1. Company confidential Mobile Application Stores A Developer’s Perspective Karl Good Director of Applications

2. Company confidential TODAY TOPICS App store landscape today The good, the bad and the ugly “Free or not to be free” – that is the question? Marketing your products… Apple case study

3. Company confidential WHERE ARE WE HEADED? “Phone differentiation used to be about radios and antennas and things like that. We think, going forward, the phone of the future will be differentiated by software.” Steve Jobs, CEO Apple

4. Company confidential CHALLENGE OF EQUALITY Not all software created equal Not all app stores made equal

5. Company confidential APP STORE LANDSCAPE Who’s out there? What’s available? Where’s it all heading?

6. Company confidential WIDER APP STORE UNIVERSE

7. Company confidential WHO REALLY COUNTS? Apple Computer Inc.

8. Company confidential WHAT ARE APP STORES? More like warehouses One-stop distribution and management Meta data – search keywords Metrics on downloads, sales Storefront service

9. Company confidential WHAT’S FOR SALE? Applications broken down by category Applications rated and scored by users

10. Company confidential WHERE’S IT ALL HEADING….? App store mania “Owning the customer”? Many stores, many apps means fragmentation Customers go where apps are easiest to access… Developers go where the customers are…

11. Company confidential BROADER APP STORE UNIVERSE

12. Company confidential

14. APPLE APP STORE $99/year to join as a developer Allows paid for applications, with a royalty to Apple 1.5 billion applications sold to date Launched July 2008 As of July 2009, 65K applications available

15. Company confidential Allows paid for applications, with a royalty to Apple Large audience of app store users, massive volume of downloads Multi-country, multi-language support and distribution Tough staying at the top of the store, with everyone making 99c apps Already 65K apps in the store Allows paid for applications, with a royalty to Apple No clear rules on what is and what isn’t allowed Sometimes lengthy, black box signing/approval process Can’t reply to customers reviews APPLE APP STORE

16. Company confidential ANDROID MARKET STORE Launched October 2008 4.9K applications available $25/year to join as a developer Allows for paid applications, with a royalty to Google Apps downloaded: unknown

17. Company confidential Only charges a one-time $25 fee Only self signing of apps required – very quick release time Search interface is slick, superior to OVI and Blackberry Self-signing also attracts rubbish to the store Immediate “go live” means immediate “go live” Small customer base New terms and conditions challenge Little or no moderation of users comments ANDROID MARKET STORE

18. Company confidential RIM APPWORLD Launched April 2009 1.5K applications available $200 for 10 app submissions Allows paid for applications, with a royalty to RIM *plus ongoing fee

19. Company confidential Big flexibility in deciding who can download apps Blackberry takes 20% of paid apps *caveat see UGLY Easier than Apple store to find less well-known apps The most expensive store Inflexible for paid apps Store only available in a few countries 20% of all ongoing revenues for life of customer, including apps that are downloaded free Signing has taken up to a month for some RIM APPWORLD

20. Company confidential NOKIA OVI STORE Launched May 2009 1.1K applications available Free for app submissions Allows paid for applications, with a 30% royalty to Nokia

21. Company confidential NOKIA OVI STORE Free application submission Most sophisticated app store Search is poor Store is slow to respond and feels awkward to navigate and explore Poor billing system Application has to be tested twice, once by Symbian, once by Nokia QA Users need an Ovi account, or visit to web URL

22. Company confidential PALM PRE Launched June 2009 53 applications available No paid apps yet 300K devices in market 1.8 million downloads since June

23. Company confidential PALM PRE Free submission of applications Simple to develop applications, quick Applications limited to web technologies No option to sell apps – yet No multi-country multi-language support Too early to say

24. Company confidential “FREE OR NOT TO BE FREE” Depends on your model? Service oriented with payments for ongoing service – then free makes for a low barrier to entry Free vs. premium – with additional features and services … if your app is liked – customers may pay for more developed features

25. Company confidential FREE? Free can hook in customers Up-sell tool to convert users to full paid app Reversed declining sales trend Source: www.flurry.com/blog Free as a sales tool

26. Company confidential FREE? What should you charge? Many apps opt for 99 cents One high price vs pick ‘n mix at low price point Most popular paid apps still games No right answer, be prepared to experiment Source distimo – www.distimo.com

27. Company confidential FREE OR NOT TO BE FREE Chose to move to paid app model Research led to $5.99 price point Paid apps downloads strong Nokia billing raises price to $7.99 ShoZu has compelling service, customers comfortable paying

28. Company confidential MARKETING ADVICE Top-of-category listings the best possible advertising Do everything to get there Focus efforts on Friday to Sunday, (when application downloads increase)

29. Company confidential CROSS-SELLING Source: www.flurry.com/blog Oldest marketing technique still works Cross-sell to existing customer base Add a link within your application

30. Company confidential 3 RD PARTY CROSS-SELLING Several 3 rd parties with in app iPhone SDK’s PPC model Small banner ads, cycled Can have a rapid increase in application downloads

31. Company confidential MARKETING CONCLUSIONS Market wisely: use all assets at your disposal Pay for in-app advertising strategically Pricing out by big brands w/big budgets possible

32. Company confidential FINAL THOUGHT “One of the best ways to persuade others is with your ears – by listening to them” Dean Rusk Secretary of State JFK Cabinet 1961