1. Killer Apps - Thoughts from Deloitte

2. The TMT team at Deloitte’s have produced a report that takes an in-depth look at the world of branded apps --- They outline the size of the prize in terms of the rapidly expanding smartphone market --- Whilst outlining the challenges brands face in trying to cut through in this marketplace --- Here’s a selection of highlights from their report – the full version can be found via clicking the image below: Killer apps? Appearance isn’t everything

3. Access points for the web will dramatically change in the next few years Source: Deloitte Smartphone shipments forecast to grow by 411% in 5 years (Note: Tablet shipments are already at 15m (Q2 11) so the 70m figure looks conservative) Annual global shipments of computing devices 2009A / 2014F --- Millions of devices shipped globally

4. Apps – the new goldrush? A successful branded app is the new holy grail for marketers Ebay is estimated to have made 1.5bn from their smartphone app in 2010 45% of smartphone owners download at least one app per week Consumers also expect their favourite brands to have a presence Three-quarters of mobile app users expect all companies to have a mobile app However, according to Deloitte, success is hard to find : ‘Only 20% of the apps published by major consumer and healthcare brands globally were downloaded enough to appear in our figures and of that 20%, less than 1% were downloaded more than a million times’ Source: Deloitte

5. The struggle to cut through Average number of apps per handset Source: Deloitte / Admap Smartphone users tend to have a lot of apps on their handset... but they have an avalanche of choice Number of apps available by platform

6. Branded App strategy: Utility or Game? Volkswagen Touareg challenge --- Over a million downloads in the first week --- Average playing time: 8m --- Average player age: 35 --- 3,500 test drive requests ‘At the time Volkswagen succeeded (1 st half 2010)... there were relatively few simulators on the market --- “Real Racing 2”, released in early 2011, cost $2m to develop’ Source: Deloitte Games are potentially rewarding – but the cost of entry is escalating ever higher

7. Half a million downloads, even at $0.99 --- Positive aspects of the app: Networking / ugc : uploading / sharing recipes Strong brand presence User benefits via coupons and discounts Data collection regarding user habits GPS-driven store finder ‘Our research found, out of the functionality available on smartphones (e.g. touchscreens)... Use of these functions is likely to give a branded app significantly higher likelihood of success’ Source: Deloitte Kraft’s iFood Assistant was a strong, early example of how an app that provides user benefits can deliver results Branded App strategy: Utility or Game?

8. The next step for branded apps Source: Deloitte Maximising functionality to drive user and brand value --- Potential scenario: Data held in phone: Nearby King’s Head pub Close proximity to a paired phone (e.g. Wife / partner) It’s warm (info provided by a weather feed) It’s 5.30 in the afternoon The phone is registered with a contactless mobile payment service The result: The app pushes a BOGOF offer for a cold branded drink (can be redeemed immediately at the King’s Head pub via mobile payment) --- Can be tailored due to the relevant data held in the phone: e.g. a relevant Starbucks offer if it’s a cold morning

9. Summary The smartphone market will grow apace in the next few years: Using the tools available will drive user engagement, usage and ultimately sales ‘Make use of handset functionality to offer something relevant and targeted to the individual and their immediate environment’ Source: Deloitte

10. And finally A quote from the comment section from a related article in the Guardian: ‘I don't care about branding I just want a quality app that I find useful.’

11. Killer Apps - Thoughts from Deloitte