Designing apps that are sustainable, profitable and have a high uptake is about more than just luck.
Apple's 2007 launch of the iPhone was the catalyst that ignited the world of mobile apps. Since then, millions of apps have been created. Google Play boasts over one million apps in its store. Apple's store makes around $5.1 million in revenue each day, with its annual figure for 2013 standing at an impressive $10 billion. In comparison, the Google Play Store generated around $1.3 billion in 2013.
These figures show that demand for apps is high, but when designing an app, it is important to consider the audience the designer wants to target and the apparent appetite or solution that will be solved in order to make the app stand out. If an app can be created that is unique and has the ability to get the public's interest, then the sell-through success of the product is likely to be higher.
Subscription vs free content
Much digital content is available for free, which can make app revenue elusive, unless app designers get creative with how they use monetisation elements.
The three common revenue models are freemium, paid and hybrid.
The freemium model works by generating revenue from advertising within the app, or selling a product within the app.
The paid for model dictates that the user must pay for the app before installing and using it. This can be on a once-off basis or a monthly or annual subscription.
The hybrid approach is usually a free app that gives users limited access, with full feature access requiring payment.
A look at the most downloaded free, paid and top-grossing Apple store apps in South Africa for the first quarter of 2014 shows the different models in action.
Top free:
1. WhatsApp
2. BBM
3. Instagram
4. Facebook
5. Candy Crush Saga
Top paid for:
1. Smart alarm clock
2. SA Phonebook
3. Angry Birds
4. 7 Minute Workout Challenge
5. Super 15 Rugby 2014
Top grossing:
1. Clash of the Clans
2. Candy Crush Saga
3. Game of War
4. Hay Day
5. Zoosk
* Figures are from Distimo
Real-life impact of digital experiences
Central to a company's decision to offer an online brand engagement platform is the ability to figuratively/virtually take the brick-and-mortar store to the consumer through a screen. If what is being offered on a screen cannot at the very least replicate the online experience or complete a process started offline, then an app would cause more damage than good.
Promotion is everything when it comes to an app becoming a contributing asset to the profitability and usefulness of a business.
The same principle can apply the other way round. Most brand engagement opportunities begin offline, with fulfilment and brand buy-in being completed online.
Customers are often asked to download an app through print, outdoor and broadcast media, only to encounter a cumbersome registration process that loses them completely.
Feedback opportunities
Many variables ranging from Internet connectivity to device speed can frustrate customers' experiences as they try to spend their money with a business.
If an online experience leads to challenges, customers expect to have the option to call for help. A 'contact us' button reassures customers where FAQs fall short.
Owning ideas
The basic rules of intellectual property apply in the online world; those who didn't produce it can't use it for free. These rules become more significant the wider the reach of the product. Promoting a business with material created by others is common practice in the digital world; but it's important that this usage is governed by legal material usage agreements.
These agreements do not always have financial implications. Often, original creators of the material may be happy to benefit from the exposure to a large global audience through an app that has great download numbers.
Each case differs, but brands cannot hope to promote themselves using sourced material without rights management being addressed.
Getting the word out
Promotion is everything when it comes to an app becoming a contributing asset to the profitability and usefulness of a business. There are many expensively developed apps that brand-loyal consumers aren't even aware of. Morgan Stanley predicts mobile device marketing will surpass desktop marketing globally by 2015, and it is time for businesses to promote their assets.
Businesses need to have an astute digital marketing team, a team capable of dealing with customer feedback on apps and consumer suggestions from social media.
In conclusion, there are many things to consider when starting an app project, and using all the tools available, in the right way, will give the app a better chance.
In my next Industry Insight I will deal with getting technical:
* Choosing which operating systems to support.
* Choosing an app development platform.
* Data and its impact on usage frequency.
* Developing with adaptability in mind.
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