mobile apps / index /

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INDEX /

MOBILE APPS
CHAPTERS 01 / INTRO 02 / TIPS 1 03 / TIPS 2 04 / CONSUMERS 05 / CASE STUDIES 06 / APP STORES 07 / DEVICES 08 / FUTURE 09 / STATS 10 / REFERENCES 11 / CREDITS

01 / pages 3-4

06 / pages 26-30

INTRODUCTION
02 / pages 5-6

APP STORES
07 / pages 31-34

TIPS FOR BRANDS / PART 1 by John Cecil-Wright

03 / pages 7-9

LANDSCAPE / DEVICES
08 / pages 35-36

TIPS FOR BRANDS / PART 2 by Alexander Fairfax

04 / pages 10-14

LOOKING AHEAD
09 / pages 37-38

NUMBER CRUNCHING
10 / pages 39-40

LANDSCAPE / CONSUMERS
05 / pages 15-25

REFERENCES & LINKS

11 / page 42

BRANDED APPS / CASE STUDIES

CREDITS

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01 / pages 03 - 04

INTRODUCTION
So how to engage, without spamming? How to sustain interaction without constant redevelopment? How to apply the creativity for which the advertising industry is so well known to location-based technologies and teeny tiny screens? Step forward the humble application, or app for short. Opt-in, flexible, and considerably better looking than your average SMS, applications can fulfil all the requirements of a successful and engaging branded utility, carrying with them a disproportionate emotional clout. They can be useful. They can be relevant. They can be entertaining. The best ones are all three. The other unexpected benefit of a branded app on a mobile device is privacy for the user. Social networking sites such as Facebook have been labelled an apps graveyard due to the low rates of uptake amongst user communities. This has been attributed to several factors, not least the way in which social networking apps tend to be best experienced when tied to ones desktop computer, and a degree of embarrassment from consumers in associating themselves so publicly with what is still, to all intents and purposes, advertising. Mobile phones are not only portable, theyre personal meaning that a useful branded app concealed discreetly in the privacy of ones pocket could prove more appealing. Following the debut of Apples iPhone, with its revolutionary touchscreen interface (not actually a trademark, although it may as well be), sales of the device swiftly claimed Apple a 11% share of the global smartphone market, dominated by Nokia at 40%. However, the iPhones creative, social and technological potential

CHAPTERS 01 / INTRO 02 / TIPS 1 03 / TIPS 2 04 / CONSUMERS 05 / CASE STUDIES 06 / APP STORES 07 / DEVICES 08 / FUTURE 09 / STATS 10 / REFERENCES 11 / CREDITS

Over the past 10 years, the mobile phone has become the one gadget that nobody, from media mogul to suburban school kid, can do without: the undisputed winner of the battle of the bulge, the race for the space in your pocket. As trend researcher Sean Pillot de Chenecy once remarked, No-ones ever going to commit suicide because they left home without their iPod.
To date and to their credit, marketers have shown an almost preternatural reticence to get stuck in to mobile, perhaps noting that email as a marketing medium is only just staggering to its feet after a series of sucker punches dealt by spam marketers. This in addition to the fact that the advertising industrys collective ego has been bolstered over the years by the production of cinematic films for TV, artistically crafted print ads for glossy magazines, and latterly, flashheavy microsites designed to enthral and bedazzle. Small wonder, perhaps, that the charms of the mobile phones small screen size, restrictive price plans and a preponderance of entry level handsets designed at most for SMS marketing have taken a while to engage our attention. However, with 4.1bn handsets now in circulation and countries such as China, Brazil and India appearing to leapfrog the desktop stage of technological evolution and head straight for the mobile web, the potential for targeted, practical brand communications via the cellular device seems assured.

Illustration: Chellie Carroll /

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CHAPTERS 01 / INTRO 02 / TIPS 1 03 / TIPS 2 04 / CONSUMERS 05 / CASE STUDIES 06 / APP STORES 07 / DEVICES 08 / FUTURE 09 / STATS 10 / REFERENCES 11 / CREDITS

was only fully realised in March 2008 when Apple, a company not normally known for encouraging postlaunch tinkering from their rabid and willing fan base, broke with tradition by releasing a Software Development Kit for the Apple App Store the hub from which all iPhone compatible apps could be downloaded. The explosion of user-generated content facilitated by the internet was no longer confined to the production of content such as video and music. The App Store had expanded Apples development team to include everyone with an interest in technology and an idea. The store now numbers some 30,000 apps and passed its billionth download in April 2009. This is proving lucrative for independent developers and Apple alike, with iPhone apps only available through iTunes. The man behind the iShoot game is reputed to have netted $600,000 in the first month of availability. As for Apple: with one billion downloads, of which 30% are estimated to be paid-for at an average price of 99 cents each were talking revenues of some $297m through the App Store, 30% of which is retained by Apple. And thats not including the listing fee charged to developers. An oft-quoted statistic of unknown provenance yet extreme credibility states that 98% of creative directors have an iPhone. 1% of actual people have one. As with any new marketing medium, there are controversies. At a time in which economic adversity sees advertisers less willing to take risks, especially when they cannot be guaranteed scale, the benefits of uncharted territories such as mobile applications are still somewhat hazy. Is the target audience large enough to justify the technological investment? Thankfully, the arrival of several other big players in this space looks set to confirm the app as a medium worthy of investment. Googles Android Market has

got off to a slow start due to the absence of compatible handsets to rival the iPhones sleek design. However, the steady introduction of Android-friendly models, a more ubiquitous open platform that promises to deliver content regardless of manufacturer, the fast take up of Android phones over the costlier iPhone in Asia, and a backer with a track-record in the establishment of successful online hubs could make this a surefire winner. Meanwhile, Nokias Ovi a content-sharing service linking phones and the internet is indicative of a larger move towards convergent services for the manufacturer at a troubled time in its 144-year history (the company announced a 90% fall in profits for the first quarter of 2009). In this Contagious Special Report, well be looking at how the mechanisms work. Whos taken the plunge. Whos succeeded, and who has failed. What benefits there are for brands in engaging with this emerging space, and how to build an app worthy of consumer attention. Well provide an overview of the consumer landscape and mobile usage before exploring some of the case studies we like best. Well look at the meteoric rise of Apples App Store and its foremost position in this retail space, as well as the devices that are leading the way. Well also take a longer-term view on where apps are headed from m-commerce and augmented reality to their potential to improve our health. The rise of the application represents a land grab for the hugely valuable real estate in all of our pockets. Once we have an app for bar-hopping, recipe shopping, or blood pressure monitoring, its going to take an awful lot to have us switch. And if the internet has proven that pull marketing can engage and stimulate communities of loyal brand enthusiasts, mobile represents a chance to apply those principles to more personal relationships between brands and consumers.

STATS /

There are an estimated 30 million combined iPhone and iPod touch users around the world The Apple App Store had more than 35,000 applications at the end of April 2009 iPhone owners download an average number of 37 apps in total to their devices, while G1 owners download an average of 40 Apple posted second quarter 2009 profits of $1.21bn and $8.16bn in sales Nokia has 41% share of the smart phone market The iPhone generates 33% of all smartphone traffic worldwide 3G subscriptions rose 300% in the US in 2008 Mobile internet penetration is at 17% in the US, 16% in the UK, 14% in Italy and 12% in France India and China add an average of 10m and 8m mobile subscribers per month, respectively

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05 / pages 15-25

BRANDED APPS / CASE STUDIES

CHAPTERS 01 / INTRO 02 / TIPS 1 03 / TIPS 2 04 / CONSUMERS 05 / CASE STUDIES 06 / APP STORES 07 / DEVICES 08 / FUTURE 09 / STATS 10 / REFERENCES 11 / CREDITS

The burgeoning popularity of apps is providing a fertile playing ground for advertisers. They are a new channel for highly targeted, interactive content that resides on the one device that no one leaves home without. If done right, apps offer an opportunity to build an ongoing dialogue with your customers and can potentially increase loyalty.
But how to do it right? Given the huge numbers of available apps (most of which are non-branded), and the ever-increasing competition for the valuable screen real estate, how can brands stand out? Getting a top ranking in Apples App Store requires a lot of downloads in a short space of time, according to a study by Pinch Media. Six months ago, 10,000 downloads got you into the top 25; today it takes twice as many. The key is to add value to your audience by providing a relevant and targeted service or piece of entertainment that, ideally, creates a viral effect. Its about leveraging your content (and brand) to enhance your customers lives whether through functionality or fun. In this section we take a look at some of the brands that we think have been doing it well. Weve divided the case studies into those that are service-based, and those that have more of a social remit. In this respect, we see in apps the convergence of marketing and product development; marketing and entertainment; marketing and information. And the brands that are getting it right are those that are embracing these new roles. Service-based apps / Kraft / iFood Assistant The worlds third-largest food and beverage company, Kraft entered the application fray towards the end of 2008 with the iFood AssisKraft / iFood Assistant

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CHAPTERS 01 / INTRO 02 / TIPS 1 03 / TIPS 2 04 / CONSUMERS 05 / CASE STUDIES 06 / APP STORES 07 / DEVICES 08 / FUTURE 09 / STATS 10 / REFERENCES 11 / CREDITS

tant. The app quickly went to #2 in the Lifestyle category of the iPhone app store - impressive considering there is a one-off 99-cent charge for downloading it and in April 2009 remains in the top 100 paid applications. Whats more, it also features advertising which users are clearly happy to sit through in exchange for the service which it provides. The iFood Assistant furnishes consumers with tips, recipes and consequent shopping lists (obviously including Kraft products), aiming to make cooking quicker for those with less time on their hands, be it busy mums or professionals with hectic lifestyles. The 7,000 recipes are broken down into various categories including meal time, ingredients and preparation time - there are even step-by-step instructional videos covering techniques from chopping to seasoning. In order to access these recipes, users must first log in, meaning that at any given time Kraft can see how many people are going after what content - a useful tool for gathering targeted information. This is a real masterclass in branded utility from Kraft - proving that if you make something useful enough, consumers will be happy to not only be marketed to, but whats more, pay for the privilege AND exchange personal information. Of course, there is the chance that users may embark on the recipes using non-Kraft products. However by covering every detail from shopping lists to store locators, even specifying which aisle to buy the ingredients from, it literally becomes more effort not to tow the line and buy Kraft. While Kraft wont reveal financials or total number of downloads, the estimated revenues for the iFood Assistant are in the seven figures.

Theres a similar app available for Betty Crocker. A mobile version of the world-famous Betty Crocker Cookbook, this iPhone app which is free to download provides 4,000 recipes. As well as searching for specific dishes, you can type in ingredients of leftovers in the fridge, and the app will return recipes to match. You can also tag favourite recipes and email them direct to friends via your phones email function. GoodGuide / Launched in September 2008, the idea behind independent for benefit start-up GoodGuides website is simple; an online database of products that are rated on the basis of how healthy, environmentally friendly and ethical they are. As well as the comprehensive web-based database, GoodGuide extended the reach of the service by creating a free iPhone/iPod Touch app that consumers can use while out shopping. The app lets you search and view information and ratings for over 70,000 products, check the facts on the product as well as its manufacturer, and browse top rated products by category. Users can also create, access and share shopping lists either online or on the go. With household budgets being squeezed by the economic slowdown, consumers are making more considered decisions about what they buy; price, while a factor, is not the only criterion by which these choices are made. GoodGuide provides vital reassurance to shoppers who simply want the facts about what they are buying and this app is a neat piece of utility for those wanting to make the right choices while out and about.
Betty Crocker /

GoodGuide /

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06 / pages 26-30

APP STORES

CHAPTERS 01 / INTRO 02 / TIPS 1 03 / TIPS 2 04 / CONSUMERS 05 / CASE STUDIES 06 / APP STORES 07 / DEVICES 08 / FUTURE 09 / STATS 10 / REFERENCES 11 / CREDITS

Downloads from the App Store on Apples iTunes site reached a billion in April 2009, and the impact on Apples revenues has been significant: app downloads along with strong iPhone sales contributed to the companys $8bn revenues posted for its fiscal second quarter 2009, up almost 9% on the same quarter last year.
At the same time, competition is heating up in the app store space as challenger brands aim to eat into Apples leading market position. Notable launches into the consumer retail scene in the first half of 2009 include BlackBerry (BlackBerry App World), Google (Android Marketplace), Samsung (Mobile Applications store), Nokia (Ovi app store) and Microsoft (Windows Marketplace). Without a doubt other app stores can succeed, Alex Meisl, ceo of Sponge, told Mobile Entertainment in April 2009. We shouldnt forget that while Apple has made great strides, its market share is still pretty low. What Apple has done is raise the profile of handset apps by making the process seamless and intuitive. It can only encourage the others to work on their interfaces. While its possible for these competitors to be successful with their retail offerings its important to keep in mind Apples unique advantages: its premium brand; a single device; and a mature content distribution platform through iTunes. Apple has also benefited from fixed-price data plans that encourage increased use of the mobile internet. The competitive retail landscape is also likely to create confusion for new consumers who may be unable to buy from outlets that their devices dont support. Advertisers wishing to distribute their apps should assume that Apple will have the largest audience reach for the foreseeable 12 months.

Apple All-Time Top 20 Apps / All-Time Top Paid Apps Crash Bandicoot Nitro Moto Chaser Virtual Pool Cro-Mag Rally Flick Fishing Koi Pond MONOPOLY Here & Now Super Monkey Ball PocketGuitar iCopter Pocket God London Tube Bejeweled 2 Texas Holdem Real Football 2009 Blocked Fieldrunners TETRIS iShoot iFart Mobile All-Time Top Free Apps Facebook iPint Google Earth PAC-MAN Lite Touch Hockey: FS5 Labyrinth Lite Edition Lightsaber Unleashed Tap Tap Revenge Flashlight Shazam Backgrounds iBowl Crazy Penguin Catapult Remote BubbleWrap Audi A4 Driving Challenge Darts eBay Mobile Last.fm Movies
Source: Apple, iTunes, April 2009

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11 / pages 42

CREDITS

CONTAGIOUS SPECIAL REPORTS /

Contagious Communications 45 Fouberts Place London, W1F 7QH, UK T: +44 (0) 20 7575 1981 www.contagiousmagazine.com Published in partnership with Xtreme Information T: +44 (0) 20 7575 1800 www.xtremeinformation.com Xtreme Information is the market leader in the provision of media Intelligence and competitive advertising monitoring from around the world. Xtreme works with the majority of FTSE 100 and Fortune 500 multinational companies, and with every major advertising and media agency. The company is backed by leading US media investors, Veronis Suhler Stevenson. www.vss.com
No parts of this publication may be reproduced, copied or transmitted in any form or by any means stored in any information storage or retrieval system without the publishers written permission. Where source material has been reproduced the copy-right remains the property of the copyright owner and material may not be reproduced in any form whatsoever without the owners prior consent. Published April 2009

CHAPTERS 01 / INTRO 02 / TIPS 1 03 / TIPS 2 04 / CONSUMERS 05 / CASE STUDIES 06 / APP STORES 07 / DEVICES 08 / FUTURE 09 / STATS 10 / REFERENCES 11 / CREDITS

Published by Contagious Communications Editorial Director Paul Kemp-Robertson Editorial Consultant Noah Koff Series Editor Georgia Malden Edited by Lucy Aitken, Georgia Malden Contributors John Cecil-Wright, Icom / www.icomgroup.net Alexander Fairfax, Jeanie Media / www.jeaniemedia.com Illustrations By Am I Collective / www.amicollective.com Chellie Carroll / www.chelliecarroll.co.uk Design FLOK Berlin / www.flokline.com Production Smita Mistry, Ellie Kilburn, Dean Dorat

This report is part of an ongoing series of Special Reports produced by Contagious. The series also includes reports on Branded Entertainment, Mobile Marketing, Goodvertising and Branded Utility. For more information, call +44 (0) 20 7575 1886/1882 or vist www.contagiousmagazine.com/shop

Branded Entertainment /

Goodvertising /

Branded Utility /