Overview of the Mobile
      Ecosystem
            Mike Rowehl
      http://thisismobility.com
      mikerowehl@gmail.com
               @miker
Two Questions to
        Answer

1. How to get users? - Distribution
2. How to make money? - Monetization


 (Questions aren’t mobile specific, but the
             answers can be)
Don’t think about how
 to build an app, think
 about how to build a
     great service.
 (see also: Mike Kuniavski)
However, I’m going to
  give some tips for
building app store apps
  cause it’s the most
    accessible initial
        channel.
The Simple Model

• platform provider
• equipment manufacturer
• carrier/operator
• application/service provider
• end user
The Not Simple Model
• Developer Programs        • HTML5 Toolsets Wireless
• Paypal/Boku/Obopay/Zong   • NFC/Short Range
• AdMob/MobClix/Smaato      • Ansca/Appcelerator/RhoMobile
• Recommendations           • App Inventor/SachManya
• Review Sites              • GetJar/AppstoreHQ
• Incentive Offers          • OpenAppMkt
• SearchDistribution
           Optimization     • Metrics/Analytics
• Social Lobby              • Sensor Browsers
                                      Networks
• Game Promotions           • Mobile Optimization
• CarrierGoods              • Networkand Antivirus
• Virtualinstalls           • SecurityBuying
• OEM Stores                • Group
• Enterprise                • Tablets
• Location Services         • User Experience
• Messaging                 • SystemsManagement
                                       Integration
• Paid Download             • DeviceSource
• Vehicle Systems           • Open
Getting Users
• App Store
• Advertising Distribution
• Social/Viral
• Review Sites
• Web Search Services
• Recommendation
• Carrier Promotion
• Affiliate Programs
• Preinstall Deals
WTF is an ‘App Store’?

•
•
    Distribution
    Payments
•   Notification
•   Moderation
•   Security
Users find new apps
 and services by poking
    around on their
  handset or through
recommendations from
        friends.
http://www.readwriteweb.com/archives/how_do_iphone_users_find_new_apps.php
An app store NEEDS to
provide a large number
    of active users.

   Everything else is
       optional.
App Store Tuning
• Price Sensitivity
• Category/Section
• Description/Keywords
• Screenshots
• Ranking Metrics
• Featured/Promoted
Advertising
• Don’t assume it’s the same as web
• Cost, volume, and quality of traffic vary
    greatly based on the ad network, region,
    target devices, and offer
•   There is no inverse index in mobile apps
•   The best way to find users is to find
    existing behavior (find new game players in
    existing games)
Viral/Social Distribution
• Fundamentally social - Instagram went on a
  tear cause they tuned the social aspects of
  their service to line up well with photo
  sharing
• Coincidentally viral - Angry Birds went viral
  without the direct support of challenges or
  highscore publishing, initially all word of
  mouth and unsolicited press coverage
Monetization
• Paid Download
• Free w/ Premium Upgrade
• Virtual Goods
• Advertising
• Lead Generation/Affiliate
• Partnerships
I won’t call it Freemium
• But it works particularly well in mobile
• For the same reasons as online
• Plus it provides lots of positive metrics that
    app stores like to see such as raw
    download numbers and comment counts
•   Since those are your major distribution
    channels, it’s an effective form of marketing
•   Soliciting comments also works very well
★   http://blog.flurry.com/bid/48418/Madison-Avenue-and-the-Land-of-Make-Believe
Advertising Publisher
• High switching cost for swapping ad
    networks within an app, intermediaries
    exist for a reason
•   Demographics, it’s hard to live off general
    third party network impressions
•   You’ll want some extra analytics
•   User retention also becomes a key metric
•   The math is simple (impressions times
    eCPM), but a lot of influences on both
TMTOWTDI
iTeleport
• http://blog.iteleportmobile.com/quality-
  over-quantity-how-we-built-iteleport
• Never in the top 1000 rankings
• High cost application
• Consistently generating over $1000 in sales
  a day
Tap Tap Revenge
• http://news.bbc.co.uk/2/hi/7751628.stm
• A music based rhythem game, long running
  franchise (early onto the platform)
• TTR3 was a low cost download (0.99)
• Katy Perry Revenge, Coldplay, Lady Gaga,
  Linkin Park, etc (generally 4.99)
• TTR4 is free
Storytime!!
Tools and Resources
Analytics
• Localytics
• Flurry
• Distimo
• Percent Mobile
• appFigures
• AdMob Analytics
Metrics
• Distimo - monthly, and currently an overall
  summary for 2010, multiple app store stats
• Flurry - http://blog.flurry.com/
• Opera State of the Mobile Web - http://
  www.opera.com/smw/
• Chomp Charts - http://
  chomp.typepad.com/chomp/chomp-charts/
• http://148apps.biz/app-store-metrics/
• There are always paid sources too if you
  really need a particular question answered
Notifications
• Urban Airship
• Facebook
• Twitter
• Twilio
• Boxcar
• Notifo
Location Services
• Cloudmade
• SimpleGeo
• Navteq
• Location Labs
• Skyhook
• xAd
• Where Ads
• Geodelic
Review Sites
• http://www.148apps.com/
• http://www.appcraver.com/
• http://toucharcade.com/
• http://www.tuaw.com/apprequests
• http://www.slidetoplay.com/
• http://www.appadvice.com/
Recommendation
       Services
• Chomp
• Chorus
• Appolicious
• Apptizr
• AppBoy
• Mobspot
• StumbleUpon
• AppsFire
• AppBrain
Grab Bag
• GetJar - independent app store
• Carrier Services - all have featured apps
 • developer.sprint.com
 • developer.t-mobile.com
 • developer.att.com
• Influencers and domain experts
• Mob4hire - crowdsourced testing
• User Testing
• Multivariate Testing

Ecosystem overview

  • 1.
    Overview of theMobile Ecosystem Mike Rowehl http://thisismobility.com mikerowehl@gmail.com @miker
  • 2.
    Two Questions to Answer 1. How to get users? - Distribution 2. How to make money? - Monetization (Questions aren’t mobile specific, but the answers can be)
  • 3.
    Don’t think abouthow to build an app, think about how to build a great service. (see also: Mike Kuniavski)
  • 4.
    However, I’m goingto give some tips for building app store apps cause it’s the most accessible initial channel.
  • 5.
    The Simple Model •platform provider • equipment manufacturer • carrier/operator • application/service provider • end user
  • 6.
    The Not SimpleModel • Developer Programs • HTML5 Toolsets Wireless • Paypal/Boku/Obopay/Zong • NFC/Short Range • AdMob/MobClix/Smaato • Ansca/Appcelerator/RhoMobile • Recommendations • App Inventor/SachManya • Review Sites • GetJar/AppstoreHQ • Incentive Offers • OpenAppMkt • SearchDistribution Optimization • Metrics/Analytics • Social Lobby • Sensor Browsers Networks • Game Promotions • Mobile Optimization • CarrierGoods • Networkand Antivirus • Virtualinstalls • SecurityBuying • OEM Stores • Group • Enterprise • Tablets • Location Services • User Experience • Messaging • SystemsManagement Integration • Paid Download • DeviceSource • Vehicle Systems • Open
  • 7.
    Getting Users • AppStore • Advertising Distribution • Social/Viral • Review Sites • Web Search Services • Recommendation • Carrier Promotion • Affiliate Programs • Preinstall Deals
  • 8.
    WTF is an‘App Store’? • • Distribution Payments • Notification • Moderation • Security
  • 9.
    Users find newapps and services by poking around on their handset or through recommendations from friends. http://www.readwriteweb.com/archives/how_do_iphone_users_find_new_apps.php
  • 10.
    An app storeNEEDS to provide a large number of active users. Everything else is optional.
  • 11.
    App Store Tuning •Price Sensitivity • Category/Section • Description/Keywords • Screenshots • Ranking Metrics • Featured/Promoted
  • 12.
    Advertising • Don’t assumeit’s the same as web • Cost, volume, and quality of traffic vary greatly based on the ad network, region, target devices, and offer • There is no inverse index in mobile apps • The best way to find users is to find existing behavior (find new game players in existing games)
  • 13.
    Viral/Social Distribution • Fundamentallysocial - Instagram went on a tear cause they tuned the social aspects of their service to line up well with photo sharing • Coincidentally viral - Angry Birds went viral without the direct support of challenges or highscore publishing, initially all word of mouth and unsolicited press coverage
  • 14.
    Monetization • Paid Download •Free w/ Premium Upgrade • Virtual Goods • Advertising • Lead Generation/Affiliate • Partnerships
  • 15.
    I won’t callit Freemium • But it works particularly well in mobile • For the same reasons as online • Plus it provides lots of positive metrics that app stores like to see such as raw download numbers and comment counts • Since those are your major distribution channels, it’s an effective form of marketing • Soliciting comments also works very well ★ http://blog.flurry.com/bid/48418/Madison-Avenue-and-the-Land-of-Make-Believe
  • 16.
    Advertising Publisher • Highswitching cost for swapping ad networks within an app, intermediaries exist for a reason • Demographics, it’s hard to live off general third party network impressions • You’ll want some extra analytics • User retention also becomes a key metric • The math is simple (impressions times eCPM), but a lot of influences on both
  • 17.
  • 18.
    iTeleport • http://blog.iteleportmobile.com/quality- over-quantity-how-we-built-iteleport • Never in the top 1000 rankings • High cost application • Consistently generating over $1000 in sales a day
  • 19.
    Tap Tap Revenge •http://news.bbc.co.uk/2/hi/7751628.stm • A music based rhythem game, long running franchise (early onto the platform) • TTR3 was a low cost download (0.99) • Katy Perry Revenge, Coldplay, Lady Gaga, Linkin Park, etc (generally 4.99) • TTR4 is free
  • 20.
  • 21.
  • 22.
    Analytics • Localytics • Flurry •Distimo • Percent Mobile • appFigures • AdMob Analytics
  • 23.
    Metrics • Distimo -monthly, and currently an overall summary for 2010, multiple app store stats • Flurry - http://blog.flurry.com/ • Opera State of the Mobile Web - http:// www.opera.com/smw/ • Chomp Charts - http:// chomp.typepad.com/chomp/chomp-charts/ • http://148apps.biz/app-store-metrics/ • There are always paid sources too if you really need a particular question answered
  • 24.
    Notifications • Urban Airship •Facebook • Twitter • Twilio • Boxcar • Notifo
  • 25.
    Location Services • Cloudmade •SimpleGeo • Navteq • Location Labs • Skyhook • xAd • Where Ads • Geodelic
  • 26.
    Review Sites • http://www.148apps.com/ •http://www.appcraver.com/ • http://toucharcade.com/ • http://www.tuaw.com/apprequests • http://www.slidetoplay.com/ • http://www.appadvice.com/
  • 27.
    Recommendation Services • Chomp • Chorus • Appolicious • Apptizr • AppBoy • Mobspot • StumbleUpon • AppsFire • AppBrain
  • 28.
    Grab Bag • GetJar- independent app store • Carrier Services - all have featured apps • developer.sprint.com • developer.t-mobile.com • developer.att.com • Influencers and domain experts • Mob4hire - crowdsourced testing • User Testing • Multivariate Testing