The slides of my talk on "The Economics of Apps" at Mobile 2.0 Europe (17 June 2010 in Barcelona).

1. The Economics of Apps
Mobile 2.0 Europe - Barcelona - 17 June 2010
Volker Hirsch (@vhirsch)

2. Mobile Apps...
... can be a bit of a nightmare
http://fraizochocolat.wordpress.com/2010/02/

3. You do everything right...

4. ... on the inside...
http://blogs.fayobserver.com/faytoz/files/2008/10/davinci_toothed_gears_original.jpg

5. ... on the outside...
http://picasaweb.google.com/lh/photo/f-4eoJyuiitoJIPDaqrMJQ

6. ... and on marketing
... and of course with Carriers
http://www.ruralmarketingservices.com/images/marketing_road_sign.jpg

7. Something is still missing...
http://www.latest-wallpaper.info/free-money-wallpaper.htm

8. The Discovery Dilemma
http://www.lanfaxlabs.com.au/images/all-detergents-3-IMGP3918.JPG

9. THe $ Dilemma (carrier model)
after overheads
after production
after porting & QA
after License
after distributor
after carrier
after VAT
total revenue

10. THe $ Dilemma (carrier model)
2

11. THe $ Dilemma (app store model)

12. THe $ Dilemma (app store model)

13. The Mobile Web then?

14. http://gapingvoidgallery.com

15. And again: loads of them...

16. What is Social?

17. Social refers to the
interaction of organisms
with other organisms and
to their collective co-
existence [...]
Source: Wikipedia

19. http://commons.wikimedia.org/wiki/File:Bhgs_crowd.jpg

20. And so what ???

21. 475,000,000
circulation of newspapers
825,000,000
registered cars
1,700,000,000
Internet users (PC, Mobile, Web Cafe)
1,800,000,000
unique credit card holders
2,250,000,000
tooth brushes in use
4,000,000,000
FM Radios
4,600,000,000
mobile phone subscriptions
http://upload.wikimedia.org/wikipedia/commons/8/85/Numbers_grid_in_NY.jpg various sources

22. Concept: Object-Centered
Sociality
Prof Dr Karin Knorr-Cetina,
Sociologist
https://svn-create.freedesktop.osuosl.org/public/create/docs/logo/images/light_bulb_off3.jpg

23. You need Context!
http://flickr.com/photos/nolifebeforecoffee/124659356/

24. My app a Social Object?
http://adsoftheworld.com/media/print/lego_video_game?size=_original

25. It always was!

26. Object
Let’s recap:
Social is interaction
in context
http://upload.wikimedia.org/wikipedia/commons/e/e0/Petanque_players_in_Cannes_(France)_2003.jpg

27. It’s about Engagement
- People Interact by nature.
- Fans can be Fanatics!
- An app and the environment in
which it is set matters to its fans.
Apps are powerful social
objects
http://www.windsorfinejewelers.com/media/catalog/product/cache/1/image//t/a/tacori-platinum-round-diamond-semi-mount-engagement-ring.jpg

28. What
- Create Fanatics.
- Provide avenues for people’s
passion.
- Incorporate people’s strongest
community: their friends!
- Keep it in context, i.e. in the app.

29. How
- High-Scores (Reward) but make
them customizable (Relevant).
- Connect to the community
(Avenues of Passion).
- Person-to-Person Challenges &
(Playful contextual interaction).
- Awards / Rewards (Fanatics).
- In-app transactions & Virtual
Currencies (Contextual
Monetization).

30. 74% of all buying decisions are made
on a friend’s recommendation
Source: Bain Consulting
http://www.cartoonary.com/madagascar/images/madagascar-marty-alex-gloria-melman-penguins-julien-2048x1536.jpg

31. Monetize
Downloadable
content and in-app
currencies drive
additional revenue
streams
Engage Increase revenues
challenges and
achievements
engage users and
Discover let them share
their app
Cross-promotions, experience.
Friend Finding, and
Social Network Increase user
Integration let activity
people connect to
each other and get
the word out.
Increase installed
base

32. Discover
Increased installed base
from more people downloading the games

33. Engage
Increased activity in your app:
people use it more often

34. Monetise
Increased revenues
from additional revenue streams

35. One last thing:
123,296,966,069,453
The Law of Big Numbers

36. Connect to any social
network
*
*
*
*
**
* Already integrated ** Scoreloop is the official partner for mobile gaming

38. don’t forget
the “other”
smartphones!
And maybe the other folks are noteworthy, too...

39. Core Social
- Social Tools (High-Scores,
Player-to-Player Challenges,
Recommendations [using any
source available], Awards &
Trophies.
- Full virtual currency (supports
in-app purchases, item
downloads, dual currency)
- Multi-platform: iPhone, Android,
BREW, Symbian, MeeGo, RIM, Web.

40. Image Credits
http://upload.wikimedia.org/wikipedia/commons/8/85/Numbers_grid_in_NY.jpg
http://gapingvoidgallery.com
http://upload.wikimedia.org/wikipedia/commons/e/e0/Petanque_players_in_Cannes_(France)_2003.jpg
http://upload.wikimedia.org/wikipedia/commons/5/56/Bhgs_crowd.jpg
https://svn-create.freedesktop.osuosl.org/public/create/docs/logo/images/light_bulb_off3.jpg
http://www.easy-access.com/garagelo/coloring/tools.gif
http://www.scorpioshoes.com/accessories-42/shoe-care-44/dr-martens-shoe-polish-black-8128.htm
http://picasaweb.google.com/lh/photo/f-4eoJyuiitoJIPDaqrMJQ
http://img.wallpaperstock.net:81/car-mechanics-wallpapers_11816_1024x768.jpg
http://www.mixedforyou.com/fineart/Renaissance/Flying%20Machine,%20Leonardo%20da%20Vinci,
%201490.jpg
http://blogs.fayobserver.com/faytoz/files/2008/10/davinci_toothed_gears_original.jpg
http://www.adsinn.com/wp-content/uploads/2008/01/1100109100-1.jpg
http://adsoftheworld.com/files/images/video-game.jpg
http://www.thealarmclock.com/euro/images/flirtomatic.png
http://img.glu.com/WSOP_Mobile/images/WSOP_header_logo.png
http://villageshow.co.uk/assets/images/trophy.jpg
http://images.internetsafety.com/www/images-pm/safe-eyes-mobile-logo.jpg
http://www.foldingbikehut.co.uk/images/Toolbox%20Travel.jpg

41. Thank you!
+44 7843 599 678
@vhirsch
volker@scoreloop.com
http://vhirsch.com/blog
http://scoreloop.com