v1.0 © scn ltd. 2009. all rights reserved - confidential mobile application stores a developers...

V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIALV1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL

Mobile Application Mobile Application StoresStoresA developers perspectiveA developers perspectiveKarl Good, Director of Applications, Truphone Karl Good, Director of Applications, Truphone 20092009

V1.0 © SCN Ltd. 2009. All rights reserved - CONFIDENTIAL

Truphone backgroundTruphone background

•1st Mobile Voice App in Apples app store on day of app-store launch

•Millions of customers registered (significant proportion iPhone / iPod)

•Live products today, in OVI, Blackberry World, Android Market Place and Apples App Store


Todays TopicsTodays Topics

•App store landscape today

•The good, the bad and the ugly

•“Free or not to be free” – that is the question?

•Marketing your products… Apple case study


Where are we headed?Where are we headed?

“Phone differentiation used to be about radios and antennas and things like that. We think, going forward, the phone of the future will be differentiated by software.”

Steve Jobs, CEO Apple


Challenge of equalityChallenge of equality

• Not all software created equal

• Not all app stores made equal


The Application Store The Application Store LandscapeLandscape

• What are App Stores?

• Who’s out there?

• What’s available?

• Where’s it all heading?


What are application stores?What are application stores?


What are application stores?What are application stores?

• More like warehouses• One-stop distribution and management• Meta data – search keywords• Metrics on downloads, sales • Storefront service


Wider App Store Wider App Store UniverseUniverse


Who Really Counts?Who Really Counts?

Apple Computer Inc.


Where’s it all heading?Where’s it all heading?• App store mania• “Owning the customer”?• Many stores, many apps means fragmentation• Customers go where apps are easiest to access…• Developers go where the customers are…and the

device / platform is fun to develop on.


Wider App Store Wider App Store UniverseUniverse


Apples App StoreApples App Store

• $99/year to join as a developer• Allows paid for applications, with a

royalty to Apple• 1.5 billion applications sold to date

• Launched July 2008• As of Nov 2009, 98K applications

available


• Allows paid for applications, with a royalty to Apple• Large audience of app store users, massive volume of downloads• Multi-country, multi-language support and distribution

• Tough staying at the top of the store, with everyone making 99c apps• Already 98K apps in the store• Allows paid for applications, with a royalty to Apple

• No clear rules on what is and what isn’t allowed• Sometimes lengthy, black box signing/approval process• Can’t reply to customers reviews


Android MarketAndroid Market

• Launched October 2008• 10K applications available

• $25/year to join as a developer• Allows for paid applications, with a

royalty to Google• Apps downloaded: unknown


• Only charges a one-time $25 fee• Only self signing of apps required – very quick release time• Mobile Search interface is slick, superior to OVI and Blackberry

• Self-signing also attracts rubbish to the store• Immediate “go live” means immediate “go live”• Small customer base but could grow aggressively (good)

• New terms and conditions challenge• Little or no moderation of users comments


RIM AppWorldRIM AppWorld

• Launched April 2009• 3K applications available

• $200 for 10 app submissions• Allows paid for applications, with a

royalty to RIM *plus ongoing fee


• Big flexibility in deciding who can download apps• Blackberry takes 20% of paid apps *caveat see UGLY• Easier than Apple store to find less well-known apps

• The most expensive store• Inflexible for paid apps• Store only available in a few countries

• 20% of all ongoing revenues for life of customer, including apps that are downloaded free

• Signing has taken up to a month for some


Nokia Ovi StoreNokia Ovi Store

• Launched May 2009• 3.2K applications available

• Free for app submissions• Allows paid for applications, with a

30% royalty to Nokia


• Free application submission• Most sophisticated app store

• Search is poor• Store is slow to respond and feels awkward to navigate and

explore• Poor billing system

• Application has to be tested twice, once by Symbian, once by Nokia QA

• Users need an Ovi account, or visit to web URL


PalmPrePalmPre

• Launched June 2009• 300 applications available

• No paid apps yet• 750K devices in market• 2.2 million downloads since June


• Free submission of applications• Simple to develop applications, quick

• Applications limited to web technologies• No option to sell apps – yet• No multi-country multi-language support

• Too early to say


““Free or not to be free?”Free or not to be free?”• Depends on your model?

• Service oriented with payments for ongoing service – then free makes for a low barrier to entry

• Free vs. premium – with additional features and services … if your app is liked – customers may pay for more developed features


Free?Free?

• Free can hook in customers• Up-sell tool to convert users to full paid app• Reversed declining sales trend

• Source: www.flurry.com/blog

• Free as a sales tool


Free?Free?

• What should you charge?

• Many apps opt for 99 cents

• One high price vs pick ‘n mix at low price point

• Most popular paid apps still games

• No right answer, be prepared to experiment

Source distimo – www.distimo.com


Free?Free?Source distimo – www.distimo.com


Free or not to be free?Free or not to be free?

• Chose to move to paid app model• Research led to $5.99 price point• Paid apps downloads strong • Nokia billing raises price to $7.99• ShoZu has compelling service,

customers comfortable paying


Pricing ConclusionsPricing Conclusions• Be prepared to experiment, no right answer across the board

• Micro payments can be more profitable than one

big up front price

• Free limited version of an app can drive high sales of paid apps


MarketingMarketing• Top-of-category listings the best possible

advertising

• Do everything to get there

• Focus efforts on Friday to Sunday, (when application downloads increase)


Cross SellingCross Selling

• Source: www.flurry.com/blog

• Oldest marketing technique still works• Cross-sell to existing customer base• Add a link within your application


33rdrd Party Cross Selling Party Cross Selling• Several 3rd parties with in app iPhone SDK’s

• PPC model

• Small banner ads, cycled

• Can have a rapid increase in application downloads


33rdrd Party in app advertising Party in app advertising

• In app adverts driving users to application downloads


• New apps usually see growth initially but not for long.

• Not marketing your app WILL result in your app going stale and lost in the mix of other applications

• Your downloads WILL jump off a cliff

• (and maybe you too!)

Do Nothing?Do Nothing?


Marketing ConclusionsMarketing Conclusions• Market wisely: use all assets at your disposal

• Pay for in-app advertising strategically

• Pricing out by big brands w/big budgets possible


Final ThoughtFinal Thought

“One of the best ways to persuade others is with your ears – by listening to them”

Dean RuskSecretary of StateJFK Cabinet 1961


Contact InformationContact Information

Twitter: thewelsh1Skype: thewelsh1Email: [email protected]

v1.0 © scn ltd. 2009. all rights reserved - confidential mobile application stores a developers...

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