On November 21st over 600 developers and entrepreneurs got together to discuss what’s important to Minnesota tech start-ups. The halls that Best Buy legendary founder, Dick Schulze, built made for a great location for the next wave of Minnesota entrepreneurs to begin spreading their wings.

Several Minnesota start-up thought leaders were on hand including Graeme Thickens of Minnov8, Robert Stephens, founder of GeekSquad, Justin Porter of the University of Minnesota Venture Center, and John Roberts attorney at start-up friendly New Counsel. There were many young Minnesota entrepreneurs on hand including Mynul Khan, founder of FieldNation, and Adam Sellke of Evolve, who was a recent semifinalist at The Minnesota Cup. I was surprised that there were several Minnesota entrepreneurs who had multiple successful companies with exits.

Minnebar co-founder, Ben Edwards, led a very interactive roundtable discussion for web app builders. Ben’s leadership was clearly on display as a large group of primarily independent developers came forward with their questions on how to market the technology they built. It was very interesting to hear a group of developers discuss marketing issues. From my first hand experience as an internet company founder, I know you need to wear a lot of hats.

The most heated discussion of the day was “Bootstrapping Your Tech Start-up” led by Kevin Spreng of Robins, Kaplan, Miller & Ciresi. Kevin provided tips for bootstrapping entrepreneurs such as hire contractors rather than employees, go without an office, and focus on execution. Near the end of his session, Kevin stated that marketing agencies were a black hole because marketing agencies spend a lot of money, and he advised start-ups to handle their own marketing.  Curt Prins, Executive Director at District 202 and marketing guru, responded with his disagreement and said not all marketers needed a large budget to accomplish results for start-up entrepreneurs.  A rather lively debate ensued (see tweets under #minnebar). Nice work Kevin and Curt in driving a stimulating discussion on the topic of bootstrapping.

Justin Grammens led a packed session on how to develop Android applications.  Justin explained how, unlike iPhone apps, Android apps require no certification or approval. He also created a simple “Mobile Twin Cities” app during the session. I was amazed at how simple creating a basic Android application can be.

Dan Frankowski and Max Harper from Blue Shift Labs led a discussion on coding with Google’s App Engine that intrigued a number of developers. The crowd was very engaged. The scripting seemed pretty straight forward.

Mike Bollinger provided an introduction to HTML5. The tweets that followed said that HTML5 looked “amazing” and that users should stop using Internet Explorer 6 to increase the adoption rate.

Ryan Weber and I provided a summary of the top trends and winners in the application industry. Ryan forecasted that the integration of social and location-based mobile technology would be one of the most significant drivers of growth and change in the mobile app space.

My favorite discussion was the one facilitated by co-founder of Minnebar, Luke Francl, entitled, “Midwestern Startups: What is Possible?” Luke started by asking for those entrepreneurs that had worked in Silicon Valley to compare their start-up experience there versus their Minnesota start-upexperiences. One such entrepreneur answered Luke’s question by saying Silicon Valley start-ups aren’t as afraid to fail as those in Minnesota. Another entrepreneur said the biggest difference was how much deeper the talent pool was in the valley. Finally, someone joked that when he was in Minnesota, whenever someone asked where he worked, he responded with “I work for at a start-up.” When asked the same question while at an iPhone meet-up in Palo Alto, the response was met with laughter. Why? In Silicon Valley, everyone works for a start-up. The discussion next turned to several ideas on how we can make Minnesota a better place to create a tech start-up. Among the ideas identified were creating an incubator fund modeled after Y Combinator, getting the University of Minnesota to raise money to fund local tech start-ups similar to what the University of Wisconsin started a year ago, the creation of a new TechCrunch-like Minnesota focused community site, and taking advantage of Minnesota’s significant number of Fortune 1000 companies to provide a distribution channel for Minnesota-brewed new tech. Michael Gorman of Split Rock Partners, one of the sponsors, closed Luke’s discussion by saying he was looking forward to seeing where we would be in another year. Judging by all of the energy, and the way the Minnesota developer and entrepreneur crowd is starting to support each other, I am confident we will see continued growth in the Minnesota tech start-up community. I am looking forward to Minnebar 2010.

Rob Weber, VP of Business Development and Co-Founder, W3i, LLC
Rob is an Internet marketing pioneer with over nine, profitable years evolving W3i in the Integrated Interactive Media industry.

Please pass more turkey and mashed potatoes!

I am an art lover and an art creator.  Unfortunately, these aspects of my personality often clash with my job, designing banners, much like blaze orange clashes with pea green.  (Shudder!)  In an industry where user “clicks” are the goal, we are sometimes asked to do things that should be illegal; such as using designs that are copy-heavy and garish in color.  Why are users more likely to click on the least artistic banner on a webpage?  Are they honestly more attracted to tacky and gaudy?  Or maybe, just maybe, that designer has figured out how to lure in the unsuspecting user with the use of subliminal messaging saying, “click me… click me… click me…”  (Note to self: search “subliminal messaging conferences” and sign up.)

In the midst of all of this thinking (and contemplating Thanksgiving at the same time), I have come to a conclusion.  Designing “clickable” banners is a lot like planning for Thanksgiving dinner… add as many salads and gourmet goodies as you can, but stop fooling yourself!  People are really only coming for the turkey and mashed potatoes.  They do not care that Great Aunt Ermintrude has outdone herself in her use of Jell-O in the salad this year.  All your family wants is a chance to overdose on grilled turkey and gorge themselves on mounds of creamy mashed potatoes.  This is what I mean: users are looking for the meat and potatoes (the hearty stuff) of an advertisement.  Let them know exactly who you are and what your product is as quickly as you can.  Take out the fluff, take out the pretty.  Get to the heart of the matter so they can decide immediately if they are interested or not.  People don’t want to stare at the Jell-O salad for five minutes, trying to figure out exactly what surprises are in it.

Let’s take, for example, two of our display banners:

Version 1:                                                                      Version 2:

Version 1 outperformed Version 2 by nearly 100%!  At first glance, this may not solidify the point that I’m trying to make.  But what you can’t see in the screenshot is that Version 2 needs time to scroll through the different screensavers and features available before finally getting to the screen that is shown above.  Conversely, Version 1 shows everything from the get-go.  No waiting needed.

Do you see what I mean?  Beautiful is not always better in designing banners.  It may be easier on the eyes.  It may prompt us to hang it on our wall.  But it does not always translate into user “clicks.”  I can only speculate on the reasons for this behavior… Perhaps the user likes to see the branding and product throughout the whole process.  Possibly, loud colors naturally draw the eye and compel users to click on them.  It could even be the voices in their head telling them that the world can be saved by clicking on that banner.  (Have you come across other reasons for users’ actions?)  Whatever the motivator, it doesn’t mean that you should stop fighting for gorgeous designs.  What it does mean, though, is that there should be a way to mesh these two taste palates together.  How can that sprig of parsley be added to the turkey?

Keep in mind when designing banners what the user is looking for; hook them with straight-forward facts and a strong call to action!  Art will not always need to be sacrificed for a concept that works, but strive to simplify your designs and feed your users’ need for information quickly.  In the words of Thoreau, “simplify, simplify.”  Take away the funky Jell-o creations and give them what they want – the hearty stuff that will keep them content and satisfied.

Jessie Schroder, Marketing Specialist, W3i Holdings LLC
Jessie uses her experience in internet marketing, graphic design, and testing to guide W3i’s focus of marketing promotions.

As I was reading about the growing use of social media as a device for content discovery, a couple things became clear to me.  First, the article mentions social media as the next great gateway for users to discover stuff that is meaningful to them.  I agree.  Social media is a great vehicle to find information and content from people you trust.  But recent news of Twitter’s stalling growth, Facebook flattening and MySpace’s descent into a ghost town (ok, not so recent news there) lead me to believe that social media will not displace conventional means of content discovery, such as search, information portals, etc.  So let’s face it, discovery will continue to pervade multiple channels.  It also became clear that most of these discovery gateways are reactive, involving users seeking out said content.  In the long run, that’s not enough.  In order to maximize discovery, especially in regards to application discovery, one needs to employ a multi-pronged approach: one that is both proactive and reactive. 

First, let’s talk about reactive methods.  Enabling reactive methods of application discovery can be time-consuming and produce results slowly especially if you are just getting started (sure, there are rare exceptions to this rule).  For a publisher, it usually involves methods, like SEO, that are set to invite users to discover whatever their content may be, such as a new app.  Even social methods require users to find you and subsequently follow you, which is indeed a passive step that must be achieved before a social conversation can start.  It’s sort of like standing patiently at a mixer, waiting for people to just come up and chat with you because you look cool.  While that might produce some results, the best way for those to discover you is to get out, introduce yourself, and bump a few fists.

So let’s talk about proactive discovery.  An app with a great user experience, solving user problems without an active user base is worthless.  Publishers need to take a multi-pronged approach to improve discovery in order to build an engaged user base.  This includes standard reactive discovery gateways such as search and social, but also proactive methods that get your app in front of actual users saying “hello, nice to meet you”.  It dawned on me that W3i’s InstallIQ intuitively fit as a distinct proactive method to virtually shake hands (or fist bump) with users.  InstallIQ engages users on the install of an application; meaning that you have users’ undivided attention and have taken control over your discoverability destiny.  This proactive method is as equally important as reactive methods, but is one that is often lacking from marketing plans.   Proactive application discovery has less up-front investment (much like going up to someone and simply introducing yourself – no need to cultivate and hone your meta data for someone to spot you) and produces quicker results (hey, some of those people will introduce themselves back!).  The numbers don’t lie.  Within 8 months of launch, W3i’s InstallIQ helped a weather widget install a staggering 1.5 million apps.  Within 6 months of launch, a shopping widget gained an active audience of 3 million users via InstallIQ.  A proactive approach to application discovery can produce great results.

W3i offers a chance to proactively engage users and increase awareness, therefore, leaping over the difficult discoverability hurdle.  So how has your application discovery destiny played out?  Have you taken control of it?  How has it worked thus far?  Let your voice be heard in the comments.

Eric Montag, Product Manager, W3i, LLC
Eric is a Pragmatic Marketing Certified Product Manager and uses his experience in internet marketing to lead the charge in product research, planning, and execution from both a consumer and business standpoint. 

As you know, W3i gives users access to a wide catalog of applications on a variety of unique sites. At the same time, we also create value by connecting users to other apps they might find useful, interesting or relevant during the installation of these applications. As a clear investment in our application network, content discovery and furthering distribution opportunities for our advertising partners, I have the pleasure of announcing the release of a new internal product called Integrated Content Network.

Integrated Content Network (known internally as ICN) improves content discoverability through increased content availability and dynamic categorization on our sites. This benefits both users and advertisers. Users will discover more applications to download thus leading to greater distribution opportunities for our advertising partners, getting more of their applications in front of more potential users. Visit the freshly redesigned Freeze.com to see our first site powered by ICN.

But there’s more: ICN also increases internal efficiencies by leaps and bounds, allowing us to ensure we stay on top of application trends and seasonal changes. Couple that with ICN’s real-time site updates and we’re set to meet users’ needs with great speed.

ICN has a bright future. We have some great things in store for it, providing even further benefits to our partners and users. When these improvements are ready to be rolled out, you’ll be sure to hear about it.

As W3i moves forward, now is a better time than ever to become part of our application network. ICN is a perfect example of our investment in improving user experience and increasing distribution opportunities for advertisers. Looking for distribution for your app or monetizing your current traffic? You’ve come to the right place.

Eric Montag, Product Manager, W3i, LLC
Eric is a Pragmatic Marketing Certified Product Manager and uses his experience in internet marketing to lead the charge in product research, planning, and execution from both a consumer and business standpoint.

New York is exhausting compared to central Minnesota, but I love the passion for Internet marketing one finds at ad:tech. It always regenerates me.

If you didn’t make it this year, here are some of the trends that I picked up on for Application Marketers:

1. Mobile – The talk is mobile. The slow-up is facilitating the transfer of money and getting found (distribution).
2. The Cloud – Creating opportunities for open-source application developers. Cuts down on overhead costs.
3. Generating revenue from content – Consumers seek knowledge; deliver value in your application and they will follow.
4. Social is here to stay; it pays to really listen. Multiple tools are available for listening. How many do you use?
5. Increased spending in digital. Combining digital with traditional media can double response rates (per Rod Lehman of HP Software). Be adventurous—think application, it’s a powerful engagement tool. http://www.adtechblog.com/blog/detail/marketing-3.0building-great-brands-in-the-digital-age/
6. App discussion: “Branded apps are not marketing”:
   • Again, apps need to have utility—they must serve a purpose. User’s app interests vary by geography. In US, consumers like social apps; in India, productivity apps rule.
   • 64% of mobile users are open to seeing advertising on their phone(per GetJar); advocating for the free model.
   • Apps offer incredible engagement.
   • Mobile another touch-point.
   • Measuring success through number of downloads, returning traffic, and engagement.
     http://www.mobilemarketer.com/cms/news/database-crm/4579.html

What do you think the latest app trends are? I appreciate your comments—now back to my emails.

Donny Snyder, Business Development Manager, W3i, LLC
Donny uses his experience and excitement for the internet industry, along with W3i’s Application Network, to provide distribution and monetization solutions for content providers.

This evening I went online to BestBuy.com to pick up a new monitor for my home office PC. My old monitor crapped out a few days ago, and I’ve been meaning to get around to purchasing a new one. I tend to avoid brick and mortar stores for consumer electronic purchases, and BestBuy.com is usually the first website I start with when shopping for consumer electronics. (Apparently, I am like most other online shoppers… I read a recent analyst report that ranked BestBuy.com as the number one in total online consumer electronic sales.)

After using BestBuy.com’s user ratings to sort through and find the best-rated 23-inch monitor, I settled on an Acer H233Hbmid 23 inch Widescreen HD LCD Monitor listed at $209.99.

Thankfully for me, I use a couple of different browser add-ons which provide me with timely shopping related information while I am browsing the web. For this purchase, I followed through a message that came up from PriceGong (http://www.pricegong.com), which I had installed through W3i’s (http://www.W3i.com) Install IQ process a few months back. PriceGong alerted me that CompUSA.com had the exact same monitor for $199.99 with no shipping and handling, and no sales tax.

Later on, I proceeded through the checkout on BestBuy.com just to see what my final total would have been had I purchased this same monitor through BestBuy.com. With $14.99 for shipping and handling, and $16.37 sales tax, my total would have come to $241.35. I saved $41.36 because my installed application, PriceGong, recommended CompUSA.com while shopping at BestBuy.com!

Most tech bloggers talk down about any application that requires an install, such as Windows applications and hybrid applications (like the PriceGong browser add-on). Most tech bloggers are so caught up in the cloud these days that they fail to remember why operating system integration can be so useful. How can the cloud compete with the kind of timely information an installed application can provide?

Rob Weber, VP of Business Development and Co-Founder, W3i, LLC
Rob is an Internet marketing pioneer with over nine, profitable years evolving W3i in the Integrated Interactive Media industry.

As I am making my preparations for the Web 2.0 Expo in New York this November, I have been reflecting on where the world of computer technology has gone.

It is amazing to me how far the web has come in the past 15 years, back when I first finished B-school. I remember buying my first 14K dial-up modem and being on the cutting edge of things, or when CompuServe email address were nine-digit numbers with a period in the middle that no one could ever memorize. How did we ever survive if we couldn’t have an email address like piggyduck749?

My first big project in the business world came from moving a partner kit that was several binders to a CD-Rom that was cheaper to produce than the paper copy, practically free-to-ship compared to the hard copy and was met with so much resistance because not everyone had a CD-ROM drive.

I suppose that this is the new generation’s version of hearing “I had to walk to school, in the snow, uphill – both ways.”

So, what is the point of all this ruminating?

Just to put it in perspective how quickly things change. As I look at the Exhibitor list, even old standbys such as Microsoft and IBM are not nearly in the same business as when I started in software — the Internet was not even an industry at that point. The social networking in the world has replaced the days of pen pals (pen used to refer to the tool you used to write to a friend, not short for penitentiary) and Tweets seem to replace breaking news interrupting the day’s soap operas.

With all this, there are so many more opportunities for everyone – people can create applications and now have a method to reach people who want apps without the process of packaging and shipping and finding shelf space. Now there are ways to distribute, like through our application network, where people can create their own businesses through the money made in that process.

The Internet is an amazing place. It will be interesting to see what’s new at Web 2.0.

If you are attending Web 2.0, or are in the New York area, and are interested in meeting with W3i to discuss distribution, revenue, or engagement opportunities for your consumer apps, contact either myself or Josh Fiedler, and we will be happy to set up a meeting with you while in New York. You can also stop by our Birds of a Feather session “Distributing *.ware for Fun and Profit” at 7pm on Nov 17.

Kristin Oberhaus, Product Manager, W3i Holdings, LLC
Kristin has over 13 years of product management experience and is a certified usability analyst. She is an avid believer in pragmatic marketing.