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Marketshastra Round 2
IMPLICATIONS : What are the implications of proliferation of apps in app stores today?
With a large number of popular apps in the same category, there is unprecedented competitiveness in the market1
Entertainment Tools Casual Personalization Lifestyle0
2000
4000
6000
8000
10000
12000 11070 10586 10522 10334
7128
Number of apps with >50k downloads
Top 5 categories on Play Store™ by number of apps with >50k downloads
~11.17% of all apps in the Play Store™ are either undeveloped or erratic1
Key Inferences
App stores are flooded by developers who are publishing new apps every day2
iOS Android0%
50%
100%
150%
200%
250%
160%200%
YoY Growth Rate (# of apps) as of 2014
iOS Android150%155%160%165%170%175%180%185% 180%
160%
YoY Growth Rate (# of developers) as of 2014
iOS
Android
0 200000 400000 600000
280,000
390,000
# of developers
1.6 million apps – Android1.5 million apps – iOS 3
Sources: 1. – AppsBrain Statistics ; 2. – AppFigures Statistics ; 3. Statista Statistics ; 4. Primary research, see spreadsheet of responses
Play Store™ has ~290k apps with average ratings of 4 or below
As more apps are developed, app indifference is setting in, where most apps go unnoticed or are commonly
under-utilized.
56% of the smartphone users reported to have more than 20 apps in their phone and only 12% claimed to use more than 20 apps regularly4 (in a week), clearly showing signs of
app indifference.
Indian Institute of Foreign Trade | Delhi
Dawn of the Future
Success of an App
App-first, app only or otherwise
App-market scenario
Current App Market Scenario (1/2)
App-development today involves
minimal technical expertise
The growing smartphone market makes development
lucrative
Disrupting the market is nearly impossible with
available technology
Surviving in the existing market
needs high responsiveness
Soon, most “me-too” apps will fade with emergence of clear
category leaders
The average consumer is
becoming more tech-savvy
Spreadsheet of Responses
SUCCESS FACTOR : What are the factors that affect the success of an app?
Current App Market Scenario (2/2)
App-differentiation and development of USP
• Lack of market research• Developer loses focus on problem-
solving, in awe of his creation
Carving out a niche positioning is necessary for success in the fragmented app market, like Hike focuses on free SMSes
1
Timing of release of apps• Most apps are released without proper
testing, leading to poor initial customer review
Focus should be on launching a tested, well-developed version of the product, rather than on moving in early in an already crowded market
2
Security and privacy
• Use of insecure 3P frameworks may cause phishing and ambiguous crashes
• Personal / app usage information sharing makes people uncomfortable
Secure, though cost-heavy development is sustainableLook for alternative business models, beyond selling BigData analytics feed
3
Consumer requirement identification• Most apps address ‘nice-to-have’ needs
and with storage space constraints, people don’t download these apps
Develop a ‘must-have’ need based core competency for the app, around which background features may be added
4
Responsiveness - update frequency• User reviews post-launch and technical
expertise of the development team in meeting the needs is crucial
Develop a sustainable and modifiable code with a team that is prompt in responding to development requirements
5
Factor Problems and Root Causes Solution
Indian Institute of Foreign Trade | Delhi
Dawn of the Future
Success of an App
App-first, app only or otherwise
App-market scenario
DAWN OF THE FUTURE (1/2)
FUTURE OF APPS : A bubble that is waiting to burst or a fad that is here to stay??
The estimated world population vs mobile device
population by the year 2016*
7.3Bworld
10BMobile device
For every 1 person in the world, we would have 1.4
mobile devices
Jul-13 Jun-14 ^20170
50100150200250300
50 75
268
App downloads (in bil-lions)*
^ - expected
A 560% increase in one and half years in terms of app
downloads
2014 201605
1015202530
11.4
24.5
Expected Revenue through apps (in billion
dollars)*
A 215% increase in two years in terms of expected
revenue
According to these data, the future of mobile apps looks bright and increasing at a healthy pace.
THE HARD FACTS
The other side of the coin
Acquiring the first few thousand users are easy, but post that it costs app startups anywhere between 250K to a million USD#, just to make a play in the app based services space.
*Source - http://businessdegrees.uab.edu
There aren’t that many app-focused incubators anymore. Also, the ones that are present are indistinguishable from other accelerators. This marks the end of low-level entry opportunity.
Start up issues
“Facebook will be the gateway for content, and Google will be the gateway for transactions in the future. Content is useful and helping users find that is interesting. But if you can enable a transaction, well, you’ve hit a goldmine.” - Vijay Anand, founder and CEO of The Startup Centre
Indian Institute of Foreign Trade | Delhi
Dawn of the Future
Success of an App
App-first, app only or otherwise
App-market scenario
FUTURE OF APPS : A bubble that is waiting to burst or a fad that is here to stay??
With increase in the review rates by app users and geo-targeted push notifications, app marketers could step up their game with increased personalization. Also, with more sophisticated tools for collecting and analyzing in-app data, they are getting to know their users preferences and are much more empowered to tailor messages to increase app usage.
Productivity apps Immersive appsUtility apps
OUR TWO CENTS
REVIEWS AND PERSONALIZATION : VITAL FOR SUCCESS UTILITY APPS : THE FORGOTTEN HERO
VIDEO MARKETING : ‘KILLING’ IT NICELY INTERNET OF THINGS : IS IT A THREAT TO APPS?
With video previews being the new ‘IN thing’ in Apple’s app store, we predict that we might see a full video adoption for app marketing. Looking at the leader in the video streaming market, YouTube, the mobile traffic is expected to hit 50-60% , with 98% of watching video on their smartphone. The video ad market is expected to hit $2.7B by 2017, YouTube will be a key platform for advertisers for apps.
Fitness trackers. Smart watches. Health monitors. The wearables got a lot of attention this year. The Internet of Things (IoT) has already taken off, but it is the future of IoT that is the concern. From innovations like Google Glass and the connected car, to the slew of new smart watches, the future of mobile apps looks to integrate them seamlessly into our lives. So, are apps dead? Certainly not. Is the context of app usage changing? Yes.
Utility apps are found in every mobile phones and most mobile devices nowadays comes with many implicitly installed utility apps. Tapping into utility apps and making it upgraded could draw traction to it and help in increasing app downloads in future.
DAWN OF THE FUTURE (2/2)
Indian Institute of Foreign Trade | Delhi
Dawn of the Future
Success of an App
App-first, app only or otherwise
App-market scenario
MARKETING: PRE-LAUNCH PHASE
Microsite containing USPs of the app and minimum interactive features Low investment in market research and competitor analyses
Development blog with regular updates about versions-in-progress of the app
Identifying niche bloggers and social network admins who would mention/write about the app
Rewarding active beta testers and offering them early sign-ups
Absence of a feedback loop of beta testers and early app users
Using unique keywords for the app name
App store optimization
Absence of a realistic release date
Absence of a precise and lucidly detailed description
Absence of organic acquisition of users
Lack of search engine marketing and absence in mobile advertisement platforms
Indian Institute of Foreign Trade | Delhi
Dawn of the Future
Success of an App
App-first, app only or otherwise
App-market scenario
SUCCESS OF AN APP (1/3)
1
2
3
4
5
6
1
2
3
4
5
6
Coexist, not compete
Offer services that current apps offer in a bigger, better package
Engage potential customers on the microsite with interactive features and experience
Provide sneak peaks, previews, invite-based downloads, teaser videos for exclusivity
Invite tech reviewers and blogs to review the new app – the good and the bad both
Build in social sharing so users can brag about any new experience with the app
Encourage feedback from customers and beta testers and incorporate modifications
More than a complete package Encourage users to brag
Microsite Matters Rave reviews Heed the Feedback
MARKETING: Launch Phase
SUCCESS OF AN APP (2/3)
Indian Institute of Foreign Trade | Delhi
Dawn of the Future
Success of an App
App-first, app only or otherwise
App-market scenario
MARKETING: POST LAUNCH PHASE
Analyze the number of users who retain the app after a month of the release to compare it with predicted figures during pre-launch phase
Release regular updates to keep users and customers engaged and interested
Work towards having some content work offline in the app, This will help in caching requests and responses which will make it easier to retrieve and present content to the user without having to make a network request
Do not overdo push notifications. Too many notifications can irritate users and prompt them to uninstall the app. Work towards having a robust customer response and support system.
Send emails to potential reviewers, users, customers and testers. Start with friends of the current users. Encourage users to email their reviews to their friends list.
Analyze the customer journey map – what is the maximum executable activity on the app. Improve the value of the app by providing more similar actionable items.
Indian Institute of Foreign Trade | Delhi
Dawn of the Future
Success of an App
App-first, app only or otherwise
App-market scenario
SUCCESS OF AN APP (3/3)
Indian Institute of Foreign Trade | Delhi
Dawn of the Future
Success of an App
App-first, app only or otherwise
App-market scenario
APPlicable or not?
Why?
Increasing smartphone penetration and internet user base
On an average, more time spent on mobile than computers due to increased mobility of devices
Slow internet in India and other developing countries hampers website browsing
APP-FIRST, APP-ONLY OR OTHERWISE
Upcoming trends
Accelerated Mobile Pages, which display rich high quality but light weight websites with improved mobile web performance
WebLight, which helps in display of websites in lower, easily loading quality
Aggregator apps which display preferred website content and store them for offline views too
Why not?
Decreasing free storage due to explosion of apps in each category
Rise of app indifference due to excess apps in every usable category
Additional download costs & apps requiring constant data usage to stay updated disillusions users
App-only strategy is only a fad, not a long term solution as more apps lead to customer confusion and
disillusionment
Websites are both more developer-friendly and user-friendly
With technology, websites are getting lighter on mobile browsers. Also, internet is becoming faster.
Our
Take
Thank you