Consumer apps were everywhere at the 2010 CES show.  Here are five of the application trends for online application marketers that I noted from my attendance at CES:

1. Optimism rules at 2010 CES show.  Gary Shapiro, Chief Executive of CES, said the CES show “seemed more upbeat than a year ago, reflecting a return to optimism for the industry,”  reports Dean Takahashi, lead writer for GamesBeat by VentureBeat. Attendance at the 2010 International Consumer Electronics Show reportedly reached 120,000 visitors this year, an increase of about 6 percent from last year.  Participants were reverberating with the latest device and the latest apps to go with it. 
2. Apps will be everywhere.  Thanks to Apple, apps are now sexy and offer the consumer more value from their device, and the marketer the ability to enhance their device with little effort, as well as a potential new source of revenue.
   • Apps in television set-top boxes: Samsung announced the launch of Samsung Apps, a multi-device application store with content partners, including Blockbuster, USA Today, and others.  Samsung plans to make apps available for a range of devices from mobile phones to HDTVs.
   • Apps in car electronics: Ford recognizes that users want information on demand.  Ford’s Sync feature uses an 8” touch-screen in the dashboard as well as voice commands.  You can catch up on Twitter, listen to Internet radio, check movie times and get free online maps with turn-by-turn directions.
     
     http://www.latimes.com/business/la-fi-ces-ford8-2010jan08,0,4905917.story\
   • App Store for Netbooks - Intel launched a beta version of its app store, called the Intel AppUp center for netbooks.  Currently offering about 100 apps.
3. Integrated, multi-platform app strategies are being considered. Brands should create apps that are integrated across multiple devices:  mobile, desktop, social, browser, and other emerging platforms like television set-top boxes and car electronics.  Cooliris bases its success on building its app for both mobile and desktop platforms.   They were recently selected to develop Media Gallery for the Nexus One Device.
4. There will be a mobile app for almost everything, but adoption outside of iPhone is still low.   With the phenomenal growth of the Apple AppStore fueling over 2 billion downloads from some 100,000 plus apps, the race is on from other mobile device companies to woo app developers. (Living in Minnesota, one of my favorites announced at CES is the SmartStart app by Directed for remote starting a car from a smartphone.)
5. Top app marketers will start focusing on improving their key operating metrics.  Most app marketers are doing a poor job of developing key operating metrics and reporting surrounding their app marketing initiatives and campaigns.  There is a lot of emotional decision making rather than data driven decision making. This appears to be starting to change, as better analytical thinking and tools are starting to take root with top app marketers.

If you identified other app trends, share your thoughts by submitting a comment.  

Rob Weber, Vice President of Business Development and Co-Founder, W3i, LLC
Rob is an Internet marketing pioneer with over ten, profitable years evolving W3i in the consumer application industry.

What separates an app rock star, from an app hobbyist? An app rock star understands the power of distribution, whereas, an app hobbyist creates an app based on personal preference, without a clear app distribution strategy.

Do you want to be an app rock star? If so, consider the following proven guerilla and paid application discovery tips when formulating your app marketing strategy:

Guerilla tactics: If you don’t have a revenue model, but want to get your cool consumer app widely discovered, here are a few tips on how you can get distribution:

1. Search Engine Optimization (SEO)- Organic search engine marketing is competitive for blockbuster keyword terms. Focus on a wider, niche-buster strategy to break through the clutter
   • Search Tips and SEO
2. PR/Social Media- Facebook and Twitter have millions of users. Make it easy for your apps biggest fans to start recommending your app to their friends
   • Some good stuff came out of VentureBeat’s DiscoveryBeat conference a week ago
3. App Galleries/App Stores/Directories- Whether you have an iPhone app and are publishing it to their store, a Firefox add-on on AMO(http://addons.mozilla.org), or a Windows app and published on a download library like Download.com (see Upload.com to submit your app).  There are many free sites where you can submit your app for a free listing.
   • Don’t Overlook Software Libraries, like download.com, as a Consumer Software Tactic

The main limitation with guerilla marketing is the lack of predictability, and the lack of scale. Most app marketers cannot get to a meaningful scale through a purely guerilla model.

Paid tactics: If you have a revenue model, it is easier to get scale fast.  There are a few additional options for you:

1. Paid Search Advertising: By far the most dominant way to market an application. Watch out though, keyword prices can be very competitive these days. Make sure you have a good landing page so your quality score is high.
2. OEM/Bundle Marketing Partnerships: There are bundle network solutions like the W3i Application Network that can get you very wide distribution fast. If you have a large budget, you can try cutting a direct deal with hardware manufacturers.
   • Wildtangent
     • Wildtangent became an immediate force in the casual game world because of the huge distribution agreements they signed
   • Yahoo, Microsoft Bing, HP/Ace
     • Lots has been said about Microsoft stealing the HP and Acer toolbar distribution deals from Yahoo
   • Hard drive/back-up drives and back-up software
     • Carbonite with Seagate
     • Similarly, Memeo with Western Digital 
   • Cisco thought so much about consumer app Network Magic that they bought out its parent company Pure Digital for many millions of dollars
3. Display Ads: Not as effective as they once were, but may be an opportunity. For display ads to be effective, your app needs to be supported by most platforms, otherwise you’ll end up with a bunch of users who can’t use your app anyway.
   • Optimizing Banners
4. Pay-per-download (PPD) advertising: Many of the download libraries, like CNET’s Upload.com service that manages listings on Download.com, provide pay-per-download advertising.
   • Don’t Overlook Software Libraries, like download.com, as a Consumer Software Tactic
5. Television & Radio Advertising: It might sound a little odd to many of you online marketers, but I have heard many consumer app marketers say that television and radio spots were very effective at driving web traffic.
   • Ascentive, Xeriton, and Carbonite all do radio and/or television
     • Television
       •  Carbonite                                                                                                                         
       • Ascentive’s FinallyFast.com
       • Norton 360
       • Windows I’m a PC
       • Apple series of “App For Everything” ads
         • I can’t confirm this one, but I heard at a recent conference that Apple maintains a schedule for the apps it will feature in its “App for Everything” television campaign, and they provide placement in the commercial as an extra incentive for certain iPhone app developers to meet their target release date
       • Parody- Florida/Key West travel bureau spoofed it
     • Radio
       • Carbonite- article about their use of radio
     • Retail
       • I would say don’t even bother with brick and mortar retail, but in certain app categories, you can probably get some traction.

Pick your partners wisely when it comes to paid advertising to support your application discovery. Most good channels allow you to try their model with low minimum commitments, and potentially work on a performance based pricing model.

Rob Weber, Vice President of Business Development and Co-Founder, W3i, LLC
Rob is an Internet marketing pioneer with over ten, profitable years evolving W3i in the consumer application industry.

The blogosphere is covered with posts that would have us believe that desktop applications and software are already dead (cloud, mobile, SaaS); however, retail sales for desktop applications and software are a multi-billion dollar industry. In April 2009, the NPD Group reported that PC software retail sales were around $3.4B per year and holding steady. The major change, however, is the impact the web is having on how desktop applications and software are distributed.  According to NPD, web application and software distribution has increased from 11.5% to 17% in the last 4 years.

Following I explain how the web has influenced software bundling.  I start with a brief background of OEM software bundling.  Next I discuss a new type of software distribution that we call recommendation based distribution, and conclude with answers to frequently asked questions regarding recommendation based distribution.

Software Bundling

Software providers (OEM – original equipment manufacturer) for decades leveraged value-added resellers (VARs) for driving sales of their software as part of a hardware/software package.  These marketing partnerships result in what is often referred to as a “bundle” due to the fact that complementary services are bundled together.

A common example is a new computer that includes Microsoft Windows®.  A few other applications routinely bundled include Office®, security, internet browser, and toolbar applications. 

This type of distribution is big business.  Here are a few examples:

1. HP & WildTangent – WildTangent became an immediate force in the casual game world because of the huge bundle distribution agreements that they signed.
2. Storage devices bundled with back-up software such as Carbonite with Seagate and Memeo with Western Digital Technologies.

User acceptance over the practice varies based on the type of users a VAR sells to as well as the quality and quantity of applications that they bundle. The two primary concerns raised by consumers are system performance and the nuisance of removing unwanted software.

Recommendation Based Distribution

Is software bundling fundamentally flawed?  Do users want to receive a more affordable package by having additional software marketed to them?

Now that many users are connected to the web, software can be merchandised effectively without preloading on the users’ systems in advance.  W3i research showed that software bundling is not fundamentally flawed.  Users are however, most receptive to receiving software offers if they are involved in the application selection process.  Users can see recommendations for other applications when they first run a new computer, attach a new external device, or download an application from the web.  The recommendations can call out to the web to retrieve the files required for presenting the recommendations, downloading, and installing.

W3i to facilitate this process created its own proprietary technology, InstallIQ, which supports a fully web-capable solution allowing us to create a software distribution experience that resembles an online shopping experience. 

Here is an example of a website, Wallpapers.com, that runs InstallIQ during installation:

Note the consistency between the initial website and continued branding through the installation process.  We call this feature installer skinning.  By leveraging the website’s brand equity and style in the installer we create a transparent and consistent experience that enhances usability and increases conversions (see our post Creating Consistency to Increase Conversions).

The same flexible technology is used to improve the presentation of software to users:

Notice above that the user has a clear and consistent navigation experience.  This navigation style was influenced by a case study, published by TRUSTe, as well as improvements such as a shopping cart feature that was added based on user feedback.  The cart shows specifically what applications were accepted followed by a check-out process where the user can review all of their selected applications and change their selections before the process is completed. 

Some providers struggle with clear and consistent navigation because it is challenging working with their existing installation packaging technologies.  Their user navigation requires very different buttoning when a recommendation is presented. This is something I like to call “opt-irritating”.

In summary, the web is enabling an evolution in software distribution and software bundling.  It is so different from how VARs bundled in the past that we feel a more appropriate category descriptor, for this methodology is recommendation based distribution.

Frequently asked questions

• Is this business model right for my software?  How will my users respond?

Software with a low propensity for users to purchase have the most to gain. Frequently, developers are experimenting with multiple business models and a hybrid approach wins out. For example, a leading security application offers a free light version which gets heavy downloads, generates revenue from advertising using installer recommendations, and later pitches premium paid services to its users.

The response by users vary greatly from one implementation to another. A software or application provider’s reputation is highly influenced by the quality of software they provide. Distribute high quality software which is monetized through a high quality bundle experience and users can and will be very satisfied.

W3i has an experienced staff that works closely with software providers to define the solution which best suits their needs, including support on decisions such as the:  

• • Customizable look and feel
  • Select which, and how many, applications you want to recommend
  • Determine when you want to present the recommendations, whether it is with new installations or with special upgrades
  • Data-driven recommendations for optimization
• Who should I form a marketing partnership with?

Most consumers and developers are in agreement that security and trustworthiness are key when choosing a marketing partner.  Users’ trust is earned by providers who define, educate, and simplify the process so users can effectively take control.

There are a few techniques you might consider when selecting marketing partners.  How recognized are their brands? How useful is their software to your users? What comments, reviews, or ratings have been written about them? Ask your users what they think about the partner or think about how your user persona would most likely respond.  What commitment do they make in educating users about their practices and policies?  Do they have any third party validation and monitoring in place such as certification in the TRUSTe Trusted Download program?

Brands continue to play a key role.  Partners should stand behind their practices with full disclosure and branding.  They should proudly make visible who their marketing partners are instead of burying themselves in a privacy policy or by engineering their technology so it cannot be distinguished on its own.  Be cautious of providers with little or no reputation or experience.  If very few people say something positive or negative about them and they have significant distribution volumes, it says something about their commitment to creating awareness with their users.

• How many additional offers should I present in any single installation?

W3i conducted a test where 0, 1, 2, 3, 4, and 5 offers were tested.  The results showed that the quantity had a minimal impact and that the relevancy of the offers was more important.  Relevancy impacts whether the user will complete the installation of the software, keep and use the software, and whether they will accept offers.

Be sure to consider not only how many offers you distribute but whether or not you will allow the offers to include other offers in their updates or a subsequent run process.  W3i’s policy, which it enforces, prohibits advertisers from promoting additional offers.  Some companies say they only distribute one offer but they do not have policies against what their advertisers distribute and so in reality, users that accept a single offer actually end up getting pitched more than one offer, often within moments of downloading and installing.

As you can see online recommendation based distribution borrows from but also significantly enhances software bundling to make it more appealing to users. The solution continues to evolve but the basics laid out above are the foundation for successful online software distribution.

By mastering recommendation based distribution, your applications can leverage a proven model that enables you to be relevant through effective distribution and monetization.

Get more in-depth information about software or application distribution through W3i’s blog, newsletter, or reaching out to us directly.

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

To continue with my Add-on-Con buzz for marketers and developers of browser add-ons.  My last two postings recapped how browsers plan to lead all application platforms and the buzz on browser add-on business models.  In this post, I will cover the Add-On-Con buzz on add-on distribution channels. 

Add-On Distribution Channels

Browser galleries  

• Firefox’s gallery (AMO) is the leading source of distribution for most add-on developers.
• Firefox announced they do not have plans to have sponsored ads on AMO right now.
• Firefox revealed AMO’s install referrals come from these three primary sources – top ranked, recommended, and searched for
• Add-ons are by default sorted by popularity (cumulative installs) but will be updated to use # of active users.
• Alex Jeung, from Cooliris, mentioned that as a developer you can help your chances of getting recommended within the galleries by establishing your add-on’s popularity outside of the gallery and thereby proving that there is demand for your add-on.

Other distribution channels

• Check-out my earlier post to learn more about other add-on distribution channels including how the W3i Application Network is driving 850% more installs per application than AMO.

A special thanks to AdaptiveBlue, Yoono, and OneRiot for organizing Add-On-Con.  The excitement and anticipation I had leading up to the event were not let down.  I would invite others to participate in next year’s conference and follow their soon to be released blog. 

Please consider following W3i to stay up to date with other market information about add-ons as well as related services provided by W3i. (Twitter, LinkedIn,  Newsletter, Blog).

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.

As 2009 comes to a close, 2010 will usher in some fantastic changes for applications.  I am making three application predictions for next year, showing the application landscape’s constant shift and change to meet new user and market demands:

1. The Rise of Social Security Apps
   As phishing, worms and viruses become more prevalent on social networks (see: Koobface and Mikeyy); I predict in 2010, we will see a rise of applications and browser add-ons dedicated to improve security on social networks.  These apps will function as scouts, preemptively warning users to impending dangers, such as worms that intend to gather sensitive information available on your social network profile.  The need for these types of apps is clear and would provide a great protective benefit to consumers.
2. Location finds its way to Desktop Apps
   There are many great social location-based services gaining momentum with users as of lately:  Gowalla, Foursquare, and Loopt are just a few.  Yes, these services are generally best rendered on a mobile device.  But I predict, in 2010, that many of these services will create auxiliary desktop apps.  Presence on the desktop would offer an enhanced user experience: persistent views into location of friends, trip planning/scheduling, landmark information and media, local event information, management of digital collectibles, and account management options.
3. Application Indexing Improves
   I’ve written previously about how application indexes should improve.  These services, such as Wakoopa, catalog desktop applications and their related usage data. I predict these services will improve greatly in 2010.  Currently, their user base skews heavily towards the tech-savvy audience.  To truly index the world of applications, these services need to gain acceptance from all demographics and I predict they will crack this nut next year.  These services will then grow in popularity on a scale comparable to mobile app stores, such as Apple’s App Store and Google Android’s Market.

So there you have it; three application predictions for 2010.  But surely there’s more than just this.  What predictions do you have for the application landscape next year?  Be bold and leave your predictions 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.  

Add-On-Con was a buzz-worthy event for marketers and developers of browser add-ons.  My last posting recapped how browsers plan to lead all application platforms.  If you didn’t catch it, read it here.  In this post, I will cover the Add-On-Con buzz on add-on business models.  In my next post, I will cover the Add-On-Con buzz on add-on distribution channels.

Add-On Business Models

Paid Model

• Marketplace for add-ons.
  • Developers agreed that a marketplace, promoting the buying and selling of add-ons, is desirable.
    • The marketplace should provide an embedded payment platform.
    • A concern was raised by a developer, Chris Finke, regarding whether or not you could establish a user-base if you charge users.  Add-ons rely heavily on receiving buzz through the add-on galleries and with users which could be less effective if you begin charging as this creates higher friction.
  • Firefox mentioned a marketplace was one of the most commonly requested features from developers through AMO.
  • Firefox announced its plan to release a marketplace at the end of 2010.
• One developer, Eric Jung from FoxyProxy, is already having success with charging for their add-on.
  • Subscriptions he recommended as the best method for charging for add-ons because they allow the developer to create an ongoing stream of revenue which supports continuing to update the software.
  • Eric prefers leveraging the freemium model to drive the initial paid conversions.
• Contributions (donations) so far are not impressing anyone with Firefox.
  • Top developers are earning just $1,000 per month.

Ad-Supported Model

• Promotion – Developers are using add-ons to promote websites that have their own business models.
• Search Advertisements – Yahoo spoke about providing search advertisements, for syndication, as a source of revenue for add-ons including, but not limited to, toolbars.
• Installer Recommendations – I shared results from a recent W3i survey of 502 users which showed that of the ad-supported solutions, app/add-on marketers preferred the method of users seeing ads within the installation or download instead of ads in their application, or participating in market research.  Check out W3i to learn more about generating revenue through the installation of your add-on.
• Data – It came up several times that the data captured from add-ons is a potentially lucrative source of revenue.  Appeasing user’s privacy concerns and monetizing data were viewed with skepticism by most developers.

During my ten years of experience distributing add-ons and consumer apps, I learned that it pays to test various business models.  There is continual evolution, so it pays to discover and test new models to stay afloat.  For more information on using the W3i Application Network to generate revenue for your browser add-on, click here.

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.

      I attended my first Add-On-Con conference on December 11^th at the Computer History Museum in Mountain View.  I was very excited to attend the event, which my company W3i sponsored, as I felt the stage was set for an epic battle between the browsers over who was the best application platform.  The winner of this battle in my mind could very well be the dominant application platform for all applications for the next decade.  History I felt was unfolding before my own eyes.

I will recap the Add-On-Con conference by breaking down the buzz surrounding browsers, add-on business models, and add-on distribution channels in three postings starting with browser buzz.

Browsers

Google Chrome technically has leaped ahead of competition

• Developers I came into contact with generally agreed that Google Chrome’s support for add-ons is technically superior when considering both user and developer ease of use.
  • Chrome is more gracefully handling resource management when many add-ons are installed on the same browser.
  • Security is improved with Chrome so that users can better understand what is being required by an add-on and more easily manage.  This also supports a lower burden for developers as they do not have to wait to be reviewed by Google in most cases to be listed in their gallery.
  • Users can install, and begin using add-ons, without needing to restart the browser.
  • Development is faster and easier.

Side note:  Google is betting on web-based applications, over native applications, for mobile and desktop devices (read more).  They believe that the web has won and that the browser will become the platform that matters and is hence where they are investing most heavily.

On December 8^th, Google released Google Chrome Extensions support with their latest version of Google Chrome.  This release was the first in which users were able to install browser add-ons which included providing access from their gallery.

• Mozilla’s Jetpack project for Firefox, targeted to release May/June 2010 as part of Firefox 3.7, appears to address the last three points above.
  • Jetpack creates a sandbox which limits access to the browser for add-ons and then allows access to the add-on depending on the access required as declared in an add-on’s manifest  (similar to what Chrome is doing).
    • This improved security is similar to how Chrome manages it.  Firefox plans to still review new add-ons before listing them in AOM (http://addons.mozilla.org is Firefox’s add-on gallery) but the review process will be greatly reduced due to a more efficient process.   The review process might be under a day in fact
  • Jetpack will merge with current Firefox add-on supported technology for a single solution to users in 2010.  That is, there will be a single gallery of add-ons for users with no distinction made from those existing to those that are built using Jetpack
  • Jetpack allows users to install add-ons without requiring a browser restart
  • Jetpack supports an improved ease to develop add-ons by allowing developers to use web development technologies instead of using XUL which is required today.
  • Their goal is for Jetpack to be the main method for add-ons by version 4.0 which has a target release of October/November 2010.
• Microsoft is generally regarded as being in a distant third with regards to technical support for add-ons.

Role of the browser

• Mozilla vs. everyone else
  • Mozilla’s priority is to focus on users rather than focus on commercial interests.
    • Mozilla is not looking to adopt practices just because they are commercially successful for Apple’s iPhone App Store.  Apple as a company is viewed as having a commercial focus compared to Mozilla which has a user focus. 
    • One example that manifests this is that Mozilla will not be supporting DRM (digital rights management) for their marketplace at launch.  This may present challenges for developers who wish to succeed with charging for their apps when there won’t be an effective solution for protecting their software from users that choose not to purchase.

Ultimately, a commercial success enables an ecosystem which promotes the development of great applications.  All of the browser providers, I believe, get this.  The only difference is how quickly they adopt new commercial methods.  I view Mozilla as being slower to adopt when compared to Microsoft or Google.  This may cost them speed to market but may also keep them from making mistakes regarding satisfying users.

Add-ons today

• Firefox released the following figures:
  • 1 in 3 Firefox users have at least one add-on installed
  • 1.7B cumulative installs to date
  • 14,526 add-ons, listed in AMO, as of December 11^t
    • 5,697 added this yea
  • 190M add-ons in us
• Add-ons must get reviewed to be in AMO
  • New add-ons are currently reviewed in under two weeks
  • Updates are averaging less than a week
• Developers are struggling to maintain cross-browser support
  • IE, Chrome, and Firefox are generally viewed as important where as a panel of developers viewed Safari as not worth the hassle.
  • One solution suggested by the panel was to consider building your add-on on top of a framework so that you do not have to deal with the complexities of each browser.  An example of a framework is 3quency, a W3i product, which allows developers to build sophisticated custom toolbars using a single code-base without having to worry about updates or compatibility with various browsers.

The future of add-ons

• A panel comprised of browser providers (Chrome, Opera, and Mozilla) discussed that a decentralized mobile web will rule (eventually) and that this will lead to the mobile web (including mobile add-ons) surpassing native device apps as the dominant platform for application developers. 
• The panel agreed that they all wanted to support increasing the capabilities of the browser so that there are fewer and fewer trade-offs when building applications for the browser compared to building them specifically to any native device.

Stay-tuned for additional postings on Add-on Business Models and Add-on Distribution Channels.

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.

In the spirit of the holidays, it seems a little free gift is in order.  So, I am recommending my favorite free applications and why:

7 Zip

This is a nice and easy zip tool.  Of course, anything that zips files up is indispensable.  One that can do it without requiring a lot of thought, is even better.  This is something that I use on a daily basis and frankly, could not live without.

Weatherbug

A little piece of background, I have a main house that is about 200 miles away from my weekday apartment and the office.  On top of that, I am in Minnesota.  Being able to quickly check the weather, be alerted to any problems–whether snow in the winter or tornados in the summer–is crucial.  I have come to recognize the little chirp as a lifeline of information, to the point that little bug can wake me up from several rooms away.  Unless you live in a Utopian weather climate, this is a must have.

KwiClick

I recently discovered this application.  How totally cool.  Right now it only works on FireFox, but when you search, no more going back and forth, right clicking to open another window, all that stuff.  KwiClick keeps my search results handy and when one page doesn’t quite cut it, the next option is right in front of me, a click away. 

CamStudio

Wow!!  Years ago I used another application that was quite expensive to capture what was going on with my screen.  This has so many more features and is a free download.  I found a few great uses for it.  I have used it instead of trying to explain in email how to perform some tasks for my less technical friends, and I have used it when submitting technical tickets to websites where I can’t quite get my words to convey the problem that I am having.  With its ability to capture sound from me or the computer, to capture just a section of the screen and to show or not show the mouse makes it a very useful tool.

Free Living 3D Fireplace Screensaver

It’s Christmas, and I feel a bit of nostalgia at Christmas time.  Since I get a lot of hints that I might be a tad older than most of our readers, I won’t feel bad to say that, as a kid, we didn’t have a fireplace, DVDs weren’t invented (we didn’t even have beta players), no cable and the only satellite we knew about was SpaceLab.  But on Christmas morning, at least one of those TV stations that came in over the antenna would run a film of a fireplace and play Christmas carols in the background.  This was the backdrop for more Christmas mornings than I can remember.  This just reminds me of the Yule Log broadcasts.  Now I get the screensaver on, put a Christmas carol playlist on my Music Oasis and print out the lyrics from EZ Lyrics so friends and family can sing along with the carols. 

So have a Merry Christmas, a Wonderful Hanukah, a Joyous Kwanzaa and a very Happy New Year!!

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.

When was the last time that you watched one of your favorite TV shows and saw no advertising?  Sure, in the world of TiVo and DVR, you can fast forward through ads or watch your show online, but most TV programming is paid for by advertisements.  How many times have you heard the tagline, “this show is brought to you by” followed up by a 15 second blurb about each of the 2 or 3 companies that are paying to allow you to view it?  The show doesn’t stop halfway through and ask you to pay $19.95 for the last half of the program.  No, you get to enjoy your show for free because of the advertisements.  The same can hold true for apps, you can choose between interstitial advertising or advertising in the installer. 

Could consumer application companies benefit from this business model?  Absolutely!  Companies can place advertising in their applications to generate revenue.  Or for a better user experience, ads can be displayed during the installation process.  By giving users the opportunity to “Accept” or “Decline” up front, there are no interstitial ads to disturb the user experience.  By showing the user advertisements for valued applications during installation, your application can drive additional revenue.  To learn more, contact W3i.

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.

It might surprise you to know that the average add-on in the Firefox Gallery received about 100,000 installations.  It might surprise you more to know that the average application in the W3i Application Network (AppNet) received 1 million installations (850% more).  W3i is an effective browser add-on distribution channel.

In my role as VP of Corporate Strategy I oversee our Product Management team which leads our market research efforts.  Much of my team’s research is focused on application distribution and discovery.

In this post, it is my goal to share with you a few insights which we learned through market research to help you find the add-on distribution channels that are a great fit for your app.  This is important because the number of apps is increasing exponentially and for your app to get discovered, you need to utilize the most effective distribution channels available.

The top add-on distribution channels are:  search, download directories, affiliate marketing and display advertising.  However advertisers that use an installer recommendation system, like the W3i AppNet, categorize it as one of their most effective distribution channels.

Add-on advertisers should consider scale, quality, and price when considering distribution channels.

1. Scale – When considering scale, a user might consider the quantity of applications competing for distribution as well as the amount of distribution available.

   The W3i AppNet may not drive as many downloads as the Firefox Gallery (usually referred to as AMO after the URL http://addons.mozilla.org) in aggregate; however, with far less competition the average app receives 850% more installs.

2. Quality – How will the users perform that install your app?

   W3i works with advertisers to understand their key performance indicators and then works with the advertisers to match up their app to users which meet their KPI goals.  Simply put, W3i works with the advertiser to find users that find their app relevant.

   In a recent survey of 502 users, we found that users that prefer to pay for their software using an ad-supported solution, the preferred method is to see ads within the installation or download instead of ads in their application or participating in market research.

3. Price – How much will it cost to get quality users?

   W3i believes in a value-based pricing approach.  The app advertiser pays per install but the rates per installation are set based on the value created by those installations.

Now that you armed with some criteria to consider when evaluating add-on distribution channels you can leverage this criteria to assess the various distribution channels available for your app.  In doing so, you can establish effective distribution channels which are a good fit for your app.  This will allow you to remain relevant and not get lost in the crowd.

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.