ABC Digital Business



Commissioning and Building Apps
An Entertainment Category Checklist
ABC’s commercial mobile development

2005 - 2009                             2010           2011                 2012
ABC For Kids        News, kids and      iOS:           iOS:                 iOS:
-World first pre-   entertainment       Beached Az     Phillippa Finch      Bananas in PJs
school mobile       content             ABC For Kids   Spicks Quiz          Randling
channel on          syndicated to                      Angry Boys
3 Mobile            multiple telco,                    Bananas in Pyjamas
                    media, and retail                                       Android:
                    partners                                                Story Cloud
Source: App Annie 2012


Australia not a small market for apps - 6% of paid market where UK
is 8%. Nevertheless, difficult to be profitable.
Commercial Success
•   Loved and trusted Australian kids brand
•   Over 400k accumulated users
•   49,000 uniques per month
•   10% conversion – iTunes click-throughs
Commercial Success




 •   Huge viral hit
 •   Young male audience
 •   Early technology adopters
 •   Eps, Game, Sound board
 •   Inexpensive build
Critical Success
• #1 in Paid Entertainment
• Good engagement:
    • 14,000 sessions June
    • 422 avg daily users
    • 10mins avg session
       time
• IAP quiz packs very popular
• High dev costs affect
   profitability
Critical Success
• FREE at launch
• Over 50k installs in 1st Month
• Simple but feels rich
• Uptick in other Bananas apps
  as customers explore
• Better ratings when free –
  price big factor in customers’
  perceived value equation
App Install Trends




Installs follow very similar trajectory regardless of pricing strategy.
Apple promotion creates large spike at launch.
In App Purchase behaviour over same period
The checklist for commissioning apps




Photo credit: Art Alahay
1. Have a clear idea what you want to achieve

• What behaviour do you want your audience to exhibit on
  encountering your brand in this space?
    – Who are they? What will THEY want from your brand?
• Engagement via digital channels?
    – Keep it simple
    – Consider the app part of your marketing budget and scale
      development accordingly
    – Include snippets of free content
• Brand awareness?
    – Choose a cheaper channel
    – Where you have more control over findability
• If you do want to generate revenue for the brand, go in with eyes
  open...
2. Choose a business model that makes sense
for the medium
FREE                     FREEMIUM                    PAID

•   Most popular with    •   Make sure you have      •   Works in some
    App Store                enough “mium” to go         instances
    audiences                with the free           •   Needs a large
•   Possibly even more   •   Teaser content drive        addressable audience
    important than           to paid content             (global)
    quality??!           •   In App Purchase               • With the means
                              • Run FREE sales                to market to them
                                  on app and still   •   Content owners could
                                  monetise               consider global
                              • IAP content              licensing to 3rd parties
                                  MUST be                along with other
                                  meaningful and         content
                                  desired
3. Control costs tightly

• Native app dev very expensive
  compared with the potential for
  direct revenue
• Look for Minimum Viable
  Products that will satisfy
  audience
• Sacrifice notional equity and
  partner with your developer for
  a revenue share
    – You can share IP, or retain IP
      and split revenue only
• Added advantage -- developer
  more invested in the product,
  rather than just the project – can
  lead to better outcomes
Engaging development partners on
a work for hire basis...
• Dedicate your own product owner or producer to the project
   – Give them decision-making authority and responsibility
• Look closely at development partner’s project management
  processes and practice
   – Dedicated producer/PM is critical
• And QA practices
   – Ask for detailed test plans as one of the deliverables
   – Do they automate testing?
   – Use an online tracking tool for bug reporting.
• Agree number of rounds of changes you can have for your
  budget
• Include analytics implementation as a deliverable
4. Reserve budget for post-release and
measure user behaviour


• Spend time determining the audience behaviour you will
  measure early on in the build
    – Step through your app wireframes to do this
• Implement and test the analytics before release
• Don’t spend all your budget getting to launch – release with an
  MVP
• Do spend time interpreting the results – you’ll learn where you
  should be putting the rest of your budget
5. Remember your app is a product, not a project

•   Monitor user behaviour
•   Optimise the app based on user behaviour and feedback
•   Actively manage app pricing and promotions
•   Actively use social media
    if every app is a startup –
    viral is your main driver
    of growth
The Checklist Recap

    1. Have a clear idea what you
       want to achieve, how you
       want audiences to act
    2. Choose a business model
       that makes sense for the
       medium
    3. Tightly control the
       development costs (and/or
       consider rev share
       partnerships)
    4. Reserve budget for post-
       release and measure user
       behaviour
    5. Remember your app is not
       a project, it’s a product.
       Resource its ongoing
       management.
Thank you




@mslissa
Melissa Firth
ABC Digital Business

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Commissioning Apps - An Entertainment Category Checklist

  • 1. ABC Digital Business Commissioning and Building Apps An Entertainment Category Checklist
  • 2. ABC’s commercial mobile development 2005 - 2009 2010 2011 2012 ABC For Kids News, kids and iOS: iOS: iOS: -World first pre- entertainment Beached Az Phillippa Finch Bananas in PJs school mobile content ABC For Kids Spicks Quiz Randling channel on syndicated to Angry Boys 3 Mobile multiple telco, Bananas in Pyjamas media, and retail Android: partners Story Cloud
  • 3. Source: App Annie 2012 Australia not a small market for apps - 6% of paid market where UK is 8%. Nevertheless, difficult to be profitable.
  • 4. Commercial Success • Loved and trusted Australian kids brand • Over 400k accumulated users • 49,000 uniques per month • 10% conversion – iTunes click-throughs
  • 5. Commercial Success • Huge viral hit • Young male audience • Early technology adopters • Eps, Game, Sound board • Inexpensive build
  • 6. Critical Success • #1 in Paid Entertainment • Good engagement: • 14,000 sessions June • 422 avg daily users • 10mins avg session time • IAP quiz packs very popular • High dev costs affect profitability
  • 7. Critical Success • FREE at launch • Over 50k installs in 1st Month • Simple but feels rich • Uptick in other Bananas apps as customers explore • Better ratings when free – price big factor in customers’ perceived value equation
  • 8. App Install Trends Installs follow very similar trajectory regardless of pricing strategy. Apple promotion creates large spike at launch.
  • 9. In App Purchase behaviour over same period
  • 10. The checklist for commissioning apps Photo credit: Art Alahay
  • 11. 1. Have a clear idea what you want to achieve • What behaviour do you want your audience to exhibit on encountering your brand in this space? – Who are they? What will THEY want from your brand? • Engagement via digital channels? – Keep it simple – Consider the app part of your marketing budget and scale development accordingly – Include snippets of free content • Brand awareness? – Choose a cheaper channel – Where you have more control over findability • If you do want to generate revenue for the brand, go in with eyes open...
  • 12. 2. Choose a business model that makes sense for the medium
  • 13. FREE FREEMIUM PAID • Most popular with • Make sure you have • Works in some App Store enough “mium” to go instances audiences with the free • Needs a large • Possibly even more • Teaser content drive addressable audience important than to paid content (global) quality??! • In App Purchase • With the means • Run FREE sales to market to them on app and still • Content owners could monetise consider global • IAP content licensing to 3rd parties MUST be along with other meaningful and content desired
  • 14. 3. Control costs tightly • Native app dev very expensive compared with the potential for direct revenue • Look for Minimum Viable Products that will satisfy audience • Sacrifice notional equity and partner with your developer for a revenue share – You can share IP, or retain IP and split revenue only • Added advantage -- developer more invested in the product, rather than just the project – can lead to better outcomes
  • 15. Engaging development partners on a work for hire basis... • Dedicate your own product owner or producer to the project – Give them decision-making authority and responsibility • Look closely at development partner’s project management processes and practice – Dedicated producer/PM is critical • And QA practices – Ask for detailed test plans as one of the deliverables – Do they automate testing? – Use an online tracking tool for bug reporting. • Agree number of rounds of changes you can have for your budget • Include analytics implementation as a deliverable
  • 16. 4. Reserve budget for post-release and measure user behaviour • Spend time determining the audience behaviour you will measure early on in the build – Step through your app wireframes to do this • Implement and test the analytics before release • Don’t spend all your budget getting to launch – release with an MVP • Do spend time interpreting the results – you’ll learn where you should be putting the rest of your budget
  • 17. 5. Remember your app is a product, not a project • Monitor user behaviour • Optimise the app based on user behaviour and feedback • Actively manage app pricing and promotions • Actively use social media if every app is a startup – viral is your main driver of growth
  • 18. The Checklist Recap 1. Have a clear idea what you want to achieve, how you want audiences to act 2. Choose a business model that makes sense for the medium 3. Tightly control the development costs (and/or consider rev share partnerships) 4. Reserve budget for post- release and measure user behaviour 5. Remember your app is not a project, it’s a product. Resource its ongoing management.