mobile apps / index /                                 p.02

                 INDEX /
                 MOBILE APPS

mobile apps / introduction /                                                                                              ...
mobile apps / introduction /                                                                                              ...
mobile apps / branded apps / case studies                                                           p.15

mobile apps / branded apps / case studies                                                                                 ...
mobile apps / apps stores /                                                                                               ...
mobile apps / credits /                                                                                                   ...
Mobile Apps 09 Extracts - Contagious Magazine
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Mobile Apps 09 Extracts - Contagious Magazine


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

Published in: Business, Technology

Mobile Apps 09 Extracts - Contagious Magazine

  1. 1. mobile apps / index / p.02 INDEX / MOBILE APPS CHAPTERS 01 / pages 3-4 06 / pages 26-30 01 / INTRODUCTION APP STORES INTRO 02 / 02 / pages 5-6 07 / pages 31-34 TIPS 1 TIPS FOR BRANDS / PART 1 LANDSCAPE / DEVICES 03 / by John Cecil-Wright TIPS 2 08 / pages 35-36 04 / CONSUMERS LOOKING AHEAD 03 / pages 7-9 05 / TIPS FOR BRANDS / PART 2 CASE STUDIES 09 / pages 37-38 by Alexander Fairfax 06 / NUMBER CRUNCHING APP STORES 04 / pages 10-14 07 / 10 / pages 39-40 LANDSCAPE / CONSUMERS DEVICES REFERENCES & LINKS 08 / FUTURE 05 / pages 15-25 BRANDED APPS / CASE STUDIES 11 / page 42 09 / STATS CREDITS 10 / REFERENCES 11 / CREDITS
  2. 2. mobile apps / introduction / p.03 01 / pages 03 - 04 INTRODUCTION Over the past 10 years, the mobile phone So – how to engage, without spamming? How to CHAPTERS sustain interaction without constant redevelopment? has become the one gadget that nobody, 01 / How to apply the creativity for which the advertising from media mogul to suburban school kid, INTRO industry is so well known to location-based technolo- can do without: the undisputed winner of the 02 / gies and teeny tiny screens? TIPS 1 ‘battle of the bulge’, the race for the space in your pocket. As trend researcher Sean Pillot 03 / Step forward the humble application, or app for TIPS 2 short. Opt-in, flexible, and considerably better looking de Chenecy once remarked, ‘No-one’s ever than your average SMS, applications can fulfil all the 04 / going to commit suicide because they left CONSUMERS requirements of a successful and engaging branded home without their iPod.’ utility, carrying with them a disproportionate emotional 05 / CASE STUDIES clout. They can be useful. They can be relevant. They can be entertaining. The best ones are all three. The 06 / To date and to their credit, marketers have shown other unexpected benefit of a branded app on a mo- APP STORES an almost preternatural reticence to get stuck in to bile 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 DEVICES dium is only just staggering to its feet after a series graveyard’ due to the low rates of uptake amongst of sucker punches dealt by spam marketers. This in 08 / user communities. This has been attributed to several FUTURE addition to the fact that the advertising industry’s col- factors, not least the way in which social networking lective ego has been bolstered over the years by the 09 / apps tend to be best experienced when tied to one’s STATS production of cinematic films for TV, artistically craft- desktop computer, and a degree of embarrassment ed print ads for glossy magazines, and latterly, flash- 10 / from consumers in associating themselves so publicly heavy microsites designed to enthral and bedazzle. REFERENCES with 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, they’re per- phone’s small screen size, restrictive price plans and CREDITS sonal – meaning that a useful branded app concealed a preponderance of entry level handsets designed at discreetly in the privacy of one’s pocket could prove most for SMS marketing have taken a while to engage more appealing. our attention. Following the debut of Apple’s iPhone, with its revo- However, with 4.1bn handsets now in circulation lutionary 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 device ing to leapfrog the desktop stage of technological swiftly claimed Apple a 11% share of the global smart- evolution and head straight for the mobile web, the phone market, dominated by Nokia at 40%. However, potential for targeted, practical brand communica- the iPhone’s creative, social and technological potential Illustration: Chellie Carroll / tions via the cellular device seems assured.
  3. 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 compatible company not normally known for encouraging post- handsets to rival the iPhone’s sleek design. However, launch tinkering from their rabid and willing fan base, the steady introduction of Android-friendly models, a broke 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 • There are an estimated 30 million which all iPhone compatible apps could be down- up of Android phones over the costlier iPhone in Asia, 01 / combined iPhone and iPod touch loaded. The explosion of user-generated content fa- and a backer with a track-record in the establishment INTRO users around the world cilitated by the internet was no longer confined to the of successful online hubs could make this a surefire 02 / winner. Meanwhile, Nokia’s Ovi – a content-sharing production of ‘content’ such as video and music. The TIPS 1 • The Apple App Store had more App Store had expanded Apple’s development team service linking phones and the internet – is indicative than 35,000 applications at the end 03 / to include everyone with an interest in technology and of a larger move towards convergent services for the TIPS 2 of April 2009 an 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 • iPhone owners download an CONSUMERS is proving lucrative for independent developers and first quarter of 2009). average number of 37 apps in total Apple alike, with iPhone apps only available through 05 / to their devices, while G1 owners CASE STUDIES In this Contagious Special Report, we’ll be looking iTunes. The man behind the iShoot game is reputed download an average of 40 at how the mechanisms work. Who’s taken the plunge. to have netted $600,000 in the first month of avail- 06 / Who’s succeeded, and who has failed. What benefits • Apple posted second quarter 2009 APP STORES ability. As for Apple: with one billion downloads, of there are for brands in engaging with this emerging profits of $1.21bn and $8.16bn in which 30% are estimated to be paid-for at an average 07 / space, and how to build an app worthy of consumer sales price of 99 cents each – we’re talking revenues of DEVICES attention. We’ll provide an overview of the consumer some $297m through the App Store, 30% of which is 08 / • Nokia has 41% share of the smart - landscape and mobile usage before exploring some of retained by Apple. And that’s not including the listing FUTURE phone market the case studies we like best. We’ll look at the meteoric fee charged to developers. 09 / rise of Apple’s App Store and its foremost position in • The iPhone generates 33% of all STATS An oft-quoted statistic of unknown provenance yet this retail space, as well as the devices that are leading smartphone traffic worldwide 10 / extreme credibility states that ‘98% of creative direc- the way. We’ll also take a longer-term view on where REFERENCES • 3G subscriptions rose 300% in the tors have an iPhone. 1% of actual people have one’. apps are headed – from m-commerce and augmented 11 / US in 2008 As with any new marketing medium, there are contro- reality to their potential to improve our health. CREDITS versies. At a time in which economic adversity sees • Mobile internet penetration is at The rise of the application represents a land grab advertisers less willing to take risks, especially when 17% 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 France Once we have an app for bar-hopping, recipe shop- charted territories such as mobile applications are still ping, or blood pressure monitoring, it’s going to take somewhat hazy. Is the target audience large enough • India and China add an average of an awful lot to have us switch. And if the internet has to justify the technological investment? 10m and 8m mobile subscribers proven that ‘pull marketing’ can engage and stimulate per month, respectively Thankfully, 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. Google’s Android Market has sonal relationships between brands and consumers.
  4. 4. mobile apps / branded apps / case studies p.15 05 / pages 15-25 BRANDED 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 1 apps offer an opportunity to build an ongoing dialogue with your customers and can potentially increase loyalty. 03 / TIPS 2 04 / CONSUMERS But 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 stand out? Getting a top ranking in Apple’s 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. DEVICES 08 / The key is to add value to your audience by providing a relevant FUTURE and targeted service or piece of entertainment that, ideally, creates 09 / a viral effect. It’s about leveraging your content (and brand) to en- STATS hance your customers’ lives – whether through functionality or fun. 10 / REFERENCES In this section we take a look at some of the brands that we think have been doing it well. We’ve divided the case studies into those 11 / CREDITS that are service-based, and those that have more of a social remit. In this respect, we see in apps the convergence of marketing and product development; marketing and entertainment; marketing and information. And the brands that are getting it right are those that are embracing these new roles. Service-based apps / Kraft / iFood Assistant The world’s third-largest food and beverage company, Kraft entered Kraft / iFood Assistant the application fray towards the end of 2008 with the iFood Assis-
  5. 5. mobile apps / branded apps / case studies p.16 tant. The app quickly went to #2 in the Lifestyle cate- There’s a similar app available for Betty Crocker. gory of the iPhone app store - impressive considering A mobile version of the world-famous Betty Crocker there is a one-off 99-cent charge for downloading it - Cookbook, this iPhone app – which is free to down- and in April 2009 remains in the top 100 paid applica- load – provides 4,000 recipes. As well as searching tions. What’s more, it also features advertising which for specific dishes, you can type in ingredients of left- CHAPTERS users are clearly happy to sit through in exchange for overs in the fridge, and the app will return recipes to 01 / the service which it provides. match. You can also tag favourite recipes and email INTRO them direct to friends via your phone’s email function. 02 / The iFood Assistant furnishes consumers with tips, TIPS 1 GoodGuide / recipes and consequent shopping lists (obviously 03 / including Kraft products), aiming to make cooking Launched in September 2008, the idea behind inde- TIPS 2 Betty Crocker / quicker for those with less time on their hands, be it pendent ‘for benefit’ start-up GoodGuide’s website is busy mums or professionals with hectic lifestyles. The 04 / simple; an online database of products that are rated CONSUMERS 7,000 recipes are broken down into various catego- on the basis of how healthy, environmentally friendly ries including meal time, ingredients and preparation 05 / and ethical they are. CASE STUDIES time - there are even step-by-step instructional videos covering techniques from chopping to seasoning. As well as the comprehensive web-based database, 06 / APP STORES GoodGuide extended the reach of the service by cre- In order to access these recipes, users must first ating a free iPhone/iPod Touch app that consumers 07 / log in, meaning that at any given time Kraft can see can use while out shopping. DEVICES how many people are going after what content - a 08 / useful tool for gathering targeted information. The app lets you search and view information and FUTURE ratings for over 70,000 products, check the facts on 09 / This is a real masterclass in branded utility from the product as well as its manufacturer, and browse STATS Kraft - proving that if you make something useful top rated products by category. Users can also cre- 10 / enough, consumers will be happy to not only be mar- ate, access and share shopping lists either online or REFERENCES keted to, but what’s more, pay for the privilege AND on the go. exchange personal information. Of course, there is the 11 / CREDITS chance that users may embark on the recipes using With household budgets being squeezed by the non-Kraft products. However by covering every detail economic slowdown, consumers are making more from shopping lists to store locators, even specifying considered decisions about what they buy; price, which aisle to buy the ingredients from, it literally be- while a factor, is not the only criterion by which these comes more effort not to tow the line and buy Kraft. choices are made. GoodGuide provides vital reassur- While Kraft won’t reveal financials or total number of ance to shoppers who simply want the facts about downloads, the estimated revenues for the iFood As- what they are buying and this app is a neat piece of sistant are in the seven figures. utility for those wanting to make the right choices GoodGuide / while out and about.
  6. 6. mobile apps / apps stores / p.26 06 / pages 26-30 APP STORES Apple All-Time Top 20 Apps / Downloads from the App Store on Apple’s iTunes site CHAPTERS reached a billion in April 2009, and the impact on Ap- All-Time Top Paid Apps All-Time Top Free Apps 01 / ple’s revenues has been significant: app downloads INTRO Crash Bandicoot Nitro Facebook along with strong iPhone sales contributed to the com- 02 / Moto Chaser iPint TIPS 1 pany’s $8bn revenues posted for its fiscal second quar- Virtual Pool Google Earth ter 2009, up almost 9% on the same quarter last year. 03 / TIPS 2 Cro-Mag Rally PAC-MAN Lite Flick Fishing Touch Hockey: FS5 04 / CONSUMERS At the same time, competition is heating up in the app store space Koi Pond Labyrinth Lite Edition as challenger brands aim to eat into Apple’s leading market posi- 05 / MONOPOLY Here & Now Lightsaber Unleashed CASE STUDIES tion. Notable launches into the consumer retail scene in the first half Super Monkey Ball Tap Tap Revenge of 2009 include BlackBerry (BlackBerry App World), Google (An- 06 / droid Marketplace), Samsung (Mobile Applications store), Nokia APP STORES PocketGuitar Flashlight (Ovi app store) and Microsoft (Windows Marketplace). iCopter Shazam 07 / DEVICES Pocket God Backgrounds ‘Without a doubt other app stores can succeed,’ Alex Meisl, ceo 08 / London Tube iBowl of Sponge, told Mobile Entertainment in April 2009. ‘We shouldn’t FUTURE forget that while Apple has made great strides, its market share is Bejeweled 2 Crazy Penguin Catapult 09 / still pretty low. What Apple has done is raise the profile of handset Texas Hold’em Remote STATS apps by making the process seamless and intuitive. It can only en- Real Football 2009 BubbleWrap 10 / courage the others to work on their interfaces.’ REFERENCES Blocked Audi A4 Driving Challenge While it’s possible for these competitors to be successful with 11 / Fieldrunners Darts CREDITS their retail offerings it’s important to keep in mind Apple’s unique TETRIS eBay Mobile advantages: its premium brand; a single device; and a mature con- iShoot tent distribution platform through iTunes. Apple has also benefited iFart Mobile Movies from fixed-price data plans that encourage increased use of the mobile internet. The competitive retail landscape is also likely to create confusion for new consumers who may be unable to buy Source: Apple, iTunes, April 2009 from outlets that their devices don’t support. Advertisers wishing to distribute their apps should assume that Apple will have the largest audience reach for the foreseeable 12 months.
  7. 7. mobile apps / credits / p.42 CONTAGIOUS SPECIAL 11 / pages 42 CREDITS REPORTS / CHAPTERS This report is part of an ongoing series of Special Published by Contagious Communications Contagious Communications Reports produced by Contagious. 45 Foubert’s Place 01 / Editorial Director INTRO London, W1F 7QH, UK The series also includes reports on Branded Paul Kemp-Robertson T: +44 (0) 20 7575 1981 02 / Entertainment, Mobile Marketing, Goodvertising TIPS 1 and Branded Utility. Editorial Consultant 03 / Published in partnership with Noah Koff TIPS 2 For more information, call Xtreme Information +44 (0) 20 7575 1886/1882 04 / Series Editor T: +44 (0) 20 7575 1800 or vist CONSUMERS Georgia Malden 05 / CASE STUDIES Edited by Xtreme Information is the market leader in the 06 / Lucy Aitken, Georgia Malden provision of media Intelligence and competitive APP STORES advertising monitoring from around the world. 07 / Contributors Xtreme works with the majority of FTSE 100 DEVICES John Cecil-Wright, Icom / and Fortune 500 multinational companies, and Alexander Fairfax, Jeanie Media / with every major advertising and media agency. 08 / FUTURE Branded Entertainment / The company is backed by leading US media investors, Veronis Suhler Stevenson. 09 / STATS Illustrations By Am I Collective / 10 / REFERENCES Chellie Carroll / No parts of this publication may be reproduced, copied 11 / or transmitted in any form or by any means stored in any Design information storage or retrieval system without the pub- CREDITS lisher’s written permission. Where source material has FLOK Berlin / been reproduced the copy-right remains the property of the Goodvertising / copyright owner and material may not be reproduced in any form whatsoever without the owner’s prior consent. Production Smita Mistry, Ellie Kilburn, Dean Dorat Published April 2009 Branded Utility /
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