Economics of apps 2010.06.17

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The slides of my talk on "The Economics of Apps" at Mobile 2.0 Europe (17 June 2010 in Barcelona).

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Economics of apps 2010.06.17

  1. The Economics of Apps Mobile 2.0 Europe - Barcelona - 17 June 2010 Volker Hirsch (@vhirsch)
  2. Mobile Apps... ... can be a bit of a nightmare http://fraizochocolat.wordpress.com/2010/02/
  3. You do everything right...
  4. ... on the inside... http://blogs.fayobserver.com/faytoz/files/2008/10/davinci_toothed_gears_original.jpg
  5. ... on the outside... http://picasaweb.google.com/lh/photo/f-4eoJyuiitoJIPDaqrMJQ
  6. ... and on marketing ... and of course with Carriers http://www.ruralmarketingservices.com/images/marketing_road_sign.jpg
  7. Something is still missing... http://www.latest-wallpaper.info/free-money-wallpaper.htm
  8. The Discovery Dilemma http://www.lanfaxlabs.com.au/images/all-detergents-3-IMGP3918.JPG
  9. THe $ Dilemma (carrier model) after overheads after production after porting & QA after License after distributor after carrier after VAT total revenue
  10. THe $ Dilemma (carrier model) 2
  11. THe $ Dilemma (app store model)
  12. THe $ Dilemma (app store model)
  13. The Mobile Web then?
  14. http://gapingvoidgallery.com
  15. And again: loads of them...
  16. What is Social?
  17. Social refers to the interaction of organisms with other organisms and to their collective co- existence [...] Source: Wikipedia
  18. http://commons.wikimedia.org/wiki/File:Bhgs_crowd.jpg
  19. And so what ???
  20. 475,000,000 circulation of newspapers 825,000,000 registered cars 1,700,000,000 Internet users (PC, Mobile, Web Cafe) 1,800,000,000 unique credit card holders 2,250,000,000 tooth brushes in use 4,000,000,000 FM Radios 4,600,000,000 mobile phone subscriptions http://upload.wikimedia.org/wikipedia/commons/8/85/Numbers_grid_in_NY.jpg various sources
  21. Concept: Object-Centered Sociality Prof Dr Karin Knorr-Cetina, Sociologist https://svn-create.freedesktop.osuosl.org/public/create/docs/logo/images/light_bulb_off3.jpg
  22. You need Context! http://flickr.com/photos/nolifebeforecoffee/124659356/
  23. My app a Social Object? http://adsoftheworld.com/media/print/lego_video_game?size=_original
  24. It always was!
  25. Object Let’s recap: Social is interaction in context http://upload.wikimedia.org/wikipedia/commons/e/e0/Petanque_players_in_Cannes_(France)_2003.jpg
  26. It’s about Engagement - People Interact by nature. - Fans can be Fanatics! - An app and the environment in which it is set matters to its fans. Apps are powerful social objects http://www.windsorfinejewelers.com/media/catalog/product/cache/1/image//t/a/tacori-platinum-round-diamond-semi-mount-engagement-ring.jpg
  27. What - Create Fanatics. - Provide avenues for people’s passion. - Incorporate people’s strongest community: their friends! - Keep it in context, i.e. in the app.
  28. How - High-Scores (Reward) but make them customizable (Relevant). - Connect to the community (Avenues of Passion). - Person-to-Person Challenges & (Playful contextual interaction). - Awards / Rewards (Fanatics). - In-app transactions & Virtual Currencies (Contextual Monetization).
  29. 74% of all buying decisions are made on a friend’s recommendation Source: Bain Consulting http://www.cartoonary.com/madagascar/images/madagascar-marty-alex-gloria-melman-penguins-julien-2048x1536.jpg
  30. Monetize Downloadable content and in-app currencies drive additional revenue streams Engage Increase revenues challenges and achievements engage users and Discover let them share their app Cross-promotions, experience. Friend Finding, and Social Network Increase user Integration let activity people connect to each other and get the word out. Increase installed base
  31. Discover Increased installed base from more people downloading the games
  32. Engage Increased activity in your app: people use it more often
  33. Monetise Increased revenues from additional revenue streams
  34. One last thing: 123,296,966,069,453 The Law of Big Numbers
  35. Connect to any social network * * * * ** * Already integrated ** Scoreloop is the official partner for mobile gaming
  36. don’t forget the “other” smartphones! And maybe the other folks are noteworthy, too...
  37. Core Social - Social Tools (High-Scores, Player-to-Player Challenges, Recommendations [using any source available], Awards & Trophies. - Full virtual currency (supports in-app purchases, item downloads, dual currency) - Multi-platform: iPhone, Android, BREW, Symbian, MeeGo, RIM, Web.
  38. Image Credits http://upload.wikimedia.org/wikipedia/commons/8/85/Numbers_grid_in_NY.jpg http://gapingvoidgallery.com http://upload.wikimedia.org/wikipedia/commons/e/e0/Petanque_players_in_Cannes_(France)_2003.jpg http://upload.wikimedia.org/wikipedia/commons/5/56/Bhgs_crowd.jpg https://svn-create.freedesktop.osuosl.org/public/create/docs/logo/images/light_bulb_off3.jpg http://www.easy-access.com/garagelo/coloring/tools.gif http://www.scorpioshoes.com/accessories-42/shoe-care-44/dr-martens-shoe-polish-black-8128.htm http://picasaweb.google.com/lh/photo/f-4eoJyuiitoJIPDaqrMJQ http://img.wallpaperstock.net:81/car-mechanics-wallpapers_11816_1024x768.jpg http://www.mixedforyou.com/fineart/Renaissance/Flying%20Machine,%20Leonardo%20da%20Vinci, %201490.jpg http://blogs.fayobserver.com/faytoz/files/2008/10/davinci_toothed_gears_original.jpg http://www.adsinn.com/wp-content/uploads/2008/01/1100109100-1.jpg http://adsoftheworld.com/files/images/video-game.jpg http://www.thealarmclock.com/euro/images/flirtomatic.png http://img.glu.com/WSOP_Mobile/images/WSOP_header_logo.png http://villageshow.co.uk/assets/images/trophy.jpg http://images.internetsafety.com/www/images-pm/safe-eyes-mobile-logo.jpg http://www.foldingbikehut.co.uk/images/Toolbox%20Travel.jpg
  39. Thank you! +44 7843 599 678 @vhirsch volker@scoreloop.com http://vhirsch.com/blog http://scoreloop.com

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