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Report: How Mobile Apps Monetize

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…

Study: B2B commerce moving from offline to online

Most of us know that B2B is massively moving away from offline to online. But where is the proof? A recent survey by Intershop -based on a survey of 280 European and 120 US senior IT and business decision makers from merchants with a B2B focus and annual online revenues of $1 million to over $100 million- shows that with 57% the majority of B2B vendors sees B2B commerce fundamentally shifting from offline to online.

Intershop - B2B Business Shift 2013

The company manager that responded are aware of the shift (51%) and replied that they are changing their organizational structures and business models accordingly. Furthermore, 44% of those responsding managers find that B2B vendors adopt B2C best practices in order to improve their B2B purchasing processes.

Intershop - B2B Challenges 2013

The following numbers show what the main drivers of change seem to be. Most of the respondents (81%) found that changing consumer expectations are driving the changes in B2B commerce. And another 74% see new technology delivering new and unseen experience access.

Intershop - B2B Drivers of Change 2013

Still, not all is shining bright in the world of B2B commmerce. When 96% replied to be facing challenges in adapting to new B2B commerce trends, it speaks a clear message. Thus, the challenge is for…
– 50% to provide intuitive and user-friendly interfaces for multiple touchpoints (B2B online stores and mobile apps)
– 48% to manage complex organizational structures
– 47% to convince offline customers to use e-commerce and self-service channels

Spot On!
It is a good sign that almost all companies (92%) market their products on the Web and the rest is planning to do so. Even better is the fact that of those companies marketing their products online, 95% plan to boost the online part of their revenue in the future. This may be a wish, this may be a dream, this may be hope. However, the main issue in our eyes from several cases we worked on is an internal cultural challenge: Understanding that a shift to online is a personal and a leadership topic. If companies face it and get some good advice, the change to a new B2B commerce is not causing red eyes.

Hey MINI! Not interested in brand advocates?

My MINI Paceman - So much fun with it!

My MINI Paceman – So much fun with it!

Listen BMW and MINI! This is not a story made up. This is real. This is me.

When the MINI Paceman was first promoted at the Detroit Motor Show in 2011 as a concept car, I said and wrote to my fans, followers and friends: “This is gonna be my new car!” To some of them, it came as no surprise. Some knew of my passion for the MINI brand. Some recalled my words from brand strategy workshops, from keynote speeches or marketing seminars. Some remembered pictures of me in front of my former white MINI Cooper, and they were surprised I am selling it. Some responded and asked questions about features of the new Paceman; even I could not answer those days. Today I can.

But… Many of them did not even know of the new concept, the new brand, the new design, the new small SUV category that MINI kind of invented, and so on. I did. I saw the potential. I just got infected by the brand. I wanted a new MINI Paceman. I loved the outlook: Getting the keys handed out for a MINI Paceman.

I have thought a long time about writing this post, or just forgetting about it. But I am a challenger…

Today, the IAA 2013 is opening their doors in Frankfurt. Car brands are proudly presenting their latest auto concepts. Managers posing in front of their new innovations in modern steel or carbon. They are shaking hands with those that make them look good. But who does really make them stand out? The technical suppliers? The revenue driving resellers? The social influencers? Or those who hold up a sign in the streets without being incentivized or getting cash saying: “I love this brand!” Those who stand out, and those who make stand out: the brand advocates?

Maybe today is the right time to write a blog post and tell a story that to many of my fans, followers and friends sounds unbelievable – but MINI, I tell you, it is the absolute truth. I write it in the night when other people are sleeping. My clients tomorrow won’t care whether I had enough sleep, or not. I write this, when there is more important things on the desktop than leveraging a brand that does not listen, nor understand. Am I mad? Am I not clever? No, I am honest. I am what I am. I am a real MINI Paceman advocate.

Beginning of February 2013, I sat down with my MINI car sales representative and told him that I want to buy a Paceman. I wanted to be one of the first in Munich. I wanted to sign the contract. Now. And I asked whether he could open doors to the marketing, PR or social media department at MINI when an idea hit my brain just in the minutes when I sat there: Two of my clients have called me their “pacemaker”. The word transition from pacemaker to paceman was not too far off for me. So, some brilliant thought (at least in my mind) awoke in my head: Why not call yourself “Mr. Paceman”?

A concept created in a brain flash: Website domain. Web space. Web blog. Unique content published in a Paceman. The life of a Pacemaker in a Paceman. Lifestyle. Design. Speed. My life.

While the reseller configured my MINI Paceman, I bought the website domain, set up the blog with a little help of a friend and scribbled the whole concept on my smartphone. I told my MINI sales rep about the idea when I had signed the contract. He was enthusiastic about the concept and saw a lot of other potential cooperation opportunities.

I was ready to start publishing. Publishing about the pleasant participation for my MINI Paceman. The color. The design. The coffee holders. The changing interior lights. The engine. And so on. Publishing about the pace of my days, my experiences with the new Paceman, my life in a MINI Paceman nutshell. I wanted to share pictures of MINIs. I wanted to post design ideas of other MINI freaks, and find the first MINI Paceman pics, I might come across. And a lot more…

Now, obviously I knew about brand protection and brand rights. I knew that -before I started buying the domain- I should get in touch with some MINI brand contacts and get some formal permission to use the brand name. I thought: “Just do it!”

So, I wrote emails to MINI, their PR department, their marketing department, their social media people, and their agencies. I even contacted strategic partners from MINI. I wish I hadn’t done it. I felt like a little unloved kid being pushed from one corner to another in order not to cause any trouble for anyone, in order to shut up. MINI did not move. I continued. The answers I got where just some lines making clear that I am not allowed to use the brand for my purposes.

Hang on! My purposes? Is that the power of a big modern brand, is that arrogance, hubris or simply ignorance?

If I promote a brand I like, invest time, offer to wear their branded merchandising clothes and have even bought the brand product before (and maybe a far too expensive brand product), why should I not be allowed to do marketing and PR for that brand to my fellow peers? A target-group that MINI is chasing with banners, print ads, wallpapers, outdoor marketing, newsletter mailings and a lot more.

Doesn’t this mean, I am actually doing what MINI pays others for; marketing agencies, PR people and media houses with the old “quid-pro quo” game: editorial coverage for advertising dollars? Those institutions that create corporate publishing products for brands which cost these brands a fortune?

Shall I then be happy and not get crazy, when I get the feedback: “We might consider that you are writing a guest post on our official MINI blog.” Hurray! What an outcome of my activities! Sorry MINI, you missed the point! I am not just a buyer. I am not a normal influencer. I am more. I am a MINI Paceman brand advocate, if you know what this means MINI. If not, you might just read the study by Ogilvy)?!

A brand concept. Still waiting for MINI to understand the value of brand advocates.

A brand concept. Still waiting for MINI to understand the value of brand advocates.

More than seven months later, the blog is still online – online without any content at MrPaceman.com. The case has been mentioned by me in at least 20 seminars and on several stage appearances at events. Events where even the BMW marketing departments or some of their agencies participated. I saw people shaking heads, heard their words asking how ignorant and un-clever brands can be, and read their tweets and updates trying to get reactions to this case from MINI. MINI did nothing. For seven months now, the MINI brand managers did nothing.

Yesterday, some silver surfers passed by my MINI Paceman. One of them, a man in his seventies approached me when I got out of my Paceman: “Great car. Cool design and colors. Is this new? Have never seen this car before…” His wife replied: “This is one of these new SUV cars but just in a MINI format. Nice high access. Like it!”

Would this make up for a really cool advertisement? Now, just imagine, I had written about such stories, shared a picture with these older people and spread the word around the world about my life in the MINI Paceman. Don’t you think these stories, these emotions, these experiences might have made a difference in the way the MINI Paceman gets positioned, promoted and had pulled sales leads?

“Advocacy goes deeper. Advocacy is emotion-driven. Advocacy is loyalty. Loyalty is commitment. Loyalty is passion. Loyalty let’s forget the rules of logic, of facts, of the rational. Advocates drive on the streets of loyalty and breath it’s air.” Martin Meyer-Gossner on brand advocacy, September 2013

Did I make the benefit of brand advocates clear to you, MINI? Ok, then get into the next MINI Paceman and drive to me. Let’s speak!

PS: All of you out there who think MINI should make a move towards brand advocacy, share this post and maybe that will make them clear what opportunity they might have missed. And let’s hope some other brands learn from this case…!

Mobile & Responsive Design: Hype or Hope? (Infographic)

It is a dream for many people responsible in the developer field: Creating a mobile app once, without the need to amend it for any screen, any device or any audience. Responsive web design is said to be able to deliver just that – one size design fits all kind of a thing. But is it really true?

In days where more than 20% of all web traffic is generated via leading e-commerce websites coming from mobile devices, responsive web design is becoming an alternative many developers are thinking about. Not surprising, right?! The unique screen resolutions has been growing from 97 in 2010 to 232 in 2013. For those retailers that wanted to rise the number of online shoppers alongside with the growth of screens coming via not desktop resolutions, responsive design became a new and attractive option.

For the marketing and web optimization guys from Monetate, it seems there is only one real alternative if companies don’t believe in their customers to download their mobile app: responsive web design. Still, mobile shopping is not a hype anymore, it has become the real revenue driver in e-commerce. There is an expected $38.8 billion spend on smartphones and tablets according to eMarketer in America in 2013 which is forecasted to grow up to $108.6 billion by 2017.

However, brands might argue that the development is not cheap at all. If you see another alternative or have the proof that responsive design is not the only alternative, let us know…

Responsive-Web-Design-Infographic

Mobile Advertising: Performance gets better, and Google takes 50% of revenue

mobile-webThere are different views on why mobile advertising is performing. However, some new studies might spread some light: one form TNS and one from SessionM which did their study in cooperation with Millward Brown. The study SessionM published today shows that consumers react positively twice as often to mobile ads… but only as long as they get some value out of it.

Mobile banners are most used from smartphone owners when they get a gift card, coupon, events tickets or loyalty points. Although this gives some good insight in the ranking of the preferred mobile engagement options, consumers want to know what benefit they get out of the digital experience. It means that marketers need to be clever and having some good approach. The surveyed consumers replied that the way mobile ads are presented was crucial to their feedback.

The study makes clear that the mobile strategies need to be clear to the consumer, said Lars Albright, CEO of SessionM: “The questions are, ‘What value am I bringing to the consumer?’ And, ‘How am I doing it?'” It asked 1,000 consumers in a digital survey, as well as a dozen participants in each four hour interviews. 93% of respondents said they had the opportunity to choose a reward in exchange for their smartphone time was “important”. This comes as no surprise after the latest Adobe study telling us that often digital advertising is found “annoying”.

The difference between rewards-based mobile ads and different types of on-the-go promos was that rewards-based mobile ads performed better for purchase consideration (+65), the brand in brand interaction (+14%), branded website traffic (+13%), web searches (+8%), in-store shopping for the brand (+6%), and approaching the brand’s social media pages (+5%). Obviously, the user can be handled and does not always see banners as “annoying and invasive”.

Finally, while a lot of industry players see location-based services as the key to mobile’s future, Joline McGoldrick, research director at Dynamic Logic, Millward Brown’s digital practice, spoke about how interest-level marketing can be a huge help to the space. “Targeting is getting better in mobile,” Joline McGoldrick, Research Director at Dynamic Logicsaid, “but it is still not perfect.”

eMarketer 2013Now, although mobile ad revenue is far from reaching big amounts of ad spendings, many marketers see it as a growth area. Whatever the number that is attached to total mobile ad revenue worldwide is, Google is the leader with over half of surveyed people according to eMarketer. And if you see the numbers it seems that Gogle is still not happy with the budget chunk they do get, reaching out for more it seems. But also Facebook investors will see some light at the end of the tunnel with mobile ads on the rise. However, Google might like the competition but all that market dominance simply making way for some more challenging competition.

It will be interesting to see who will come up as the leader in this cmpetition, who can compete with Google in general, and will Google continue to grow their business? You tell us your views….

Hey, Lufthansa! Not interested in Frequent Travellers?

SkyThere were days when I thought it is better to stay out of the discussions around the changed terms and conditions for Frequent Travellers and lounge access. A long time did my trips hit the airports with the lounges where Lufthansa still values the status of a Frequent Traveller (FTL) as a “superior customer”. “Acces granted for FTL passengers!”

Now, in just some weeks it happened to me twice that I got the answer: “Access denied for FTL passengers!” I think, it is time to write some words in order to give Lufthansa the chance to reply to all the clutter that goes live on the Web. So, Lufthansa – please listen up.

Amsterdam Schiphol and London Heathrow! In both airports Lufthansa cancelled their contracts with the lounge partners for FTL passengers. However, there are rumours going on that in 2014 when the new Terminal 2 opens, that situation might change. True? Wrong? We don’t know! Lufthansa, is not monitoring or listening it seems.

The lounge access topic might have some financial background. Still, I wonder if Lufthansa knows what kind of economical impact this might cause. Lufthansa, do you believe in the power of Social Media? Seeing your massive activities on social networks I assume you do. But, why do you not answer the conversation that is led by some link in position 1 on Google for the quest: “Lufthansa FTL London Heathrow”? Doesn’t that show how much Lufthansa values FTL passengers? Sorry, Lufthansa! In my eyes, you want to get rid of the FTL status. Correct…?

And let me give you another reason why I believe that. I am just illustrating briefly the situation of a business man traveling around Europe quite often, and in my eyes approx. 50 times is often.

If I am allowed to have access to the lounge, I don’t lose time. Time is money, is efficiency, is essential for doing my business. Access means: No need to find a quite and comfortable place, buy my drinks and food, or ask myself why I pay your Bought Media. Lufthansa, understand that FTL passengers think about the benefit of paying you the extra thousand year-on-year to get to that status?

Amsterdam, London, or anywhere else. The lounge is the main value for FTL passengers to continue flying more often with you than with other airlines. No access to the lounge means, I will fly i.e. British Airways, one of you biggest competitors for the UK region. And there are many obvious reasons for this i.e. in London Heathrow: Cheaper flights, newer terminal, nice gates, better shops with more popular brands, a Fish restaurant, and, and, and… Do I have to continue the list? No? Thank you, Lufthansa, for making my time efficient and my critic spot on. That’s what I want you to understand!

In the end, the “lounge-access-thing” is just a numbers game. I doubt that your stakeholders at Lufthansa is good in understanding how to scale the business. Sorry Lufthansa, but I doubt you are clear about the long-term effect this “multi-level-lounge-access-nonse” might cause. Why? Let me tell you what happens, if I don’t have access to the lounge. Quite frankly…

No revenue for Lufthansa
250,- EUR
Revenue for BA:
170,- EUR
(without tax, petrol & stuff – average deal, booked early in advance, etc.)
Personal or Company Win: 80,- EUR
Result: Me or the company can safe money or be drunk & data addicted (ok, I am…), if I spend that on a bar at the gates in Heathrow!

I don’t believe the lounge rent, my two drinks and one sandwich costs those 80 EUR, right? So, not granting access to lounges for FTL passengers on different airport makes me think whether…
a) Lufthansa is testing whether you kill the FTL status.
b) Lufthansa doesn’t appreciate the money of Frequent Travellers.
c) Lufthansa has not made their business homework.
Lufthansa, please tick!

Taken it from an Earned and Owned Media perspective, I would suggest you know how often people fly with you, how much you could do with that, how you could engage on networks, how this would catalyse your brand perception, what that would do with people usually flying some oither airline, how this scales in sales. If not, contact The Strategy Web and we will tell you how Social Media scales your business, Lufthansa, predominantly if it comes along in a positive way.

Did I make the benefit of lounge access clear to you, Lufthansa? Next time I am flying, I will make sure I get my travel assistant check the lounge access before booking the flight. I cannot believe you are not interested in our business (feeding you), our needs (scaling your business) and our money (enabling acceleration and growth)?!

Gimme some arguments why I shall still fly with you when I am busy…??? Come on, Lufthansa!

Study: Social Business is critical to future success

Jive Software recently published a study that unveils how social software is increasingly perceived as a strategic executive imperative in the enterprise. Surprise? No. Jive is a provider of social business technology and commissioned the study, which was conducted by Penn Schoen Berland and asked 902 U.S.-based knowledge workers.

The three key finding can be summarized as…
– Social strategy will be critical to the future success of businesses.
– App Stores are gaining traction in the enterprise
– Email usage is growing but is not solving communication challenges in the enterprise

So, what are essential facts from the study…?

Enthusiasm for social software in enterprise is high according to the study. 96% stated that social software adds value to at least one key performance indicator with 67% claiming it would improve customer engagement. 57% even believing it would increase sales or revenue. Two-thirds (66%) of executives responded social software represents a fundamental shift in how companies work and engage with customers.
However, only 17% of the same executives reported being ahead of the curve in this area. So, obviously web business strategy is not where executives think corporate culture should be. And that is although 83% of executives leverage at least one social network for work use.

Reference marketing is becoming essential and social software will play a big role in the future of purchase decisions. 54% of millennials said that they are more likely to rely on and make purchase decisions from information shared via personal contacts in online communities versus 33% more likely to use information from “official” company sources.

Obviously the study also finds that mobile is growing. App stores are gaining tracion in the enterprise and 74% of executives are indicating interest. The reason i salso mentioned in the study. 92% of executives and 82% of millennials believe that work-related web-based apps greatly or somewhat increased their productivity.

As a final finding, the study states the growing use of email which the bloggosphere is evaluating as a weak collaboration tool for a while. The study agrees here. 89% of executives, 88% of millennials and 76% of general knowledge workers believe that they and their teams would be more productive if they could dramatically reduce the time spent writing and reading emails. Seventy-three percent of executives, 73 percent of millennials and 64% of general knowledge workers agree that social platforms will fundamentally change the way people share, connect and learn at work and with companies.

Spot On!
The study obviously favors the benefits of social software (it is a Jive USP). Some weeks ago, an IBM study took a step ahead and looked at the way executives have to challenge SocialCRM in the future and what their main fields of activity are at the moment.

So, if knowledge management in companies via social software is seen to have client engagement potential to improve business objectives, executives should have a close look at the following numbers and think about how (and how long to wait) to implement social software in their business processes: 73% of execs and millennials and 64% of general knowledge workers agree that social platforms will fundamentally change the way people share, connect and learn at work and with companies.

Infographic: Why mobile will fuel the future of business…

Mobile apps and technology is becoming increasingly important for companies in order to increase productivity, generate revenue, approach a new client generation and to get rid of paper. Thsi states a study by Zendesk which highlights the results in a nice infographic… and it reminds me of some research data of a Microsoft study.

The Zendesk research found out that 43% of businesses are planning to increase mobile technology for business purposes by 2015. Corporate networks will see half of all devices being mobile devices until that date. The business use of mobile apps is expected to grow on a worldwide basis up to of $25 billion by 2015 (approx. $6.8 billion in 2010).

News Update – Best of the Day

About one year ago Twitter started introducing their new monetization model: Promoted Tweets. Twitter expects 150 Mio. USD revenue this year with the program. Now, one year later the first “success story” have been published, and Gordon Mc Millan writes a nice summary “Do Twitter ads work?“. Not really, it seems…

Is tablet computing changing the future of the whole computer industry? Who can say that today? However, since tablets are equipped with advanced sensors like high-resolution cameras, augmented reality has become an interesting opportunity to facilitate help for customers, i.e. in the form of manuals. Metaio explains in their latest video how this works…

Have you ever wondered why Microsoft bought Skype? This infographic by Jess3 might have an answer for you. The infographic highlights the dynamic of geosocial networking, and the relative size of social networks, like Skype, Twitter or Foursquare among others.