FRESH THINKING GETTING TO KNOW APPS 19/08/13
AGENDA • Definition and evolution • Snapshot of current market • What does the future hold? • Money makers • App usage • Examples • Challenge
DEFINITION – APP An app is a computer programme designed to help people perform an activity
DEFINITION – MOBILE APP “A type of application software designed to run on a mobile device such as a smartphone or tablet.”
Quick question… What was the first mobile app you owned?
EVOLUTION Early 90s Present day
EVOLUTION Early 90s Present day Click n Run - 2003 Advanced Packaging Tool - 1998 July 10th 2008
THE APP STORE 550,000 500 900,000 820 Brandon Ashmore
MAIN PLAYERS 1000,000 July 2013 145,000 May 2013 120,000 May 2013 120,000 August 2012
APPS ARE BIG BUSINESS 56 billion downloads in 2013 ABI Research Expected to make $25 billion in revenue, up 62% Gartner
ANDROID GETS MORE HITS www.canalys.com/newsroom/11-quarterly-growth-downloads-leading-app-stores#sthash.pAbZCqrL.dpuf
MORE DEVICES, MORE DOWNLOADS Apple Vs Android – Monthly App downloads 2010-2013
IOS GETS MORE MONEY www.canalys.com/newsroom/11-quarterly-growth-downloads-leading-app-stores#sthash.pAbZCqrL.dpuf
HOW DOES IOS GENERATE MORE REVENUE? • iOS users already have a greater affinity for apps • iOS users spend more time on their apps • The more time people spend in apps, the more money they’re likely to spend • Apple has high standards and consumers like (and will pay for) quality • Developers more likely to develop for the platform where the money is
A BIG MARKET THAT’S ONLY GOING TO GET BIGGER $ $ $ $ More than 200 billion downloads per year by 2017 Portio Research 6.8 billion mobile subscriptions worldwide – but only 17% of mobile subscribers use apps http://mobithinking.com/mobile-marketing-tools/latest-mobile-stats/e
INCREASE IN TABLET USAGE INCREASES ITS INFLUENCE TOO Users in the UK are more likely to browse via tablet than smartphone.
SUCCESS STORIES $250K in first two months $600K in a month in 2009 $2.4m every day from two games Released first mobile game in July 2012, now valued at $770m
WORLD’S MOST EXPENSIVE APPS ReyburnCyberTuner: piano tuning app iVIP Black: "the millionaire's app"
WHAT CUT DO DEVELOPERS GET? 70% 70%
WHAT CUT DO DEVELOPERS GET? 70% 56-70% depending on developer’s country 70%
MAKING MONEY FROM FREE APPS The Freemium Upsell Second version of your app that’s paid. In-App Purchases In-app purchases allow users to unlock features or purchase more of something
MAKING MONEY FROM FREE APPS CPI Networks (Cost Per Install) A “pop-up” in games and apps, prompting people to look at another game – pay a 3rd party for every install Sponsorship White label an app for $XXX.”, or update an existing app with brand name Ads Require a sizable amount of traffic... “It's time to shift the conversation away from whether there should be ads in apps at all, and instead determine how to make ads in apps as interesting and relevant as possible for consumers, and as efficient and effective as possible for advertisers and developers."
QUICK QUESTION… How many apps do you have?
AVERAGE USER 30-40 8 2hrs
QUICK QUESTION… What apps do you use?
AVERAGE USER TOP 3 MOST DOWNLOADED PAID IPHONE APPS OF ALL TIME TOP 25 MOST DOWNLOADED PAID IPAD APPS OF ALL TIME TOP 3 MOST DOWNLOADED FREE IPHONE APPS OF ALL TIME TOP 25 MOST DOWNLOADED FREE IPAD APPS OF ALL TIME
NEED STATES • Entertain me • Games • Video • Music • Books • Keep me connected • Facebook • Twitter • Help me do something • Organising (banks, utilities) • Booking (trains) • Buying (amazon, ebay) • Make me more informed • News • Weather
MOST POPULAR APPS – IOS Make me more informed Help me do something Entertain me Keep me connected
COMPONENTS OF A GOOD APP • Useful • Understands the context in which it is being used • Location • Audio • Video • Easy to use • Makes life simpler/easier/better • Quick to download • Entertaining • Minimal text • Offers something only an app can offer Over 30% of apps available in the App store are unused a day after downloading, either being deleted or left wasting space on the dashboard.