Report: How Mobile Apps Monetize

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One of the questions, we often get is… What kind of apps make money? Now, an interesting recent report by Distimo and Chartboost based on data from 300,000 apps worldwide with 3.8 billion downloads per quarter sheds some light here. In the Apple App Store free mobile applications with in-app purchases (IAP) get most revenue. The report shows that in-app purchases from free apps went up from 46% to 79% in the United States in only two years (Jan. 2012 to Jan. 2014). The leading countries in this app revenue context are China and Japan with the biggest revenue share (94%) generated from freemium business models.

Distimo Free InApps 2014

Not surprisingly, Germany is one of those different markets again. Here, just 70% of Germany’s revenue was generated from free apps with IAP. The report makes clear that in Germany a bigger revenue share comes from paid business models. However, this is based on the evolution of efficiency enabling tools such as education or navigation which seem to be tools that the German population uses predominantly.

Distimo RevSharePerDownload 2014

The APAC region shows the highest average revenue per download (ARPD). The leader being Japan with an average per download revenue of $5.32. Japan gets followed by Australia $3.60 and South Korea $3.40 places two and three. Canada, Germany, United States and United Kingdom almost generate the same amount per download of around $2.30. China came in last with an ARPD of just $0.92.

Distimo ARPD 2014

Still, this does not mean that the profit is as high as it sounds. In order to figure the profit out, Distimo and Chartboost compared the revenue per download (ARPD) to cost per install (CPI) for the leading 250 apps in the games category in 4Q13. Here, the winners were Japan before Australia, South Korea, the United Kingdom, and the United States.

Distimo APPD 2014

The report shows that there is still money to be made. However, the cost per promotion in the App store or outside the app store should be calculated in. And then, the figures could look massively different…

How iBeacon technology can bring interaction in museums

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Achieving interaction with customers is a challenging topic. Bringing content on smartphones when people want or need it, is a great opportunity and a smart step to getting people informed and creating interaction – and not only if shops want to spread their brand and reach out to their visitors via Apple’s new iBeacon technology.

The Rubens House Art Gallery in Antwerp -enabled by the guys at Prophets- offers a complete new approach how the gallery can interact with their art fans via sending native location based content on smartphones and tablets. The art gallery uses location based beacons in order to deliver intelligent content in front of paintings around the picture itself, the artist or the time period when it was created. The link between the iBeacons and the content comes from an app the visitor has to download.

Apple iBeacon technology applied to classical art in Antwerp Museum from ProphetsAgency on Vimeo.

Texting and Driving? Better use Samsung’s “Eyes On The Road” App

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Samsung Eyes on the road appThe guys at CHEIL in Sigapore have created a nice app for Samsung that keeps us away from texting and driving. With their “Eyes On The Road” app you can switch your phone into a “Drive Safe Mode” and stay away from taking calls, texts, or even push alerts while driving.

The app technology detects via sensor fusion technology when your speed is above 20km/hr. It then activates the “Drive Safe Mode” and blocks calls, texts and push alerts. Furthermore, it sends automated messages to the people that wanted to get in conversations and let’s them know that we are driving our car at the moment. If not deactivated manually, the app does so after 10 minutes of inactivity.

Now, up to you to use it and for Apple to come up with some similar approach. Or do you not like it…?

Study: Business Elite increasingly embraces mobile technology

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Harald Wanetschka  / pixelio.de

Harald Wanetschka / pixelio.de

Does mobile technology really have “more influence on global change than countries, governments or corporations”? Well, at least if we can believe in the 50% of respondents of a new European research by CNBC called “Europe’s Mobile Elite 2013″. The study states that Europe’s business elite continue to embrace the latest smartphones, tablets and devices. In general, most European business executives (73%) believe that they are keeping up with technology change within their sector, however almost less than four in ten are not confident with their companies’ technology change.

The study shows that most business leaders own a mobile device (90%), live and like the mobile business and are agreeing that life is “easier” (68%). Even more, 64% see their lives becoming more productive and enjoyable. Apple is still leading with 44% owning an iPhone versus Android users with 35%. Obviously tablets are on the rise as well with almost. The merging worlds of private and business becomes clear with the fact that 72% (up 39% from 2011) use their tablets for both work and leisure.

Not surprisingly, two thirds value tablets “useful business tools”. Also second screen usage is big among the business elite: 75% watch TV at the same time as using their tablet. The engagement effect of the tablet is striking with nine in 10 of these consumers taking some form of action on their tablet as a result of seeing TV content. And when the study shows that a third of the business executives are responding to TV advertising, marketers should think about ow to implement clever brand and lead generation campaigns in their TV spots. And when marketers want to reach the business elite, they are best in sending out their messages in the evening and at weekends (tablet usage). Smartphones are always-on, so no special advice here.
 
“This study shows the huge influence mobile technology has on our lives. Europe’s elite are keeping up with technological change, owning more devices than ever and using each in different ways. In the area of social media and its value in business, the jury is still out and it will be interesting to see where this leads next year.” Mike Jeanes, Director of Research, EMEA, CNBC.

Top content for tablets…  
- business and financial information (72%)
- web browsing (70%)
- news updates (70%)
- email (69%)
- reading newspapers/magazines (69%).

Top content for mobiles…  
- email (79%)
- business and finance (72%)
- web browsing (70%)
- news updates (70%)
- GPS (69%)
 
Spot On!
Despite some common disagreement that the business elite is not on social networks, the study makes clear that 85% are a member of at least one network with 61% on Facebook, 58% on LinkedIn, and 43% on Twitter. It is important to note that 40% (up from 19% in 2011) of Facebook, LinkedIn and Twitter users are now connected to all three social networks. Furthermore, 58% of the business decision makers use social media for business (still private use is the standard for 75%). It could be that private and business worlds are really not kept as separate any longer. The commercial impact of social media is seen critical. When 46% see social media “neither useful nor essential” (compare study 2012), it shows that most business decision makers had either the wrong advice or the wrong expectation raised by consultants. One of the reasons why we are always very critical in analyzing the benefit of social media for a company or brand, and trying to show the realistic benefit for companies.

Study: Fortune 500 are getting better in Social Media

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They are on increasingly on Twitter (77%), Facebook (70%) and Youtube (69%): Fortune 500 companies. However, in terms of blogs (34%), Google+ (35%) or Pinterest (9%) they seem to be a bit behind or not seeing the value. And the report obviously forgot to look at LinkedIn. This is the findings of one of the latest research pieces of the Center for Marketing Research at the University of Massachusetts, Dartmouth.

Fortune 500 Companies Blogs 2013Although from our perspective, blogging is seen to be the essential starting point of a social media strategy, most companies are not there yet. Not all industries see corporate blogging similar. The use varies significantly by industry. It is striking that no company in the pharmaceutical and tobacco section blogs. In contract, 53% of Fortune 500 companies in the telecommunications industry do. Almost 80% of the blogs show regular activity, have got RSS feeds, appreciate comments and offer subscription.

Fortune 500 Companies Social Media 2013Twitter is used in eight out of the top 10 companies (Apple, Chevron, Exxon, Ford Motors, General Electric, General Motors, Phillips 66, and Wal-Mart). All these companies offer frequently status updates on Twitter. Just Berkshire Hathaway and Valero Energy are missing out. Interestingly enough, Facebook has got most followers on Twitter. Google comes in second, then Starbucks, Whole Foods Market, Walt Disney, JetBlue Airways, and Southwest Airlines. 

On Facebook only Exxon is not showing up with an account. The rest, nine of the top 10 companies (Wal-Mart, Chevron, Phillips 66, Berkshire Hathaway, Apple, General Motors, General Electric, Valero Energy, and Ford Motors), has got a Facebook page. Obviously, the special retail shows strong use of Facebook (96% with a Facebook fanpage) versus 44% in the utilities sector. That Facebook has most Facebook fans is not surprising. Coca-Cola is number two with 66 million fans, followed by Walt Disney, Starbucks, Wal-Mart, and Target. These companies all collected more than 20 million fans. 

Spot On!
What we found interesting in the report is the mention that 59% of companies link to the social platforms from their corporate homepages, whereas for the other companies it required the research team some additional searching. Looking at further social networks and results shows the different strategies. From companies ranked in the top 10 just Berkshire Hathaway has got its own YouTube account. In terms of Google+, 35% use their Google+ accounts actively while 19% set up corporate accounts which are unactive. 50% of the top 10 companies got actove Pinterest boards (Apple, Exxon, Ford, General Motors and Wal-Mart). And although Instagram is now a part of Facebook, only Ford Motors opened an account here, as Wal-Mart is the only top 10 company making use of Foursquare.

What kind of (big) data big web companies collect (Infographic)

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Data and online privacy is a big topic, especially in Germany where the National Security Agency (NSA) did their research without anyone knowing of it. While some people might be handling this issue from a legal perspective, many people use social networking without paying attention to what kind of data they might share with friends and foreigners. The latest Universal McCann Wave 6 study makes clear that people are quite superficial in handling their privacy on the Web. The question remains whether people have any idea of to what extent data might be collected.

The team from Baynote has published a great infographic which illustrates the privacy issues of the different platforms. Somehow, this might result in some scared faces, for some it might be just what they expected.

How about you? Does this scare you of? Is it impressive? Do you see challenges that social networking might cause for you in the future? Looking forward to getting your views on how and what kind of data Google, Facebook, Apple, Amazon and Yahoo collect from you.

Infographic_Big_Brother

Report: comScore unveils insights in main mobile development for 2013

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comScore Mobile 2013In a recent report called “2013 Mobile Future in Focus” comScore released their outlook for mobile trends. The report shows the U.S. mobile and connected device landscape in 2012, which is meant to the set the stage for the international expansion of the mobile revolution. It offers insights into mobile media consumption, mobile networks, platforms, as well as OEMs. It also includes key mobile market insights from the United Kingdom, France, Germany, Spain, Italy, Canada, and Japan.

The report illustrates the following trends for the mobile year 2013…

Multi-mobile use shapes the “Brave New Digital World”
The U.S. is surpassing 125 million U.S. consumers and tablets in mobile consumption. More than 50 million own smart mobile devices which make consumers being always connected. Americans spend more than one out of every three minutes online on mobiles. Does this show the end of the desktop?

Smartphones surpass 50% penetration and start ‘Late Majority’ of adopters
In 2012 the U.S. smartphone market became the year of mobile by finally surpassed 50% market penetration. It enters the “late majority” stage of the technology adoption curve. Smartphone subscribers increased 29% from a year ago and 99% from two years ago. 72% of all newly-bought devices were smartphones.

comScore Mobile 2013 Smartphone Tablet Ownership

Android and iOS Control U.S. Smartphone Market
Google’s Android OS and Apple’s iOS dominate the U.S. smartphone landscape with almost 90% of the market today. The well-developed app ecosystems makes it even more difficult for competing platforms to narrow the gap.

Samsung makes splash in smartphone OEM market
Samsung strongly competes more and more with Apple that is still the leading smartphone OEM. The year-over-year increase of more than 100% from Samsung and a two-year increase of more than 400% shows how much they are challenging Apple. The gap between the two competitors is steadily narrowing though.

High-Speed mobile connectivity speeds up mobile content consumption
Wider availability of high-speed internet access has increased the average user’s media consumption experience. Default Wi-Fi accessibility for smartphones and tablets like in coffee shops contributes to the new workplace and a better browsing experience for users. But also the availability of better networks speed (4G and LTE technology) will leverage the mobile content adoption.

comScore Mobile 2013 Content Per Topic

Spot On!
The report shows that 2013 was kind of the “year of mobile”. With the rise of smartphone adoption to an over 50% penetration but also tablets becoming more prevalent, it seems that the world is moving more and more away from desktop internet usage. Mobile devices make up the digital media consumption of consumers these days. Obviously, marketers and media companies need to adapt their businesses to the emerging mobile multi-platform world but should also see the opportunity of mobile car technology (Google Glass Project), Augmented Reality (IKEA), QR codes (Adidas) or “mobile storytelling” (AUDI).

So now up to you. What has changed in your mobile adaption from last year? What are you missing in terms of mobile marketing development? And what would you be open for when marketers address you with mobile content?

YOUM: Does Samsung show the future of mobile displays?

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When I wrote about three magic inventions discovered at CES 2013 some days ago, I definitely missed out on YOUM. The rumors around flexible displays is out there for quite a while. Remember Yankodesign’s vision of a flexible multiscreen phone or the Motorola Flipout?

Now, at CES the first YOUM displays were presented on stage, alongside a funny commercial clip. The OLED displays are thin that an iPod, can be bowed and rolled up. It sounds like science fiction or a good James Bond film invention, and it will be as log as the technology needed to make the OLED’s work is not getting thinner.

In the presentation Brian Berkely, VP Samsung Display, showed with different prototypes how it is possible to build displays that go around the smartphone or tablet. There, you then could see the latest text message, email or calendar entry that might be relevant. I can imagine these displays will hit the smartphone and tablet market quite soon.

And the question will be what is Apple’s or other smartphone and tablet manufacturers’ answer to this invention…

Study: Big brands could do better on social customer service

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Some weeks ago, we have written about the importance to be fast on response time on Social Media platforms. We made clear, based on some research by Convince & Convert, that companies need to react in not more than 60 seconds on complaints, customer enquiries and questions that appear on company’s and brands’ social platforms.

Now, a recent study of some of the biggest brands in the U.S., like Coca-Cola, McDonalds, Visa or Starbucks shows that providing a top standard of customer support on Twitter is not really as fantastic as it seems. Although some readings of all those good posts about these brands and their Social Media efforts might assume the companies do whatever they can in Social Business terms.

In the study, four Software Advice employees used their personal Twitter accounts to address customer service tweets to 14 consumer brands in seven industries – McDonalds, Starbucks (Fast Food), Coca Cola, Pepsi (Soft Drinks), Visa, Mastercard (Credit Cards), Wells Fargo, Bank Of America (Banking), Walmart, Home Depot (Retail), Apple*, HP (Consumer Tech), Gillette and Colgate (Personal Care).

They sent each brand’s Twitter account one tweet per weekday for four consecutive weeks, from “Urgent, to Positive/Negative, or questions about FAQ or technical issue. Then, brands were evaluated on their average response time and rate. See the results in the following infographic…

Mobile Video Advertising – Why there is a positive future ahead…

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The market for mobile advertising is growing at high speed. More and more companies invest their first advertising budgets (although still not huge…) in apps, onsite or instream commercials. In 2012 the market for mobile advertising is said to increase to 1,5 Billion USD. In 2010 mobileSquared estimated the size for the mobile advertising market at 800 Million USD by 2015, and this sum is expected just for Germany.

One of the main drivers of this development could become mobile video advertising. Looking at the numbers of researchers and analysts, there is a bright future ahead. The market research company Strategy Analytics saw a growth by 958% of mobile video commercial views. They published figures from April 2012 which illustrate how the mobile video advertising market might be growing. While they counted 108 Billion mobile video views 2011, they expect that the market more than doubles to 280 Billion for 2012.

The challenge for mobile video advertising was partly based on the size of smartphones which did not allow massive advertising opportunities. Partly it was lacking the believe of the management in mobile video advertising up to now. And when we look at the minimum volume of ad campaigns in Apple’s iAd program which was downsized from 1 Million to 100.000 USD, it shows that expectations were bigger than the first mobile budgets. Often traditional campaigns are simply extended to mobile without bigger creative invest.

However, this might change with mobile video advertising.

The actual “viewing time” of video commercials in audio-video content is still just 1,5%, found Comscore. A recent study by Juniper Research stands against this and forecasts a “viewing time” for mobile TV of 186 minutes per month in 2014. That offers a lot of opportunities for commercials.

The content offering will also change with the future of the social web. In 2010, some Cisco research stated that 57% of the Internet traffic in 2014 will be audio-video content. This outlook gets support from the massive use and sharing of video content in social networks. And if we think about the fact that Facebook already has 488 Million mobile users, then it comes as no surprise that many social media advertising suppliers like ebuzzing, Hallimash oder unruly try to conquer the social video advertising market.

The creation of banners will still be responsible for the length of the viewing and staying time. According to some new insights of Medialets the mobile “engagement stimulus” of users increases by 35% when video content is displayed. Those users that opened or expanded a banner stayed 20 seconds with the ad format. The integration of video or product catalogue information propelled the staying time with mobile banner formats from 20 seconds to more than one minute, said Medialets. Apart from that, comScore Video Metrix published some stats showing that video ads surpassed the 10 Billion mark and showed an increase by 117% year-over-year.

The development is positive which we can also see in these interesting insights. No surprise that Nielsen forecasts a growth of 70% for the mobile advertising market. And mobile video advertising will get a good chunk of it.

Will the tablet be the catalyst in this development? Sure… By 2013, 47% of the U.S. Internet population will own tablets (117.4 million users). One in ten tablet users watches online video daily according to comScore. Just think about the parallel usage of mobile devices like tablets and smartphones with TV (especially in Prime Time), there could be fantastic opportunities for marketers and their agencies to create intelligent convergent multi-platform campaigns.

Isn’t this some great outlook for mobile video advertising…? if you have some more figures you can add, let us know…

PS: These numbers were put together from me for my moderation of the dmexco Night Talks 2012 (see picture).

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