Economics of apps 2010.06.17

The Economics of Apps Mobile 2.0 Europe - Barcelona - 17 June 2010 Volker Hirsch (@vhirsch)

Mobile Apps... ... can be a bit of a nightmare http://fraizochocolat.wordpress.com/2010/02/

You do everything right...

... on the inside... http://blogs.fayobserver.com/faytoz/files/2008/10/davinci_toothed_gears_original.jpg

... on the outside... http://picasaweb.google.com/lh/photo/f-4eoJyuiitoJIPDaqrMJQ

... and on marketing ... and of course with Carriers http://www.ruralmarketingservices.com/images/marketing_road_sign.jpg

Something is still missing... http://www.latest-wallpaper.info/free-money-wallpaper.htm

The Discovery Dilemma http://www.lanfaxlabs.com.au/images/all-detergents-3-IMGP3918.JPG

THe $ Dilemma (carrier model) after overheads after production after porting & QA after License after distributor after carrier after VAT total revenue

THe $ Dilemma (carrier model) 2

THe $ Dilemma (app store model)

The Mobile Web then?

http://gapingvoidgallery.com

And again: loads of them...

What is Social?

Social refers to the interaction of organisms with other organisms and to their collective co- existence [...] Source: Wikipedia

http://commons.wikimedia.org/wiki/File:Bhgs_crowd.jpg

And so what ???

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

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

You need Context! http://flickr.com/photos/nolifebeforecoffee/124659356/

My app a Social Object? http://adsoftheworld.com/media/print/lego_video_game?size=_original

It always was!

Object Let’s recap: Social is interaction in context http://upload.wikimedia.org/wikipedia/commons/e/e0/Petanque_players_in_Cannes_(France)_2003.jpg

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

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.

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).

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

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

Discover Increased installed base from more people downloading the games

Engage Increased activity in your app: people use it more often

Monetise Increased revenues from additional revenue streams

One last thing: 123,296,966,069,453 The Law of Big Numbers

Connect to any social network * * * * ** * Already integrated ** Scoreloop is the official partner for mobile gaming

don’t forget the “other” smartphones! And maybe the other folks are noteworthy, too...

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.

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

Thank you! +44 7843 599 678 @vhirsch volker@scoreloop.com http://vhirsch.com/blog http://scoreloop.com

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Economics of apps 2010.06.17

by Volker Hirsch on Jun 17, 2010

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Economics of apps 2010.06.17 — Presentation Transcript