TJ Tee - Anatomy of an iPhone App

Anatomy of an iPhone app

TJ Tee Partner, Alphapod

Hello there :)

How many of you •  Own/have used an iPhone/smartphone •  Are developing a mobile strategy for your

clients •  Build apps

What is an app?

•  A small software that carries out a specific set of functions.

•  A user experience •  An opportunity to engage with a highly

targeted audience

Characteristics of an app

•  Dependent on the native device operating system (OS)

•  Leverages on the native OS’ user experience •  Often has a simplified/distilled featureset (e.g.

a subset of the full website)

•  Doesn’t necessarily require an Internet connection to work

Avg iPhone user has 48 apps

iPhone apps most sticky

Are apps the next Website?

No. Why? •  Not everyone needs an app •  Barrier of entry is generally quite high

(consumers, brands, developers) •  A reasonably good app requires a specific set

of expertise to develop

Native vs Web-based

Web-based apps •  Works across all/most platforms •  Requires a mobile browser •  Build once, run everywhere approach

Native vs Web-based

Native apps •  High definition graphics •  Slick, cool effects •  Take advantage of allocated computing power •  Leverage device’s internal features e.g.

camera, accelerometer, gyroscope

•  Immediate response

It’s the UX, baby!

The mobile user experience is unique •  Limited screen real-estate •  Users are mobile (duh!), in unusual places •  Personal – entertainment, news, time-

wasters, utility, social, etc.

•  Pure opt-in. User chooses what app she wants on her phone

KILLER iOS FEATURES

Top 5 killer features

#1 Push alerts •  Any interaction with your app can trigger an

alert •  App doesn’t have to be on for alerts to work! •  Makes apps super sticky (repeat interactions,

multiple engagement opportunities)


#2 In-app purchasing •  Highly engaged users can be persuaded to

pay for virtual goods/currency •  “1-click” payment is now a reality •  High perceived value + emotional investment

(e.g. $0.99 for 1000 gold) justifies spending •  Revenue share (Dev:Apple, 70:30)

Image source: Kotaku.com

The Sunk Cost Fallacy

Go read •  http://kotaku.com/5787095/the-science-

behind-people-wasting-money-on-farmville •  http://youarenotsosmart.com/2011/03/25/the-

sunk-cost-fallacy


#3 Geolocation •  App can know a user’s location at all times •  Location + social provides very useful context

for personalization •  Geo metadata (in images, etc.) can further

verify user’s location •  Region monitoring/geofencing – a viable

alternative to checking in


#4 3rd party APIs •  The “unglamorous” side of apps, little gnomes

that make the magic happen •  Examples of APIs: Facebook Graph API,

Google Maps, Foursquare, SimpleGeo, Instagram, etc.

•  APIs return highly valuable context and enable “crossing-over” of communities


#5 Facebook Connect •  Every Web page becomes social instantly •  Portable social graph opens up new

opportunities – increased trust, higher conversion rates, personalization, etc.

•  “1-click” sign-up is now a reality •  Death of the high-friction, proprietary Sign-

up?

MARKETING + LAUNCH

Marketing your app

Start marketing as early as possible •  The product (app) is often the best form of

marketing – Create something unique or a spin to an existing

category

•  Develop a strategy to be visible and sticky – Be highly shareable (FB News Feed, Twitter, etc.)

•  Start with people you know

Free marketing (pre-launch)

•  Tease – Create a viral “launching soon” page, use

LaunchRock

•  Website – Screenshots, video, newsletter

•  Time your launch – Coincide with live event or trend to boost

popularity

Free marketing (post-launch)

•  Apple – Top charts, New & Noteworthy, User reviews

•  Telcos – need cool apps to sell devices •  SEO •  Social media

•  Blogs and review sites – get featured, give freebies or guest post on authoritative sites

•  Events – Webcamp, Digital Wed, TNMA

Paid marketing

Multiple entry points, track effectiveness •  Advertising – Facebook Ads, SEM, in-app, display (selective)

•  Sponsorship – Events, contests

•  Free/cheap for a limited time only – EA are pros, find a reason to drive hype

Pre-launch: Things to know

•  Keyword optimization – Observe what keywords competitors are/aren’t

using, don’t try to game the system

•  Ranking/search criteria – Old: High weightage on download count

– New: Apple is testing out a new algorithm which places high weightage on app usage

MEASUREMENT

Why is it important?

Provides a clear indication of •  Usage patterns •  Feature efficacy •  App navigation •  Emerging behaviors (useful for future

iterations)

App metrics

Must-have basics •  App downloads •  Sign-ups (create account, FB Connect, etc.) •  Active users •  App launch •  Custom actions (vote, submit, share, etc.)

App metrics

Advanced •  Frequency of use •  Average time + depth of engagement •  Behavioral patterns (map navigation paths) •  Funnel analysis (for conversion tracking) •  Correlating all the above with usage context,

e.g. location, time

Tools for measurement

Analytics •  Mixpanel •  App Annie •  iTunes Connect •  GoSquared •  Google Analytics •  Bit.ly

Optimization: Why?

Continuous improvement •  User experience (UI, code, features, etc.) for

improved engagement •  User conversion – shortening the distance

between initial download and set goals

•  Monetization – increasing average yield per user

•  Cost management – (+) efficiency, (-) $

What to expect

•  Mostly gradual improvements – Be patient

•  Be ready to – Discard certain features, discover new ones

If things are going south •  Going back to the drawing board – Airbnb failed twice before getting it right

MONETIZATION STRATEGIES

Free

•  User pays $0 for an app that works 100% •  Monetary value is derived from indirect

monetization – User base

– Downloads – Content – User activity

– Overall brand/company valuation

Paid

•  User pays upfront for the app – a fee that justifies/exceeds the perceived lifetime value to the user

•  Dec 2010 stats (source: Apple) – 67% of all apps on App Store are Paid – 50% of all apps are $0.99-$2.99 – Average price of a Paid app is $2.43

Freemium

•  Basic app is free (e.g. Angry Birds Lite) •  Users pay for “pro” or full version of the app

(e.g. Angry Birds) •  Basic versions either – Have entire basic or limited featureset

•  While – “Pro” versions have extra useful features – Full versions unlock entire featureset

Ad-supported

•  App is often free, user sees ads (e.g. AdMob, iAds, etc.)

•  App owner earns from ad-generated revenue

Acquisition/action basis

•  Lead generation – Sign-up – Download

– Enquiry

•  User-driven action rewards e.g. TapJoy

In-app purchase

•  Direct integration with iTunes account for “1-click” purchase. All that’s required is user’s iTunes password

•  Game developers are making a killing with this

Subscription

•  Subscription workarounds – User pays on the website, activates account – Users account to login on app

– Apple gets $0

•  Apple will soon introduce in-app subscriptions at $0 revenue sharing

THAT’S ALL, FOLKS!

Get in touch

TJ Tee [email protected]

@tjtee | about.me/tjtee

Education

TJ Tee - Anatomy of an iPhone App