your iphone application? #appstudy · january 2010 • marketing your iphone application #appstudy...
TRANSCRIPT
How to successfully market
your iPhone Application?
#appstudyParis, January 2010
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2January 2010 • Marketing your iPhone application #appstudy •
Introduction
This study originated from observations made on the lifecycle of “RATP Lite”
and “RATP Premium”, two applications we designed to provide Parisians with
public transportation official information
We decided to go further in the analysis by running mathematical programs
Today we make a step further by sharing the results with you through this
creative commons presentation
We hope your challenge and contributions to the study will favor the
emergence of best practices for iPhone apps marketing
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3January 2010 • Marketing your iPhone application #appstudy •
1 - Presentation of the App Store
2 - Case study: RATP apps
3 - The App Store 4Ps
4 - Conclusion
Summary
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4January 2010 • Marketing your iPhone application #appstudy •
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5January 2010 • Marketing your iPhone application #appstudy •
App Store: applications entrypoint
App Store is the unique marketplace
to get iPhone and iPod Touch applications
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6January 2010 • Marketing your iPhone application #appstudy •
App Store: Figures
Apple has locked a huge market
34 millioniPhone
24 millioniPod Touch 58 million
App Store users
3 billion applications have been downloaded
Each user spends an average 4,37$ a month on apps*
Generating over $250 million in revenue per month
*Source: GigaOM.com
http://gigaom.com/2010/01/12/the-apple-app-store-economy
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7January 2010 • Marketing your iPhone application #appstudy •
Browsing the App Store (desktop)
3 Rankings
“Staff
favourites”
Search bar
Banners
Paid apps
Free apps
Grossing apps
Apple
editorial
content
“New and
noteworthy”
“What’s hot”
Categories
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8January 2010 • Marketing your iPhone application #appstudy •
Browsing the App Store (mobile)
Apple editorial
content
Category
browsingRankings
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9January 2010 • Marketing your iPhone application #appstudy •
The big challenge!
There is no opportunity for advertising within the App Store
Getting the right marketing mix is more important than ever
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10January 2010 • Marketing your iPhone application #appstudy •
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11January 2010 • Marketing your iPhone application #appstudy •
Case study: RATP apps
• Live on May 13th 2009
• Free
• Ad-funded
• 350 000 downloads
• 126 000 active users
RATP Lite
• Live on May 3rd 2009
• Paid: 1,59€ then 0,79€
• 105 000 downloads
• 80 000 active users
RATP Premium
faberNovel designed two applications for RATP users:
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12January 2010 • Marketing your iPhone application #appstudy •
Case study: sales and downloads evolution
Downloads Lite
Downloads Premium
Price cut V 2.0
Downloads
Time
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13January 2010 • Marketing your iPhone application #appstudy •
Case study: pricing evolution on RATP Premium
The initial pricing was 2,99 € according to the business
plan, but that never happened
We realized that it was too high compared to the market.
We set a premium price of 1,59 €, capitalizing on the
RATP brand
That wasn’t enough to win significant market share, so we
shifted to a volume strategy with a 0,79€ price
0 day!!!
2 months
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14January 2010 • Marketing your iPhone application #appstudy •
Case study: week-end sales peak
Sales peak during the weekend (+20% on Sunday)
It might be even bigger for games….
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Sales breakdown by weekday
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15January 2010 • Marketing your iPhone application #appstudy •
Case study: sales vs advertising
Advertising revenues from the Lite version brings recurrent
revenues to compensate sales relative stability in Premium
45% 37%
55%
63%
May June July August September October November December
Monthly Profits
Advertising Lite
Sales Premium
First ad campaign
Sales Premium
Advertising Lite
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16January 2010 • Marketing your iPhone application #appstudy •
Case study: RATP apps
Those results encouraged us to go further in the analysis
… to identify the the App Store 4Ps
0
With 8 months of data…
… we ran statistical analysis…
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17January 2010 • Marketing your iPhone application #appstudy •
PRODUCT PROMOTION
PRICE PLACE
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18January 2010 • Marketing your iPhone application #appstudy •
Product: great upsell opportunity
80% 50% of users try Lite before buying
Premium
A good free version is crucial to push users towards the paid one
…especially if the price is high
of users try Lite before buying
Premium
We monitored the percentage of RATP Premium owners that downloaded
RATP Lite first
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19January 2010 • Marketing your iPhone application #appstudy •
Product: 4 reasons for a differentiated
product line
Upsell opportunity
Brand visibility
Clearer product definition
Better segmentation
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20January 2010 • Marketing your iPhone application #appstudy •
Price: a price-sensitive market
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3
1,59€ 0,79€
Sales
A 50% price cut led to 3x more sales
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21January 2010 • Marketing your iPhone application #appstudy •
We booked 500 000 impressions* on a major website…
…generating 4 sales!!!
Promotion: web campaign ROI was not so great
With an average CPM** of 6€ in France
That’s 750€ of advertising for one client
… to make a 2€ revenue!
*Impression = display of an advertising banner
**CPM = cost of 1000 impressions
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22January 2010 • Marketing your iPhone application #appstudy •
Promotion: cross-marketing increases
click-through rate
Cross-application advertising seems a better solution
0,07%* 0,59%*
* Source: appfigures for RATP Lite
Web advertising Cross-application
advertising
8Click-through rate
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23January 2010 • Marketing your iPhone application #appstudy •
Place: availability on the device is key
When we launched RATP Premium, it was way too big (27Mo)
An app has to be lighter than 10Mo to be available in 3G (on the iPhone)
SALES x3,5
RATP Premium available in 3G, on the iPhone biggest sales peak ever
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24January 2010 • Marketing your iPhone application #appstudy •
Place: the App Store ranking algorithm
Ranking is based on sales of the previous
week
Macro observations led to 2 likely hypothesis*:
The formula is a 7 days weighted
average
We ran a program to identify the best combination of weighted coefficients…
… and here is what we found
* See http://tii.libsyn.com/index.php?post_id=522655 for precisions
1
2
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25January 2010 • Marketing your iPhone application #appstudy •
Place: the App Store ranking algorithm
The ranking only takes account the last 4 days of sales
Sales of the current day are determinant
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26January 2010 • Marketing your iPhone application #appstudy •
Key learning: advertising campaign timing
Focused campaign on
4 consecutive days
WIN FAIL
Advertising on a specific day
and repeating over the weeks
Self-perpetuating good position
in the rankingsAdvertising effort will be diluted
Ranking will not be maintained
Good ranking
Highersales
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27January 2010 • Marketing your iPhone application #appstudy •
One more thing… in progress
0 10 20 30 40 50 60 700
50
100
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200
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Nom
bre
de v
ente
jour étudié
We can forecast future sales based on previous sales with a precision of 10%
Real Sales
Our forecast
Time
Sale
s
This algorithm is based
on an ARMA model :
Autoregressive Moving
Average Model
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28January 2010 • Marketing your iPhone application #appstudy •
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29January 2010 • Marketing your iPhone application #appstudy •
• These results are based exclusively on our Apps study
• The algorithm can’t be proved, as the rankings are relative to other applications
sales
• To extend the reach of this presentation, we will wait your contribution:
What’s your take on this?
Try the algorithm on your application
Challenge our case study
Bring constructive feedback on iPhone Apps marketing
On twitter: #appstudy
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30January 2010 • Marketing your iPhone application #appstudy •
17, rue du faubourg du Temple 75010 Paris
Tél. : +33 1 42 72 20 04
Fax. : +33 1 42 72 20 03
www.fabernovel.com
Study written by:
Marie-Caroline Lanfranchi @mariecaroline
Baptiste Benezet @Ba_B
Romain Perrier @RomPerrier
Acknowledgements:
Yves, Martin, Clément L., Virginie, Patrick, Estelle, Pierre-Yves,
Cyril, Matthieu, Sabrina, Stéphane, Ouriel and La Cantine
Contacts
Project - Baptiste Benezet
Press - Sabrina Distinguin
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31January 2010 • Marketing your iPhone application #appstudy •
http://getap.ps/RATPpremium/appstudy
http://getap.ps/RATPlite/appstudy
Our Apps are available
on the iPhone App Store