App Developer Characteristics450,000-500,000 jobs created
in US since 20072012 GigaOM Survey with App Developers Alliance (cottage industry)• 2/3 1-3 person firm• 60% developing paid mobile apps, 25% developing ad-supported apps• 40% part-time• 60% under 4 years experience• US– Some post-grad work or degree – 29%– Average salary $56,000• W. Europe– Some post-grad work or degree – 41%– Average salary $35,000• Asia--Pacific– Some post-grad work or degree – 42%– Average salary $42,000
Platform Basics• Platforms: APIs and
services• Must be win-win-win: originator, aftermarket, user• Network effects:– Increase with participation– Lock-in– Winner-take all markets• Key tactics:– Supply lower-cost technology– Create habitual usage– Drive customer acquisition– Enable service syndication
Source: GigaOM Pro U.S. consumer
survey, 3/12 N = 1,1653%3%13%14%18%19%21%22%34%40%46%6%6%26%29%38%39%43%44%69%61%69%0% 20% 40% 60% 80%Cashed in a digital couponMade a paymentPosted photos to the webPosted to a social networkDownloaded an appBrowsed the webViewed a social networkPlayed a gameE-mailTook photosSMSRegular Activities on US PhonesSmartphone OwnersAll Phones% of online adults with mobile phonesQuestion asks: Which of the following activities did you domonthly or more frequently on a mobile phone? (Select allthat apply)Smartphones Changed US Mobile Usage
Source: GigaOM Pro U.S. consumer
survey, 3/12 N = 7124%6%7%9%12%13%14%14%17%24%46%79%0% 20% 40% 60% 80% 100%Look for datesSeek or offer job opportunitiesShopListen to musicShare news storiesLocal event informationProfessional communicationsFind out about entertainmentRead news storiesPlay gamesView or post photosCommunicate with friendsRegular Activities on US Social Networks% of online adults using social networksQuestion asks: For what purposes do you use socialnetworking sites regularly? (Select all that apply)Communications, Photos Still Dominated Social
Bottlenecks for the Eurapp Economy•
Environmental– Platform concentration: UScompanies dominate– 3+ year lag in adoption– Fragmented markets– Conservativeinvestors, entrepreneurs• Technical– Cross-platform development– Dev tools, open source– Native language support tools– Lagging 4G– Data portability• Business and Financial– Immature ad market– No standard ad measurement“currency”– Unwillingness to pay for apps– Low-priced apps– Customer acquisition costs– Access to capital• Resources– Fewer developers– Lower salaries– Lack of business expertise attech startups
Early Feedback on Bottlenecks• Interviews
with platforms, aftermarket, developers• Consensus: app developers need more support on businessdevelopment (marketing, monetization) than techKey Business and Financial Bottlenecks:• Revenue opportunities: direct fees seem more immediatelydesirable than advertising• Marketing assistance: promotion/discovery, search advertising andother marketing• Expansion into additional national markets• Expertise and/or platforms to support localcurrencies, taxes, different carrier or platform policies, etc.
Measuring Success• Independent Software Vendors–
Revenue– Downloads; monthly users– Franchise expansion– In-app purchasing patterns– Brand lift• IT Developers– Adoptionby employees, customers, partners– Market-specific objectives(e.g., reducedcustomer service costs, increased transactions, etc.)• Cottage Industry, HobbyistDevelopers– Similar to ISVs on reduced scale– Ability to attract funding– Growth as exit path to IPO oracquisition• Sustainability– Critical mass– Path to maturity– Extended product portfolio– True hobbyists: provide forown personal income, not lastingbusiness
Takeaways and Next Steps• Platform
growth will take care of itself• Are the platforms providing the necessary ingredients for theecosystem?• Who can assist with the business and financial bottlenecks? How?• Two surveys– Independent app developers– IT app developers• Feedback for the aftermarket model and jobs profiling• Input into the crowdsourcing exercisesOn to the workshopping!