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Making profitable
 Consumers’ appetite for compelling and innovative mobile apps seems
limitless. In fact, research firm Gartner estimated that mobile app store
downloads topped 8.2 billion in 2010 and will more than double in 2011 to
17.7 billion downloads.

mobile apps
Perhaps the biggest success story of 2010 is Rovio’s Angry Birds
application, which generated 110 million downloads as of mid-March
and showed no sign of slowing. Angry Birds has even generated sales
of ancillary hard goods such as toys and t-shirts, giving mobile develop-
ers a taste of the moneymaking potential a popular app can deliver.
Yet not every mobile app finds the type of success that Rovio has.
In fact, there are thousands of apps that go unnoticed by consumers.
Why? Sometimes the fault lies with the application, but often the prob-
lem is the business model or the lack of discoverability.
Creating a successful app encompasses much more than just having
a good idea. To get an app noticed developers must figure out ways to
differentiate their app from rivals, whether that means getting third-par-
ty reviews, enlisting the help of an app directory, or promoting the app
on social networking sites.
But the app discovery process is getting better, some companies are
specializing in application discovery and using recommendation engines
and other mechanisms to help consumers find apps based upon their
interests.
Nevertheless, making a successful mobile app is far from being
an easy endeavor. In this ebook, “Making Profitable Mobile Apps,”
FierceMobileContent will delve into such issues as the business model
(free vs. paid), differentiating your app from the competition, picking the
right distribution model and more.

Sue Marek
Editor-in-Chief /// FierceWireless

 Platinum sponsor:

3
Mobile Applications
5
Free or Paid: Which
8
Making Profitable
9
Today’s App Mantra:
12
Developers Must
14
Business Apps: The
 Gold sponsors:

Continue To Grow Model Works? Mobile Apps Make It Better and Consider Scale, Ease Next Frontier?
At Stunning Pace *Sponsored Content* Make It Known of Use When Selecting
an Operating System

MAY 2 011 MAY 2 011 2


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FierceMobileContent.com

Mobile Applications Continue said Rich Wong, partner with ing overall app industry growth. the next nine months or so,” said ably interesting as that develops,”

To Grow At Stunning Pace Accel Partners, a venture-capital


and growth-equity firm.
“If you are a consumer product
manufacturer trying to sell goods
Matt Vartabedian, vice president at
consultancy iGR.
Wong said.
Rovio’s Angry Birds app has
By Tammy Parker The biggest hit of 2010 was to consumers, you want to be in Of course, there are other shown what can happen when a
Rovio’s Angry Birds, which had as many retail stores as possible, OS options such as Research mobile app gains fans worldwide.
Rovio’s Angry Birds App generated 110 generated 110 million downloads within reason,” Wong said. “You in Motion’s BlackBerry and More than 2 million Angry Birds
million downloads by mid-March 2011 by mid-March 2011. “It’s quite want to use a multi-pronged distri- Microsoft’s Windows Phone plush toys have been sold and
amazing to see [Angry Birds] have bution strategy.” 7. “In our latest developer Rovio, which now terms itself an
worldwide reach so quickly, so “entertainment media company,”
that’s a pretty good example of hopes to expand its Birds franchise
how the mobile apps market is “It’s quite amazing to see [Angry Birds] to more traditional media such as
exploding,” said Wong, who led have worldwide reach so quickly, so TV and movies.
Accel’s investment in Rovio. that’s a pretty good example of how Rovio’s experience shows that
The full gamut of apps, from the mobile apps market is exploding.” “there’s going to be tons of ways
games to communications to  Rich Wong, partner, Accel Partners to make money,” Wong said. He
enterprise apps and more, appears noted mobile apps are becoming
to have a robust future. “The water a larger part of the overall media
level in this space is growing so industry and many will be ad sup-
quickly and so positively that I think Key to that distribution strategy is surveys, there’s very little ported going forward.
there are going to be opportunities the selection of the application plat- developer interest in those plat- Gartner includes ad revenue in
in all areas,” Wong said. form. For many, Apple’s iOS is the forms relative to the other its forecast for worldwide mobile
Gartner recently released its list obvious choice thanks to Apple’s platforms,” Vartabedian added. application store revenue, which is
of the top 10 consumer mobile iTunes-based content ecosystem. Despite the OS market fragmen- projected to surpass $15.1 billion
The short-term outlook mobile app stores generated nearly apps to watch in 2012. Location- But Google’s Android is coming on tation, the apps market appears in 2011, up from 2010 revenue of
is strong for continued 7.9 billion downloads during 2010, based services tops the list, but strong, and there are high hopes to be on the verge of not only $5.2 billion.
growth in this space. led by the Apple App Store, which context-aware applications will go for version 3.0 of Android, dubbed explosive growth but also a virtual In the longer term, the over-
However, in the longer racked up more than 5.6 billion far beyond mere location to “pro- Honeycomb. “I think there’s going cavalcade of innovations as more all structure of the mobile apps
term, experts say that accumulated downloads. vide improved user experiences by to be a great deal of activity on mobile users adopt smartphones industry could change dramatically,
the mobile apps industry Rival consultancy Gartner using the information about a per- creating apps and building a sub- and other connected devices. “We as there are some who feel the
could change dramatically, estimated worldwide mobile app son’s interests, intentions, history, stantial catalog for Honeycomb. haven’t yet fully realized what is current business blueprint amounts
particularly if all content store downloads at 8.2 billion environment, activities, schedule, There are 20 to 30 [Honeycomb- possible with that level of ubiquity. to a passing fad because all content
moves to the Cloud. for 2010 and forecasts that 2011 priorities, connections and prefer- based] tablets coming out over I think it’s going to be unbeliev- will ultimately move to the Cloud.
will see 17.7 billion downloads. ences,” Gartner said. How long that transition
 The mobile apps market Gartner predicts that by the end Gartner also lists apps based on might take and what it
in its current incarnation is of 2014, more than 185 billion object-recognition capabilities and Top 10 consumer applications to watch in 2012 would mean for industry

1 6
less than five years old but applications will have been down- mobile video. players are moot points.
it already generates billions loaded from mobile app stores An ongoing industry trend is the Location-based services Context-aware service “Apple and the other

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of downloads annually. And since the launch of the Apple App proliferation of app stores, with vendors are doing a good
as apps such as Angry Birds Store in July 2008. open, multiplatform storefronts Social networking Object recognition job of tying customers into

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generate sales of ancillary “It’s stunning to realize how being the latest wave. High-profile the platform itself, at least
hard goods—plush toys and much better the ingredients have app store GetJar Networks recently Mobile search Mobile instant messaging for now, but that may not

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t-shirts, for instance—this gotten in a very short period of attracted $25 million in Series C be material,” Vartabedian
area is becoming a part of time. I think that’s probably the funding, and Accel, an early inves- Mobile commerce Mobile e-mail said. “The transition to the

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mass public consciousness primary reason there’s an explo- tor, also participated in this latest Cloud is something all of
every day. sion of interest and some early round. The funding confirms the Mobile payment Mobile video the content providers are
According to ABI Research, massive leaders in this space,” importance of these stores in driv- looking at.” l
Source: Gartner

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Free or Paid: Which Model Works? company’s financial goals,


budget, and overall business
game developers such as Angry
Birds creator Rovio Mobile to travel
steep challenge for even the best
of companies.
Free apps encourage
adoption but many lack
By Peggy Albright objectives, among other vari- software developers like Mobiata “It is really hard to make money visibility with consumers
ables. The cost to use one to cloud app firms like Evernote and on mobile apps. Most don’t gener-
Offering an app for free can gener-
approach or the other is not Box.net. ate an ROI,” said Rajeev Chand,ate greater customer acceptance
Free applications dominate rier deck. Today, free applications usually determining factor. The projected global revenues managing director and senior than a paid app can. Revenues are
the market today but there dominate the market, because most are exciting are but the vast major- equity research analyst for wireless
created through advertising or by
are many new business products available from the Apple Paid applications rely on ity of individual developers or at Rutberg & Company. the “freemium” model, which gives
models that are emerging— App Store and Google Android Mar- high volumes of downloads software companies serving the Traditionally, a paid app is sold
the consumer an incentive to pay
some are paid, some are ket are given away at no cost and The obvious motivation to offer paid market will not share in the wealth. for an upfront fee, but it can also
for features, improved functional-
free and some are a hybrid monetized by other means. Yet a apps is the lucrative global revenue Forrester notes that the average include apps sold by subscription,
ity or virtual goods after they have
of both. variety of hybrid approaches, which opportunity, which is skyrocketing. selling price of an app is $2.43. as well as paid apps that offerdownloaded the free app.
combine aspects of paid and free According to Forrester Research, Developers need to sell products in opportunities for additional, in-app
Free apps are easier for consum-
 When mobile develop- approaches, are now emerging. revenue from the direct purchase very, very high volumes to gen- purchases. Paid apps can also ers to install than paid products,
ers first began selling their The evolution in business models of applications on smartphones and erate meaningful income. It is a come with and without advertising.
which encourages adoption.
applications to consumers, presents dilemmas for developers, tablets was $2.2 billion worldwide Developers can
the industry and ecosystem who must now choose among an in 2010 and expected to increase at use free apps
generally allowed one overall assortment of monetization oppor- a CAGR of 82 percent through 2015 “It is really hard to make money on mobile apps. Most don’t generate an ROI.” to avoid using
approach: charging the user an tunities. Their decisions will depend when it will reach $37.5 billion. a storefront’s
Rajeev Chand, Rutberg & Co.
upfront payment to download on the type of application offered, the The types of companies that will billing infrastruc-
an application from the car- type of company they represent, the benefit from this model range from ture if they don’t
like it.
Subscriptions are gaining inter- The main drawback to free apps
est. Urban Airship, which provides is that it is hard to gain visibility
a subscriptions platform that is against thousands of competitors.
used by Newsweek and other Even if an app rises to the top
companies, said subscriptions are of the content rankings, the lists
one of its fastest growth areas. change constantly and an app’s
Even so, subscriptions are not experience on the top of the chart
appropriate for all types of apps. might be short lived. The app
Paid apps have important intan- needs to get there fast and find
gible characteristics. Vincent ways to stay there.
Hoogsteder, CEO of Distimo, said The consumer market’s desire
that developers often wonder if a for free downloads is well docu-
consumer is likely to value an app mented. According to Distimo, the
more if they’ve paid for it rather top 300 apps in the Apple App
than downloaded it for free. They Store for iPhone in December 2010
ask if a customer is more likely to generated, on average, more than 3
tell their friends about an app if million downloads each day during
they’ve paid for it and if they’d be the month, compared to 350,000
less likely to delete it. downloads of paid apps per day.
While these are essential ques- For most developers, advertising
tions, they are difficult to assess. has not been a successful way to
“We don’t have hard data,” Hoog- monetize free apps. More than half
steder said. (57 percent) of developers surveyed
continued on page 7

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Sponsored Content
continued from page 6
recently by GigaOm Pro said their
pany has measured a drastic shift in
revenues from advertising to in-app
More revenue models
will emerge
Making Profitable Mobile Apps
apps generate less than $100 per purchasing during 2010. In the iOS While the in-app purchasing model by Edward Schmit, Director, AT&T De veloper Progr am
month in advertising. Just 9 percent marketplace in 2009, advertising for free apps has disrupted other
said their apps generate more than generated most revenues, but by approaches, this is still a nascent
$20,000 per month. Feb 2010, in-app purchases domi- industry and new business models  So you’ve created your app they are new, so you do not poor the user would not con-
The advertising approach has rap- nated. These purchases generated are certain to emerge. and released it into an app store. want to spread out your market- sider opting for a paid version.
idly been replaced by the freemium 80 percent of revenues in 2010. “There are permutations to the Now you wait for the dollars to ing effort over time. Create an If you have a free app, consider
model, which offers developers According to Farago, 3 percent free vs. paid models that are still roll in. A few days go by with integrated launch plan to build in-app billing (where available)
the opportunity to create a bigger of all app users are making in-app coming out,” Chand said. “This is minimal traffic for your app. on the new app momentum, and or advertising.
audience combined with the oppor- purchases while only 1 percent will a new space and it will evolve.” What’s happening? You’ve dis- focus your marketing tools and Fourth, if you start hav-
tunity to upsell customers to other click on a banner ad. The in-app One example, introduced by covered the vexing issue of “App funds right at the time of your ing success with your app on
products or services. The model, customers are making repeated pur- Tapjoy, is a pay-per-action adver- Discovery!” Developers are still launch. Make sure you use meta one platform, begin planning
introduced by Apple as in-app chases and they are spending from tising service that allows iOS and making money, but it is not as tags—they are not hard to cre- your cross-platform strat-
purchasing in October 2009, has 99 cents to $100 for these goods. Android developers to reward users simple as in the past when you ate and can yield big benefits. If egy. Some developers make
recently been adopted by Google “You can make so much money,” for completing some type of action- could write a silly application and
for the Android Market. This will he said, but there’s a caveat. “You able feature within an app. The then watch the money roll in. In
help propel its use. have to design a good experience. company inserting the suggested order to get your app discovered, If you start having success with your app on one
Peter Farago, vice president of You want people to come back action pays the developer a fee for you need to consider, quality, platform, begin planning your cross-platform strategy.
marketing at Flurry, said his com- again and again over time.” each action completed. l social media and pricing. Some developers make more money on platforms with
First, create a GREAT app. a smaller installed base simply because there is less
This seems obvious, but with competition. This can also help with recommendations.
Revenue Shift from Advertising to Virtual Goods Sales the wave of apps the quality has
gone down. Make sure you have
an intuitive design. Don’t just
$10
have your technical friends look you have enough funds, con- more money on platforms
9 Virtual Goods Sales (In-App Purchases) at it. Make sure you do adequate sider getting assistance from with a smaller installed base
user testing to ensure the inter- firms like Tapjoy or WDA who simply because there is less
Average Monthly Revenue per User

8 Advertising Revenue face is simple and intuitive. can help you create a distribu- competition. This can also
Many apps are sold based on tion strategy. And, check out help with recommendations.
7 recommendations from friends— the Launch section at AT&T Finally, in-app cross promo-
if your app is bad, you will not Developer Program website tion is another method of
6 get these referrals. Don’t forget to get great tools and ideas. boosting sales. If you have
to search through the catalog Third, think about your multiple apps, use the load
5
and spend time thinking of a monetization strategy. Many screen to advertise your other
4 good app name. developers under price their apps. Alternatively, negotiate
Second, take full advantage apps or give really good ones to trade advertising with other
3 of your launch. Use social away for free. With intense developers who already have
media and tools to get those competition, the “freemium” games in the market. In the
2 downloads the first week—it’s pricing model seems appeal- end, get out there and let the
no secret that the most suc- ing—in theory, you gain loyal world know about your app! l
1
cessful apps are those on the users who will pay more later
0 top selling list, and your best for the same app with more
chance to crack it could be features. These conversions
0

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10

01
0

20

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right after your launch. Apps prove difficult—quite a few apps


ug

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ar

pr

ay

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p

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ov

ec

Ju
Ju
Ja

Se
Fe
Se

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often receive attention when are good enough, others are so


M
D

A
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Source: Flurry

7 MAY 2 011 MAY 2 011 8


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Today’s App Mantra: cal to differentiating


and standing out
engine optimization, Web develop-
ment, social media, research and
ogy uses data from reviews as well
as download volume and ratings to
storefront.
Appitalism offers
Make It Better and from the crowd,” analytics. Its client base includes rank apps. Users can purchase apps an online rewards and

Make It Known said Scott Blank-


steen, CEO of
The LEGO Group, Epson America
and Toyota, Coca-Cola, MasterCard
via links on the Web site, which
take the user directly to the app
currency program. For
instance, people can
By Tammy Parker AppStoreHQ. and FedEx. store listing for the application. The obtain credits to spend in
He cites Insta- Pasqua noted that ideas for setting company notes that each purchase the Appitalism store by
gram photo sharing, apart a new mobile app can often a user makes via its site supports linking their account with
Experts say that social Pandora song ID, the Angry Birds be garnered from online customer both the application developer and their Twitter and Face-
media, reviews and referrals game and Zapd mobile Web site and editorial reviews of existing AppStoreHQ. book accounts, a program
from friends all contribute creator as apps that demonstrate apps as well as comments on social Third-party app review and online that helped Appitalism
to the success of a mobile “a singular focus on a rewarding networking sites. But she said that stores are becoming important gain 1 million site visitors
application. user experience and straightforward differentiation is only part of the avenues for app discovery. “We in six months.
usefulness.” job. The industry is rife with stories submit to all the top app directories. “We believe that
 Painfully common mistakes Rachel Pasqua, vice president of of fabulous mobile apps that never Depending on the kind of app and people will ultimately
in the mobile applications world mobile at digital marketing agency attracted a following. the client’s budget, we might also trust other people rather
include creating an app that is iCrossing, said her firm’s develop- “There’s no substitute for good do paid placements on app directo- than Google’s algorithms
no different or no better than ment process for mobile apps content and good functionality. That ries or pay for expedited reviews,” or some kind of technol-
rival apps and creating an app includes considerable competitive will speak for itself,” Pasqua said. Pasqua noted. ogy somewhere in order
that never gets noticed. But analysis, looking at top apps in the But every app must be promoted, According to Blanksteen, “New to help them find the right Appitalism offers an online rewards and
currency program.
developers and marketers are pertinent category as well as eyeing even at the most basic metadata users tend to discover apps through apps for them,” Bucking-
wising up about what it takes apps offered by a client’s rivals in level. “Make sure that your app is their phone’s associated official ham said.
to ensure successful differen- order to identify areas for differentia- appropriately tagged and appropri- app store: the iTunes App Store for Blanksteen, however,
tiation and discovery. tion. ately described, that you are using iPhones, the Android Market for predicts that a combi-
“I’m a huge believer that
“User-experience design, A unit of Hearst, iCrossing’s digital the correct keywords, that you how Android devices, Marketplace for nation of algorithmic
people will be driven by
with a focus on both efficient marketing services include—in addi- people are going to be looking for Windows Phone. Once they’ve load- mechanisms—integrat-
other people in terms of
utility and enjoyable UI, is criti- tion to mobile—paid search, search you within the app store because ed the first five or 10 common apps ing recommendations
their purchase behavior.”
that’s where the final conversion is (Facebook, Twitter, Angry Birds, based on app or user Simon buckingham,
going to happen,” she added. Pandora, Shazam, etc.), they are left similarity, ratings, and ceo of appitalism
Press releases, social media with a pretty disorganized view of usage—plus expert
promotions and blogger outreach are popular apps that only covers a thin opinions in the form of
standard ingredients for promoting slice of what is available.” editorial reviews will help crowd-sourcing and active listen-
an app launch, she said. He said all of the apps listed in lift social discovery to a larger scale. ing” about their content in order to
“Creating a great app and then Apple’s “Top” lists by category “It’s not always the case that we develop better apps.
launching it with traditional market- cover less than 1 percent of the like what our friends like, and some- Buckingham, meanwhile, is call-
ing—reviewers, seeding to lead available apps. So, users turn to times reviewers and the magic of ing for new industry measurements
users, cross-promoting with other search, apps marketing and recom- large-scale calculations can make us that assess customer engagement
apps, even SEO, advertising and mendations from their friends to aware of just the right app at just the with apps by ascertaining how
“User-experience promotional distribution—are the locate new apps. right time,” he said. long a user interacts with an app
design is critical basics. Beyond that, an app that “I’m a huge believer that people Going forward, Pasqua antici- or leaves it on the phone’s home
to differentiating makes it easy for users to share with will be driven by other people in pates context-based content, which screen. He contends that would
and standing out their friends and gives them real, terms of their purchase behavior,” accounts for preferences, location discourage developers from being
from the crowd.” intrinsic reasons to do so generates said Simon Buckingham, CEO and social links, will catalyze the able to “buy” their way to the top
Scott Blanksteen, its own discovery,” AppStoreHQ’s of Appitalism, which launched in industry. She also hopes brands of a sales-based apps list and would
AppStoreHQ’s App Rank technology uses data ceo, AppStoreHQ Blanksteen said. September 2010 and combines a and developers will gain more ultimately lead to the creation of
from reviews and downloads to rank apps. AppStoreHQ’s AppRank technol- social community with an online app “awareness of the importance of more innovative apps. l

9 MAY 2 011 MAY 2 011 10


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Developers Must Consider pear by 2015, when it will capture


less than 1 percent of the market.
Scale, Ease of Use When Android will have nearly half of
Selecting an Operating System the global market (48.8 percent)
in 2015 and Microsoft’s Windows
By Peggy Albright Phone 7 will rise to second place,
with a 19.5 percent share, driven
by Nokia’s decision to support it.
Distribution is closely tied three reasons for selecting an OS. Apple’s iOS will be third, with a
to the operating system, “It’s like saying location, location, 17.2 percent share and RIM will
making the OS decision location,” he said. decline to fourth place, with 11.1
even more critical to long- Right now, the OS market has percent. Various others will garner
term success. five prominent platforms, but 3.3 percent share.
this is quickly narrowing to four. In addition to market potential,
1  When mobile applications According to new research from numerous technical or business
2
3
4 5
first became a market phe- Gartner, today’s leading platforms considerations can influence a
6
7 8 9
nomenon, developers flocked include Symbian (with 37.6 percent mobile app development strategy.
* 0 # to Apple’s iOS because the market share), Google’s Android Developers like Apple iOS,
iPhone was exploding in (22.7 percent), RIM (16 percent for example, because it is easy
popularity and the Apple App ), Apple’s iOS (15.7 percent), and to work with. Developers know
Store offered more inventory Microsoft Windows (4.2 percent), that their products will offer high
and conveniences than other and various others (3.8 percent). quality and a good user experi-
application storefronts. Today, The market could be remark- ence. An iOS developer will not
Google’s Android platform ably different by the end of 2011, have to port their app to each
and the Android Market have according to Gartner. The firm iPhone model, which saves time,
the momentum, and many projects that Symbian, now aban- minimizes testing requirements,
other operating systems and doned by Nokia, will lose half its and reduced costs. On the other
app stores have entered the market share this year and disap-
continued on page 13
fray. With so many platforms
and distribution options to
choose from, how does a Developers like certain smartphone
developer know which OS or operating systems, like the Apple
app store to use? iOS, because it is easy to work with.

Operating systems
remain in flux
Developers have many criteria
for selecting an operating
system, but the most impor-
tant factor of all is its potential
reach. Paul Reddick, CEO
of Handmark, says the total
addressable market for an app
is so fundamental to success
that developers should make
it the number one, two and

11 MAY 2 011 MAY 2 011 12


FierceMobileContent.com

continued from page 12


Developers should also make and it is still evolving, which should make sure the storefront
hand, the “closed” development sure that an OS provides the tools can impact developers as they has the features and services Business Apps:
environment forces developers they need to make their application work with these outlets. needed to enable an application The Next
to play by Apple’s development work. The Ocarina music applica- Patrick Mork, CEO of GetJar, to fulfill its goals in the market.
and distribution rules, which tion for example, which can turn believes that the fragmented Developers should also consider Frontier?
do not appeal to everyone. a smartphone into a flute, could distribution ecosystem is not sus- geographic reach, because not By Peggy Albright
The Google-backed Android OS, not be developed for Android for a tainable. He believes developers all stores can serve all regions.
created in part to offer an “open” time because of a lack of a micro- can’t afford to spread their efforts Facilitating payments is a fun-
development and distribution phone API. The new Windows among multiple storefronts and will damental consideration that has Many enterprises are looking “Client devices are shrinking
environment, is also easy to work Phone 7 OS has yet to come out pick a few that provide the greatest for custom apps that will and becoming more mobile and
with, yet it is highly fragmented. A with a copy-and-paste feature, reach. And consumers will tend to streamline their business and we expect that trend to con-
developer may need to write sev- which frustrates many developers. shop at just a couple stores. “If they don’t maintain a improve productivity. But the tinue,” said Janel Garvin, CEO of
eral versions of an app to run on “You’ll see consolida- more standard and less development and distribution Evans Data Corp. “The days of
multiple device types, which can Fragmented distribution tion of app stores in the next fragmented platform, of those apps can prove the immovable desktop sitting in
take time and run up costs. Google ecosystem 24 months,” he said. developers will leave it challenging without the right a cube are just about gone.”
is trying to get this under control Today there are about 160 app Appia’s Dov Cohn, on the other for other platforms,” partners.
lest it undermine the Android eco- stores on the market and hun- hand, sees it another way. “We Dov Cohn, VP, products Making workers
system and alienate developers. dreds of thousands of apps. The believe that this is not a three or and marketing at Appia  Until now, most mobile more productive
“If they don’t maintain a more stores are offered by a variety five app store system, but that applications have targeted Companies are also develop-
standard and less fragmented of companies including device there will be a lot of app stores,” consumers. While that market ing mobile applications because
platform, developers will leave it manufacturers, platform pro- he said. many variables. Developers need continues to grow, developers CIOs realize they offer substan-
for other platforms,” warns Dov viders, mobile operators, and To select a storefront, devel- to consider the convenience are looking to the business sec- tial productivity gains and can
Cohn, vice president of products consumer brands. The crowded opers will want to consider the and cost of implementing bill- tor for new opportunities. Unlike streamline or remove many
and marketing at Appia, which field can make the app store market reach and business sta- ing and receiving payments, the consumer applications, which routine business hassles that
creates white-label application selection process complicated bility of the alternatives. They revenue sharing terms offered by are hard to monetize, business create inefficiencies, said Drew
storefronts for carriers the app store or other partners, applications have the potential Harmon, executive vice presi-
and other companies. how convenient the billing and to attract premium prices and dent at AppCentral (formerly
Microsoft is hoping payment mechanisms are for produce better revenues for Ondeego). “It’s a very high ROI
Device sales to end users, ranked by
to avoid these types of customers, and if the available developers. What should devel- investment,” he added.
problems with its new
operating system (thousands of units) options work in the applica- opers do to target this area? Numerous studies are assess-
Windows Phone 7 OS. OPERATING SYSTEM 2010 2011 2012 2015 tion’s target geographies. Mobile applications have of ing the potential market value for
The company has stan- Symbian 111,577 89,930 32,666 661 Developers also should look at course been used by businesses mobile business apps. Frost &
dardized screen sizes, the application submission pro- for years, for asset tracking, Sullivan projects a $10.9 billion
Market Share (%) 37.6 19.2 5.2 0.1
for example, to minimize cess. The testing and certification field-force automation and other market in annual revenues by
Android 67,225 179,873 310,088 539,318
related fragmentation requirements vary, along with the functions. But mobile broad- 2015 for mobile office, mobile
issues, and the OS is con- Market Share (%) 22.7 38.5 49.2 48.8 fees and the time it takes to get an band-enabled smart devices and workforce management, mobile
sidered straightforward to Research In Motion 47,452 62,600 79,335 122,864 app evaluated and approved. Some applications are giving compa- field asset management, and
work with. But Microsoft Market Share (%) 16.0 13.4 12.6 11.1 storefronts are more forthcoming nies new reasons to expand or mobile sales force automation
does need to work hard iOS 46,598 90,560 118,848 189,924 with analytics than others. improve their mobile strategies. applications.
to reach sales volumes Market Share (%) 15.7 19.4 18.9 17.2 Marketing procedures and poli- The tendency of employees Research firms are also asking
Gartner expects for it. It is Microsoft 12,378 26,346 68,156 215,998 cies also vary. Developers need to to use their personal mobile developers to identify the types
courting developers heav- know how a store organizes and devices for work is also putting of software projects businesses
Market Share (%) 4.2 5.6 10.8 19.5
ily and offering numerous promotes apps on their sites, if it pressure on companies to make are emphasizing. According to
Other OS 11,417.4 18,392.3 21,383.7 36,133.9
financial incentives to lets the developer influence the key IT functions and systems an Evans Data study released in
attract them to the plat- Market Share (%) 3.8 3.9 3.4 3.3 marketing and promotion of their available to those devices. January, 72 percent of mobile
form. Total Market 296,647 467,701 630,476 1,104,898 apps, and advertising options. l
continued on page 15
Source: Gartner (April 2011)

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developers plan to extend enter- (each with more than 20 percent), own enterprise apps in-house. their enterprise software platforms,
prise apps to mobile devices within followed by unified communica- “In all cases the opportunity is Harmon suggested.
the next year. tions (more than 15 percent). there,” Stephen Drake, program Mobile operators want to help
In January, IDC Research asked Mobile payments, M2M and vice president for mobility and develop and distribute applications.
mobile enterprise developers to approval software were each telecom at IDC. “Depending upon Verizon Wireless offers business
characterize their current work or mentioned by fewer than 15 per- the play, we’ve seen a tremen- apps in its V CAST Apps store
work planned for the next three cent of respondents. dous amount of new ISVs coming and it has launched packages of
months. Social business applica- Lots of firms are involved in in to develop apps that can really apps for vertical markets. Sprint
tions and standalone productivity mobile application development address some of these new operat- is considering establishing a busi-
tools that are not integrated with including independent software ing systems and new opportunities ness application marketplace and
the corporate back-end infra- vendors, operating system and app for those clients.” is working on a solution to ease
structure have the most activity store organizations and mainstream But not all small-to-medium sized discoverability and ordering of
(each with more than 30 percent enterprise software solutions businesses are set up to develop business applications for business
responding). Business intelligence providers that want to add mobility applications and many need off- corporations want custom solu- Some opportunities will emerge customers and their employees.
apps, field force and sales force to their products. In addition, some the-shelf products from application tions. They expect to have in-house because businesses are allowing Developers that may not have
automation were also popular companies are developing their storefronts. In addition, many teams eventually, but need consul- employees to use their personal established relationships with
tants in the meantime. devices for work activities. Com- operators before may find rea-
panies will need security solutions son now to join their developer
Expertise in certain and ways for IT to manage the programs, because SMBs and
Categories of Business-Focused Applications Being industries will apps. They are also expected to enterprises have close relationships
Developed Now and in the Next Three Months foster innovation want techniques for sandboxing with their telecommunications
“Most of the innovation and the suc- corporate apps and information providers and seek them out
(Developer Survey Conducted January 2011; Multiple Responses Allowed) cess we see comes from third-party separately from personal applica- for services and expertise.
developers who see an opportunity tions on employee devices. Verizon Wireless has hand-picked
or market need and have the exper- about a dozen developers who spe-
Social business
tise and knowledge and are able to Private app stores will cialize in specific vertical markets to
Standalone productivity tools develop something and bring it to offer customized apps recommend to companies.
(not integrated with corporate back end)
market to sell to corporations,” said Currently, some enterprise soft- Laura Osbaldeston, associate
Business intelligence applications John Tudhope, director of applica- ware firms are using consumer app director for SMB strategy, partner-
(e.g. CognosMobile) tions marketing at Sprint. stores to distribute mobile applica- ships and applications and the
Some of the most interest- tions to take advantage of existing Verizon Developer Community for
Field force automation
ing innovation will occur as solutions and avoid the need to business markets at Verizon Wire-
businesses create new cat- build and deploy custom distribution less, said the company wants to
Sales force automation egories of applications. systems. Techniques to allow bulk- help developers from the consumer
For example, many large consum- licensing of software for companies market learn about enterprise
Unified communications er brands are now building mobile represents an opportunity for inno- trends and needs so they can prop-
business-to-consumer applications vation, according to Harmon. erly target their work and decide
Mobile payment/mobile billing and many corporations are build- While consumer oriented stores what types of applications to build.
ing mobile business-to-employee and apps are available and con- “The challenge developers have
Machine to machine applications. Digital marketing firms, venient, many companies in the right now is that they’ve been
which previously performed web future will build their own private so consumer focused because
Approval applications site development for corporations, app stores so they can control that’s where the money was,
will help with this work, Harmon what employees have access to and there isn’t a lot of under-
0 5 10 15 20 25 30 35 40 said. In the future, business-to-busi- and install on their devices. Some standing, unless they’ve come
(% of respondents) ness mobile applications will create may also want specialized stores from industry, to realize where
n = 608 Source: Appcelerator and IDC’s Mobile Enterprise Developer Survey, 1Q11 another new need. for customized mobile versions of there’s a need,” she said. l

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