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Business

The “Onboarding” Problem

With some types of mobile app, getting a user to download it is just the beginning of the problem. If the application is going to be personalised to a user’s preferences, or allow them to interact with others via some online service, then they’ll need to provide some data before they can start using it. Typically the more information a user provides about themselves, the better job an app or service can do of tailoring the experience to them. Unfortunately, the more steps a user has to go through before they can start using an app, the less likely they are to complete the signup process. Getting this wrong can catastrophically alter the economics of user acquisition.

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Business

Which apps make money?

[This post by Andreas Pappas, Senior Analyst at VisionMobile, first appeared on the VisionMobile blog on 13 November 2012.]

[Andreas Pappas takes another look at the results of VisionMobile’s Developer Economics 2012 survey and comes up with interesting new insights on app monetisation: how does app revenue vary by app-category and by country? Is there a correlation between time spent developing an app and they money it makes?]

VisionMobile - which apps make money

In Developer Economics 2012 we discussed app revenues and how they vary across platforms. We found that overall, around half of all app developers that are interested in making money did not earn a sustaining income, i.e. they were below the “poverty line”, which we drew at $500 per month per app. Of course the real poverty line will vary widely across countries and regions: while $500 per month may not be enough for a San Francisco-based developer, it could be more than enough for a developer based in Bangalore where average living cost is less than a third, according to Numbeo.

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Business

Different Ways of Winning on the App Stores

winning on the app stores

A recent report from Canalys highlighted the extreme concentration of income distribution across the iOS and Android stores in the US. The top 25 publishers make 50% of the revenues. 24 out of 25 of those are games publishers (the 1 exception is the Pandora music streaming service). During the first 20 days of November these 25 publishers made $60m from paid downloads and in-app purchases in the US alone. Is there still room left for smaller publishers? How can smaller companies succeed and start winning on the app stores?

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Business

Advertising to Existing Users – could re-engagement reap rewards?

re-engaging users

Currently the vast majority of mobile app advertising is used to generate new installs. At the same time, for some of the most successful revenue models, a small fraction of the most active users generate the bulk of the revenue. Free-to-play games are a good example of this model but there are similar in-app purchase driven schemes in other categories. Whilst a user is still very engaged with an app it’s likely that the most cost effective way to increase their spend is within the app. However, if an existing user stops using an app regularly ,then might there be more value in re-engaging users than acquiring a new user?

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Platforms

From Mobile to TV: The companion screens opportunity and the role of apps

[This post on Mobile to TV, by Peggy Albright, guest author for VisionMobile, first appeared on the VisionMobile blog on  17 September 2012.]

[The latest trend in app development is targeting companion screens, as a way to bridge a multi-screen experience. Guest author Peggy Allbright investigates the future of app development on companion screens -and TV apps in particular – and discusses how TV advertising has found a whole new screen to engage users on.]

The Future of TV Apps

TV applications are opening up a new business frontier for the mobile industry. But we are still in the most nascent phases of the TV app industry’s formation and it needs to evolve on many fronts. Fortunately, early startup activities are revealing some of the roles that devices, apps, developers, merchandising and advertising can play in this industry, as we’ll see in this article.

The industry is well aware that consumers want to be engaged with their devices while watching TV and that many consumers are beginning to use mobile devices and apps as interactive “companions” to supplement the TV viewing experience. New research released by Google in August provides some of the latest data to characterize this trend. Google found that in a typical day, 77% of television viewers use a second device, such as a tablet, smartphone or PC, while watching TV. More than one-fifth (22%) of these consumers are using the TV and their second device in ways that complement each other, even if it is only a simple search related to the live TV programming.

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Platforms

The yellow brick road of app store monetisation

App Store monetisation
the yellow brick road

[This post on App Store monetisation by Andreas Pappas, Senior Analyst at VisionMobile, first appeared on the VisionMobile blog on  31 July 2012.]

Apple and Google dominate the app store game – but only in terms of size. Senior Analyst Andreas Pappas discusses the key success factors for app stores, why Google is lagging behind and how Amazon fits in the whole picture.

With Amazon challenging Google’s app market and Apple allegedly offering the best monetisation potential, several developers and analysts have put these claims to the test by comparing monetisation data across the three app markets. Differences in monetisation potential can have a significant impact on developer mindshare: developers will seek to leverage platforms that will make them more money.

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Platforms Tools

Mobile Platform Wars: Winners & Losers in 2012

Mobile Platform wards

[This post first appeared on the VisionMobile blog on 9 July 2012.] The game of ecosystems is in full bloom, with each player attempting to draw as many developers as possible around their platform. As we finally see some signs of consolidation, VisionMobile Senior Analyst Andreas Pappas, talks about mobile platform wars, the rules of engagement and identifies the winners and losers in this game of ecosystems in 2012.

Moreover, we’re proud to introduce VisionMobile Visualisations – live. These are interactive graphs with tons of data from the Developer Economics 2012 research!

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News and Resources Platforms

Appsfire Infographic illustrates once more difficulty to get to the top

Appsfire Infographic

Appsfire Infographic shared figures for the iOS App Store in 2012.

  • The growth in the amount of apps, while still high, seems to be slowing. This might indicate that the market is maturing.
  • Only 1 in 10 apps gets any reasonable traction at all. Only 1 in 1000 manages to get to the top 10 of the App Store. For non-games, only 1 in 1690 reaches the top.
  • The percentage of paid apps has dropped dramatically.
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Platforms Tools

Cross-Platform Tools – Functionality and Trade-offs

CPTs components

Cross-platform tools (CPTs) are a class of developer tool that aim to enable a single implementation of application functionality to run across multiple platforms. If that definition seems very broad it’s because the category covers a wide range of use cases, technology approaches and forms of app deployment. In our analysis of this sector from February 2012 we identified over 100 tools across three forms of app deployment (native vs. web vs. hybrid) and five different technology approaches.

Fundamentally the various platforms are not compatible and the use of a third party tool to solve this issue comes at a cost. The effort saved through a CPT often has a financial cost but more often the largest trade-off is against a loss of flexibility, control or performance. Different tools produce different compromises. In many cases what is lost is not required to deliver the desired experience, so it’s worth understanding the different approaches and choosing the right tool for each project.

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Tips Tools

Mapping Cross-Platform Development Tools: Technology Approaches

cross-platform development tools

In our 2012 analysis of the cross-platform development tools (CPT) sector, we have identified five distinct technology approaches being used:

  • JavaScript frameworks
  • App factories
  • Web-to-native wrappers
  • Runtimes
  • Source code translators

Each technology targets a slightly different developer audience – from non-developers to seasoned programmers – and addresses different application use cases. These technology approaches are not mutually exclusive; many tools use a combination of technologies. For example some runtime-based CPT solutions are adding a webview component, which enables them to create hybrid web app wrappers.

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