Posts tagged apps

Demand for iPad higher than it was for the iPhone. Price or curiosity?

There is more demand for Apple’s forthcoming iPad then there ever was the iPhone, according to new research.

Is this surprising? Yes. Why? Because all the reports that were flowing out of newsrooms immediately after Steve Jobs introduced the new product where negative.

“It doesn’t have this…it doesn’t have that…” Bla bla. The critics were wrong. People still want the iPad.

As I have said before, consumers are curious about Apple. It seems to be able to do no wrong and what the bloody hell would you want a camera on a tablet computer for anyway? Research has backed me up:

A new survey from RBC/ChangeWave reveals that 13% of consumers were either somewhat or very likely to purchase the iPad, compared with the 9% who gave the same reply for the original iPhone in a similar survey conducted prior to its launch.

Mike Abramsky, RBC analyst, said that while he does not expect feverish initial launch lines such as the iPhone attracted, “the data portends well for healthy initial iPad uptake.”

The reason?

The iPad’s unexpectedly low price point – starting at $US499.

Only 8% appear unwilling to pay Apple’s indicated iPad prices, according to the survey, that well below 28% who balked at initial iPhone pricing.

But perhaps the high demand is also due to people’s curiosity over what exactly the iPad will do and how it will enrich their lives. Tablets have been around for years, so why all the hype now?

Consumers have been told that not only will the iPad change the way we consumer media, it will revolutionise our use of the internet…of how we use technology! It will make our lives easier and I guess you’d be crazy not to buy into that when it’s for such a low price.  

Top planned uses for the device among buyers includes surfing the internet (68%), checking e-mail (44%), and reading e-books (37%).

The iPad may have greater potential than first touted and gives further weight to Apple’s predictions that the iPad will be in the hands of more than 10 million consumers by the end of the year.

Better fix those censorship rules then guys.


Bookmark and Share

Too sexy for Apple?

Believe it or not but Apple has finally got something wrong, upsetting customers - and no, I’m not talking about the iPad.

Apple has begun enforcing stricter policies around apps available from its app store in a move that could see some apps removed entirely.

While the tech giant has so far only removed adult-themed apps, some games have also been removed.

Techcrunch reports that no more applications with “overtly sexual content” will be allowed, however, the criteria in which apps on the Apple store will be measured remain unclear.

The policy is expected to alarm some developers, and like other attempts to censor internet content, could see some apps banned for no reason at all - or at least in a case of misunderstanding (think of how in India you can’t look up ‘sex discrimination laws’ because the search term ‘sex’ is banned.

The news has already prompted many scathing opinions and blog posts on Mac enthusiasts sites such as cultofmac.com and 9to5mac.com. Blog posts on the sites are warning developers to make sure they don’t feature any “sexy women in apps” deeming the bans “ridiculous”.

The pulling of apps is in response to what is being dubbed as “sexy apps”, which also includes porn.

The move comes at a rather convenient time, with many touting that the clean-up attempt is to ready the market for its iPad, which is due to hit stores next month.

The iPad is expected to be popular with schools - carrying textbooks.

It seems that no medium is safe from censorship these days. And it isn’t necessarily a bad thing. For years, the internet has known no or little inhibitions - there were no clear boundaries and anything and everything was available for download. We called it freedom. And until the internet giants got on board with censoring content available through their sites, there was no way to apply any laws on the world wide web as it isn’t confined to any one jurisdiction.

But the question is now, how much power should these ‘internet giants’ have over what content can and can’t be seen - and furthermore, what is too “sexy”?

Bookmark and Share

Media rivals fear the great (free) power of the BBC

The BBC is gearing up for the launch of its first iPhone app, which will also include the iPlayer catch-up service in what is the latest example of traditional media outlets embracing mobile and digital. 

In a bid to capture audiences that have started consuming content in different ways, the BBC will launch applications based on its news, sport and iPlayer video services and will offer the content free.

But the move could put more strain on mobile networks that have struggled to handle the amount of data traffic, particularly bandwidth-heavy services such as video.

To be honest, it’s about time catch-up services caught up with smartphones (iPhone, Androids). However, the move is touted to intensify the debate about paid-for content.

However, rival media outlets have suggested that the BBC’s plans for a range of apps is a demonstration of the corporation exceeding its remit.

By offering free news and sports service, rival media groups will find it difficult to compete, generate advertising revenue and sell their paid-for apps.

The Newspaper Publishers Association told the Financial Times that the BBC’s apps would “strangle an important new market for news and information” and so “reduce members’ ability to invest in quality journalism”.

Britons already pay for the BBC through a license fee and programmes are ad free, so it will indeed be hard to compete with.

Meanwhile, we are all waiting to see what newspapers and magazines can offer on the iPad platform – the perceived silver bullet that will save the media industry. Time will tell…


Bookmark and Share

How to successfully market an iPhone app

Maria Mandel, senior partner at Ogilvy & Mather, New York, says that while marketing tools have expanded, the rules are still the same.

Marketing for iPhone apps is similar to marketing other products, although the marketing tools available have expanded recently - especially in the area of social media. The steps are still the same: develop a product that your customers need or would like to have (iPhone app), create and deliver a strong marketing message to attract a following, and continue to develop new products/features and upgrades to retain existing customers.

Step 1: Develop Key Value Proposition

What sets your iPhone app apart from all your competitors? Why would your target audience want it? You have to come up with ways to be unique. There are three key questions that you should attempt to answer as you define your iPhone app’s unique value. The answers to these questions become the basis of your marketing process:

1. What’s unique about your iPhone app? List all the features and functions that are unique to your app. This list will help you develop a marketing message for your app and keep you focused during app development.

2. Who is your target audience?

3. Who are your competitors?

Step 2: Deliver Your Message to your Targeted Audience

Demand for your app is created when you help a prospective customer see that you have a solution to their problem.

Delivering your message happens when you create powerful descriptions and visuals for your app on the AppStore and on your app’s own website and email distribution list. You must think in terms of showcasing your app on the AppStore and on a corresponding website/email. The email communications and website can be used to show videos of your app, provide additional screen shots and other content. Always display a “download now” button prominently on your own site that directs to your app on the AppStore.

Social media marketing can help you generate buzz for your app. Take a look at using Facebook, MySpace, Twitter and other social media tools to help get the word out about your app.

Step 3: Marketing Your App

With the right message and the right audience combined with the right marketing tools and methods, you can create marketing campaigns that will be extremely effective in reaching your ideal audience.

For every app you see – there are hundreds of thousands more that you don’t. While interactive content discovery is, for the most part, driven organically, the initiation of mass access to the content through intermediary media (blogs, newspapers, content aggregators, word of mouth) is only ensured through a strategically planned approach that includes both paid and unpaid media tactics targeting your audience. Paid awareness (mobile display ads, in-app ads) then become not only a driver of adoption/download but a highly unique showcase of the brand. Organic seeding is effective as well as public relations.

Maria consults across the Ogilvy group on emerging communication platforms such as broadband, mobile marketing, gaming, digital out-of-home, community marketing and advanced TV. She is the executive director of Digital Innovation & Digital Lab NA.

Bookmark and Share

Will a lack of understanding deter marketers from taking advantage of Apple’s iPad?

An online survey conducted by YouGov in the days following the launch of Apple’s iPad shows that awareness of the product is high but that there remains some confusion about its features and capabilities. Will this stop marketers from getting on board?

While 70% that were shown an image and provided with a brief description of the Apple iPad claimed to have heard about it, which is good news. But many were unsure of how to approach the new product and what they would use it for.

A large majority of respondents recognized that the iPad can send and receive emails (68%) and that it can connect to the internet via wifi (65%).

The e-reader capabilities of the product are also well recognized with almost two thirds (64%) of respondents expecting to be able to read electronics books and magazines on it.

Apple is famous for its lack of advertising and marketing activities in the lead up to the launch of its new products. It creates hype and buzz without ever confirming what it is doing, which in the past has been hailed by marketers. But this time, it could actually hurt Apple.

Marek Vaygelt, Head of Technology and Telecoms Consulting at YouGov points out that misunderstanding of the iPad’s operating system capabilities is greater among existing Apple customers.

He said that “Apple customers who own three or more Apple products have a very high awareness of the iPad but are way more likely than the population as a whole to believe it has a multi-tasking operating system. While this is a software rather than a hardware feature it suggests Apple’s core market might want to wait for an upgraded version.”

Despite this misunderstanding, while 7% of the survey’s respondents believe they will probably or definitely buy an Apple iPad, 23% of owners of three or more Apple products believe that they will definitely do so.

With 40% of British adults owning at least one Apple product, YouGov estimates that the vast majority of Apple iPad sales will come from existing Apple customers with iPhone and Apple iMac customers the most likely purchasers.

The company has done well to ensure it has a following of loyal brand advocates but will it be enough to guarantee the success of the iPad?

Perhaps what will really sell the iPad to new consumers is the apps that will be available. The only problem now however, is that no one has come up with anything compelling enough to capture the imagination of potential users.

It’s an open platform for marketers though, and we’re eagerly awaiting to see what they can come up with.

Bookmark and Share

Android vs the iPhone - who wins?

Google’s Android is proving more popular than Apple’s iPhone. Here’s why.

Android is winning in the popularity stakes over its rival iPhone, according to a new report from mobile entertainment site Myxer.

According to the report, Android has pulled far ahead of the iPhone in terms of traffic. Visits from users on the Android operating system grew almost 350% from December 2008 to December 2009, compared to iPhone visits which grew 170%.

But which phone will win customers over in the end?

Both the iPhone and the Android platform are designed for easy internet browsing but the Android wins out here. According to new data from Nielsen and compiled by eMarketer, owners of Android phones are the most likely to use their device’s internet functionality. Ninety-two percent of Android users say they take utilize their phone’s web connection, compared to 88% of iPhone owners.

If Android owners are slightly more web-enabled, iPhone fans are slightly more social. As recent comScore data demonstrates, iPhone users come out on top when it comes to most advanced social-oriented phone activities - everything from sharing photos to spending time on social networks and blogs.

And to the most important point for marketers, apps. You’d expect to see iPhone owners using and downloading apps more often than Android users given the 100,000 options at their fingertips. But Android owners come out just ahead in the relative realm of application usage: 76% of them say they utilize apps, according to Nielsen, while 74% of iPhone owners say they make use of their mobile programs.

The two smartphone platforms are neck-in-neck when it comes to using most of the so-called “advanced functions” - and practically every other mobile phone system is struggling to keep up.

Bookmark and Share

Why brands should look to social gaming for new revenues

Looking ahead to the future of the gaming industry, panelists at last week’s CES in the US highlighted a number of key trends to watch for, including increased user interface innovation, a focus on mobile gaming, and the increased use of in-game marketing.

The panelists were generally optimistic about the ability of the major game developers and console makers to capitalise on the rise of social gaming, with several pointing to the expansion of the gaming market beyond the core gaming demographic of 18 to 35 year old males.

Monty Sharma, co-founder and Vice President of Product Management and Marketing at Vivox, specifically pointed to the ability of developers to create console games that interact directly with multi-player online games, as well as with social networking sites such as Facebook.

By utilising such technology would allow game developers to expand the range of people that their games can reach, which could be both accretive financially and emotionally.

Brands that are cashing in include Danish toymaker Lego, which is seeking to build a presence in the world of multiplayer online games with the release of a new videogame called Lego Universe.

“Think World of Warcraft, Second Life and Club Penguin all wrapped into one,” said lead producer Chris Sherland behind the game.

Lego has previously released Star Wars, Indiana Jones and Batman videogames, but they were just for up to two players while with Lego Universe thousands of players can play at once.

Anything created in Lego Universe can also be ordered online from Lego.com and will be sent to the users address with building instructions.

In the past year, the social gaming industry has exploded, according to Adweek. Market leader Zynga, maker of the popular Facebook-centric games FarmVille and Mafia Wars, boasts 100 million players per month. Gaming giant Electronic Arts snapped up Zynga rival Playfish last November for $US300 million. Both companies have shown a knack for hooking consumers on games that tie into their social networks.

Social gaming companies have proved that internet users are willing to pay real money for virtual items. Zynga, for example, reported revenues of $US250 in 2009 alone with just 3% of users playing.

That leaves the door open to a substantial ad business says Adweek, although it is a tougher market to crack. Dubious practices of luring users into unwanted subscriptions by accepting marketing offers in exchange for virtual goods will act to deter consumers.

But virtual goods such as weapons or digital bottles of champagne traded in the US could be worth up to $5bn in the next five years, experts predict. In Asia, sales are already around the $5bn mark and rapidly growing.

For many, virtual goods are one of the hottest trends in technology and are fuelling huge growth in the social gaming sector.

Playfish is another social gaming company that started two years ago., it now boasts 11 online games and more than 61 million people who play those games worldwide.

It believes virtual goods will continue to lead to more riches but says that the sale of virtual goods is crucial to success.

Virtual goods is the whole story in the world of social games. It accounts for 90-95% of revenue for a lot of these social game developers.

Central to the early growth of this virtual goods revolution have been social networks like Facebook, MySpace and Bebo.

Users of these networks can also pay for virtual goods, such as digital birthday cards, champagne or flowers.

The market is clearly one with a lot of life in it, says the BBC, and about two thirds of the top 15 applications on Facebook are games, according to analytics firm AppData. Those ten games are said to draw more than 100 million users a month.

Proof of how successful the virtual goods business has become is evident in moves by Facebook itself to test a payment system to get a cut each time an online-game player buys a digital tractor or pair of flip flops.

Bookmark and Share

What Apple’s purchase of Quattro really means

Search giants are scrambling to protect revenues and tap into new areas of advertising

Apple has confirmed it has acquired the agency Quattro Wireless. Is it odd that a primarily tech company has acquired an ad agency?

My answer is no. Apple has gone to great lengths to establish itself as not just a tech giant but also a media company over the past few years – iSlate anyone?

It’s acquisition of Quattro (which was a reported $US300m)spells the next phase in its advertising strategy and ambitions to bolster its advertising capabilities across its iPhone platform and therefore implement a new revenue stream.  

However, Apple is probably less interested in profiting from ads than in making the iPhone the most attractive device for developers to build applications. It should also attract new brand advertisers that have previously been cautious of mobile marketing.  

Quattro has an ad serving, tracking and analytics platform to help advertisers engage with mobile consumers. Its Q Elevation platform can be used to target ad campaigns based on consumer demographics, location, time of day and other factors.

Mobile advertising is considered a hot market because of the potential to reach consumers on devices that they carry with them everywhere and personalise.

The market for mobile advertising is still relatively untapped, with effective approaches just beginning to emerge as spend on the medium expected to grow to £1 billion by 2013, as smartphones become increasingly popular.

 Apple could be using the advertising platform to generate more revenue from the iPhone, and potentially from the tablet computer it is rumored to be developing and launching later this month.

Also, keep in mind that this isn’t Apple’s first attempt to get in the ad game. The tech giant also reputedly wanted to purchase mobile ad company AdMob, only to have it snatched out from under its nose by Google.

Google bought AdMob in November for $U750 million. However, the deal is currently being investigated by US antitrust regulators, and two consumer groups have called on the government to block it.

Here’s an interesting pattern: Apple launches iPhone. Google buys AdMob. Apple buys Quattro. Google launches Nexus One.

The two are heavily pitted against each other. We’re excited to see what will happen next.


Bookmark and Share

The real strategy behind Google’s mobile venture

There’s more to Google’s mobile strategy than just the handset, retail.

Well it’s official, the Google Nexus One is here and it’s here to take on Apple. But what does this new smartphone mean for mobile phone market?

Google said at yesterday’s launch that the Nexus One is only the first Google phone of many, with one store to sell them all – the Google Store.

The idea of the Google phone store is simple. Buy the handset you want, then shop for the price plan you want, from the carrier you want.
That’s right, soon they’ll be no more wars over distribution as there was for, say the iPhone (which went to O2 in the UK). 

However, the current Nexus One is so far only to be available through T-Mobile. But Google hopes to expand its online phone store by selling more phones, from Google and other companies, each with a choice of operators. It’s a noble ambition, to really shake things up, to put some fear into the entrenched industry players – and of course, one step closer to total world domination – if an online store succeeds then it will take control of distribution away from the mobile operators.

It is interesting that Google has been getting more involved in shaping the user experience on Android handsets. But the real story is in the distribution. The new phone is really intended to draw traffic to a new online Google phone store. It will be tested first in the US, UK, Hong Kong and Singapore, but eventually extend to many more countries and cover multiple handsets and service plans from many different operators.

Google is getting into retail with the chance that it can nudge more phone purchases online, and can use this both to extend the reach of Android faster while at the same time neutralising one of Apple’s key differentiators - the real-world Apple stores.

Google may or may not be right about people’s willingness to buy phones without touching them first (the Nexus One is only available online) but it doesn’t seem a big risk to take, and it could be one way to outflank the iPhone – or at least give Apple something else to worry about.

One further advantage of bringing people to a Google store is the chance to integrate a phone purchase with Google Checkout giving Google a credit card number and a relationship with a phone customer – useful things for the future as it tries to build a market around its online application store.

Countering the iPhone is an overriding priority for much of the mobile world right now. Vodafone needs an answer to the iPhone in Europe, and the buzz around Nexus suggests this is the closest thing yet. Microsoft’s execution in mobile software has been floundering, and Google is the best alternative to Apple right now.

Bookmark and Share

Android crashes the smartphone party – will it push Apple out?

Android is quickly gaining in the popularity stakes, but can it even come close to the success of Apple’s iPhone?
 

Consumer awareness of Google’s Android is growing rapidly, due in large part to the Verizon Droid ad campaign in the US.

Further, of those American consumers in the market for a smartphone, 17% are considering the purchase of an android-supported device in next three months, compared to 20% indicating they plan to purchase an iPhone.

Last week on UTalkMarketing, we revealed that the new Android handset is expected to become more popular than Apple’s iPhone, according to exclusive research from OneNewsPage.com.  

Asked, ‘Will the new version of Android beat the iPhone?’, 77% of readers said yes, while just 23% disagreed.

The statistics show that despite Apple’s growing popularity, it might finally be losing its luster as new competition enters the market.

Mark Donovan, comScore senior vice president of mobile, said, “With handsets on multiple carriers, from multiple manufacturers, and numerous Android device models expected to be in the U.S. market by January, the Android platform is rapidly shaking up the smartphone market.

“While the iPhone continues to set the bar with its App Store and passionate user base, and RIM remains the leader among the business set, Android is clearly gaining momentum among developers and consumers.”

Although Android’s share of the smartphone market is relatively small, it has quickly doubled in the past year to 3.5% in October 2009.

Understanding the mobile media behaviour of Android users highlights why operators and media companies might embrace the platform and fuel its growth.

An analysis of mobile media consumption on smartphones revealed that users of both Apple and Android-supported devices were more likely to engage with mobile media than an average smartphone user.

Users of the Apple iPhone were most likely to consume mobile media, with 94% of users doing so in September 2009, while 92% of Android device users, predominantly T-Mobile G1 users, engaged in mobile media activities – 12% higher than an average smartphone user.

Apple and Android users are equally likely to engage with news via their browser and nearly identical in their mobile application engagement, according to comScore.

Email was the only major activity in which iPhone users (87% were far more likely to participate than Android users (63%).

Overall, Android users will behave more like iPhone users than other smartphone users giving some hope to Google and its endeavor into the mobile market next year. However, it is more bad news for BalckBerry and Nokia, which have already suffered declines this year following the launch of Apple’s 3G iPhone.

The question now is, is there room in the market for all four devices, or will older player be squeezed out?

Google’s Android platform has continued to gain awareness and has sparked interest this week by announcing a Google handset in the testing phases, but to be rolled out next year.

In August 2009, just 22% of mobile users had heard of the Android, while in November 2009 this figure had reached 37%, largely prompted by an advertising push launched in September. The comScore study found that not only is general awareness increasing about Android, but intent to purchase an Android-supported device is also increasing among mobile phone users.

When mobile users were asked in November which phone they planned to buy in the next three months, 17% said they planned to purchase an Android-supported device compared to 20% of respondents who said they planned to purchase an iPhone.

Has the iPhone lost its lustre?

Technology is a fickle market these days. Consumers have little loyalty and a very ‘gadget’ driven, keen to try out new devices and technologies – out with the old and in with the new is the attitude. We want the latest, up-to-date, ‘wow’ technology and we’re even more willing to ‘give it a go’. And with a brand name such as Google behind it, it’s no surprise the Android is participating success.

However, 21% of consumers are still planning to purchase an iPhone in the next three months.  Remember, Apple is untouchable. For now.

Bookmark and Share