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As we begin 2010, there are more than 100,000 iPhone apps available for download — a dizzying array
of choices, with hundreds added each day. There are plenty of gems out there that have truly changed
the way we work and play. But there are plenty applications that will simply disappear over time due
to poor design or lack of utilitarian value. As marketers grapple with the question, “to build or not
to build,” let’s take a step back and evaluate what it takes to make a successful iPhone application
-- one that will drive brand and revenue -- by using a simple framework for determining your iPhone
application strategy.
Now that we understand how to measure it, what will the application do? Nowadays, brands cannot
push messages out to consumers, they have to provide real value and we generally call it brand as
an enabler. Applications that drive brand usually fall under one of two categories: entertainment
or usefulness. Entertaining applications usually have a wider adoption, more downloads, but less
engagement as users open it just a few times before their attention is diverted elsewhere. Useful
applications have a smaller reach but higher engagement; fewer users will download the application,
but they will use it much more than simple entertainment applications. However, the key for both types
is simplicity.
Direct revenue can be generated from advertising or downloads, and both have different strategies.
Revenue from advertising is similar to brand-driven applications: the approach aims to reach as many
users as possible by providing free entertainment or utilities, and to collect revenue through third party
advertising. However, download revenue can be more complex as it involves pricing strategy.
The secret to maximize download revenue is pricing. The most popular paid applications are priced
between $0.99 and $3.99, with predominant 99-cents applications. These applications are what we call
the “big-fast sales.” Most users download them and use them once or twice; they’re predominantly
entertainment and provide small value to the consumer, but the mass download provides great initial
revenue and then stops. The most grossing applications are actually priced between $4.99 and $9.99
at 44% and account for 44% of revenue. These applications are downloaded less frequently, but used
more often as they usually provide tangible value.
Conclusion
So what does it take to make a successful iPhone application? You need a strategy, know what you
want, how to get there, and how to measure. Keep it simple, make it engaging, and provide a means to
share and pass-along.
This article was originally published in Freelance Review, December 13, 2009.