BootCampDigital had the opportunity to attend the Mobile Marketing Forum in NY. Put on by the MMA (Mobile Marketing Association) this is one of the leading events for those in the Mobile Marketing industry.
Some of the key trends observed during the MMF:
Mobile is becoming a key part of the marketing mix – Companies like Kodak and MGM Grand shared their experiences in Mobile. While there is still a lot of experimentation going on the reality is that more and more established brands are using mobile as a key part of their marketing. This is a trend that will grow and continue in the future.
Mobile advertising is growing – Click-through-rates on mobile ads are higher than online (although we have yet to observe how sustainable they are). Mobile advertising is beginning to show a track record of results – both on click-through and in leading to purchase.
There are still lots of barriers for mobile going mainstream – Issues with carriers and screen size are the greatest barriers facing the industry. The fragmentation of mobile is not unlike the early days of the internet – as devices and carriers continue to create standards mobile will become an easier platform for marketers to play in.
Location is the key opportunity – The opportunity to target people based on location is the biggest opportunity for marketers in mobile. MGM grand shared an example of targeting people as they drive to Las Vegas with discount codes for the hotel. They also have the opportunity to target people when they are physically in the hotel – providing discount codes and deals to keep people in the hotel longer. By knowing the location of the phone SMS campaigns can be directly targeted.
The iphone is over-hyped – The iphone gets a lot of publicity and buzz, but in reality it is a really small fragment of the total mobile market. SMS and display based ads provide broader reach and follow the “no phone left behind” policy. The iphone market is still small, yet it gets a disproportionate amount of attention from advertisers.
SMS campaigns have potential – There is a lot of potential with SMS campaigns and a number of companies have shown real success with them. The key to a good SMS campaign is to integrate it into the rest of your marketing campaign; highlight the shortcode across other forms of advertising. SMS is also highly measurable, so the results can be tracked and campaigns modified over time.
Apps face challenges – While apps get a lot of hype there are a number of challenges in launching a successful app. There are now over 50k apps in the iphone store (and growing) and discovery of apps becoming an issue. There are not a lot of brands that have had success with iphone apps.
Comscore released a list of the top 25 apps and their market penetration (ie. what % of iphone owners have downloaded them). Surprisingly, over 1/3 of iphone users have downloaded TapTap Revenge. Games are proving to be the most popular download for iphone users - surpassing even social network app downloads.
Popularity of Categories
- Almost 50% of the top apps are games (12 out of 25)
- Entertainment is the next most popular category (4/25 top apps)
- Social Networking is third most popular (3/25 top apps)
Social Networking Popularity
- 26% have downloaded facebook followed by 23% for myspace and 19% for aim
- Twitter apps do not appear on the list - potentially because there are a number of apps for twitter (whereas myspace and facebook have an official app).
- Iphone users are 3 times more likely than average to visit social/communication/ entertainment sites including: AOL IM, Hulu, Twitter.com, Digg.com, iMeem and MTV.com
Iphone Usage is Largely Personal, Not Business
A look at the top iphone apps underscores that iphone usage is primarily personal vs. Blackberry usage, which is primarily business related. Games, social networks and entertainment make up the bulk of the downloads, with the remainder being entertainment related
The Comscore Top 25 List
Top 25 Apps by Penetration of Apple App Users February 2009 Total U.S. - Home/Work/University Locations Source: comScore Apple App Store Report Penetration Of Application Installs Category Developer Tap Tap Revenge 32% Games Tapulous, Inc. Backgrounds 27% Entertainment Stylem Media Touch Hockey: FS5 26% Games FlipSide5, Inc. Facebook 26% Social Networking Facebook, Inc. Pac-Man 24% Games Namco iBowl 24% Games SGN MySpace Mobile 23% Social Networking MySpace.com Google Earth 22% Travel Google Inc. Labyrinth 22% Games Codify AB Pandora 21% Music Pandora Media, Inc. AIM 19% Social Networking AOL Flashlight 19% Utilities John Haney Virtual Zippo Lighter 18% Lifestyle Moderati Inc. and Zippo Manufacturing Co. Movies 18% News Flixster Hangman 18% Games Jamsoft Bubblewrap 18% Entertainment Orsome Software Ltd. Lightsaber Unleashed 17% Entertainment Lucasfilm Ltd Shazam 17% Music Shazam Entertainment Ltd. Mazefinger 16% Games ngmoco Cube Runner 16% Games Andy Qua Sol Solitaire 15% Games Smallware LLC Crazy Penguin Catapult 15% Games Digital Chocolate Inc. Topple 15% Games ngmoco Sudoku 14% Games Mighty Mighty Good Games Remote 13% Entertainment Apple
We all know that the iphone app market has been growing like crazy since it launched…. We want to help keep you up to date on the amazing growth of the app store…. Here are some quick #s to keep you up to speed on the growth of the market:
- The app store has been open for just over 9 months.
- There have been over 1 billion apps served.
- There are over 30 million devices sold (between the iphone and itouch).
- There are over 35,000 apps available on the itunes store.
- The average iphone user downloads over 20 apps (some say more than 40)
- In the first month there was over $30 million transacted on the app store.
- The app store is growing quicker than itunes.
- Number of app users is growing at about 10% per month - Comscore
Techcrunch reported that Stanford University has released a free online course on How to Develop Iphone Apps for via itunes (you can even watch it on your iphone).
The course can be found on the Stanford University itunes site. Whether you are already programming or a looking to refresh your skills this course can be a great resource.
With over 25,000 apps that have been downloaded over 800 million times there is fierce competition for apps.
Check out this great resource - if you have already used it let us know what you think
We’ve all heard the stories…. independent developers make millions by building a random yet wildly popular iphone app.
Wired recently wrote about app developers who went “from rags to riches” with their apps. Take, for example, Steve Demeter - the app poster boy. His wildly popular game Trism sells for $5 (a really high price point for the app store) and it is estimated that he’ll make over $2 million from his app by July. Steve has been featured in a video by Apple, and on CNN and a number of other news sites. He built the app himself with some help from a friend and a designer (who he paid $500).
In a sense, the App Store, despite its corporate ties, has created an open market where developers can strike it rich with minimal resources — even out of a garage — so long as they possess the talent and the time. - Wired
What is the secret to Trism success? According to Demeter:
- Unique Gameplay
- High Replay Value
- An online leaderboard that creates community
We’d also add a few things:
- He got in Early - When the app store launched there were only a few thousand apps; now there are over 25,000. It is harder to stand out.
- Already been tested - the game was launched as a free version for jailbroken phones prior to the launch of the app store - the bugs were worked out before he started selling the app.
- Momentum early on - Gaining early momentum matters in the app store.
What do you think makes an app successful?
Gartner Recently released their report with global smartphone sales and growth around the world, but how do regions stack up in terms of growth and adoption.
Neil Young, CEO of Ngmoco told Venture Beat that “Ngmoco generates more than half of its revenue from outside the U.S.”
- Smartphone sales grew 69% in 2008
- In 2008 the market continued to grow, despite a down economy
- Smartphones are accounting for 20% of sales, a dramatic increase vs. 2007
- Predictions are that sales growth will slow.
- Growth will be driven by operators pushing data plans.
- Smarphones will see more competition from full-feature enhanced phones will full qwerty keyboards, which have similar functionality but are cheaper.
- Smartphone sales recorded 2.3% sequential growth; Sales of high-end devices remained strong
- 7.5 million unit sales
- Mobile devices overall dropped by 9.2% in 2008 due to weak consumer confidence.
- Nokia lost only 2% market share to Apple. RIM and Samsung are both gaining share.
- Touch devices are growing.
Europe, Middle East and Africa
- Smartphone growth up only 2% in Q4
- Replacement purcahses are dropping in Europe, yet smartphone sales increased by 9.6% in 2008
- Samsung’s new phone the Omnia was the major contributor to growth; Samsung share nearly trippled in the 4th quarter of 2008.
“In 2009, mobile platforms will be a major battleground as the associated user experience and role of the ecosystem grow in importance.”
Gartner Research recently released Q4 and 2008 global market share reports for smartphones, both by device and by operating system. The results might surprise you. Especially when you see who is and isn’t growing.
WorldWide Device Sales
- RIM Blackberry continues extremely strong growth.
- Nokia is is sharp decline.
- HTC continues to have strong growth
WorldWide Operating System Growth
- Symbian is declining quickly due to pressure from new platforms and the decline of Nokia (which uses the Symbian OS). Share is down to 47 % from 62% in 2007.
- RIM continues to grow, now at 20% of market vs. 11% in 2007
- Android smartphones are estimated to account for 20% of all Linux OS sales, making the Android OS a relatively small global player. Linux sales are growing quickly (up 19%) primarily driven by Anroid-based smartphones sold through T-Mobile.
- Microsoft Mobile is growing driven by popularity of the Samsung Omnia and HTC touchscreen products.
One of the key issues with fragmentation in the smartphone Operating System market is that it creates issues for app developers. Currently different versions of apps need to be created for each OS - companies aren’t going to hire hundreds of programmers to program each OS. ZDNET predicts that Android and Windows Mobile are likely to get pushed out of the picture.
That doesn’t mean it’s time to count other platforms out. Andrew Lacy, chief executive of Tapulous, said he expects the Google Android, Palm Pre, Nokia, Windows Mobile and RIM BlackBerry platforms are all likely to see good growth in the coming year as smart phones replace older phones at a fast clip. But Lacy said it will become much tougher to support other programs if it means hiring a couple of hundred programmers to adapt games to run on all of the other platforms. - Venture Beat
Cell Phones Give Us More
Last month NYTimes columnist John Markoff wrote a great article called The Cell Phone, Navigating our Lives.
The cellphone is the world’s most ubiquitous computer. The four billion cellphones in use around the globe carry personal information, provide access to the Web and are being used more and more to navigate the real world. And as cellphones change how we live, computer scientists say, they are also changing how we think about information.
Think about that. The smartphone and especially touch phones like the iphone, storm and HTC are making it easier than ever to get information on-demand. We are consuming that information every day.
Powerful apps for these platforms don’t simply take a website and put it into an app. They provide unique value. A newer, better way to get and process information.
With the dominance of the cellphone, a new metaphor is emerging for how we organize, find and use information. New in one sense, that is. It is also as ancient as humanity itself. That metaphor is the map.
The Power of the MAP
“The map underlies man’s ability to perceive,” said Richard Saul Wurman, a graphic designer who was a pioneer in the use of maps as a generalized way to search for information of all kinds before the emergence of the online world.
Hmmm - the power of the map. Not only can you find great restaurants, the nearest gas station and how to get to the closest Starbucks, you can also stalk (errr…. track) actual people. Google Latitude is a great example - you can find out where you friends are (like BriteKite, which never really caught on). The power of the map and of location is HUGE, and we are only just beginning to see apps that really take advantage of this data.
There is even a company involved in making money off of tracking you, Sense Networks, a New York City firm that mines the millions of digital trails left by cellphone users for marketing purposes. This is both very cool and very scary at the same time (data privacy anyone?).
Why are maps and location such a powerful concept? They unite the “real world” with the cell phone world. Marketers and app programmers now know where you are in the real world and can use this information to provide services and incentives for behaviour.
Think of the power. Seriously. Marketers or Google or whoever will know that you have been to 5 car lots and are thinking of buying a car. They know that you go to Starbucks every morning but are sometimes open to Duinkin’ Donuts. They know that you spend 45 minutes in the pet store each week (you must really love your dog).
For a generation of older Americans, exposing their precise location around the clock to an army of little brothers for marketing and advertising purposes is a privacy invasion.
But Just How Big Will Maps Get?
- About 10 percent of cellphone users take advantage of map features, according to the market research firm M:Metrics.
- 24 percent of those interviewed wanted GPS mapping capabilities on their next phone (according to LJS)
- Only 19 percent wanted an Internet connection (According to LJS)
We are still only beginning to realize how the power of smart phones will change our lives. What do you think? Are cell phone maps the game-changer for how we live our lives? Is providing our location a violation of privacy?
- Iphone is now in over 80 countries
- Goal was 10M iphones in 2008. Sold 13.7 in 2008.
- 17Million Iphones from June 2007 to December 2008
- have sold over 30M units with the IPhone OS (Iphone + Ipod Touch)
- Over Now have over 800M app downloads in 8 months
Iphone Developers Stats
- 800,000 dowloads of the Iphone SDK
- Over 50,000 Iphone Developer Program
- 62% of developers are new to apple
- The App Store levels the playing field – even individuals can create games and compete with big companies.
- There are over 25,000 Apps in the app store
App Approval/Submission Process is Easier
- In February 96% of apps submitted were approved
- 98% were approved in 7 days or less
Last week was a big week for the iphone app community. Apple unveiled some big things with the release of the Iphone OS 3.0 including peer-to-peer bluetooth play and more robust features for pricing apps including purchase within apps and subscription models.
While the possibilities are huge, the reality is that for app programmers, it is harder than ever to really make your app stand out. In their presentation apple featured individual programmers who have had success with iphone apps, but as more bigger players join the game it is going to become increasingly difficult for individuals to develop successful apps.
“With more than 6,700 games on the iPhone, and more than 2,000 of those free, according to Mobclix, it’s becoming harder for developers to draw users to their games. Venture-funded companies such as Ngmoco, Zynga and Social Gaming Network are moving in fast. If your game dips below the top 100 games, it’s almost impossible for users to discover. Apple highlights cool games on its web site, but being selected is like winning the lottery. While viral social games spread from friend to friend, it’s easy to get lost.” - Venture Beat
And that’s just games. There are now over 25,000 apps on the app store. It is also important to note that there are currently only 17Million iphones and 30million devices with the iphone OS (phones plus ipod touch). The total market potential is still huge.
Keith Lee, chief executive of startup Booyah, predicted that the iPhone and iPod Touch installed base would reach more than 100 million by the end of 2010. That’s far faster than the nearly six years it took for the Nintendo DS to reach the same number.
The growth is a lot to get excited about but as a programmer or a company with a new app, how will you make your app stand out? How will you embed word of mouth and viral spread into your design upfront?