPS / CASE STUDIES 11 / page 42 09 / STATSCREDITS 10 / REFERENCES11 / CREDITS

2. mobile apps / introduction / p.0301 / pages 03 - 04INTRODUCTION Over the past 10 years, the mobile phoneSo how to engage, without spamming? How to CHAPTERSsustain interaction without constant redevelopment?has become the one gadget that nobody, 01 /How to apply the creativity for which the advertisingfrom media mogul to suburban school kid, INTROindustry is so well known to location-based technolo-can do without: the undisputed winner of the 02 /gies and teeny tiny screens? TIPS 1battle of the bulge, the race for the space inyour pocket. As trend researcher Sean Pillot 03 /Step forward the humble application, or app for TIPS 2short. Opt-in, flexible, and considerably better lookingde Chenecy once remarked, No-ones everthan your average SMS, applications can fulfil all the 04 /going to commit suicide because they left CONSUMERSrequirements of a successful and engaging brandedhome without their iPod.utility, carrying with them a disproportionate emotional 05 / CASE STUDIESclout. They can be useful. They can be relevant. Theycan be entertaining. The best ones are all three. The 06 /To date and to their credit, marketers have shownother unexpected benefit of a branded app on a mo- APP STORESan almost preternatural reticence to get stuck in tobile device is privacy for the user. Social networking 07 / mobile, perhaps noting that email as a marketing me-sites such as Facebook have been labelled an apps DEVICESdium is only just staggering to its feet after a seriesgraveyard due to the low rates of uptake amongstof sucker punches dealt by spam marketers. This in 08 /user communities. This has been attributed to several FUTUREaddition to the fact that the advertising industrys col-factors, not least the way in which social networkinglective ego has been bolstered over the years by the 09 /apps tend to be best experienced when tied to ones STATSproduction of cinematic films for TV, artistically craft-desktop computer, and a degree of embarrassmented print ads for glossy magazines, and latterly, flash- 10 /from consumers in associating themselves so publiclyheavy microsites designed to enthral and bedazzle. REFERENCESwith what is still, to all intents and purposes, advertis-Small wonder, perhaps, that the charms of the mobile 11 /ing. Mobile phones are not only portable, theyre per-phones small screen size, restrictive price plans and CREDITSsonal meaning that a useful branded app concealeda preponderance of entry level handsets designed atdiscreetly in the privacy of ones pocket could provemost for SMS marketing have taken a while to engagemore appealing.our attention.Following the debut of Apples iPhone, with its revo- However, with 4.1bn handsets now in circulationlutionary touchscreen interface (not actually a trade-and countries such as China, Brazil and India appear-mark, although it may as well be), sales of the deviceing to leapfrog the desktop stage of technologicalswiftly claimed Apple a 11% share of the global smart-evolution and head straight for the mobile web, thephone market, dominated by Nokia at 40%. However,potential for targeted, practical brand communica-the iPhones creative, social and technological potentialIllustration: Chellie Carroll /tions via the cellular device seems assured. 3. mobile apps / introduction /p.04 STATS /was only fully realised in March 2008 when Apple, a got off to a slow start due to the absence of compatiblecompany not normally known for encouraging post-handsets to rival the iPhones sleek design. However,launch tinkering from their rabid and willing fan base, the steady introduction of Android-friendly models, abroke with tradition by releasing a Software Devel- more ubiquitous open platform that promises to de-opment Kit for the Apple App Store the hub from liver content regardless of manufacturer, the fast take CHAPTERS Thereareanestimated30millionwhich all iPhone compatible apps could be down- up of Android phones over the costlier iPhone in Asia, 01 /combined iPhone and iPod touchloaded. The explosion of user-generated content fa- and a backer with a track-record in the establishment INTROusers around the worldcilitated by the internet was no longer confined to the of successful online hubs could make this a surefire 02 /winner. Meanwhile, Nokias Ovi a content-sharingproduction of content such as video and music. The TIPS 1 TheAppleAppStorehadmore App Store had expanded Apples development team service linking phones and the internet is indicativethan 35,000 applications at the end 03 /to include everyone with an interest in technology andof a larger move towards convergent services for the TIPS 2 of April 2009an idea. The store now numbers some 30,000 apps manufacturer at a troubled time in its 144-year history 04 / and passed its billionth download in April 2009. This (the company announced a 90% fall in profits for the iPhoneownersdownloadan CONSUMERSis proving lucrative for independent developers and first quarter of 2009). average number of 37 apps in totalApple alike, with iPhone apps only available through 05 /to their devices, while G1 owners CASE STUDIES In this Contagious Special Report, well be lookingiTunes. The man behind the iShoot game is reputed download an average of 40at how the mechanisms work. Whos taken the plunge.to have netted $600,000 in the first month of avail- 06 /Whos succeeded, and who has failed. What benefits Applepostedsecondquarter2009 APP STORESability. As for Apple: with one billion downloads, ofthere are for brands in engaging with this emerging profits of $1.21bn and $8.16bn inwhich 30% are estimated to be paid-for at an average 07 /space, and how to build an app worthy of consumer salesprice of 99 cents each were talking revenues of DEVICESattention. Well provide an overview of the consumersome $297m through the App Store, 30% of which is 08 / Nokiahas41%shareofthesmart -landscape and mobile usage before exploring some ofretained by Apple. And thats not including the listing FUTUREphone marketthe case studies we like best. Well look at the meteoricfee charged to developers. 09 /rise of Apples App Store and its foremost position in TheiPhonegenerates33%ofall STATSAn oft-quoted statistic of unknown provenance yet this retail space, as well as the devices that are leadingsmartphone traffic worldwide 10 /extreme credibility states that 98% of creative direc- the way. Well also take a longer-term view on where REFERENCES 3Gsubscriptionsrose300%inthetors have an iPhone. 1% of actual people have one. apps are headed from m-commerce and augmented 11 /US in 2008As with any new marketing medium, there are contro- reality to their potential to improve our health. CREDITSversies. At a time in which economic adversity sees Mobileinternetpenetrationisat The rise of the application represents a land grabadvertisers less willing to take risks, especially when17% in the US, 16% in the UK,for the hugely valuable real estate in all of our pockets.they cannot be guaranteed scale, the benefits of un-14% in Italy and 12% in FranceOnce we have an app for bar-hopping, recipe shop-charted territories such as mobile applications are stillping, or blood pressure monitoring, its going to takesomewhat hazy. Is the target audience large enough IndiaandChinaaddanaverageofan awful lot to have us switch. And if the internet hasto justify the technological investment?10m and 8m mobile subscribersproven that pull marketing can engage and stimulateper month, respectivelyThankfully, the arrival of several other big players in communities of loyal brand enthusiasts, mobile repre-this space looks set to confirm the app as a medium sents a chance to apply those principles to more per-worthy of investment. Googles Android Market has sonal relationships between brands and consumers. 4. mobile apps / branded apps / case studies p.1505 / pages 15-25BRANDED APPS / CASE STUDIES The burgeoning popularity of apps is providing a fertile CHAPTERS playing ground for advertisers. They are a new channel 01 /for highly targeted, interactive content that resides on the INTRO one device that no one leaves home without. If done right, 02 / TIPS 1apps offer an opportunity to build an ongoing dialoguewith your customers and can potentially increase loyalty. 03 / TIPS 204 / CONSUMERSBut how to do it right? Given the huge numbers of available apps(most of which are non-branded), and the ever-increasing compe- 05 / CASE STUDIES tition for the valuable screen real estate, how can brands standout? Getting a top ranking in Apples App Store requires a lot of 06 /downloads in a short space of time, according to a study by Pinch APP STORES Media. Six months ago, 10,000 downloads got you into the top 07 /25; today it takes twice as many. DEVICES08 /The key is to add value to your audience by providing a relevant FUTUREand targeted service or piece of entertainment that, ideally, creates 09 /a viral effect. Its about leveraging your content (and brand) to en- STATShance your customers lives whether through functionality or fun. 10 / REFERENCESIn this section we take a look at some of the brands that we thinkhave been doing it well. Weve divided the case studies into those 11 / CREDITSthat are service-based, and those that have more of a social remit.In this respect, we see in apps the convergence of marketing andproduct development; marketing and entertainment