iPhone
APPS.
What, how, why?
Response Structure.
o Background and context.
  - iPhone consumer adoption and the App Store Launch
  - Don’t forget the iTouch (and others)



o Start of the App Economy?
  - Some numbers and 20 types of App (plus the people that download them)
  - App design and longevity
  - Apps and marketing



o What are the opportunities?
  - Ideas and approaches
#1




     BACKGROUND
     and context.
Steve Jobs unveiled
the iPhone on the
January 2007...
...to the delight of Apple devotees and
predictions of failure from the mobile
industry and the usual suspects.




                                           a nce the
                                  ’s no ch to get
                          “There            g
                                    is goin         t
                          iPhone ficant marke
                                     i
                           a ny sign chance.”        07
                               re. No r, MSFT CEO 20
                           sha allme
                           Steve B
The original iPhone was made available in
the UK, France, and Germany in November
     2007 by which time it had sold a very
                    respectable 1m units.
A NEW GEAR.

       10th April 2008              11th April 2008
  The App Store Launches.      The iPhone 3G Launches.
 Downloadable programmes         GPS and faster data
for the iPhone & iPod Touch.
And the trend continued with the 3GS launch day




                                                                                                                            Source: Mary Meeker, Morgan Stanley, “Economy + Internet Trends”, October 2009; Neilsen Global Mobile – Strategies for Growth
in 2009 recording AT&T’s “best ever day’s sales”.
                                   Mobile Internet Outpaces Desktop Internet Adoption
                                       iPhone + iTouch Users = 8x AOL Users 8 Quarters After Launch


                                                             ~57MM
                     60             Mobile Internet                      Desktop Internet
                                   iPhone + iTouch                           Netscape*

                     50                Launched 6/07                      Launched 12/94
  Subscribers (MM)




                     40

                                                             ~25MM                                      Mobile Internet

                     30                                                                               NTT docomo i-mode
                               3G, App store
                                 & supply                                                               Launched 6/99
                                 problems
                     20
                                                             ~11MM

                                                                                                       Desktop Internet
                     10
                                                                                                             AOL*
                                                             ~7MM                                     v 2.0 Launched 9/94

                          Q1      Q3        Q5         Q7       Q9     Q11      Q13      Q15    Q17        Q19
                                                            Quarters Since Launch
                                 iPhone + iTouch            NTT docomo i-mode         AOL      Netscape
Apple is now encroaching upon Nokia’s market
leadership in terms of handset sales and moving
to dominate the consumer Smartphone market.
Top Smartphone Platforms
                           Sept 09   Dec 09   Point Change
Total US Age 13+


 RIM                       42.6%     41.6%        -1.0


 Apple                     24.1%     25.3%        1.2


 Microsoft                 19.0%     18.0%        -1.0


 Palm                       8.3%     6.1%         -2.2




                                                             Source: comScore Mobileens
 Google                     2.5%     5.2%         2.7
The iPod touch, the stealth device for iPhone OS,
will be the best-selling model for the platform in
2010, if it isn’t already, and it probably is.


       37%
       iPod                      43%
      touch                      iPod
                   63%          touch        57%
                  iPhone                    iPhone




          July 2009                January 2010




                              iPod Touch sales
                              increasing at 108%
                              while iPhone sales are
                              increasing at 61%.




                                                       Source: Apple Blog
And now there are new
platforms for Apple Apps.
                 But a question remains
                     over how widely the
                   iPad will be adopted?
So we must
remember that
iPhones (and even
Apples) are not
the only fruit.
Source: ComScore
Wholesale Applications Community
launched at Mobile World Congress,
  Barcelona on 15 February 2010.
 The alliance, which includes   Looking to reclaim the initiative
 Vodafone, China Mobile and       from Apple and Google – an
  Sprint, has access to more    attempt by operators to “regain
than three billion customers.          control of apps”.
#2
Who is buying them?
                For mobile games
                the median age is



 for mobile
 media users.




                           Source: ComScore data for EU5 countries
The average person in the eurozone




apps over the lifetime
of their iPhone,

                           Source: ComScore data for EU5 countries
So
           months on and
           the hype continues.




  From                ...to
saving           creating
lives...            them.
“There is an app for pretty much everything.”




In 20 categories,
Paid or Free.
A profit of between
                                 $12,000 and
                                 $22,000 a day.
                                 o To get into the Top 25 with a
                                 free game, you’ll need to
                                 average more than 10,000
                                 downloads per day.
                                 o A Top 10 free app will
                                 average more than 20,000


 54%
                                 downloads a day.
                                 o To be in the top 100 free
 apps                            games in a gaming category
       have f        of fre
users        ewer           e    like Family Games, you’ll still
       so the      than
adver         y can’     1,000
      tising        t            need to average more than
             or ma sell
                   ke mo         2,000 downloads per day.
                          ney.
- Is it designed to make the most out of                      - Is it playable or engaging?
the hardware and software?                                    - Does it make people laugh or give
- Is it useable, useful and delightful?                       people access to great content?
- Is it quick and easy to understand,       Experience &      - Does it have a polished look and feel
navigate and use?                          entertainment      and great experience?
Does it offer something a website or
desktop app cannot?




                             Utility &                        Content
                           functionality                     Evolution
                                                            or longevity




                                           Originality or
- Does it solve a unique problem?                            - Does the content have lasting appeal as
- Does it appeal to a specific niche       niche appeal      a reference tool?
audience need?                                               - Does the content or experience update
- Is it new, innovative or significantly                     or evolve over time?
enhancing an exisiting idea?                                 - Can content be added to or improved
                                                             through user or community interaction?



What makes a successful app?
How often are they used?
On average for about 30 days.
                                 14




                                                                                                                  News
                                                        Books                                    Reference
                                10.5
    Frequency of use per week




                                                                                      Weather

                                            Lifestyle
                                                                                                     Navigation
                                                                    Utilities         Health &
                                                        Games                                          Productivity
                                                                                      Fitness
                                  7
                                                                    Travel
                                                     Social
                                                Networking       Finance
                                                                         Music          Business

                                                                             Sports        Education
                                 3.5

                                                                                                             Medical
                                                    Entertainment



                                  0

                                       0%               12.5%                25%                   37.5%                 50%

                                                                Retention over 90 days
                                                                                                                               Source: Flurry
Apps and
marketing.
It all began with
an Cannes award
winning pint.



It was free, new and made
entertaining use of the
unique technology features
of the iPhone for £70k.
And it is still the most
downloaded app in the UK.
(it was also a branded copy of an exisiting iBeer App)
Barclaycard
Waterslide extreme
Free iPhone game.
Within the first week of hitting
the iTunes store, the game rapidly
rose to the NUMBER 1 FREE
APP IN 57 COUNTRIES and had
2 million downloads. 12 days after
launch, it hit 3 MILLION
downloads and was still in number
1 spot in all 57 countries making
it the most successful free
branded advertising game ever to
hit the iTunes store.
Just some of the apps
on the brand wagon...
Kelloggs – My special K
Walkers Flavour Race
Tesco – Tesco Finder, Tesco Wine Finder
Coke – Spin the Coke, Magic Coke bottle
Nestle (Japan) Nescafe Charge
Unilever Ola (Walls ice cream) Netherlands
Kleenex Lotion Tissue FEEL
Audi, VW, BMW, Toyota
Absolut – Drinkspiration
Charmin (USA) – Sit or Squat
BA – Flight Info
Nike – True City, NikeiD
Adidas – Urban Art, Outlet Finder
Men’s Health – Workouts
MasterCard – ATM Hunter
Kodak – Gallery
HP – iPrint Photo
British Gas – Meter Read
Walkers Flavour Race    My Special K diet planner




From games and gimmicks to utilities.




   Spin the Coke & Coke Cheers   NikeID & Football+ Master Control
#3




     What are the
     OPPORTUNITIES?
“The majority of the real-time search boom will be
in its convergence with another rapidly growing
industry, mobile computing.

[Offering people] real-time recommendations
based on your current location using an
application that aggregates information from
real-time searches as well as social sites like
Yelp and Urban Spoon...... local advertisements
and “limited time” discounts on your mobile.”*




       Social Periphery
                                               *Rob Diana
Social Periphery &
    Mobile Social Networks
             Local networks of                                                                                                  Global Services
                                                                        Mobile & mixed media
            sensors and devices                                                                                                and Communities
                                                                         applications/tools
                                                                                                       Content &
                                                   Context &                                       relationships
                                                   Location as filter                             as intelligence

                                   GPS, location                                                                     Social                                     Communities
 RFID &                             & bespoke                                                                       networks                                      & forums
NearField                            sensors



                                                                                                                                       Blogs, UGC
              Barcodes, QR codes
                                                                                                                                      & niche sites
                 and markers

                                                                                      Dynamic communication
                                                                                      based on action and relevance
                                                                                      (Ambient awareness/Social Peripheral Vision)




                                                                          Brands as the filter
                               Physical objects                                                                     On is off/Off is on
                                                                           and the enabler.
                                 in intelligent                                                                      as physical and
                                                                         Ideas must be “good
                                environments                                                                        digital worlds fuse
                                                                           enough to share”


                                    Helping us plan for now and what’s next.
                                                                                                                                  by David J. Carr davidjcarr.wordpress.com
                                                                                                                                  Based on Nokia’s Mobile Gateway & Jyri Engestrom
Outside the brand app bubble:
Playful location-based social periphery & networking tools.
Big brands and entertainment properties
     using the Foursquare platform.
Augmented reality
    moving beyond
marketing gimmick.
What services and content can we deliver at the
content/context cross-section?




                        Chain-wide localised,
                        product-specific and cost
                        effective marketing when the
                        inventory in more than 70 Adidas
                        Outlet Stores varies from store to
                        store – and so do the special
                        offers. Or Tesco porting its
                        Clubcard to phones and starting
                        to make them smarter.
dations of any approach:
The foun
Can we extend our usage beyond
the average of 3 months?


Can we create something that is
“good enough to share”?


Can we connect people with each
other people & a worthy cause?

iPhone Apps - What, how, why?

  • 1.
  • 2.
    Response Structure. o Backgroundand context. - iPhone consumer adoption and the App Store Launch - Don’t forget the iTouch (and others) o Start of the App Economy? - Some numbers and 20 types of App (plus the people that download them) - App design and longevity - Apps and marketing o What are the opportunities? - Ideas and approaches
  • 3.
    #1 BACKGROUND and context.
  • 4.
    Steve Jobs unveiled theiPhone on the January 2007...
  • 5.
    ...to the delightof Apple devotees and predictions of failure from the mobile industry and the usual suspects. a nce the ’s no ch to get “There g is goin t iPhone ficant marke i a ny sign chance.” 07 re. No r, MSFT CEO 20 sha allme Steve B
  • 6.
    The original iPhonewas made available in the UK, France, and Germany in November 2007 by which time it had sold a very respectable 1m units.
  • 7.
    A NEW GEAR. 10th April 2008 11th April 2008 The App Store Launches. The iPhone 3G Launches. Downloadable programmes GPS and faster data for the iPhone & iPod Touch.
  • 8.
    And the trendcontinued with the 3GS launch day Source: Mary Meeker, Morgan Stanley, “Economy + Internet Trends”, October 2009; Neilsen Global Mobile – Strategies for Growth in 2009 recording AT&T’s “best ever day’s sales”. Mobile Internet Outpaces Desktop Internet Adoption iPhone + iTouch Users = 8x AOL Users 8 Quarters After Launch ~57MM 60 Mobile Internet Desktop Internet iPhone + iTouch Netscape* 50 Launched 6/07 Launched 12/94 Subscribers (MM) 40 ~25MM Mobile Internet 30 NTT docomo i-mode 3G, App store & supply Launched 6/99 problems 20 ~11MM Desktop Internet 10 AOL* ~7MM v 2.0 Launched 9/94 Q1 Q3 Q5 Q7 Q9 Q11 Q13 Q15 Q17 Q19 Quarters Since Launch iPhone + iTouch NTT docomo i-mode AOL Netscape
  • 9.
    Apple is nowencroaching upon Nokia’s market leadership in terms of handset sales and moving to dominate the consumer Smartphone market. Top Smartphone Platforms Sept 09 Dec 09 Point Change Total US Age 13+ RIM 42.6% 41.6% -1.0 Apple 24.1% 25.3% 1.2 Microsoft 19.0% 18.0% -1.0 Palm 8.3% 6.1% -2.2 Source: comScore Mobileens Google 2.5% 5.2% 2.7
  • 11.
    The iPod touch,the stealth device for iPhone OS, will be the best-selling model for the platform in 2010, if it isn’t already, and it probably is. 37% iPod 43% touch iPod 63% touch 57% iPhone iPhone July 2009 January 2010 iPod Touch sales increasing at 108% while iPhone sales are increasing at 61%. Source: Apple Blog
  • 12.
    And now thereare new platforms for Apple Apps. But a question remains over how widely the iPad will be adopted?
  • 13.
    So we must rememberthat iPhones (and even Apples) are not the only fruit.
  • 14.
  • 15.
    Wholesale Applications Community launchedat Mobile World Congress, Barcelona on 15 February 2010. The alliance, which includes Looking to reclaim the initiative Vodafone, China Mobile and from Apple and Google – an Sprint, has access to more attempt by operators to “regain than three billion customers. control of apps”.
  • 16.
  • 20.
    Who is buyingthem? For mobile games the median age is for mobile media users. Source: ComScore data for EU5 countries
  • 21.
    The average personin the eurozone apps over the lifetime of their iPhone, Source: ComScore data for EU5 countries
  • 22.
    So months on and the hype continues. From ...to saving creating lives... them.
  • 23.
    “There is anapp for pretty much everything.” In 20 categories, Paid or Free.
  • 24.
    A profit ofbetween $12,000 and $22,000 a day. o To get into the Top 25 with a free game, you’ll need to average more than 10,000 downloads per day. o A Top 10 free app will average more than 20,000 54% downloads a day. o To be in the top 100 free apps games in a gaming category have f of fre users ewer e like Family Games, you’ll still so the than adver y can’ 1,000 tising t need to average more than or ma sell ke mo 2,000 downloads per day. ney.
  • 25.
    - Is itdesigned to make the most out of - Is it playable or engaging? the hardware and software? - Does it make people laugh or give - Is it useable, useful and delightful? people access to great content? - Is it quick and easy to understand, Experience & - Does it have a polished look and feel navigate and use? entertainment and great experience? Does it offer something a website or desktop app cannot? Utility & Content functionality Evolution or longevity Originality or - Does it solve a unique problem? - Does the content have lasting appeal as - Does it appeal to a specific niche niche appeal a reference tool? audience need? - Does the content or experience update - Is it new, innovative or significantly or evolve over time? enhancing an exisiting idea? - Can content be added to or improved through user or community interaction? What makes a successful app?
  • 26.
    How often arethey used? On average for about 30 days. 14 News Books Reference 10.5 Frequency of use per week Weather Lifestyle Navigation Utilities Health & Games Productivity Fitness 7 Travel Social Networking Finance Music Business Sports Education 3.5 Medical Entertainment 0 0% 12.5% 25% 37.5% 50% Retention over 90 days Source: Flurry
  • 27.
  • 28.
    It all beganwith an Cannes award winning pint. It was free, new and made entertaining use of the unique technology features of the iPhone for £70k. And it is still the most downloaded app in the UK. (it was also a branded copy of an exisiting iBeer App)
  • 29.
    Barclaycard Waterslide extreme Free iPhonegame. Within the first week of hitting the iTunes store, the game rapidly rose to the NUMBER 1 FREE APP IN 57 COUNTRIES and had 2 million downloads. 12 days after launch, it hit 3 MILLION downloads and was still in number 1 spot in all 57 countries making it the most successful free branded advertising game ever to hit the iTunes store.
  • 30.
    Just some ofthe apps on the brand wagon... Kelloggs – My special K Walkers Flavour Race Tesco – Tesco Finder, Tesco Wine Finder Coke – Spin the Coke, Magic Coke bottle Nestle (Japan) Nescafe Charge Unilever Ola (Walls ice cream) Netherlands Kleenex Lotion Tissue FEEL Audi, VW, BMW, Toyota Absolut – Drinkspiration Charmin (USA) – Sit or Squat BA – Flight Info Nike – True City, NikeiD Adidas – Urban Art, Outlet Finder Men’s Health – Workouts MasterCard – ATM Hunter Kodak – Gallery HP – iPrint Photo British Gas – Meter Read
  • 31.
    Walkers Flavour Race My Special K diet planner From games and gimmicks to utilities. Spin the Coke & Coke Cheers NikeID & Football+ Master Control
  • 33.
    #3 What are the OPPORTUNITIES?
  • 34.
    “The majority ofthe real-time search boom will be in its convergence with another rapidly growing industry, mobile computing. [Offering people] real-time recommendations based on your current location using an application that aggregates information from real-time searches as well as social sites like Yelp and Urban Spoon...... local advertisements and “limited time” discounts on your mobile.”* Social Periphery *Rob Diana
  • 35.
    Social Periphery & Mobile Social Networks Local networks of Global Services Mobile & mixed media sensors and devices and Communities applications/tools Content & Context & relationships Location as filter as intelligence GPS, location Social Communities RFID & & bespoke networks & forums NearField sensors Blogs, UGC Barcodes, QR codes & niche sites and markers Dynamic communication based on action and relevance (Ambient awareness/Social Peripheral Vision) Brands as the filter Physical objects On is off/Off is on and the enabler. in intelligent as physical and Ideas must be “good environments digital worlds fuse enough to share” Helping us plan for now and what’s next. by David J. Carr davidjcarr.wordpress.com Based on Nokia’s Mobile Gateway & Jyri Engestrom
  • 36.
    Outside the brandapp bubble: Playful location-based social periphery & networking tools.
  • 37.
    Big brands andentertainment properties using the Foursquare platform.
  • 39.
    Augmented reality moving beyond marketing gimmick.
  • 40.
    What services andcontent can we deliver at the content/context cross-section? Chain-wide localised, product-specific and cost effective marketing when the inventory in more than 70 Adidas Outlet Stores varies from store to store – and so do the special offers. Or Tesco porting its Clubcard to phones and starting to make them smarter.
  • 41.
    dations of anyapproach: The foun
  • 42.
    Can we extendour usage beyond the average of 3 months? Can we create something that is “good enough to share”? Can we connect people with each other people & a worthy cause?