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  • nmw 14:16:56 on 2015/01/12 Permalink
    Tags: , application, applications, apps, business model, business models, , , revenue, revenues, , ,   

    In-App Commerce 

    App stores stifle innovation – they are damage, and the Internet will eventually route around them.

    http://battellemedia.com/archives/2015/01/3-waves-mobile-revenue.php

     
  • feedwordpress 17:34:11 on 2014/09/06 Permalink
    Tags: apps, , , , , , , mobile applications, re-engagement, the quickening   

    Early Lessons From My Mobile Deep Dive: The Quickening Is Nigh 

    The post Early Lessons From My Mobile Deep Dive: The Quickening Is Nigh appeared first on John Battelle's Search Blog.

    chiclets

    Do you really want to eat them one at a time? Me, I prefer mashing ‘em up.

    Recently I began a walkabout of sorts, with a goal of ameliorating my rather thin understanding of the mobile marketplace. If you read me closely, you know I’ve been more than frustrated with what I call the “chicletized world” of disconnected mobile apps. It’s rise was so counter to everything I loved about the Internet, I’m afraid as a result I underestimated its impact on that very world.

    My corrective starting point – the metaphorical bit of yarn upon which I felt compelled to tug  – was the impact of “deep linking” on the overall ecosystem. The phrase has something of a  “dark pool” feel to it, but it’s actually a rather mundane concept: Developers tag their mobile apps and – if relevant – their complementary websites – with a linking structure that allows others to link directly into various points of entry into their applications. This is why, for example, you can jump from a Google search for “Tycho” on your phone to the “Tycho” page inside your Spotify app.

    So far, I’ve had more than a dozen or so meetings and phone calls on the subject, and I’ve begun to formulate some working theses about what’s happening out there. While my education continues, here are some initial findings:

    1. Deep linking is indeed a Very Big Deal. Nearly all the folks I spoke with believed deep linking in mobile was the beginning of something important, something I’ve started to call…

    2. The Quickening… which I believe is nearly upon us. Mobile app developers are humans driven by business goals. If the business opportunity is large, but proscribed by narrow rules, they will follow those rules to gain the initial opportunity. For example, when the convener of a new market (Apple) imposes strict rules about how data is shared, and how apps must behave with regard to each other, app builders will initially conform, and behaviors will fall narrowly in line for a cycle or two (in this case, about five years). However, once those rules prove burdensome, businesses will look for ways around them. This is happening in mobile, for reasons that come down to new competitive players (primarily Android) and to a maturation in distribution, revenue, and engagement models (more on that below). The end result: The market is about to enter a phase of “quickening” – a rapid increase in linking between apps and web-like backends, harkening a new ecosystem in which both foreseeable and unforseen “life” will be created.

    2. App Installs Rule. Till They Don’t. The market for mobile apps is – predictably – driven by app installs. And unless you’re the teen viral sensation of the moment, the only reliable way to get app installs is to buy them – almost exclusively via advertising on mobile devices. Facebook figured this out, and holy cow, did the market love that. But app makers are now realizing they have to do more than get their app installed. It’s actually just as critical to get their current installed base to actually engage with their app – lest it be forever relegated to the dustbin that is our current (deeply crappy) mobile desktop metaphor.  Hence the rise of  “re-engagement advertising,” which is serving as something akin to search-engine marketing (SEM) in the desktop web.  Several folks I spoke to told me that 80% of the money in mobile advertising is in app installs, but they quickly cautioned that installs are a house of cards which will not be sustained absent the rise of re-engagement advertising.

    3. We’ve Seen This Movie. Which got me thinking. Jeez, have we ever seen this movie before. It’s called publishing. You can buy crappy circulation, crappy audiences, and crappy one-time visitors, and you can also buy great audiences, but the true gauge of a publication, a service, or an app is whether folks keep coming back. And even if you have a great app/service/publication, you need to remind them of your existence more than a few times before they are hooked (this is why classic magazine circulation has three phases – marketing, sampling, and conversion). The link-economy of the open web allowed this process to happen rather naturally, but there is no such economy in mobile, at least not yet. Thanks to early decision made by the conveners of the mobile ecosystem, mobile is deeply shitty at providing business owners with a way of reminding consumers about the value of their proposition, which is why they are frantic for some kind of channel for doing just that. This leads me to hypothesize that…

    4. The App Store’s Days Are Limited. Remember when Yahoo! owned Web 1.0, because it had the entire Web in its directory? Or when Google owned Web 2.0, because it put the entire web in RAM? Yep, both those models created massive companies, along with massive ecosystems, but neither hegemony lasted forever. Apple’s App Store (and Google’s) are subject to the same forces. The model may be dominant, but it’s not going to last. As one senior executive in mobile media put it: “The app store is a weigh station, not an end point.” What might replace the App Store as a model for distribution? That’s a fine question, and one I don’t have a strong opinion about, at least not yet. But I sense the Quickening will lay the groundwork for new vectors of app adoption and engagement, similar – but not identical  - to the link economy of the web. Which is why I believe…

    5. Re-engagement ads open the door to new topologies (and economics) across mobile. A pretty obvious point, if you’ve managed to stay with me to this point, but one I think is worth restatement and elaboration. Re-engagement advertising is driven by a fundamental business (and consumer) need, and Facebook, Twitter, Apple, Yahoo!, and Google are all responding with deep linking topologies that enable re-engagement. This is a relatively new development, and it’s hard to predict where it might go. But one thing’s for sure – deep linking is good for both the developer and the consumer. It’s just a better experience to go directly into the exact right place inside an app that’s already on your phone. And for marketers, deep linking enables far superior “landing pages” inside their apps, driving a conversion path that is measurable and repeatable. It’s not hard to imagine that re-engagement is the beginning of a more robust economic model for mobile, one that will re-integrate much of the goodness we created when the Web broke wide open ten or more years ago. And that makes me wonder if….

    6. The home screen of “chiclets” is mutable. Broadly established consumer engagement models don’t shift rapidly, and the colorful, 16×16 sudoku model of App World isn’t going away anytime soon.  But do we really believe we’ll be poking at squares representing apps forever? I don’t. A more fluid experience based on declared and modeled intent makes a lot more sense – one in which we flow seamlessly from need to need, serviced in each state by a particular application without having to pull back, chose a new app, and then dive back in. I’ve not yet spoken to many UX/UI folks, but I sense this is coming, and deep linking is a first step in enabling it. Somehow, I sense that…

    7. Search is key to all of this. Hey, this is Searchblog, after all. It strikes me that search on mobile is pretty broken, because it forces the entirety of the web onto a model that has far more specific – and useful – parameters to work with. The signals emanating from a mobile phone give search entirely new use cases, but so far, we’ve got precious little to show for it. This can’t stand for long.

    I’ve got a lot more thinking going on, but it’s too nascent to be of much use at the moment. Topics I’m also thinking about include mapping the dependencies of the mobile ecosystem, grokking the concept of “agency” and how it relates to search and mobile data,  the role of programmatic in mobile, and understanding the flow of money between the big platforms and the little guys.

    As you can probably tell, my comprehension of this space is still very limited, but I hope this update sparks some of your own thinking, and that you might share those insights with me in comments or via email or other forms of media. I will continue my walkabout in coming weeks, and I’ll keep writing about it here. Thanks for reading.

    And thanks to the many folks I spoke with so far, many of whom are working on stealth projects or agreed to our conversations on background. Hence, I’ve not quoted anyone directly, but again, thanks, and you know who you are!

    The post Early Lessons From My Mobile Deep Dive: The Quickening Is Nigh appeared first on John Battelle's Search Blog.

     
  • feedwordpress 23:01:08 on 2014/04/26 Permalink
    Tags: , apps, , , , , , , social, strategy   

    Google+ Won (Or Why Google Never Needed A Social Network) 

    The post Google+ Won (Or Why Google Never Needed A Social Network) appeared first on John Battelle's Search Blog.

    google+Since the news that Google+ chief Vic Gundotra has abruptly left the company, the common wisdom holds that Google’s oft-derided Facebook clone will not be long for this world. But whether or not Google+ continues as a standalone  product isn’t the question. Google likely never cared if Google+ “won” as a competitor to Facebook (though if it did, that would have been a nice bonus). All that mattered, in the end, was whether Plus became the connective tissue between all of Google’s formerly scattered services. And in a few short years, it’s fair to say it has.

    As I wrote three years ago , the rise of social and mobile created a major problem for Google – all of a sudden, people were not navigating their digital lives through web-based search alone, they were also using social services like Facebook – gifting that company a honeypot of personal information along the way – as well as mobile platforms and apps, which existed mainly outside the reach of web-based search.

    If Google was going to compete, it had to find a way to tie the identity of its users across all of its major platforms, building robust profiles of their usage habits and the like along the way. Google countered with Android and Google+, but of the two, only Android really had to win. Google+ was, to my mind, all about creating a first-party data connection between Google most important services – search, mail, YouTube, Android/Play, and apps.

    Think about your relationship to Google five years ago – you most likely weren’t “logged in,” unless you were using a silo’d service like mail. Now think about it today – you most likely are. We have Google+ to thank for that. It’s done its job, and it’ll keep doing it, whether or not you ever use its social bells and whistles as a primary social network.

    Google still has a lot of work to do on identity – anyone who has more than one login can attest to that. But Google+ has won – it’s forced the majority of Google users onto a single, signed in state across devices and applications. That protects and extends Google’s core advertising business, and opens up the ability to ladder new services – like Nest – into Google’s platform.

     

    The post Google+ Won (Or Why Google Never Needed A Social Network) appeared first on John Battelle's Search Blog.

     
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