Apps 2010 Short

What’s the Hap’s on Apps?
State of the Industry Survey
Digiday: APPS, LA
12/10/09

DM2Events/ DM2Media
We want to provide real information on the cutting edge of choices that you need to make in your day jobs – what to make of the latest technologies, which is worth your time and attention, where you can find the resources to help.
In that vein, DM2PRO.com has been built as a kind of knowledge base for case studies, video from shows like this, and research studies designed to help you understand the state of the industry in which you participate.
Unlike our sister publication digiday:DAILY, it is a paid site, but at just $20/month, one way we can afford to do the work we do.
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Partnership/Methodology
Like any good “membership” organization, we rely on practitioners in the field to help us ask the right questions, which is why we turned to Lynn and Quattro.
This apps survey is both larger and more granular than the August survey.
Uses Quattro’s client lists to expand DM2PRO’s access to the developer community.
With a larger respondent set, we were able to see if there were subtle differences between developers who:
worked for advertisers & agencies
worked for publishers or developed apps as a business
developed just social apps, just mobile apps or both mobile and social apps

Methodology
We were also able to ask developers whose livelihood is based on making apps how they promoted and monetized them.
Besides developers, we reached out to essentially the same group of advertisers, agencies and publishers to look deeper into what platforms they were using for mobile and social apps:
Specifically, was Android gaining ground against the iPhone?
What ad units did they consider most effective?
Were they still as satisfied with their apps experience nearly a half year later?
How did they feel about ad nets?

Methodology
Last but not least, we asked the entire group what mobile phone they employed for personal use. (Any correlation between that and the platform for which they developed?)
While slicing these groups into more categories reduced the sample size on some questions considerably, we reached an almost equal number of developers vs. advertisers and agencies, and a higher number of publishers overall.
We had more than 605 respondents by 12/10

+600 Respondents
236
125
244
N=605
©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

ADVERTISERS AND AGENCIES
7

ADVERTISERS / AGENCY / MARKETERS
Nearly 130 Agencies replied
N=199

ADVERTISERS / AGENCY / MARKETERS
54% say NO
N=234

ADVERTISERS OR MARKETERS WHO HAVE USED APPS
Slightly more dedicated social than mobile agencies/advertisers, but considerably more do both.
N=95

ADVERTISERS OR MARKETERS WHO HAVE USED APPS
Facebook leads overall, then iPhone. Own branded community and MySpace rank higher than Android
N=95

ADVERTISERS OR AGENCIES WHO HAVE USED MOBILE APPS
iPhone: 95%
RIM 44%
Advertisers and agencies who develop mobile apps still rank RIM over Android. (Android INTENT is higher among those just planning apps)
Android 31%
15%
N=39

PUBLISHERS / ADVERTISERS / AGENCIES WHO HAVE NOT DEVELOPED MOBILE APPS, BUT PLAN TO
iPhone: 91%
Android 39%
65% plan to develop mobile apps in 2010
RIM 33%
19%
N=107

The top third of this market expects their mobile apps budget to increase by more than 75%, some by greater than 200%
N=39

Bigger market, client demand, more standardization lead as things that could push mobile apps
N=41

More than a third spend less than 5% of their current budgets on promotion.
Note that a good 15% spends more than 60%...
N=40

ADVERTISERS OR AGENCIES WHO HAVE USED MOBILE APPS: HOW DO THEY PROMOTE?
N=40

In choosing an network to help place ads in mobile apps, they care about targeting capability first, then reach.
N=30

Engagement and user feedback lead even the number of monthly active users and the impact on product sales as what makes an app effective for advertisers or agencies
N=40

WHAT CATEGORIES OF ADVERTISER IS MOST ENGAGED IN MOBILE APPS?
CPG
Retail
Automotive
Entertainment
Financial
Health/Pharma
Media
Tech
B2B
Beverage
N=40

WHAT CATEGORIES ARE LEAST ENGAGED
B2B
Health/Pharma
Media
Retail
Financial
Entertainment
Travel
CPG
Tech
Auto
N=98

PUBLISHERS / ADVERTISERS / AGENCIES WHO HAVE NOT DEVELOPED MOBILE APPS
All of the above… and 33 write-in reasons! (But many said they’re planning apps in early 2010.)
N=82

PUBLISHERS
23

PUBLISHERS
Content publishers, 88%
N=106

PUBLISHERS WHO HAVE DEVELOPED APPS
iPhone leads even Facebook among publishers who’ve developed apps
N=54

PUBLISHERS WHO DEVELOP MOBILE APPS
Majority monetize through ad sales
N=53

PUBLISHERS WHO DEVELOP MOBILE APPS
>35% of publishers – in tough times – expect their mobile REVENUES to increase by greater than 50%
N=54

DEVELOPERS
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DEVELOPERS: Mostly Mobile
74.5%
24.1%
1.4%
N=214

MOBILE or MOBILE + SOCIAL DEVELOPERS:
Overwhelmingly entrepreneurial
ENTREPRENEUR: 83.1%
N=178

DEVELOPERS: IPHONE LEADS FOR PERSONAL USE
60.9%
40.6%
15%
3.4%
N=212

DEVELOPERS DIVIDED INTO:
Those who work for agencies or advertisers
Those who work for publishers
Entrepreneurs (those who develop apps as a business)
Ad supported, sold to consumers or either
32

ADVERTISER/ AGENCY MOBILE DEV
iPhone Dominates, but Android Has Crossed the Critical 60% Mark
iPhone: 92%
Android: 61.5%
Agency employed developers focus most of their attention on iPhone; but 2/3 develop for Android. (Overlap was allowed.)
BB 38.5%
N=13

ADVERTISER/ AGENCY MOBILE DEV BUDGETS ON THE RISE
Ad/Agency apps budget on the rise; in at lease a couple of cases, substantially.
N=11

ADVERTISER/ AGENCY DEVELOPMENT BUDGETS TO RISE SHARPLY FOR MOST
While “advertiser/social” development spending has leveled off, mobile apps development is on a steep incline. With online advertising inching downward, 58% of agency mobile developers expect increases of more than 40%.
N=12

DEVELOPERS WHO SELL APPS &/OR ADS
N=147

DEVELOPERS WHO SELL APPS &/OR ADS
iPHONE: 76.4%
Android ~57%
Ad-savvy developers lean toward iPhone, but Android close behind
BB 22%
Palm 8.3%
N=72

Developers who sell apps with out without ads:
iPhone is about reach, Android has a number of things going for it – including open source – but reach isn’t the least important.
N=72

Developers who build apps for sale:
iPhone: Reach and ease of use. Android, ease of use, open source
N=25

DEVELOPERS WHO BUILD APPS FOR SALE:
Apps developers care equally about revenue and reputation / user feedback. The lower the score the higher the rating.
N=26

DEVELOPERS WHO SELL APPS/SUPPORT WITH ADS
When we turn to ad-supported apps – whether or not they’re sold – age target matters more.
N=74

DEVELOPERS WHO SELL APPS:
Developers who sell apps less focused on a particular demographic
N=26

DEVELOPERS WHO SELL APPS W/WO ADS:
Few spend more than 20% promoting their apps.
N=72

Case Study: Superpages
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OBJECTIVE
Drive downloads of the Superpages® application for local information among iPhone users
STRATEGY AND PROGRAM
Target ads to the Quattro Wireless iPhone in-app network, reaching more than 12 million unique users
Drive directly to the App Store via click-to-download banners
Optimize results in real-time with Q Elevation targeting technology and creative rotation
Track all conversions by application and by creative
RESULTS
Over 87 million ad impressions served in 7 weeks*
Resulted in more than 12,000 direct Superpages® application downloads with an average CPA lower than $2.60*
Overall conversion rate of 3%*
Quattro significantly out preformed competitive mobile ad networks in both the scale of impressions delivered, and the CPA for the campaign**
Superpages® reached a ranking of #9 in the Lifestyle category from a position outside of the Top 100 and subsequently dropped to a ranking between 80-90**
*Quattro Wireless campaign performance data
** TM Advertising
Superpages® is a registered trademark of Idearc Media LLC 2009

Case Study: Minesweeper Classic
OBJECTIVE
The overall goal of the program was to drive Minesweeper Classic back into the top rankings in the iTunes App Store, and to do so without a large or prolonged investment.
STRATEGY AND PROGRAM
Leverage the three components that affect the App Store ranking: downloads per day, user ratings and numbers of upgrades
Achieve a rapid rise in App Store ranking without a large scale investment
Full click-to-download conversion tracking with real-time data allows us to determine what works and what doesn’t in the application ecosystem for a particular app
A small portion of the total spend was allocated for the test period the with results on where conversions were taking place, the remaining allocation of the campaign’s $3500 budget was a spending burst to quickly drive downloads
RESULTS
Downloads spiked with the burst of spending and drove the application from a ranking well out of the Top 200 to a position in the Top 60 of all free applications.
45

To See the Full Research
WWW.DM2PRO.com Melinda Gipson Melinda@dm2media.com
WWW.QUATTROWIRELESS.comLynn@quattrowireless.com
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Apps 2010 Short

by newzmaven on Dec 23, 2009

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Apps 2010 Short — Presentation Transcript

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