Anatomy of an iPhone app
TJ Tee Partner, Alphapod
Hello there :)
How many of you • Own/have used an iPhone/smartphone • Are developing a mobile strategy for your
clients • Build apps
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
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
Avg iPhone user has 48 apps
iPhone apps most sticky
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
Native vs Web-based
Web-based apps • Works across all/most platforms • Requires a mobile browser • Build once, run everywhere approach
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
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
KILLER iOS FEATURES
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)
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)
Image source: Kotaku.com
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
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
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
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?
MARKETING + LAUNCH
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
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
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
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
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
MEASUREMENT
Why is it important?
Provides a clear indication of • Usage patterns • Feature efficacy • App navigation • Emerging behaviors (useful for future
iterations)
App metrics
Must-have basics • App downloads • Sign-ups (create account, FB Connect, etc.) • Active users • App launch • Custom actions (vote, submit, share, etc.)
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
Tools for measurement
Analytics • Mixpanel • App Annie • iTunes Connect • GoSquared • Google Analytics • Bit.ly
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, (-) $
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
MONETIZATION STRATEGIES
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
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
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
Ad-supported
• App is often free, user sees ads (e.g. AdMob, iAds, etc.)
• App owner earns from ad-generated revenue
Acquisition/action basis
• Lead generation – Sign-up – Download
– Enquiry
• User-driven action rewards e.g. TapJoy
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
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
THAT’S ALL, FOLKS!