The main objective of an app store is to increase the attractiveness of a hardware or software platform to the end users by engaging 3rd party developers to increase a platform's capabilities. Initially app stores were mostly focused on users of mobile devices, however today, new, more specialized app stores are coming online that target businesses as well as consumers.
Watch this on-demand webinar to learn about the current state of app stores, future trends, and how technology companies and network operators can leverage this new business model to drive adaptation of their platform and generate additional revenue.
Featuring: Michael Vax, CTO, Elastic Path Software, Matt Dion, VP of Marketing, Elastic Path Software, and special guest Carlo Longino from Wireless Partnership Industry (WIP)
App Store, A New Way To Sell Software, Media And Anything Digital
1. App Store - a New Way to Sell Software,
Media, and Anything Digital
Elastic Path CTO Wireless Industry Elastic Path VP
Michael Vax Partnership’s Carlo Marketing Matt Dion
Longino
Listen to audio using your computer’s microphone & speakers (VoIP) or dial in:
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Access Code: 409-829-616
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2. Introducing
Elastic Path Software
• Provides an enterprise ecommerce platform, hosting,
full outsourcing, and consulting
• Gives enterprises the flexibility to move between these
models at any time
• #1 ecommerce blog www.getelastic.com
• For more on-demand ecommerce resources:
www.elasticpath.com/resources
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3. Application Store
Developers Store Operator Shoppers
Approval Purchase
New Apps
Payment
Revenue(20-30%)
App Store
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4. App Stores for Hardware Platforms
Smart 60+
phones Manufacturers: Apple, RIM, Samsung, LG, Motorola, Nokia, ...
Operators: Orange, Verizon Wireless, China Mobile, Sprint, ...
TV’s Verizon, Samsung, KT, Rallycast, ...
eReaders Amazon, Sony, Samsung, ...
Printers HP
Netbooks Intel, Acer...
PC Dell, Citrix
Home Control4
automation
monitors
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5. App Stores for Software Platforms
Java store Oracle (Sun)
Windows Mobile Microsoft
Android Google
Facebook Facebook
AIR Marketplace Adobe
Photoshop Marketplace
Force.com Salesforce
Oneforty Twitter
Selling Manager eBay
Google Apps Marketplace Google
Intuit Workplace App Center Intuit
Planned for 2010 PayPal/eBay
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7. App Store Race will Lead to Hundreds of App Stores in
2013
“The launch of the Apple App Store in 2008 has
started an app store race leading to 34 major
application stores and hundreds of niche
stores in 2009. The growing competition will
lead to a decrease of Apple’s App Store market
share below 30% in 2013.
The market for Smartphone applications will
grow to $15.6bn in 2013.”
research2guidance report
“Global Smartphone Application Report 2010”
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9. App Store Business Objective
The main goal of an app store is to
increase the attractiveness of a hardware
or software platform to end users by
engaging 3rd party developers to increase
platform capabilities
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10. Comparing E-store & App Store Business Goals
E-store App Store
Increase revenue Increase the appeal of a
platform
Increase margin
Attract developers
Brand awareness
Deliver a quality platform
experience
Increase revenue
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11. E-store
Shoppers Store Operator
Ecommerce
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12. Marketplace Vendors
Marketplace
Shoppers
Ecommerce
Store Operator
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13. App Store Vendors/Developers
App Store
Marketplace
Shoppers
Ecommerce
Store Operator
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14. Current State of App Stores
iTunes imitations
Basic ecommerce functionality
Work great only for top ranking
applications
Not enough focus on helping
developers to sell
Built in-house or by an SI
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16. Digital Marketplace - App Store Next Generation
Advanced ecommerce functionality modified for
marketplace environment
Optimized to grow developers and store operators’
revenues
Offers multiple ways to monetize intellectual property
Opens multiple communication channels between
developers, users, and operators
Built by commercial vendors
Offered as SaaS solution
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17. Applying Ecommerce Techniques
SEO Personalized
Loyalty programs recommendations
Better navigation Wish lists
and product Gift cards
discovery Calls to action to
Subscriptions increase order
value
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18. Time for Innovation
Analytics
Promotions
Merchandizing
End-users support
New business models
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19. In-app Commerce Support
Upgrade to paid versions
Selling virtual goods
Selling content
Selling other applications
Selling products and services delivered
outside of mobile device
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20. What I Own vs. What I Bought
Make applications always available to the user
Upgrade management
Device compatibility
License management
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21. App Stores – From the Developer’s Perspective
Who is going to deliver the sale?
• WIP is currently tracking 60+ app stores
• Serving different platforms, geographies, devices,
operators, types of app
• Size is important
• Official platform app stores (iPhone app store, Android
market) and operator stores have scale
• But so is focus
• Vertical app stores (enterprise, specific industry)
• Specific types of content (games, eBooks, adult)
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22. How can I attract and help developers?
• Ease of submission/approval of apps
• Submitting apps for approval is time-consuming and
difficult
• Display your response times and stick to them!
– Have sufficient resources for review process
• Make your responses thorough
– If you reject an app, state why as clearly and specifically as
you can
• Make the process simple
– If developers have to jump through hoops, they’ll take their
app somewhere else
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23. How can I attract and help developers?
• Help with marketing
• Promotion (push)
– Promote individual apps through “featured apps”, other
means
– Enable cross-promotion
• Discovery (pull)
– Recommendations and reviews
– Social-networking aspects
• Top ten lists aren’t enough!
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24. How can I attract and help developers?
• Enable customer support and relationships
• Help developers help customer
– Don’t neglect support!
• A bad post-purchase experience can hurt you more
than it hurts the developer
• Let developers share the customer relationship
• Make updates easy
• Allow contact with customers – to a reasonable extent
• Developers and app stores want the same thing –
happy customers and repeat purchases!
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