This document provides an overview of building iPhone apps. It discusses the characteristics of apps, including their dependence on the operating system and leveraging of native features. It also covers important app aspects like user experience, push notifications, in-app purchases, geolocation, APIs, and Facebook integration. The document outlines strategies for marketing, measuring, optimizing, and monetizing apps through both free and paid models like freemium, ads, subscriptions, and in-app purchases.

1. Anatomy of an iPhone app
TJ Tee
Partner, Alphapod

2. Hello there :)
How many of you
• Own/have used an iPhone/smartphone
• Are developing a mobile strategy for your
clients
• Build apps

3. What is an app?
• A small software that carries out a specific set
of functions.
• A user experience
• An opportunity to engage with a highly
targeted audience

4. Characteristics of an app
• Dependent on the native device operating
system (OS)
• Leverages on the native OS’ user experience
• Often has a simplified/distilled featureset (e.g.
a subset of the full website)
• Doesn’t necessarily require an Internet
connection to work

5. Avg iPhone user has 48 apps

6. iPhone apps most sticky

7. Are apps the next Website?
No. Why?
• Not everyone needs an app
• Barrier of entry is generally quite high
(consumers, brands, developers)
• A reasonably good app requires a specific set
of expertise to develop

8. Native vs Web-based
Web-based apps
• Works across all/most platforms
• Requires a mobile browser
• Build once, run everywhere approach

9. Native vs Web-based
Native apps
• High definition graphics
• Slick, cool effects
• Take advantage of allocated computing power
• Leverage device’s internal features e.g.
camera, accelerometer, gyroscope
• Immediate response

10. It’s the UX, baby!
The mobile user experience is unique
• Limited screen real-estate
• Users are mobile (duh!), in unusual places
• Personal – entertainment, news, time-
wasters, utility, social, etc.
• Pure opt-in. User chooses what app she
wants on her phone

11. KILLER iOS FEATURES

12. Top 5 killer features
#1 Push alerts
• Any interaction with your app can trigger an
alert
• App doesn’t have to be on for alerts to work!
• Makes apps super sticky (repeat interactions,
multiple engagement opportunities)

13. Top 5 killer features
#2 In-app purchasing
• Highly engaged users can be persuaded to
pay for virtual goods/currency
• “1-click” payment is now a reality
• High perceived value + emotional investment
(e.g. $0.99 for 1000 gold) justifies spending
• Revenue share (Dev:Apple, 70:30)

14. Image source: Kotaku.com

15. The Sunk Cost Fallacy
Go read
• http://kotaku.com/5787095/the-science-
behind-people-wasting-money-on-farmville
• http://youarenotsosmart.com/2011/03/25/the-
sunk-cost-fallacy

16. Top 5 killer features
#3 Geolocation
• App can know a user’s location at all times
• Location + social provides very useful context
for personalization
• Geo metadata (in images, etc.) can further
verify user’s location
• Region monitoring/geofencing – a viable
alternative to checking in

17. Top 5 killer features
#4 3rd party APIs
• The “unglamorous” side of apps, little gnomes
that make the magic happen
• Examples of APIs: Facebook Graph API,
Google Maps, Foursquare, SimpleGeo,
Instagram, etc.
• APIs return highly valuable context and
enable “crossing-over” of communities

18. Top 5 killer features
#5 Facebook Connect
• Every Web page becomes social instantly
• Portable social graph opens up new
opportunities – increased trust, higher
conversion rates, personalization, etc.
• “1-click” sign-up is now a reality
• Death of the high-friction, proprietary Sign-
up?

19. MARKETING + LAUNCH

20. Marketing your app
Start marketing as early as possible
• The product (app) is often the best form of
marketing
– Create something unique or a spin to an existing
category
• Develop a strategy to be visible and sticky
– Be highly shareable (FB News Feed, Twitter, etc.)
• Start with people you know

21. Free marketing (pre-launch)
• Tease
– Create a viral “launching soon” page, use
LaunchRock
• Website
– Screenshots, video, newsletter
• Time your launch
– Coincide with live event or trend to boost
popularity

22. Free marketing (post-launch)
• Apple – Top charts, New & Noteworthy, User
reviews
• Telcos – need cool apps to sell devices
• SEO
• Social media
• Blogs and review sites – get featured, give
freebies or guest post on authoritative sites
• Events – Webcamp, Digital Wed, TNMA

23. Paid marketing
Multiple entry points, track effectiveness
• Advertising
– Facebook Ads, SEM, in-app, display (selective)
• Sponsorship
– Events, contests
• Free/cheap for a limited time only
– EA are pros, find a reason to drive hype

24. Pre-launch: Things to know
• Keyword optimization
– Observe what keywords competitors are/aren’t
using, don’t try to game the system
• Ranking/search criteria
– Old: High weightage on download count
– New: Apple is testing out a new algorithm which
places high weightage on app usage

25. MEASUREMENT

26. Why is it important?
Provides a clear indication of
• Usage patterns
• Feature efficacy
• App navigation
• Emerging behaviors (useful for future
iterations)

27. App metrics
Must-have basics
• App downloads
• Sign-ups (create account, FB Connect, etc.)
• Active users
• App launch
• Custom actions (vote, submit, share, etc.)

28. App metrics
Advanced
• Frequency of use
• Average time + depth of engagement
• Behavioral patterns (map navigation paths)
• Funnel analysis (for conversion tracking)
• Correlating all the above with usage context,
e.g. location, time

29. Tools for measurement
Analytics
• Mixpanel
• App Annie
• iTunes Connect
• GoSquared
• Google Analytics
• Bit.ly

30. Optimization: Why?
Continuous improvement
• User experience (UI, code, features, etc.) for
improved engagement
• User conversion – shortening the distance
between initial download and set goals
• Monetization – increasing average yield per
user
• Cost management – (+) efficiency, (-) $

31. What to expect
• Mostly gradual improvements
– Be patient
• Be ready to
– Discard certain features, discover new ones
If things are going south
• Going back to the drawing board
– Airbnb failed twice before getting it right

32. MONETIZATION
STRATEGIES

33. Free
• User pays $0 for an app that works 100%
• Monetary value is derived from indirect
monetization
– User base
– Downloads
– Content
– User activity
– Overall brand/company valuation

34. Paid
• User pays upfront for the app – a fee that
justifies/exceeds the perceived lifetime
value to the user
• Dec 2010 stats (source: Apple)
– 67% of all apps on App Store are Paid
– 50% of all apps are $0.99-$2.99
– Average price of a Paid app is $2.43

35. Freemium
• Basic app is free (e.g. Angry Birds Lite)
• Users pay for “pro” or full version of the app
(e.g. Angry Birds)
• Basic versions either
– Have entire basic or limited featureset
• While
– “Pro” versions have extra useful features
– Full versions unlock entire featureset

36. Ad-supported
• App is often free, user sees ads (e.g. AdMob,
iAds, etc.)
• App owner earns from ad-generated revenue

37. Acquisition/action basis
• Lead generation
– Sign-up
– Download
– Enquiry
• User-driven action rewards e.g. TapJoy

38. In-app purchase
• Direct integration with iTunes account for “1-
click” purchase. All that’s required is user’s
iTunes password
• Game developers are making a killing with
this

39. Subscription
• Subscription workarounds
– User pays on the website, activates account
– Users account to login on app
– Apple gets $0
• Apple will soon introduce in-app
subscriptions at $0 revenue sharing

40. THAT’S ALL, FOLKS!

41. Get in touch
TJ Tee
tj@alphapod.com
@tjtee | about.me/tjtee