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Marketing with Mobile Apps
By: Trisha Simmons
TABLE OF CONTENTS
Sections Pages
Executive summary............................................................................................................. 2
History & background......................................................................................................... 3
Presentation of the Topic .................................................................................................... 4
How new/cutting edge are apps? ..................................................................................... 4
Why are apps important in general? ................................................................................ 6
Why are apps important to marketers? ............................................................................ 8
What is the growth potential of Apps? ............................................................................ 9
Who can benefit from Apps? ........................................................................................ .11
Who is already capitalizing on Apps? ........................................................................... 12
The future of Apps ......................................................................................................... 14
Conclusions ....................................................................................................................... 17
Works Cited ...................................................................................................................... 18
Page | 2
Executive Summary
Mobile app: a term used to describe an application that can be installed on a mobile
device such as a computer, smart-phone, cell phone or PDA. App platforms have grown with the
growth of mobile devices, therefore growing app capabilities and offering more opportunity for
innovative app creation (“Infographic: A History of Apps”).
Examples of mobile apps start with something as simple as a calculator on a phone, and
can be as complex as a Quick Response (QR) code reading app. Everything in between could fall
into a variety of app categories such as games (the Angry Birds app), entertainment (Pandora’s
app making radio stations mobile), or communication (mobile Skype, allowing users to visually
connect via cell phone) (Android Market).
Mobile apps were created to make life better for the user. Apps allow the user to
customize their mobile device, and are used to meet needs and for convenience (Monsen). Apps
can sometimes be downloaded for free, or carry a cost. Some apps are sold for $1.99 or less, but
the more complex apps can be sold for $9.99 and up, and prices could fall anywhere beyond or
between (Monsen). Users have found that paying for an app has a big pay-off because that app
contributes to their daily life (Monsen). The app industry has grown, and is continuing to
generate impressive revenues and profits; these will be discussed later. However, it is no longer
only creators and consumers putting money into apps; marketers have also learned the significant
difference apps can make to promotional efforts (Weber).
Page | 3
History & Background
With everything and everyone “connected” today it is hard to imagine a lifestyle without
the mobile accessibility that “apps” offer. At some point in time there was life without apps.
While it may have taken researchers a while to develop apps, it did not take long for apps to soar
into extreme popularity.
Before the development of today’s mobile apps, consumers were using very basic forms
of apps. For example, something as simple as a calculator on a computer or cell phone was a
form of an app (“Infographic: A History of Apps”). Therefore apps actually date back to the end
of the 20th century (“Infographic: A History of Apps”). It was the turn of the century that lead to
the boom in mobile devices and mobile applications. While apps are available for personal
computers, mobile apps are far more popular.
(“Infographic: A History of Apps”)
Currently six major app platforms exist. The top three, and most recognizable, platforms
are Facebook, iPhone, and Android (Jukov). On the more technical side, big platform names
include Java ME, Symbian Platform, and Windows Mobile, a more recent addition. Apple was
the first in the industry to launch an app store, also known as the App Store. The App Store was
made available to customers in July of 2008 (“Infographic: A History of Apps”). By October
2008 another big name competitor hit the market with its own app store: the Android Market
Page | 4
(“Infographic: A History of Apps”). While these two stores remain the biggest and best selling
on the market, other companies have entered the app selling competition as well. Blackberry
opened its App World in April 2009, and Windows Mobile launched the Windows Marketplace
in October 2009 (“Infographic: A History of Apps”).
While these app sources are primarily for mobile devices such as smart phones,
Ideabing.com
companies are now transitioning to other sources of technology that can run apps. Last year
Samsung introduced apps for its TVs (Weber). The Samsung App Store connects consumers to
the web through their televisions. The Samsung website says “Choose from a gallery of apps
built for your TV that let you stream video, play games, view pictures and more” (Weber). The
technology for apps has adapted and progressed, and the use for apps has morphed as well.
How New/Cutting Edge are Apps?
We live in a digital world. Almost every aspect of our life is tied to technology. The most
recent surveys and research show that 91% of the American population is subscribed to a
wireless carrier; meaning approximately 285 million Americans use cell phones (Jukov).
Along with the Internet, cell phones are the biggest change in recent technology.
Lifestyles have been transformed because of the ability to communicate at any time and any
place. The mobile accessibility has people constantly connected. After the creation of text
messaging many wondered what else could be done to improve cell phone use. Now every
wireless carrier offers networks which provide access to the Internet via cell phone (Jukov).
Data and internet usage on mobile devices opened infinite opportunities for both
consumers and marketers. Apps are now available for downloading and purchasing, and many
come standard with most smart phones. Proof lies in the fact that consumers pay $0.99 and up
Page | 5
for some apps; apps are successful, popular, and important to the consumers’ everyday life
(Android Market). Apps can either be purchased directly from the mobile device, or downloaded
on a computer and sent to the device. Apps are all about accessibility, and apps have made
consumers accessible to marketers.
A more recent use for apps has been discovered by marketers and advertisers. Because
consumers are constantly connected and available via cell phone, marketers have begun targeting
them through their devices. A great example of direct advertising through an app would be the
Pandora app for phones. Pandora was originally a website that allows visitors to listen to hours
of music for free, creating personalized radio stations according to their song selection (Pandora
Mobile). The catch to the ‘free” part was that Pandora plays ads throughout the listening, much
like YouTube now does for viewers. The ads generate the websites revenue (Pandora Mobile).
With the Pandora app on phones, Pandora is constantly available to listeners and therefore can
charge advertisers more for the ads that are played via Pandora app.
Using apps for marketing is not just about advertising. Apps have given
companies a way to connect to their customers and build stronger customer loyalty. More
examples of how apps are used for marketing purposes will be discussed. While newer app
features have been around for almost three years, bigger and better apps are being created every
day. Until something better than apps is created,
the entire industry is competing to launch the
“newest” and “most cutting edge” apps possible.
In return, consumers anxiously await the next big
Themaclawyer.com
thing in app software and mobile devices;
marketers should also do the same.
Page | 6
Why are Apps Important in General?
New, cutting edge innovations allow people to sync their applications, information, and
stored files across many devices. The wide range of apps available allows consumers to connect
every aspect of their lives. There are apps for business needs, such as stock market tickers, email,
and mobile meeting rooms. There are apps for money management, such as price comparisons,
check book balances, and mobile banking (Android Market). Entertainment is one of the most
popular app uses. There are apps that continuously update movie show times, stream TV to your
mobile device, or allow you to play challenging games for hours upon end (Android Market).
Current market trends are showing that consumers are using apps for not only
entertainment, but to simplify or enhance daily tasks. The website www.bestappever.com
recognizes the top apps of the year, based on votes from the consumer. Their tagline is “Honor
the best, not just the best selling” (“Best App Ever”). For 2010 a wide range of apps were
honored. The award of “Best App Ever” went to Angry Birds by clickgamer.com (“Best Apps
Ever”). The app Shop Savvy Barcode Scanner by Big in Japan was also a leading contender for
awards. It allows consumers to scan a barcode and then find the best price at retailers closest to
their location (“Best Apps Ever”). This app is a prime example of how consumers use apps to
better their lifestyles.
The table below shows different categories of apps on the Android Market. It lists the
category, and then the top downloaded app for each category, along with a description of the
app’s purpose. The categories vary slightly depending on the app store, but the following chart
represents the most common; all information is from Android Market.
Page | 7
App Category
Top Downloaded App
WolframAlpha by Wolfram Alpha, LLC: Access expert knowledge wherever you
Books & Reference
are. Get insight and understanding into any facet of your life.” This app gives you
the answer to any question, academic or random, that you can think of. Cost: $1.99
Documents ToGo by DataViz, Inc: Allows users to use full editing on Microsoft
Business
Office files, supports Google Docs and Adobe PDF, and moves files from your
device to your computer. Cost: $29.99
Easy Tether by Polyclef Software: Users can tether their phone’s internet
Communication
connection to a PC, or a PC’s connection to a gaming console, without a root or
tethering fee. Cost: $9.99
Kids Shape Puzzle by Intellijoy: Geared towards pre-school aged children, this app
Education
offers “edu-games.” It comes with 90 colorful, shape puzzles, teaching children the
names of shapes and colors. Cost: $2.99
TV Shows Stream by Loading Home: Users can stream full TV shows to their
Entertainment
device. After searching the internet for thousands of shows, the user then selects
their show and can watch full screen. Cost: $8.00
Pageonce Pro by Pageonce: Tracks your money and bills by synching to your bank,
Finance
credit card bills and investment accounts. This app allows you to see all of your
finances in one place. Cost: $12.99
Robo Defense by Lupis Labs Software: This app is a game that allows you to
Games
experience an entire world on your device. Players build armies and towers of
defense and unlimited levels. Cost: $2.99
Health & Fitness Cardio Trainer Pro by WorkSmart Labs Inc: An app designed to give you a variety
of cardio training, include 20 levels and a weight loss trainer. Cost: $9.99
Jaime’s 20 Minute Meals by Jaime Oliver: Users are able to view a meal each day,
Lifestyle
get step by step instructions, and recipe photos. There are 60 recipes total with this
app and all are simple and delicious. Cost: $8.17
PowerAMP Full Version by Max MP: A customizable audio playing app. This app
Music & Audio
is a high quality music player. It amps up your audio, making the sound coming
from your phone even better. Cost: $4.99
Beautiful Widgets by LevelUp Studio: This app comes with thousands of custom
Personalization
options for your device. Customization varies from animated weather options,
special clocks and toggle options. Cost: $2.87
Root Explorer by Speed Software: An app designed for simple file managing on an
Productivity
Android device. This app allows users to create or extract files, send files, and
easily view and manage them all on one screen. Cost: $4.09
Mighty Grocery Shopping List by Mighty Pocket: A full scale grocery list app that
Shopping
allows the user to sync their shopping lists, save favorites, use a barcode scanner,
view recipes and much more. Cost: $3.09
Tapatalk Forum App by Quoord Systems Limited: Allows forum and topic
Social
subscriptions, easily message and access forums connected to the app, receive
notifications when messages arrive. Cost: $2.96
MLB.com At Bat 11 by MLB Advanced Media: Users can use their MLB.TV
Sports
subscription to stay up to date on every pitch and bat for any team, or every game,
in the MLB 2011 season. Cost: $14.99
Car Locator by Edward Kim: Save your location when you park your car and this
Transportation
app will help you locate your car later. Also features radar, maps, a parking timer,
location history, driving directions, and customization. Cost: $3.99
Page | 8
Why are Apps Important to Marketers
There are many ways marketers can benefit from using apps or creating an app for their
business. It has always been crucial that a business keep up with the world’s technology, this
would include apps. If a business is not in the social media and/or app network then it is behind.
The banner pictured to the left,
courtesy of fastcompany
magazine, is meant to be
humorous, but digital marketing
is no laughing matter. Using
apps to market falls into a
business’s digital marketing
strategy. Eventually businesses
will be able to use digital marketing at little or no cost at all. Currently it costs a company a small
amount to use apps to market.
One way a business can use apps as a marketing tool is to create an app for the business.
Amazon.com has created two different apps for its online store. The first is simply Amazon.com
which allows mobile shopping on their website (Android Market). This feature is convenient for
customers who need to order something on the go; it simplifies the purchasing process and keeps
the web store at your fingertips. Amazon.com also created the app called Amazon MP3 which
allows customers to access their music downloading site and download songs directly to their
phones (Android Market). Both these tools boost Amazon’s revenue because shopping can
literally be done at any time of day, no matter the customer’s location.
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Using apps for marketing is not just about earning profits, although ultimately that is the
purpose of the business. Marketers should consider using apps to build strong relationships with
customers, boost customer service and convenience benefits, and improve and promote customer
loyalty. All of which are possible through apps. An app called Foursquare is a way for businesses
to promote to audiences located in their
geographic area (Labarbera). When a customer
becomes a part of Foursquare they are able to
use its geo-location tool to find businesses
nearby offering rewards for visiting and earn
points for making repeat visits. Marketers must
make sure that their business is listed as a part
of the Foursquare application, and then
promote specials and incentives for customers
to visit their location (Labarbera). Rewards can
Businessmarketingblog.com
be given to customers who use Foursquare and
visit frequently. This concept will begin to
build customer loyalty and allow the business
to establish a relationship with its customers.
Another great way to build relationships and interact through customers is through social
media networks. Every social media site has an app for subscribers to use it on the go, therefore
it is crucial that a business puts itself in the social media world. By joining Facebook, Twitter,
LinkedIn, etc. business will have 24/7 exposure to their customers who follow them on these
sites, and their updates will be displayed in fans’ news feeds.
Page | 10
Any and all businesses can benefit from using apps in their marketing mix. No business
should limit themselves to the traditional ways of advertising and marketing. Apps are a recent
technology, the businesses that are getting really creative when using apps are seeing big rewards
for their attempts (Weber).
What is the Growth Potential of the App Market?
Apps are thriving, even in this economy. The revenue that app creators and stores are
making is proof that consumers do not mind paying a little extra for convenience and fun on their
cell phones. Some astonishing numbers have been achieved by app stores thus far since their
creation.
Growth of Global App Market
4.5
4
3.5
3
in Billions
2.5
2009 (Full Year)
2
2010 (First 6 months)
1.5
1
0.5
0
Revenue in Billion $ Number of App Downloads
Data from (Jahns), see works cited
The chart above is based on data from the year 2009 (full year) and the first six months of
2010 (Jahns). The global app market had total revenue of $1.7 billion in 2009 (Jahns). In the first
Page | 11
six months of 2010 the app market’s revenue had sky rocketed to $2.2 billion, already almost
doubling the previous year’s numbers (Jahns). The number of downloads in the global app
market also showed extreme growth (Jahns). In 2009, 3.1 billion apps were downloaded in the
global market, and 3.9 billion apps were downloaded in the first six months of 2010 (Jahns).
Not only is the market’s numbers growing, the world of apps is developing. Creators,
marketers, businesses are all trying to come up with innovative ways to use apps, thus leaving
room for constant growth. For instance, a very popular app is ShopSavvy’s Barcode Scanner.
The app is free to download, and technology allows the user to price compare products before
purchasing them (Android Market). How? Users scan the barcode of an item, and technology
searches through its databases and finds the product, as well as a listing of online and local prices
(Android Market). The app will also display a map of stores carrying the item, near the user
(Android Market).
Who Can Benefit From Apps?
Apps are available to anyone with a mobile network plan, and they can make life a little
easier, entertaining and enjoyable. No specific market is set for the app industry because anyone,
any age, gender, etc. can use apps to benefit their lives. Aside from the typical app user,
companies looking to market their services, brand or product can greatly benefit from apps.
A successful app, created for marketing purposes, could be one that connects the
user/consumer to the company, gets them to use the app to purchase items, or improves the
users’ impression of the company. “One of the most common distribution tactics used by top
mobile app marketers is to get top ranking in the App Store” (Weber). Here are a few ways
marketers can use mobile apps for their benefit:
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- Advertising: an app could purely be a tool to advertise to consumers, but this can be
costly and ineffective (Weber).
- Download Exchange: advertising campaigns can be boosted with mobile advertising.
Agencies like AdMob specialize in the mobile advertising marketplace, offering a
network for advertisers to reach their customers through the mobile web and mobile apps.
AdMob can start mobile advertising for a company, or monitor the traffic on a company’s
mobile website (Weber).
- Word of Mouth: an app can be created to connect customers to their friends, to the
company and encourage consumers to engage with the company, thus stirring excitement
and creating word-of-mouth (Weber).
By using these tactics in conjunction with traditional marketing strategies, marketers can be very
successful in reaching consumers through mobile apps.
Who is Already Capitalizing on App Marketing?
Many examples of companies and apps have been given throughout the paper. In the last
year leading companies have began to move their business and services to mobile outlets
(Weber). Businesses now have mobile websites and advertising that are visible and useable via
mobile device. In addition, businesses have also created apps that offer the same services or
products but simplified, or enhanced.
The well-known brand, Apple is a leading contender in the app industry. Not only does
Apple create apps that consumers want to buy, they create apps that will make them money and
keep the consumer constantly connected to the brand. The iTunes app is a primary example of
how consumers use their app to show brand loyalty, make purchases, simplify their lives and are
in turned satisfied with the app and Apple as a company.
Another example is Weight Watcher’s mobile app. Weight Watchers Mobile allows its
users and participants to access their plans anytime, anywhere. Users can track their points, log
activities, get assistance with grocery shopping while at the supermarket, look up restaurant and
workout point values, look up recipes, and more (Weight Watchers Mobile). Anything logged or
Page | 13
tracked using the app is then reflected back to the user’s web account (Weight Watchers Mobile).
This example demonstrates how an app, while not making the business any revenue, increases
the customers’ satisfaction and improves the quality of the business.
Disney is one of the world’s largest, iconic
brands. It is only fitting that they too follow the
mobile marketing trend. Disney has launched a few of
its own apps, including a Disney Radio app geared
toward children and pre-teens (Android Market).
In 2009, Disney launched an app called
Disney Parks: Mobile Magic (Smith). This app took
the Disney Parks experience to another level. Mobile
(Smith)
Magic gives Disney Park guests more than an
interactive map powered by a GPS locating device (allowing the app to find your location in the
park and place you on the map), it gives attraction wait times, FastPass times, restaurant
information and reservation options and tips on events happening the day of your visit (Smith).
The app is also capable of assisting with one of the most crucial components to the Disney
experience: character locating (Smith). When using the app, visitors feel as though they have a
personal tour guide guiding them through the park (Smith). The app does cost, therefore a small
amount of revenue is generated from downloads, but the true purpose of the app is to enhance the
user’s experience and provide convenience, which satisfies the customer and makes them love
Disney even more than before.
Page | 14
Future of Apps
In 2008 Apple launched its AppStore; the original store consisted of 500 downloadable
apps (Musil). Short of only three years later the App Store celebrated an impressive feat; in three
years the App Store reached 10,000,000, 000 (yes, ten billion) downloads (Musil). This number
alone demonstrates the future the world of apps holds for users, businesses and marketers.
The app industry is growing at an incredible rate. Last year’s numbers show a large (Apple)
increase in the number of companies launching downloadable apps (Johnson). “Over half (52
percent) of the 700 corporate technology professionals surveyed, either deployed or planned to
deploy mobile apps on smartphones in 2010. This is 30 percent more than the 42 percent which
had deployed or planned to deploy mobile apps in 2009” (Johnson).
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If technology continues to improve the way it has over the last decade, mobile apps will
continue to grow and develop, getting better and better each year. Research has shown that
developing, launching, and distributing an app has become steadily less expensive, making it
easier for businesses and marketers to create them (Peoples). “AdMob's January 2010 Mobile
Metrics report showed Android owners download about the same number of apps as iPhone
owners - 8.7 per month for Android, 1.1 paid and 7.6 free, versus 8.8 for iPhone, 1.8 paid and 7.0
free. With the average iPhone app going for $2.85, that's about $54 in annual consumer
spending” (Peoples).
Currently the most popular trend in app marketing is the use of the QR (Quick Response)
code (Korhan). Macy’s is a business that has successfully used QR codes in its retail stores and
other outlets of promotion (Johnson, D). QR codes are two dimensional codes similar to
barcodes, but with the ability to store and share larger amounts of data; they give the user
immediate access to the code’s data (Korhan). In order to access the data the user must scan the
code with a QR reader; the reader is an app that can be downloaded to any smartphone (Korhan).
Marketers have started using QR codes for promotional efforts, such as the example below. The
clip below was pulled from a Sunday newspaper sales ad run by Michaels Craft Store. Readers
are encouraged to scan the QR code, they will then be taken to a promotional webisode
sponsored by Michaels. The webisode increases sales for special products featured in the video,
and increases membership in craft classes. The code creates a win-win situation because
(Michaels)
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users/consumers get tips on Valentine’s Day crafts and special products, and Michaels gets
increased sales.
The retail giant Macy’s has begun to use
QR codes in creative ways. Rather than print the
codes on paper ads or display them on their
website, Macy’s places their codes on unusual
(Johnson, D)
items such as clothing tags, merchandise displays,
in-store banners, and window decals (Johnson, D).
Macy’s has also made its codes unique by staying
away from the standard black and white box that QR codes are typically formatted as (Johnson,
D). The example above shows a display Macy’s executed in their stores. The QR code is red and
shaped like a star. Even more impressive, the code is printed largely on the Macy’s logo (the
star) and displayed with the mannequins. The Macy’s QR code could take customers to a number
of different places such as the store’s Facebook fan page, a short video from a clothing designer,
or an opt-in webpage (Johnson, D). This is an example of how marketers are taking a new
technology and promotion strategy and making it more innovative. It also shows that the future
of mobile apps is growing, and those changes do not entirely rely on new technology, only great
ideas and innovative executio.
It is clear the app industry is growing in numbers. The future lies in what creators,
businesses, and marketers will do with the opportunities mobile apps offer. An entire mobile
marketing plan cannot rely on the creation and distribution of a mobile app (Peoples). However,
given the fact that “everyone is doing it” and using mobile apps as a marketing tool, businesses
Page | 17
need to be up to speed and have their name present in an app store. It is crucial for a business to
be up to speed with the latest technology, and for now that is mobile apps. Analysts believe the
app industry will peak by 2020, but will then slowly decline; this is a pattern typical for most
markets (Peoples). Where mobile apps will grow to is unpredictable, but it is safe to say the
industry will remain strong for quite some time (Peoples).
Conclusions
The technology that has launched mobile apps into popularity will continue to change,
develop, and get better. There is much more room for improvement and opportunity for
marketers to reach consumers on new and innovative levels. Companies that have moved to
mobile outlets for promotion strategies will benefit from this move. A company must be cutting
edge in order to survive in this economy and almost any industry, therefore mobile marketing is
the next step a business must take to remain profitable and grow. Marketing with apps can be
done traditionally with advertisements, text alerts, coupons sent via app, or it can be done
creatively with QR codes, and special apps that make a customer satisfied or personally
connected to the business.
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