EMERGEOUT 2010: App Store Economy Session

Arvind Jha, CEO, Movico TechnologiesRahul Tygai, Sr. Mgr. Cognizant TechnologiesBarnes Lam, Director, RIMSridhar Muppidi, CEO, PurpleTalkLokesh Gupta, CEO, Spice Labs

App Stores in ComparisoniPhoneAppStore

AndroidAppMarket

BlackberryAppWorld

PalmAppCatalog

NokiaOviStore

WindowsMobile Marketplace

Launch Date

7/08 10/08 4/09 6/09 5/09 TBD

# of Apps/

# New

250k+

525/day

110k+

600+/day

7K+

500per month

1.5K+ 7K+

800permonth

2K

AppsDownloaded

5B+30M per

day

1.3B+ 1M per day

67M 1.5M per day

?

# of Developers

50k+ 50k+ ? ? ? ?

% Free 28% 62% 24% 32% 15% 22%

Developer Share

70% 70% 70% 70% 70% 70%

Barnes Lam, Director – APAC AlliancesResearch in Motionblam@rim.com

About Research In Motion

Research In Motion Limited• Canadian. Founded 1984.• 550 Carriers/Partners. 175+ Markets.• Fortune Magazine, World’s Fastest Growing Company.• Revenues: US$14.95B (FY10, ending Feb 2010)BlackBerry• Sold over 100M. 50M in last 18 months• No. 1 smart phone in the US

No. 2 in the world (Canalys, April 2010), No. 4 mobile phone vendor (IDC, July 2010)

• 250,000+ Registered Developers. • BlackBerry Brand is 14th most valuable

in the world (Millward Brown, April 2010)

The Smartphone of the future …

6 6

Is about having the tools to power a new level of

communication, collaboration and integration that will

transform the way we work and live.

It will empower us by making us more connected and

engaged in every aspect of what we do.

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When it comes to enterprise and consumer apps…

We focus on enabling high value,

empowering experiences

Application Experience: A RIM Perspective

Super App Experience

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• Always-on experience• Seamless integration with native

apps and 3rd party apps & Contextualized

• Proactive, notification-driven• Social and connected• Efficient and intelligent

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Where are the apps? ….. enterprise

“ I can do that on my BlackBerry?”eUNO R

10: ECG On Mobile

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Apps for the individual

Super Apps Enablers

• Multi-threaded Operating System with background apps

• APIs for deep, contextualized integration with Inbox, PIM, Camera, Phone, etc.

• Rich event-based notification model• Push services for just-in-time data

delivery

Platform to enable highly engaging, real-time apps that act as natural extensions to the apps they already use

11End-to-end solution: Smartphone, OS, App Dev Environment, Application Store, Enterprise Middleware, Accessories and Operator partnerships.

Developers are key!

RIM’s commitment to increase our investment into

•Platform and Tools•Comprehensive Resources, including Open Beta Programs for SDKs!•Dev days, forums, webinars

•Developer Community•FREE Registered Developer Program•Super App challenge, rewards•Access local and world markets

•Strategic Partnerships•Application consultant support and Joint Go to market plan with carriers, partners•Enable cross leverage of partners globally

www.blackberry.com/developers

www.partners.blackberry.com

India developers can drive mobile apps development globally

• Raise the bar - engage deeply with BlackBerry

ecosystem, use the latest platform technology and

create Super Apps

• Cut cost and time to market - develop reusable

components / middleware

• Leverage the BlackBerry App World and market your

applications

Mobile Apps – App Life Cycle

App Life Cycle - Phases

»Inception of idea »Market Analysis

» Feasibility of product and market segmentation»Pricing strategies

»Revenue model »Paid App» Free App

»Rollout/Promotion Strategies» Exit Strategies

»Development » Flurry for analytics»AdMob Integration

»QA»DeviceAnywhere»Mob4Hire

»App Certification»Launch»Market Feedback

App Life Cycle - Typical Timelines

»Avg. complexity app can take 3-5 months from inception to launch»Inception and Market Analysis– 2 to 4 Weeks»Development and QA – 7-11 Weeks»App Certification – 2-4 weeks»Launch – 1 Week

Mobile App – Pricing Model and ROI

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Pricing :“Free MoApp Model”»Business Model

» Free App, Ad Impression based revenue model

» Free Lite version App and charge for Pro versions

»Simple Free App» Inception to Launch typical cost:

$20000-30000»3-6 months of ROI»Monetization with mobile ad

provider i.e. $3 per 1000 Ad Impression

»Highly Successful Free App»Android Task Killer, de-facto

presence on Android devices, millions of downloads

» Yelp, location based app for iPhone and Android

Pricing: “Paid MoApp Model”»Business Model

»Price per download »Simple Paid App

» Inception to Launch typical cost: $20000-30000

»3-6 months of ROI»Highly successful Paid App

» Trism, Made $250000 in initial few days from launch!

» Sling Player» Flight Track Pro

Free App

PaidApp

HybridApp

Pricing: “Hybrid MoApp Model”»Business Model

» Free app and up sell content during usage of app, called as “Freemium” i.e. social games

» Subsidized price per download and earn revenue from Ad impressions

»Simple Hybrid App, Hybrid apps are typically costlier

» Inception to Launch typical cost: $30000-50000

»3-6 months of ROI»Highly successful Hybrid App

»Mafia War» FarmVille

Mobile Apps Marketing

Sridhar Muppidi, CEO, PurpleTalksridhar@purpletalk.comwww.purpletalk.com

The 20-80 Rule

Development (20) / Marketing (80)

•Idea to App/Product (at least 5-10 people are working on the same idea)

•UI Design and UX are the most important

•Focus on simplicity

•Clearly know the direction your app would take in the upcoming 4-5 releases

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Rank is everything in App Store--Focus on getting to top 25 Rank in a category

Factors that determine rank:

1) # of downloads (regular updates & push notification)

2) Price (1.99 has 30% less downloads then .99 cents)

3) Rating (not proven but works: use appirater API)

TOP 5 MARKETING STRATEGIES

1) App Advertising

Tapjoy (offer wall) Apperang (cash for Install)

Flurry (ads & offer wall) OpenfeintX (offer wall)

ad networks 18

Marketing Basics

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2) App Store Marketing

•Logo

•Name

•Price

•Keywords

•Great design & regular updates can get you featured

Text

3) Online & social media Marketing•Website•SEO•YouTube & SlideShare•Twitter account & Facebook fan page

What to do on AppStore

4) International marketing (increases your downloads by almost 50%)

5) Great Support

a) Respond back to any support requests immediately

b) Monitor App Store your comments section

c) Monitor social networks, social media sites and discussion broads

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Example flow to launch an App

•Set up Twitter account well before launch

•Follow and RT interesting people

•Set up Facebook fan page

•Upload demo video to Youtube

•Upload demo to SlideShare

•Make app screenshots available on site for easy download

•Reach out to ALL the relevant blogs that you can find, and request reviews in advance.

•Make sure your website has contact info for your users

Text

Example flow after an app featured

1.Update iTunes Description, website, FB page, etc.

2.Release an update

3.Respond user comments through updates

4.Always keep Tapjoy etc. APIs integrated. when the app is featured, you can implement major promotion easily

5.Drop the price slightly--or substantially--till you see a spike in downloads

6.Make the app free for a few hours or a weekend if you can-getting to no. 1 will be worth it

7.Get the app icon to display ‘limited offer’ etc. if possible.

Checklists, anyone?

Category % Share

Games 20%

Entertainment 14%

Books 12.5%

Travel 6.7%

Utilities 6.5%

Education 6.5%

LifeStyle 5.6%

Others Balance

Mobile Apps – Top Categories

Child’s Play

Lokesh Gupta, CEO, Spice LabsLokesh.gupta@spicelabs.inwww.spicelabs.in

Paradox Of Choice

The Only Problem Was

Where To Start ?

We Started from End User

But not the Obvious one

Mobile Apps For KIDS?: You Got To Be Kidding ?

No. We Are Not

We Looked Around

We Looked Around

We Looked Around

KIDS Were Hooked To Cell Phone

And The World Agreed With Us

We Took Some Baby Steps to Capture this Niche

Kiddo

(C) Spice Labs www.spicelabs.in

(C) Spice Labs www.spicelabs.in

(C) Spice Labs www.spicelabs.in

(C) Spice Labs www.spicelabs.in

(C) Spice Labs www.spicelabs.in

Hangman

Kids

(C) Spice Labs www.spicelabs.in

(C) Spice Labs www.spicelabs.in

Maze

(C) Spice Labs www.spicelabs.in

(C) Spice Labs www.spicelabs.in

(C) Spice Labs www.spicelabs.in

(C) Spice Labs www.spicelabs.in

Parting Note :Know Thy Customer

Thank you!