Peggy Anne Salz, Author of "The Everything Guide to Mobile Apps", MobileGroove

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Shape the Future App Economy of Europe Workshop / Brussels, Belgium / 14th June 2013

Peggy Anne Salz is the chief analyst and founder of MobileGroove. She is an authority on mobile search and content discovery technologies. She is the author of "The Everything Guide To Mobile Apps", a practical book that equips marketers, brands and developers with the business basics they need to monetise their apps and encourage ongoing engagement. Her most recent series of practical how-to white papers covers the basics of mobile advertising and mobile analytics.

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  • This is what I do
  • This is why I’m here
  • Through primary and secondary research I have identified the 3Ms that summarise the obstacles or bottlenecks that are top of mind
  • Generally speaking mobile now accounts for 46 per cent of overall VC in tech. And VC is also the 4th largest organisation making investments in mobile, after Microsoft, Intel and Samsung
  • Consumer apps top the list with a cool billion and enterprise apps was only $176 million – enterprise infrastructure was an additional 653 million. Significantly, while we’re talking about where the money is – enterprise is a space where there is opportunity that we should discuss during this workshop – a few data points to consider.
  • This is where the investment was.
  • The race is on as organizations harness the power of mobile apps to increase efficiency, control costs, and improve customer service. In fact, roughly 4 in 5 large companies would like to purchase mobile apps for an increasing variety of business use cases, according to a recent survey of company executives conducted and published by Partnerpedia, a mobile app development services company. Among the findings:  90.2 percent intend to buy apps for use by their employees43.9 percent want apps for their customers22 percent are buying apps for contractors The 2012 Enterprise Mobile Application Survey confirms this trend, identifying a shift in the types of applications organizations plan to mobilize. Instead of focusing on enabling activities such as e-mail (no doubt approaching saturation at this point), companies are sharpening their focus on apps that encourage customer interaction and improve customer loyalty (as evidenced by the rise of Business Intelligence and CRM to first and second place respectively on the list of top 10 internal applications to be mobilized in 2012).
  • Marketing and promotion are table stakes if you want to turn your app business into a profitable business.
  • The Developer Economics 2012 survey – which analysed the average revenues per app generated by the 1,5000+ developers who took part in a survey conducted by BlueVia and Vision Mobile – found that developers everywhere on the planet struggle with marketing and promotion. The report identified two chief challenges: Reaching and connecting with the right customers — a huge issue since app stores don‘t share customer data with developers to help them understand and target their audience.  Keeping existing customers engaged and interacting with the app over time — a must since acquiring new customers is always more expensive than retaining existing ones.
  • survey found that only 22 percent of developers who have made the unwise choice not to promote their app actually break-even. That's compared to 60 percent of developers who have harnessed marketing to reach and engage their target audience.  What's at stake here if you don't bake marketing into your business DNA? Well, in a word: everything.  The Developer Economics 2012 survey reveals that one in three developers lives below the so-called app poverty line (!) and therefore cannot rely on apps as a solesource of income.  To date the average per-app revenue is in the range of $1,200-$3,900 per month, depending on platform. On the other side of the equation, 14 percent of developers will make somewhere between $500 and $1,000 per app, while 13 percent will generate between $1,001 and $5,000 per app per month.    
  • Evolution of models – the long tail developers gravitate to ad networks, but the market has moved on and options have grown – education here is needed.
  • We find it remarkable that only 24% of developers in our sample plan their apps based on discussions with users, a figure which does not change with development experience or proficiency. This indicates that the bottleneck of the build-measure-learn cycle of lean development is the “measuring”, or listening in to user needs. This highlights the need for a frictionless 2-way feedback channel between developers and users,
  • Studies show that half of mobile users abandon a page if it doesn’t load in 10 seconds, and three out of five won’t return to the site. Amazon recently calculated that a page load slowdown of just one second could cost it $1.6 billion in sales each year. The impact of poor application performance on both user productivity and customer experience is indisputable.  Given the critical role mobile apps now to play in delivering a good customer experience as well as supporting essential business processes, organizations cannot afford to 'run blind'. However, reports show most organizations possess alarmingly little insight into mobile application performance.  
  • With mobile apps becoming increasingly vital to a business’ overall performance, it is important to manage and improve—not just measure—application performance. Thus the focus of purpose of Mobile Application Performance Management centers on helping you detect, prioritize, isolate, diagnose, repair, and prevent problems before users or your business are impacted. The aim is to improve the customer experience, boost loyalty and increase enterprise efficiency.
  • As this quote speaks volume and I would like to leave you with this as we discuss the size and potential of the App Economy and the obstacles that may be preventing this economy to grow and flourish
  • Peggy Anne Salz, Author of "The Everything Guide to Mobile Apps", MobileGroove

    1. 1. Unleashing AppPotential:Mobile Apps & The 3Ms
    2. 2. MobileGroove produces and promotes customresearch, strategic thought leadership andknowledge resources for the global mobile industry.
    3. 3. The Everything Guide to Mobile AppsA practical, crowd-sourced bookproviding businesses and developersinsights on how to make, monetize andmarket mobile apps. The popular printbook was recently released as an Ebook,cementing its position as a leadingresource for the App Economy.
    4. 4. The 3 M’s• Money• Marketing• Maintenance
    5. 5. Money
    6. 6. VC Investments Bounce BackSource: Rutberg & Company
    7. 7. An astounding $1 billion was invested inconsumer appsSource: Rutberg & Company
    8. 8. Source: Rutberg & CompanyTop Investments in Mobile
    9. 9. Shifting Top 10 Mobile App LandscapeTop Ten Internal ApplicationsThrough 2011• Email, Calendar, Contacts• Mobile-optimized IntranetAccess• Field Service(Dispatch, WorkOrders, etc.)• CRM• Business Intelligence• Custom Sales Tools• Custom Internal WorkforceApps• Video Conferencing• Travel & Expense• Field Service, LocationBased ServicesTop Ten Internal Applications MostLikely to be Mobilized in 2012• Business Intelligence• CRM• Custom Internal WorkforceApps• Mobile-optimized IntranetAccess• Field Service(Dispatch, WorkOrders, etc.)• Custom Sales Tools• Field Service, LocationBased Services• Travel & Expenses• Email, Calendar, Contacts• ERPSource: Mobile Enterprises
    10. 10. Marketing
    11. 11. Developers Continue to Struggle
    12. 12. Advertising: Popular, but does it pay?
    13. 13. The market and models move fast
    14. 14. Feedback is IMPERATIVE
    15. 15. Maintenance
    16. 16. A Lot Can Go Wrong…… But Where?
    17. 17. Make Way For Mobile APMSource: Crittercism
    18. 18. “The developer learning curve is farsteeper on the business side than onthe coding side, and its gettingsteeper.”George KaraviasDeveloper & CEO, AnlockSource: Developer Economics 2013
    19. 19. Thanks!Peggy Anne Salzmobilegroove.comFounder & Chief Analystpeggy@mobilegroove.comTwitter: @peggyanne & @mobilegrooveSkype: peggy.salzMobile: +49 172 245 1028

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