App Market Research Template

This is the template that STOA utilizes to analyze the market for new apps. We focus on keyword research and comparable apps to create a snapshot of potential app markets. This methodology is not complex, but determining specic keywords can be very challenging. As discussed in App Development for Beginners - Part 2, the three main types of apps are Unique Apps, Repurposed Apps, and Improvement Apps. For the latter two types, determining keywords to research can be fairly simple (ie: if you wanted to create a new Tic-Tac-Toe app, you would utilize the keywords tic, tac, and toe together in a logical combination). For unique apps it may be unclear what keywords to utilize, so the best method is to select keywords closely related to the purpose of your app to quantify search trac, and then select two or three of the most similar type apps in the store to analyze competition.

Keyword Research
Keyword research is a completely dierent subject in itself, so we are just providing the most basic analytic tools here. We use Market Samurai so*ware to assist with keyword research and will show specically how we use it below. You can also use the free Google Keywords Tool to perform similar functions as Market Samurai. Performing keyword research is also invaluable when you release and market your app, because you must select the right keywords so that customers can nd it in the App Store and through web searches.

Steps and Examples

We have divided the market research into several steps below and there are three app examples in each step. These hypothetical examples mimic the three main app types mentioned above. For Unique Apps we will test a musical instrument app for a dulcimer (similar to a guitar). We will test a ball game called Four Square for the Repurposed App. Finally, for the Improvement App, we will compare 3 dierent types of card games that already have apps in the store.

Step 1: Determine Keywords

A keyword, in the context of search engines, means a word or group of words that people use to nd a specic item such as a webpage, app, product, etc. The rst step in our market research is to establish one or more keywords for each app that are closely related to what the apps purpose is. The following keywords have been chosen for each type of app:
Keyword Other Potential Keywords Global Monthly Searches (GMS) App Store Competition (ASC) Market Potential (MP)

Unique App - Dulcimer dulcimer lap dulcimer

Repurposed App - Four Square Four Square 4 Square Ball Game

Keyword

Other Potential Keywords

Global Monthly Searches (GMS)

App Store Competition (ASC)

Market Potential (MP)

Improvement App - Card Games Euchre 32 Card Euchre, SixHand Euchre, Bid Euchre Texas Canasta Contract Bridge, Rubber Bridge,

Canasta Bridge Game

TIP
If you are having trouble determining keywords for your app, let Market Samurai do it for you. When using the Keyword Research tool, simply press the Generate Keywords button on the main screen to generate a list of related words.

Remember that you can research on multiple keywords to determine the best ones for your particular app. Create a list of alternative keywords in column 2 of the table and list the Global Monthly Searches in column 3.

Step 2: Quantify Search Trac

The next step is to enter your keywords into Market Samurai to determine the search trac. Type your keyword into the Keyword Research tool using the settings shown in Figure 1 and select the Keyword Analysis button to generate the total number of Monthly Global Searches for the word.
Figure 1 - Market Samurai Keyword Analysis

Keyword

Other Potential Keywords

Global Monthly Searches (GMS)

App Store Competition (ASC)

Market Potential (MP)

Unique App - Dulcimer dulcimer lap dulcimer 135,000

Repurposed App - Four Square Four Square 4 Square Ball Game 40,110

Improvement App - Card Games Euchre 32 Card Euchre, SixHand Euchre, Bid Euchre Texas Canasta Contract Bridge, Rubber Bridge, 165,000

Canasta Bridge Game

673,000 201,000

Step 3: Determine App Store Competition

We will now move on to determining the App Store competition. Regardless of which type of app you are interested in developing, you need to nd out how many similar apps are already available in the store. The goal is to make sure that the market is not already ooded with similar apps. Go to the App Store/iTunes and type in your keyword/keywords in the search bar. When the search results come up analyze how many of the found apps are closely related to yours and enter the number into column 4 of the table. If there are no related apps to yours then put a 1 in this column. Also, if there is a lite and full version of the same app, only count it once in the column:
Keyword Other Potential Keywords Global Monthly Searches (GMS) App Store Competition (ASC) Market Potential (MP)

Unique App - Dulcimer dulcimer lap dulcimer 135,000 1

Repurposed App - Four Square Four Square 4 Square Ball Game 40,110 1

Improvement App - Card Games Euchre 32 Card Euchre, SixHand Euchre, Bid Euchre Texas Canasta Contract Bridge, Rubber Bridge, 165,000 12

Canasta Bridge Game

673,000 201,000

3 7

Step 4: Calculate Market Potential

The next step is to calculate the Market Potential for your app. Take the Global Monthly Searches (GMS), divide it by the App Store Competition (ASC), and divide again by 10,000 to determine the Market Potential (MP): GMS / ASC / 10,000 = MP Enter the nal number into column 5 of the table:
Keyword Other Potential Keywords Global Monthly Searches (GMS) App Store Competition (ASC) Market Potential (MP)

Unique App - Dulcimer dulcimer lap dulcimer 135,000 1 13.5

Repurposed App - Four Square Four Square 4 Square Ball Game 40,110 1 4

Improvement App - Card Games Euchre 32 Card Euchre, SixHand Euchre, Bid Euchre Texas Canasta Contract Bridge, Rubber Bridge, 165,000 12 1.3

Canasta Bridge Game

673,000 201,000

3 7

22.4 2.9

Analyze Results and Continue Research

Now that you have arrived at your apps Market Potential it is time to decide whether it is a worthwhile venture. A good Market Potential (MP) should be above 5 and preferably higher than 10. Please note that this is not an exact science, but it is a good initial indicator of the potential market for the app. The nal step is to perform any other research relevant to the type of app that you want to create. Answer the following questions about your app: 1. Do similar apps rank well in the App Store under their respective categories (Entertainment, Games, Lifestyle, etc.)? 2. Will this app operate well and have a good user interface on a mobile device? 3. Does this app have the potential to add value to the users experience of their mobile device?

4.From an objective standpoint, is this the type of app you would need/want for my iPod touch/ iPhone/iPad? 5. Does the app really have the potential to sell on the App Store, or if it is a free app, will it draw a lot of downloads?

A*er answering these questions, revisit the MP that you determined and weigh it with your other ndings to create a clear, objective view of your apps potential. Try not to fall in love with an idea and then ignore signs that the idea might not materialize well into a mobile application. Be certain that there is an audience out there willing to buy/download the app by performing diligent research and analysis. There is tremendous competition in the App Store so these early steps are crucial to the success of your app.