How to Avoid the Video Game Dead Pool

As the economy continues to slide, consumers are holding on to their money more tightly than ever. They want the entertainment value of online games but are reluctant to pay for it. This has put a tremendous strain on game publishers, who in the recent past have been compelled to explore ad-supported business models that offer games for free. This has helped minimize the risk of developing and marketing a game that ultimately ends up in the video game dead pool, but questions still remain whether meaningful money can be made.

The fact is, assuming that only around 2% of users convert to paying for a game following a free trial, then money is left on the table, because there are alternatives to the try-and-buy model for game marketing with which revenue can be earned from the other 98% of the traffic. These alternative business models for online games include: in-game ad model, ad-supported installer model, and the alternative-payment model.

In-game Advertising
Using computer and video games to deliver advertising is becoming an acceptable business model as big brands are testing it as a way to reach elusive markets. According to eMarketer, in-game advertising spending grew from $295 million in 2007 to $403 million in 2008—a growth rate of over 36%. By 2012, that figure should reach $650 million. Meanwhile, IGA Worldwide1 research shows that 82% of consumers feel the games are just as enjoyable with ads and 66% feel that the ads are not intrusive. Some of the top in-game advertising companies are:

1. Massive Incorporated
2. Double Fusion
3. JOGO Media
4. IGA Worldwide
5. NeoEdge Networks (casual games)

Although in-game advertising is growing, it can be difficult to execute and has a long payment cycle. For it to work, the creative must fit seamlessly with the game theme and not deter from gameplay. Additionally, users must spend considerable time playing the game for your ad revenue to build up.

Ad-Supported Installer Model
The W3i Application Network (AppNet) is a new revenue stream worth considering. AppNet is a network of companies with downloadable content—including downloadable games. A unique Windows installer, Install IQ (certified in the TRUSTe Trusted Download Program) is used during the installation process to offer the user a value-add of additional software—in categories like trialware, search, and e-commerce applications. AppNet requires minimal in-house resources, and you can start earning quickly once Install IQ is in place and new users install your games. Since users see ads only during the installation of your game, they have no interruption during gameplay. Additionally, since all of the revenue activity happens during the installation, the actual gameplay itself is not affected. For each qualified installation, the W3i partner receives from $.50 to $1.50.

Jenkat Games launched its downloadable game player in March 2009. With its success, Jenkat ramped up distribution, increasing install volume by 2,991% from its launch of individual game titles in January 2007. Malcolm Michaels, President of Jenkat Media, Inc., predicts that the company’s Jenkat Game Manager will grow to over 100,000 monthly installs by the end of 2009 fueled by W3i’s monetization capabilities. In addition, each game-manager install represents the opportunity to market and install multiple games, leading to millions of additional installations.

Alternative Payment Model
Companies like TrialPay (www.trialpay.com) offer a third option: the alternative-payment model. With TrialPay, a user can purchase your game or virtual currency by completing one advertising offer, such as subscribing to Netflix, buying jeans from Gap, or sending flowers from FTD. The advertiser pays for your game, which you then give to the user for free. Although the game is not technically “free” in this scenario inasmuch as the user must make another purchase in order to receive your game, it does represent another way to monetize those who might not otherwise pay to play your game. Playfish, one of the world’s largest and fastest growing social games companies, uses TrialPay to increase virtual currency sales. For example, in the weeks leading up to Valentine’s Day, Playfish let users get free virtual currency by sending flowers from FTD—and significantly increased sales.

Conclusion
Use creativity in your marketing plan by reviewing alternative business models. Many business models can be combined to give your bottom line an additional lift. For example, W3i’s Application Network can be layered onto other business models like trial and in-game advertising. Users respond to ads for “free” games. Why not put the power of free to work for your game while using an alternative revenue model to keep your company out of the dead pool?

Josh Fiedler, Business Development, W3i
Josh Fiedler is the Business Development Manager at W3i, a provider of integrated desktop and browser marketing solutions.  His expertise is in increasing revenue and traffic for downloadable games and utility software.

It is a never ending job understanding what goes on in the world and how it applies to improving business. At W3i, we are constantly reviewing data, analyzing information, and sharing performance data with our clients. Anytime we can provide more insight into how our clients can leverage the market to their advantage, and increase relevancy for our users, we step up to the proverbial plate.

Essential data is derived from our installation processes, research on personas that use specific products, and return visits of customers. Essentially as much information as we can gather without getting too specific.

Therein lies the challenge. At W3i, we are committed to not collecting personally identifiable information. So without PII, how does demographic targeting work on the internet?

We employ a large amount of secondary research to determine information on personas with regards to things like operating systems, installed applications, and conduct primary research on our returning customers. For example, users that have the latest operating system are more likely to have this system as their primary household computer. This is important because it equates to more application usage.

How can that tell us anything? Let’s take some obvious cues. Let’s say I have a game manager and I want to decide what game to offer up to a user, how would that decision making process happen?

First, we detect the operating system. It is Windows 2000. We know that most intensive games are not compatible with this environment, so a high definition game is probably not the best user experience for this user. Now, let’s detect for some basic software, such as Flash. The user does have Flash, so I know that flash-based casual games are compatible and will work. Now, consider the product that this user is downloading. They are downloading a patriotic screensaver so odds are a game that targets patriotism would be a good bet. But wait — there is another component to this. If that person downloads a patriotic screensaver on July 1, could it be that it is really what we call our Cement Goose Lady Persona? These are the women who make us smile by taking the time to make sure that even their cement goose is dressed appropriately for the occasion. If we take a look at their returning customer status, we determine that this is a common occurrence for this user to download a screensaver at holidays.

Given all this, our installer can choose an appropriate game for that persona during the installation process.

Why do we do this? First, and most importantly, this allows us to ensure each visitor to our sites receives software that works. Second, and only slightly less important, it provides the best value for our partners who are advertising with us. Of course, we benefit as well. A win/win/win situation. Maybe that is what W3i really stands for?

For more information on increasing revenue, distribution, and engagement for Windows Application contact W3i. With over nine years experience and 250 million installations W3i established an Application Network—app companies with user demand supported by app companies with a revenue-generating business model. Learn more about W3i’s Application Network today.

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.

Discover how W3i – an application distribution company that connects publishers, advertisers, and customers – used multivariate testing to achieve a conversion rate lift of 162% for Profile Pimp for MySpace software.

What happens when you combine the strength of Google Website Optimizer Multivariate testing capabilities with InstallIQ’s proprietary Experimentation Platform? That’s what we wanted to know.

One of our primary focuses in the W3i Marketing team is translating creativity into big revenue gains for our partners. In January 2008, we released the first version our proprietary Experimentation Platform that allowed us to test the user experience inside our installation manager, InstallIQ, which is the engine that drives the W3i Application Network. Over the next year we tested things as small as skins and as big as a fully customized experience based on demographics and split by traffic sources, often with double digit gains. However, as we tested more, it became harder to achieve big lifts.

Earlier this year I began hearing the same issues from our partners. Not only were they struggling to achieve bigger gains, many also faced tighter resources, shifting user behavior and technology challenges. We decided to assemble an internal team and go back into the test kitchen. We had dabbled in Multivariate testing a couple of times, but it was expensive and we weren’t able to find a partner that could tie into our Experimentation Platform to test all the way through to revenue. Which, let’s face it, is where we all need to be.

About the time the team was ready to hit the streets to start gathering intelligence, we received a call from our friends at Google. They were working on their “Google Jumpstart” program and were wondering if we did any Multivariate testing? Timing is everything! Shortly thereafter, we met the amazing folks at WiderFunnel Marketing Optimization, a Website Optimizer Authorized Consultant, that doesn’t just “consult” but provides all the services required to design and execute a conversion rate optimization strategy.

Both our teams worked closely over several weeks and the results of our combined efforts are truly amazing. We are incredibly excited to be able to offer our partners stellar conversion rate improvements in these challenging economic times. Kristen Groom, Sr. Marketing Specialist at W3i, has written the case study below detailing this experiment. I hope you find the possibilities it holds as exciting as we do!

Enjoy!

Lisa Nistler
Sr. Director of Marketing
W3i, LLC

W3i MARKETING CASE STUDY: Increase Landing Page Performance by 162% using Google Website Optimizer

I can hear the sighs now – another article promising to increase your landing page performance. While it’s true and feasible to achieve our success on your landing page, the extent will likely vary depending on your niche and level of existing optimization.

There are a few killer take-aways from our experience so read on to find out what you can do to maximize your landing page performance while taking advantage of the Google Website Optimizer.

WiderFunnel Marketing Optimization
W3i recently had the opportunity to work with a company called WiderFunnel, a Conversion Optimization Services company that provides all the services required to design and execute a conversion rate optimization strategy. WiderFunnel managed to increase the click thru rate on one of our highest-volume landing pages by 162% – and just on the first experiment! Their team of experts analyzed six major factors on our page: Value Proposition, Relevance, Clarity, Urgency, Anxiety, and Distraction. After determining where the landing page lacked in the various factors, Google Website Optimizer (a free testing platform offered by Google) was used to setup and flight the test.

Google Website Optimizer
Ah the miracle of multivariate testing – in a matter of one week, WiderFunnel was able to test 45 different combinations of landing pages, isolating 11 different elements of the landing page. Now that is efficient optimization. Additionally, Google Website Optimizer automatically determines the smallest sample size necessary to be confident in the results, so traffic is not wasted.

The landing page performance experiment broke down like this:

• Style‎: 5 variations dramatically altering the overall look and feel of the page. This included the background image, typeface, download button color, size, and call to action.
• Copy‎: 3 variations all aiming to increase clarity and the value proposition rather than simply state the product title
• Demo‎: 3 variations intended to increase the clarity of the product offering.
• Total = 45 combinations

Google Website Optimizer identifies the winning combination

• Style – the color palette was not originally relevant enough for the target audience, which is young and female. The original landing page was blue and orange – gender neutral. Although we knew the demographic was young and female, I suspect everyone was just a little nervous to go full on feminine. But that’s exactly where the test led us. One new style had a big pink download button, pink headline, and pretty swirlies in the background – very feminine. The second new design was also very girly in a less direct way. The design played to the current “Twilight” phenomenon. Style had significantly more weight than any other element that was tested. Three out of the four top-performing combinations had the same design.
• Headline – updated the headline to highlight the value proposition of the product. The new headline actually lists out the features of the products, and emphasizes the fact that it is free.
• Call to action – added the missing value proposition that the product is free to the download button (and significantly increased the size).
• Copy – the original copy actually performed the best. You can’t win ‘em all.
• Demo – this is referring to the graphic on the right side which is a flash demo previewing some of the product’s features. In order to improve the clarity of this demo, a mouse image was added over the buttons to emphasize their function.

Control 

 Winning Combination #1

 Winning Combination #2

Validation
Internal testing on our Experimentation Platform confirmed the click thru gains seen in Google Optimizer. Combination 2 actually was the highest performer, once revenue was factored in with a 51% lift in earning per click.

Take-aways
Plan. Spend some serious time understanding your audience and then catering to their preferences. Don’t be afraid of big pink buttons. Speak to your audience as well. Put the value proposition directly in the headline – don’t make it hard to find. And keep the copy simple.

There are other tools out there, but we highly recommend using Google Website Optimizer to run multivariate tests for measuring landing page performance. The analysis and changes can certainly be done without an agency, but we also highly recommend working with WiderFunnel if your budget allows.

Kristen Groom, Senior Marketing Specialist, W3i
Kristen uses her experience in internet marketing, graphic design and testing to lead the charge in marketing management, optimizing all touchpoints with consumers.

With Google’s  announcement of the Chrome OS a few weeks ago, it is easy to speculate about its impact on the web, the PC market, and applications in general.  While time will tell if the OS can live up to expectations and truly rival Microsoft for desktop dominance (it has to rule the netbook market first before it can even begin to compete on a broader scale), the introduction of this web-based OS raises an interesting question related to applications: what impact will this have, if any, on the evolution of applications?

At W3i, since we are application enthusiasts, this is a fun question to ponder.  My belief is that, while this OS will solidify the already prominent market mainstay of connecting desktop applications to the web, it will not outright eliminate the desktop application universe and can only do more to force singular user identity on the net, thus creating new application experiences.

I don’t believe desktop applications are history.  First and foremost, the jury is still out on whether Google can topple Microsoft, king of the desktop.  Microsoft will certainly not stand still.  As well, one of the most important reasons why apps won’t disappear is accessibility.  Desktop applications allow user access without a required internet connection.  While many apps now connect to the web to function, many apps such as office suite applications, image manipulation apps, music apps and even email apps provide functionality without an internet connection.  Can you imagine not being able to use your computer because you’re aboard a plane and unable to access an internet connection?  A non-web-based experience is here to stay.

I do think, however, that Chrome OS will enhance application user experience.  By Google making the Chrome OS web-based only, they help set a clear user experience standard — instant access to the web, light-weight design, and purportedly, no viruses.  Microsoft will probably follow suit in making Windows leaner and blurring the lines between desktop and web, but not eliminating the non-web desktop outright (due to accessibility).  This blurring of these lines can only perpetuate the need for a more refined connection of a user’s identity and the user-related information stored on the web and accessed on the desktop.  By creating a platform that is web-based, users’ identity can be related to a single log-in, via the OS.  Conceivably, the social network and social information islands that exist today will be harmonized – applications will be born related to a particular function or niche rather than an application that is specific to the island where the information exists.  The possibilities are endless!

Overall, I’m convinced the Google Chrome OS will evolve and enhance the application universe by causing a shift in the desktop experience.  What do you think will happen?

Eric Montag, Product Manager, W3i Holdings, 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.

St. Cloud, Minnesota, July 29, 2009 – Rob and Ryan Weber, founders of W3i in Sartell, MN, win the first ever, Young Entrepreneur Award, presented by Minneapolis/St. Paul Business Journal.  The award recognizes young entrepreneurs who are running successful businesses in the metro area.

Rob and Ryan Weber started W3i in 2000 under the name of Freeze.com.  Recognizing that consumers want quality, free applications, they built a network of publishers, advertisers, and consumers.  Publishers are looking to increase revenue for their applications funded by advertisers that want to increase distribution, and consumers that want useful, free PC applications.  W3i brings all these interests together in the W3i Application Network.  Their business grew rapidly, and the Application Network is now averaging 9 million installations each month. 

Rob Weber is now the Vice President of Business Development while Ryan Weber is the Vice President of Corporate Strategy.  In these roles they identify and pursue opportunities to continue to grow the company.  “Free applications are in even more demand in this weakened economy,” said Rob Weber, VP of Business Development.  Publishers and advertisers of applications are looking for alternative ways to grow their businesses.  W3i provides the revenue and traffic to make that happen.”

“Hats off to Rob and Ryan Weber,” comments Andy Johnson, CEO.  “They developed a passion for Internet marketing at an early age and put that passion to work in expanding their business.  By making their technology available to other application marketers through the W3i Application Network, they are helping other entrepreneurial application companies succeed.”

About W3i
W3i increases revenue, distribution and engagement for Windows applications and plug-ins. W3i uses a network approach combining the demand for free and trial applications monetized by the distribution of additional, relevant applications when the consumer is in the installation mindset.  W3i’s Application Network uses InstallIQ, W3i’s proprietary Windows installation manager, the first installer to be certified in the TRUSTe Trusted Download Program.  Tested and optimized on over 300 million installs–currently 9 million installs monthly and growing, W3i will prove to be a valued partner in growing your application business. To learn more, visit W3i’s Application Network.

I returned from Boston last week after attending my first Software Industry Conference (SIC).  In this post I wanted to share with you some general information about the conference, the buzz, and information about W3i’s participation to keep you up to date with what transpired.

General Information

• The conference was held at the Boston Marriot in Quincy from July 16th to July 18th.
• Attendance was down a bit with an estimated 200 attendees (attributed to the economy).
• Cost was only $269 at the door and as low as $229 if you registered early enough!  The organizers aim to keep costs down so that even small publishers can afford to attend.  The cost of admission includes a full conference pass, breakfast each day, food in the evening at events, and one luncheon.
• Though inexpensive, the conference is packed with things to keep you busy including educational sessions, exhibit night, networking events, and the Shareware Industry Awards.

The Buzz

• There was quite a bit of buzz around the topic of business models.
• Free and paid models were discussed including very innovative approaches at improving performance with both.
• The dominant model is definitely paid shared by participants and their service providers.
• Publishers were very focused on a paid only model and hadn’t considered a hybrid model, which would leverage both paid and ad-supported options.
• The hybrid model though may satisfy the greatest number of users.  I found an article on how online music is being impacted by free ad-supported alternatives and I thought this was a great parallel to how publishers might want to consider hybrid models with downloadable software.
• I was excited to learn of a few publishers that were willing to participate in hybrid model trials to explore this further.  This may include both high and low converting shareware titles mixed with the ad-supported solution offered by my company.  I hope that we can complete these trials and share our findings at a future date through a subsequent blog post.

W3i’s Participation

• I gave a presentation titled “Increasing Your Bottom Line through Leveraging an Understanding of User Engagement”.  In my presentation I highlighted suggestions and examples of how application publishers are improving user engagement from initial discovery all the way through the complete customer life cycle.  By pleasing the user, you get the same benefits as if you just focused on revenue, only easier.
• My twin brother Rob spoke about How to Squeeze More Money from Your Apps in his presentation which detailed various business models.
• W3i announced a new product at the conference, 3quency, which aims to provide a better custom toolbar solution.
• W3i had a table at exhibit night which was the highlight of the trip for me.  For 3 hours a room was filled with conference attendees.  Here is a picture of me juggling in front of our table.
  

For any shareware providers interested in exploring a hybrid business model which includes ad-supported services provided by W3i, please contact us and we’ll discuss the details further.

I hope this wrap-up keeps you in the know and better yet drives you to attend next year’s conference in Dallas, which I hope to attend.

Ryan Weber, Vice President of Corporate Strategy and Co-Founder, W3i, LLC
Entrepreneur and pioneer of Internet marketing focusing on increasing revenue, distribution, and engagement for applications.

The ultimate goal of a download process is to increase conversion rates and ultimately overall revenue. The download process involves several steps and a user can easily get distracted or uninterested and cancel out of the process at any time.  Informing the user is vital in keeping the user involved in the process and committed to downloading the product.  Below are a few tips on how to better inform users and in the end, increase acceptance.

Limit the path
Too many options can sometimes become a bad thing.  Creating limited paths for users has definitely become a trend in the marketplace, especially when there is a specific conversion goal in mind.  The more focused a landing page or offer creative becomes, the easier it is for the user to find what they are interested in.

Reduce the friction
Users are not going to accept any offers if they don’t feel comfortable with the product they are downloading.  In order for them to feel comfortable, they need to understand it.  Educational graphics illustrating key functionality in one simple step increases user confidence.

• Bullets are an effective way to emphasize copy that highlights benefits and features
• Slightly larger font and bolded headlines tend to work the best
• Left aligned copy is the easiest to follow – the eye naturally reads from left to right, top to bottom

Create Consistency throughout the process
It is important to make the entire user experience consistent.  This can be done by using similar keywords in your text ad campaign, landing page and installer. Another way to create consistency is by using similar images and design elements throughout the download process. By having a consistent process, the user is more comfortable that they are ultimately downloading what they came in for.

Optimization Test Examples: W3i has tested out several of these concepts and have seen positivie results. Below are a couple of examples, one shown on a landing page optimization and one on an installer optimization.

Landing Page:

Results: The new landing page provided a significant lift in EPC (earning per click) of 7%. Completed downloads also increased by 10%.

Installer:

Results: The new installer provided a significant lift in EPC (earning per click) of 7%.

Increasing conversions is necessary for W3i to help its clients be successful. These are just a few of the several ways to provide a better more consistent experience for users.  At W3i we focus on creating great user experiences as defined by the user.  Testing and optimization is a direct feedback mechanism for users and in the results above it is clear that users prefer a consistent, frictionless experience.

Jessie Golombiecki, Marketing Specialist, W3i
Jessie uses her experience in internet marketing, graphic design and testing to lead the charge in marketing management optimizing all touchpoints with consumers.

St. Cloud, Minnesota, July 16, 2009 – W3i, an application network that increases distribution, revenue, and engagement for Windows  applications, introduces a new service, 3quency^TM, a toolbar platform that simplifies the building of complex toolbars, including client and user customization features, that encourage engagement.   

Building a toolbar that engages the user with useful content and quality search capabilities is an effective marketing strategy to increase user engagement.  3quency makes it easy with drag-and-drop widgets and flexible design capabilities for stronger branding combined with W3i’s robust reporting system supplying the data needed for effective toolbar management.  “The technology makes it easy for a client to configure a toolbar’s content so that each user segment receives a unique, relevant experience that increases engagement.  Users can easily customize to suit their own needs; strengthening engagement resulting in longer user tenure and increased performance.” comments Ryan Weber, Vice President of Corporate Strategy and Co-Founder of W3i.

The first toolbar delivered by 3quency is an upgraded and enhanced Freeze.com Toolbar offering more engaging content as well as access to the widget gallery.  The free Freeze.com Toolbar is one of the most accepted recommendations offered through W3i’s Application Network.

W3i to Distribute Cozi’s Photo Collage Screen Saver Application

St. Cloud, Minnesota, July 14, 2009 – W3i, provider of marketing solutions that increase distribution, revenue, and engagement for Windows applications, announced today that Cozi is now part of W3i’s Application Network.  Cozi, a free web service that helps busy families organize and simplify their daily lives, is using W3i’s Application Network to introduce its Photo Collage Screen Saver to a broader audience and grow its user base.

“W3i’s Application Network can be a significant source of new users for growth companies with Windows applications and various types of plug-ins,” said Rob Weber, VP of Business Development at W3i.  “Cozi joins a network of application companies in their efforts to ramp up user acquisition at a known ROI.  During the installation process, W3i’s Application Network leverages the demand for popular free applications by matching users with companies seeking distribution, such as Cozi and their Photo Collage Screen Saver, giving the user a value-add.”

The Cozi Photo Collage Screen Saver automatically finds digital photos already stored on the PC from vacations, birthdays, kid’s sports events and other family activities and displays them in dynamically generated photo collages on the computer screen, organized by event.  Cozi also offers a shared family calendar and solutions to organize household lists, share information and stay in communication.

“W3i’s distribution capabilities are helping us reach new users with a focus on family,” said Robbie Cape, CEO and Co-Founder of Cozi. “W3i’s Application Network is an effective way for us to promote the Cozi Photo Collage Screen Saver and expose this audience to all of the benefits of Cozi.”      

About W3i:
W3i increases revenue, distribution, and engagement for Windows applications and plug-ins. W3i uses a network approach combining the demand for free applications monetized by the distribution of relevant applications when the consumer is in the installation mindset.  W3i’s Application Network uses Install IQ, W3i’s proprietary Windows installation manager, the first installer to be certified in the TRUSTe Trusted Download Program.  Tested and optimized on over 250 million installs–currently 7.1 million installs monthly and growing, W3i will prove to be a valued distribution partner in growing your application business. To learn more, visit W3i’s Application Network.

About Cozi:
Cozi is a free web service that helps families organize and simplify their busy lives.  With Cozi, families have the tools to manage schedules, track shopping and to-do lists, organize household chores, and share family updates – all in one solution. Families can access Cozi from any computer at home or at work, and can get shopping lists, schedules and messages on any mobile phone. Located in Seattle, WA, Cozi was founded by veterans of Microsoft, Expedia, and Amazon with a vision for creating technology tuned to the family. Cozi has more than 1.5 million family members, and is available for free at www.cozi.com.

Press Contact:
Deborah Manthei
Director of Marketing Communications
320-257-7571
deborah.manthei@W3i.com

The names of companies and products mentioned herein are trademarks of their respective owners.

Are you concerned that no one will notice your app?  There are now hundreds of thousands of apps available with a varying selection, accessible on almost any platform, whether it is mobile, web, or the desktop.  Is it possible for an app developer to build a sustainable business? 

Popular opinion suggest that you are not alone if you share these concerns:
Apple App Store: Overpopulated with Apps Nobody Uses – Mashable
The iPhone Success Stories That Are Fueling Copycats – mocoNews
Facebook Grew To 33,000 Apps And 400,000 Registered Developers Within 14 Months – Wikipedia

Our company, W3i, was founded by developing desktop apps to meet the demands of users.  Today, W3i is helping other developers distribute and generate revenue with their own desktop apps.  W3i installs more than 7 million desktop apps monthly and has distributed over 250M installs to date.

To help you succeed, I wanted to share with you a few suggestions: first, research the market and consider your resources; second, review and assess marketing options; and third, document and implement a marketing plan.

First:  Research the Market and Consider Your Resources

• Market Research
  • Market Focused: Before you build your app, research to see how much demand there is, as well as how competitive advertising inventory is.A few tools to consider:
    • Google Trends for keyword trends
    • Google AdWords: Keyword Tool for advertiser competition and keyword discovery.
    • Top 25 iPhone Apps
    • AppData.com for Facebook app and developer leaderboard
    • Wakoopa for the most popular Windows and web app
       
• Budget and Business Model Consideration
  • How much money can you afford to spend on marketing?
  • Have you explored business models to make money so that you can offset most of your user acquisition costs while you develop your primary business model(s)? You could even profit from the user acquisitions via paid promotions for your app if you have done a solid enough job with market research.Consider the following supplementary business models:
    • Windows
      • W3i’s Application Network – Get paid for the Windows application installations you distribute, which include software recommendations powered by W3i in your installer
    • Mobile
      • Google AdSense for Mobile Apps – Not just your typical text ads. Google now offers graphical ad units specifically optimized for mobile apps.
      • Greystripe – Recently, they launched a guaranteed CPM program because they were confident they could out pay their competition.
    • Facebook
      • Virtual Currency – Sell favor points leveraging Paypal or Zong or allow your users to earn them through taking offer-based advertising from Offerpal or SuperRewards.

Second: Review & Assess Marketing Options

• Consider alternative advertising distribution mechanisms
  • Windows
    • W3i’s Application Network – Access to 7M+ monthly installs. Pay only for completed installs. Target your desktop app using the user’s product interests, geography, required software, and more.
    • Upload.com’s Pay Per Download – A site for desktop app developers to submit downloads and purchase advertising for CNET’s Download.com. Pay for initiated downloads with their Pay Per Download program. Download.com generates 3M downloads per day according to a sales sheet they published as of May 2008. Because of the large number of apps competing on Download.com, you may find achieving significant scale to be challenging despite the high volume of completed downloads by users.
  • Widgets
    • Gigya – Syndicates your widget across the web.
    • ClearSpring – Syndicates your widget across the web including 50+ destinations.
    • W3i – Syndicate your widget to the millions of toolbars distributed by W3i.
  • Facebook
    • RockYou – Advertise your Facebook app within other Facebook apps.
  • Mobile
    • AdMob – Similar to RockYou, only you will be advertising your mobile app within other mobile apps. AdMob refers to this as the iPhone Download Exchange.
       
• Leverage social media to acquire users without advertising costs
  • Create a video demo for your product
    • Publish on YouTube

      • W3i put up demos of screensaver applications and within a short period of time has now generated 88,064 viewings throughYouTube. http://www.youtube.com/user/ScreensaverCom

  • Create social networking accounts for your product
    • Allow your fans to help spread the word about your app and stay connected to the latest developments.
      • W3i created a Facebook account for its Screensaver.com applications and within a short time has 556 fans. http://www.facebook.com/pages/Screensavercom/56705948398
        
    • W3i created a Twitter account for its Screensaver.com apps and within a short time has 154 followers. http://twitter.com/screensavercom
      • Post comments at popular media outlets and include links to your app so that people interested in topics relating to your app are aware that it is available. This may also benefit your link popularity boosting your search engine rankings.

Third: Document & Implement a Marketing Plan

• Questions To Consider Answering In Your Marketing Plan
  • What is my positioning to users?
  • Who are my competitors? What makes them unique and valuable?
  • What are the top market segments that would be interested in my app?
  • What marketing strategies/tactics will I focus on for distribution?
  • How will I measure the success of my application?
  • What goals do I have for my application? What goals do I have with each of my marketing strategies or tactics?
• Implement The Marketing Plan
  • Prioritize based on the risk and reward.
  • Measure each strategy and tactic and change course as needed based on the best available facts.

I realize that distribution is a struggle for app developers and requires careful attention if one is to avoid the fate of so many quality apps that never get noticed or that are unable to generate sufficient funds to continue development.

W3i was founded in a dorm room; self-funded with no venture capital funding until after we succeeded with massive distribution many years later.

W3i has been continuously focusing on creating and distributing apps, using principles similar to those described in this post, allowing us to grow to the scale we are today.  Now we are committed to helping other app developers find similar success, and hope you consider W3i for any of your app distribution, revenue, or user engagement needs. To learn more, contact W3i.

Ryan Weber, Vice President of Corporate Strategy and Co-Founder, W3i, LLC
Entrepreneur and pioneer of Internet marketing focusing on increasing revenue and distribution for digital downloads.