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.

When looking to distribute free consumer software, there are many different methods of distribution.  Some of the more successful distribution methods are:

• Online marketing promotions
• Affiliate programs
• Physical distribution through retail
• Word of mouth

If you can get all the software distribution you need from the latter, then this blog post probably isn’t for you. But for the rest of us who can’t ever get enough, here’s a tactic that tends to get overlooked -software aggregators. 

There are many benefits to hosting your free software or trial software on sites like Download.com, Tucows.com and Softonic.com.  One of the most important things to look for when researching software aggregators is reputation, look for companies like Softonic.com that are a trusted source of downloads. If it’s not a trusted site don’t use it!  Many software aggregators  offer multiple benefits such as:

• Free listing programs
• Pay per download (PPD) programs at very reasonable rates
• Scalable bandwidth  

Listing your downloads with software aggregators can free up bandwidth.  If your product has a large file size or high traffic influxes, these sites have the ability to provide unlimited downloads to potential users without the worry of servers crashing and bandwidth overage charges.

Working with software aggregators does come with a couple of caveats.  The first is turnaround time.  This problem is mostly caused by us–marketers, developers, etc.  Due to the high volume of requests for listings on these popular aggregators, turnaround times can be days or weeks.  It can also take the same amount of time when you’re trying to remove a product from the site.  Be sure to plan ahead.

The second is the lack of reporting.  You don’t get much visibility into reporting, so before adding this method of distribution to your marketing strategy, be sure to know your Key Performance Indicators (KPI) so you have the ability to optimize.

And now the W3i plug! Apart from software aggregators there is another tool available to you to increase distribution; it’s advertising in the installer.  W3i has created a proprietary Application Network where the advertiser’s popular consumer applications are offered during the installation process.  This distribution method is performance-based and user generated.      

Just like when football coaches tell their players to keep their heads on a swivel, the same can be said for marketers of this generation.  There are many different vehicles of software distribution that you can use to get your software in front of consumers. Just make sure the vehicle you choose fits your marketing strategy and instead of telling you to think outside the box, because I hate that cliché, I will suggest that you work smarter, not harder, when trying to find new vehicles of distribution.

Mitch Bain, Marketing Manager; W3i, LLC
Mitch has 4 years experience focusing on Display Advertising, Search Engine Marketing, and Mobile Marketing, in the Integrated Interactive Media industry.

On a regular basis, it’s important to take a look at the application user experience and truly try to understand the value delivered to users.  When this topic comes up, some questions arise:

1. Since this is so subjective, how does one accurately measure value? 
2. How can you be sure your marketing is properly conveying value to end users?
3. How can one quickly and easily measure value?

There are a variety of ways to determine value; listening to your users is a big one, revenue generation can give some insight, but when asserting the value that an app communicates and subsequently provides, there must be a quick and easy way to measure value.  For this reason, we’ve created a tool called the Application Value Matrix.  Two performance indicators are used to determine the value that is communicated and delivered to users: attrition, which is the rate users uninstall an application, and acceptance, which is the rate users decide to download/install an application.  By plotting these two performance indicators, you can easily gauge how well you are communicating and delivering value, understand how these two metrics are related, and subsequently take action to improve.

The Application Value Matrix is divided into four quadrants:

1. Valued:  High Acceptance, Low Attrition
2. Misinterpreted Value:  High Acceptance, High Attrition
3. Unrepresented Value or Niche:  Low Acceptance, Low Attrition
4. No Value:  Low Acceptance, High Attrition

I challenge you to plot your apps onto this matrix.  By doing so, you can determine certain action items necessary to improve the value communicated and/or delivered to users. 

So, what does each quadrant mean?

Valued

This quadrant embodies effective value communication and delivery to users.  Users understand the value that the app provides up-front, thus there is high acceptance of the application.  Users value the application as they use it, thus there is low attrition.   Even if your application falls into this quadrant, it’s important not to stand still.  Continue to deliver value to end users through consistent improvements and by being the best of your breed.  Also, remember that delivering value does not mean piling on new features or adding unnecessary complexities.

Misinterpreted Value

Apps that fall into this quadrant have high acceptance and high attrition.  So what does this mean?  One of two things:  first, it could mean your marketing campaigns communicate value that fails to be delivered to users, thus causing high attrition.  If this is the case, look at your marketing assets and adjust the communication so it properly conveys the true value your app provides.  Second, this could mean (and this is probably rare) that your app is a victim of the “hype machine”.  Perhaps you have a lot of positive press about your app, causing a lot of people to download your application.  However, upon using it, a large percentage of users find that it’s just not for them.  Maybe it does deliver value to a subset of users, great; but seek to understand why the majority did not find value in your app.

Unrepresented Value or Niche

Apps that find themselves in this category have both low acceptance and low attrition.  Again, this can mean one of two things.  First, it could mean that value is not effectively communicated to users.  Look at your marketing campaign and enhance the messaging so it truly communicates the problems your app solves for users.  Second, this could mean your app is niche.  A certain subset of users wants your application and this subset truly values your application.  If this is the case, formulate a plan to enhance your application to improve acceptance for new personas or markets. 

No Value

The meaning of this quadrant is fairly intuitive.  Very few users download your application and of those who do download it, have high attrition.  The good news is that in this quadrant, you have nowhere to go but up.  Ultimately, you need to focus on the value your app provides first before you look at enhancing your marketing assets.  This is not a “chicken or egg” scenario.  There is only one thing that can come first and that is delivering value.  Once you have achieved this, you can quickly follow up by improving value communication for a one-two punch.  To improve value delivery, ask yourself some questions:  Are you properly engaging users?  Are you truly solving a problem that exists in the market?  Is your app easy to understand and use?  Did you design it with yourself in mind and not your users?

I hope you find this tool useful as it is important to effectively create and communicate value.  This tool is not meant to substitute other important ways to measure the value your app provides, such as user feedback and other various performance indicators.  The Application Value Matrix is intended as a supplement, used to quickly and easily identify areas for improvement.

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 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.

W3i just wrapped up its first, of what will intently be annual, B2B Market Survey. We dubbed it the Application Distribution and Business Model Survey. Our goals were to improve our understanding of the Windows Application Market and its needs as well as broaden our understanding of how W3i can improve its services for both business partners and users.

I want to share three key insights gained from the survey. These insights are macro-level and, if instituted soundly, can provide consistent and copacetic results, fueling growth in the app market.

Insight #1: Know the Market Landscape

One thing is certain; the Windows Application Market is complex. Our survey added clarity into the diversity of verticals, needs, priorities, and anxieties that exist in this marketplace. It’s important to understand the landscape of the market(s) you’re in and to put that information to work. W3i has a unique vantage point in that we see the market across the entirety of application verticals (social networking, shopping, utilities, etc.), and we intend to use this information to better solve problems that uniquely impact the market.

Insight #2: Security and Trustworthiness Rule

Throughout the survey, respondents sent a clear message as to the importance of security and trustworthiness (see Figure 1). In every business partner and user interaction, these two values must be communicated with crystal clarity. Not only that, but your actions must match your words. W3i has a commitment to upholding a secure and trustworthy experience for users and partners. Our TRUSTe-certified InstallIQ is a perfect example of our testament to this.

Insight #3: Invest in Your Business Partners

We are humbled yet proud to have received high marks in the survey for our Business and Operational Support. Business Partner Satisfaction is one of our core corporate values — on a day-to-day basis our team works relentlessly to maximize growth and business partner relationships. Investing in a partner is truly an investment in the entire ecosystem – the entire market. Doing this acts as a direct conduit to improved user experience, improved campaign effectiveness and partner and user problems that get solved.

So there you have it. In sharing a few of the insights gained, our hope is that we can further drive innovation and growth in the Windows Application Market. Feel free to share your thoughts in the comments.

Eric Montag, Product Manager, W3i, LLCEric 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 – October 9, 2009 – W3i Holdings, LLC announced today that Lisa Nistler was appointed Vice President of Marketing.

Lisa will be responsible for W3i’s marketing strategy and functions including: Owned and Operated web sites, creative services, usability, and client relationships.

Prior to joining W3i, Nistler was Vice President of Marketing and Technology at St. Francis Private School, where she was responsible for all traditional and interactive marketing, as well as technology educator. Lisa has extensive experience leading strategic account teams at technology companies. Before St. Francis, Nistler led Digital River’s strategic account development organization, focused on interactive marketing, optimization, and global ecommerce. Nistler has a broad-based background that spans technology, retail, direct marketing, agency, and academia.

Lisa attended the University of Colorado, Boulder, focusing on interior design, and the Minnesota School of Business, focusing on business administration.

Nistler will report to Andy Johnson, CEO. “Lisa is a key member of our team and is very committed to the growth of W3i. We congratulate her as she takes on new responsibilities in this leadership role,” comments Andy.

About W3i:
W3i, an application network that increases revenue, distribution and engagement for Windows applications and plug-ins, combines the demand for free and trial applications monetized by the distribution of recommended, relevant applications when the consumer is in the installation mindset. The W3i Application Network uses InstallIQ, W3i’s proprietary Windows installation manager, the first installation manager to be certified in the TRUSTe Trusted Download Program. Tested and optimized on over 300 million installs–currently over 9.6 million installs monthly and growing, W3i will prove to be a valued partner in growing your application business. To learn more, visit the W3i Application Network.

Press Contact:
Deborah Manthei
W3i Holdings, LLC.
deborah.manthei@W3i.com
320-257-7571