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App Store Economics
                         The do’s and don’ts



                             Mugunth Kumar



Thursday, 11 April, 13
About me



                             •   Author of the iOS 5, iOS 6 Programming:
                                 Pushing the Limits book - Reached the top
                                 100 books in Amazon’s Computer and
                                 Technology books list

                             •   Trainer - Conducts classroom training on
                                 iOS programming at iOSTraining.sg.




Thursday, 11 April, 13
Agenda
                         •   The Mobile Eco System

                         •   Differences between Open Web and App Store

                         •   Designing

                         •   Submission

                         •   Marketing + Launching

                         •   App Rejection

                         •   Updates to App

                         •   Questions




Thursday, 11 April, 13
Target Audience



                         •   Those who sell and make money from App Store

                         •   Those who make free apps and want to get traction for
                             their complete product through the App Store




Thursday, 11 April, 13
The Mobile Eco System

                         •   Accept the fact that the mobile eco system is locked

                         •   iOS App Store is locked and so is Google Play

                             •   Though you can sell apps outside of Play (and you can’t
                                 on iOS), number of downloads is far too low.

                         •   Lamenting won’t help

                         •   Apple is the most developer UNFRIENDLY company in the
                             world, yet has attracted the most talented developers to
                             work on their platform

                         •   OTOH, Apple is the most customer friendly company




Thursday, 11 April, 13
Open web vs App Store
                         •   Open vs Locked

                         •   Web is open.

                             •   You can deploy anytime you want.

                         •   App Store is not open

                             •   You have to wait for Apple to approve.



                         •   Plan your deployment strategies accordingly

                             •   Approximate release dates
                                 (reviewtimes.shinydevelopment.com)

                             •   Slightly optimistic, but still ok.


Thursday, 11 April, 13
Deployment Strategies


                         •   Deployment strategy in a locked App Store

                             •   If your app uses a backend server

                                 •   Go live with your production server when you submit

                                 •   If your server is down or someone screws up while
                                     Apple is testing - Brrr

                                 •   Work on version 1.1 while waiting for approval




Thursday, 11 April, 13
Building the App


                         •   This is 2013. Almost 5 years after the SDK went public

                         •   Every single app you see on App Store has a customized UI

                         •   Hire a good designer/UX Expert

                             •   May or may not be full-time, but still hire one.

                             •   You can’t live without them.




Thursday, 11 April, 13
Indies



                         •   You can make an app targeting a broader audience

                         •   You can make a niche app targeting a specific audience




Thursday, 11 April, 13
Target audience for your app

                         •   When you make an app targeting a smaller group you have
                             the liberty to price it higher

                         •   Apps for kids = Broad audience (High competition)

                         •   Apps for kids with special needs = Niche audience (Low
                             competition)



                         •   Competition and price are inversely proportional. Higher
                             competition means your app ends up being a commodity




Thursday, 11 April, 13
Pricing - Sweet Spot

                         •   $0.99 - $1.99

                         •   $2.99 - $4.99




                         •   $9.99

                         •   $19.99

                         •   $49.99




Thursday, 11 April, 13
Pricing

                         •   Before lowering your price, think.

                             •   By doubling the price, will I lose half of my prospective
                                 buyers?

                             •   If the answer is “NO”, do that.

                             •   Because, by lowering your price, you will not
                                 automatically get twice the number of buyers

                             •   And you will enjoy lesser support emails




Thursday, 11 April, 13
Not making enough?


                         •   I’m selling my app and I’m not making enough money

                         •   Two things.

                             •   Your app isn’t known to many people

                             •   Your app is expensive

                             •   In most cases, it’s the former. Do your marketing.




Thursday, 11 April, 13
App Store Marketing
                         •   Getting downloads on App Store is different from getting
                             visitors to your website

                         •   Most downloads are through word of mouth

                         •   Analytics won’t help for the most part

                         •   Think again, how did you come to know about Whatsapp or
                             Instagram?

                         •   Customers are your marketers

                         •   Review sites (the big ones) can help, but not that much
                             (Think Color)

                         •   No SEO



Thursday, 11 April, 13
Launch



                         •   Launching the app

                             •   Soft launch

                             •   Hard launch




Thursday, 11 April, 13
Soft Launch



                         •   Most websites use Soft Launch

                         •   Totally won’t work for Apps

                         •   Why?




Thursday, 11 April, 13
App Store Algorithm


                         •   Favors

                             •   Apps that are recently submitted/published

                             •   Apps that are updated often

                             •   Apps with higher number of positive reviews

                         •   App enters New and Noteworthy or Featured section




Thursday, 11 April, 13
New and Noteworthy



                         •   Your app should be NEW

                         •   Your app should have a considerable number of
                             downloads




Thursday, 11 April, 13
Featured



                         •   No loophole

                         •   Apple tends to feature apps that are “New and
                             Noteworthy” and looks beautifully done

                         •   Lots of animations and good looking UI




Thursday, 11 April, 13
Featured



                         •   Apple also features apps that use a “cool hardware or
                             OS feature” during the honeymoon period.

                             •   Apps with push notifications

                             •   Apps for Passbook.




Thursday, 11 April, 13
Featured



                         •   Unlike most other App Stores, you can’t “talk” to
                             someone at Apple to get featured.

                         •   If someone (a marketer) promises to get your app
                             featured, ignore him




Thursday, 11 April, 13
App Store Front Pages




                         •   Featured section - You
                             are already successful

                         •   Chillax and sip that pina
                             colada




Thursday, 11 April, 13
App Store Front Pages



                         •   New and note worthy section

                             •   Very important for startups (Free apps)

                             •   Usually apps stay here for 30-50+ days

                             •   Improves your “Word of mouth” marketing




Thursday, 11 April, 13
Hard Launch


                         •   Apps should always use Hard Launch

                         •   Easier to get into “New and Noteworthy” section

                         •   Easier to get into “Top 10” Free/Paid apps section



                             •   All because your app is new and gets traction




Thursday, 11 April, 13
Hard Launch

                         •   Wait, but my app is still not ready yet

                             •   Yes, continue iterating. No choice

                             •   If your investors are pushing hard, do a soft launch

                             •   But when you are ready, submit a new app and do a hard
                                 launch (v2)

                             •   Submitting new app means, your old users will not get an
                                 update. But that’s ok.




Thursday, 11 April, 13
Rejections



Thursday, 11 April, 13
App Rejections


                         •   App crashes at launch

                         •   App doesn’t work as advertised

                             •   Server was down when Apple was testing

                         •   App uses private API




Thursday, 11 April, 13
App Rejections

                         •   Analyze your crash reports and fix the issue

                         •   On launch crashes are mostly dynamic load errors

                             •   Your developer would immediately know why.

                         •   When your app doesn’t work as advertised, Apple will
                             sometimes as you to fix the description (Metadata update)

                             •   This is not always a rejection.

                         •   Private API - You normally get a clear email from Apple what
                             private API you tried to use.




Thursday, 11 April, 13
Updates



Thursday, 11 April, 13
Updates


                         •   Update your app regularly

                         •   Keep your users delighted

                         •   Remember, Apple is the most customer friendly company. If
                             Apple iDevice users are happy, Apple will be happy.

                         •   Aim to submit one update every week for the first three
                             months and one update every fortnight there after.




Thursday, 11 April, 13
Open vs closed debate


                         •   Yes, Apple is closed and Web is open

                         •   Bitching around is not going to help your business or make
                             you rich

                             •   …unless you are a journalist

                         •   Think, what’s next.

                         •   Win the Apple way




Thursday, 11 April, 13
Questions?



Thursday, 11 April, 13
Thanks
                                @mugunthkumar
                             mugunth@steinlogic.com

                                  iostraining.sg

                             Available for consulting
                              services and in-house
                                     training

                              iOS App Development
                                   API Design
                                   Mobile UX

Thursday, 11 April, 13

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App store economics

  • 1. App Store Economics The do’s and don’ts Mugunth Kumar Thursday, 11 April, 13
  • 2. About me • Author of the iOS 5, iOS 6 Programming: Pushing the Limits book - Reached the top 100 books in Amazon’s Computer and Technology books list • Trainer - Conducts classroom training on iOS programming at iOSTraining.sg. Thursday, 11 April, 13
  • 3. Agenda • The Mobile Eco System • Differences between Open Web and App Store • Designing • Submission • Marketing + Launching • App Rejection • Updates to App • Questions Thursday, 11 April, 13
  • 4. Target Audience • Those who sell and make money from App Store • Those who make free apps and want to get traction for their complete product through the App Store Thursday, 11 April, 13
  • 5. The Mobile Eco System • Accept the fact that the mobile eco system is locked • iOS App Store is locked and so is Google Play • Though you can sell apps outside of Play (and you can’t on iOS), number of downloads is far too low. • Lamenting won’t help • Apple is the most developer UNFRIENDLY company in the world, yet has attracted the most talented developers to work on their platform • OTOH, Apple is the most customer friendly company Thursday, 11 April, 13
  • 6. Open web vs App Store • Open vs Locked • Web is open. • You can deploy anytime you want. • App Store is not open • You have to wait for Apple to approve. • Plan your deployment strategies accordingly • Approximate release dates (reviewtimes.shinydevelopment.com) • Slightly optimistic, but still ok. Thursday, 11 April, 13
  • 7. Deployment Strategies • Deployment strategy in a locked App Store • If your app uses a backend server • Go live with your production server when you submit • If your server is down or someone screws up while Apple is testing - Brrr • Work on version 1.1 while waiting for approval Thursday, 11 April, 13
  • 8. Building the App • This is 2013. Almost 5 years after the SDK went public • Every single app you see on App Store has a customized UI • Hire a good designer/UX Expert • May or may not be full-time, but still hire one. • You can’t live without them. Thursday, 11 April, 13
  • 9. Indies • You can make an app targeting a broader audience • You can make a niche app targeting a specific audience Thursday, 11 April, 13
  • 10. Target audience for your app • When you make an app targeting a smaller group you have the liberty to price it higher • Apps for kids = Broad audience (High competition) • Apps for kids with special needs = Niche audience (Low competition) • Competition and price are inversely proportional. Higher competition means your app ends up being a commodity Thursday, 11 April, 13
  • 11. Pricing - Sweet Spot • $0.99 - $1.99 • $2.99 - $4.99 • $9.99 • $19.99 • $49.99 Thursday, 11 April, 13
  • 12. Pricing • Before lowering your price, think. • By doubling the price, will I lose half of my prospective buyers? • If the answer is “NO”, do that. • Because, by lowering your price, you will not automatically get twice the number of buyers • And you will enjoy lesser support emails Thursday, 11 April, 13
  • 13. Not making enough? • I’m selling my app and I’m not making enough money • Two things. • Your app isn’t known to many people • Your app is expensive • In most cases, it’s the former. Do your marketing. Thursday, 11 April, 13
  • 14. App Store Marketing • Getting downloads on App Store is different from getting visitors to your website • Most downloads are through word of mouth • Analytics won’t help for the most part • Think again, how did you come to know about Whatsapp or Instagram? • Customers are your marketers • Review sites (the big ones) can help, but not that much (Think Color) • No SEO Thursday, 11 April, 13
  • 15. Launch • Launching the app • Soft launch • Hard launch Thursday, 11 April, 13
  • 16. Soft Launch • Most websites use Soft Launch • Totally won’t work for Apps • Why? Thursday, 11 April, 13
  • 17. App Store Algorithm • Favors • Apps that are recently submitted/published • Apps that are updated often • Apps with higher number of positive reviews • App enters New and Noteworthy or Featured section Thursday, 11 April, 13
  • 18. New and Noteworthy • Your app should be NEW • Your app should have a considerable number of downloads Thursday, 11 April, 13
  • 19. Featured • No loophole • Apple tends to feature apps that are “New and Noteworthy” and looks beautifully done • Lots of animations and good looking UI Thursday, 11 April, 13
  • 20. Featured • Apple also features apps that use a “cool hardware or OS feature” during the honeymoon period. • Apps with push notifications • Apps for Passbook. Thursday, 11 April, 13
  • 21. Featured • Unlike most other App Stores, you can’t “talk” to someone at Apple to get featured. • If someone (a marketer) promises to get your app featured, ignore him Thursday, 11 April, 13
  • 22. App Store Front Pages • Featured section - You are already successful • Chillax and sip that pina colada Thursday, 11 April, 13
  • 23. App Store Front Pages • New and note worthy section • Very important for startups (Free apps) • Usually apps stay here for 30-50+ days • Improves your “Word of mouth” marketing Thursday, 11 April, 13
  • 24. Hard Launch • Apps should always use Hard Launch • Easier to get into “New and Noteworthy” section • Easier to get into “Top 10” Free/Paid apps section • All because your app is new and gets traction Thursday, 11 April, 13
  • 25. Hard Launch • Wait, but my app is still not ready yet • Yes, continue iterating. No choice • If your investors are pushing hard, do a soft launch • But when you are ready, submit a new app and do a hard launch (v2) • Submitting new app means, your old users will not get an update. But that’s ok. Thursday, 11 April, 13
  • 27. App Rejections • App crashes at launch • App doesn’t work as advertised • Server was down when Apple was testing • App uses private API Thursday, 11 April, 13
  • 28. App Rejections • Analyze your crash reports and fix the issue • On launch crashes are mostly dynamic load errors • Your developer would immediately know why. • When your app doesn’t work as advertised, Apple will sometimes as you to fix the description (Metadata update) • This is not always a rejection. • Private API - You normally get a clear email from Apple what private API you tried to use. Thursday, 11 April, 13
  • 30. Updates • Update your app regularly • Keep your users delighted • Remember, Apple is the most customer friendly company. If Apple iDevice users are happy, Apple will be happy. • Aim to submit one update every week for the first three months and one update every fortnight there after. Thursday, 11 April, 13
  • 31. Open vs closed debate • Yes, Apple is closed and Web is open • Bitching around is not going to help your business or make you rich • …unless you are a journalist • Think, what’s next. • Win the Apple way Thursday, 11 April, 13
  • 33. Thanks @mugunthkumar mugunth@steinlogic.com iostraining.sg Available for consulting services and in-house training iOS App Development API Design Mobile UX Thursday, 11 April, 13