App Store Developers Debate Pricing and Marketing

[KindredMAC]

Farmer's take on the situation is absolutely correct.

If you want your app to be successful you have to market it, not just put it up on the App Store and expect people to flock to it. If you don't have a website, create one and feature the app with embedded video on what it does and how you use it. Take out adverts on webpages with links right back to your app in the store.

This is common sense to me but then again I work in the Marketing/Design industry.

 

[gillybean]

One reason I stopped buying interesting but unnecessary apps as they come out is I got tired of paying $9.99 for every app, then watching them fall to $7.99, then $5.99, then $2.99 as the weeks passed, making me feel like I wasted the $7.

 

[Luke1robb]

Perhaps. But I know that the really good apps cost money, and I will pay for them. Much of the 99 cent stuff is junk.

This all comes back to the thought of too much impulse buying. I am a firm believer that this should be a free market kind of thing, its good in the end to have tons of apps, the more the merrier.

 

[fordyingseasons]

I agree with Farmer 100%. More advertising on the behalf of many of these developers could be done.

Let's start with some no brainer marketing ideas, the developer could create a myspace with photos and video of their apps and some app store link buttons for other fan's of that application to advertise on their myspaces. If it's a game developer they could submit a "sneak peak" of their game to toucharcade.com to get some free exposure (most of the games I own were first previewed on toucharcade.com). Developers could create logos so that people associate their name with their products. Lastly, developers could create their own website with as many screen shots and videos they want on their apps and look for webmasters to host some adds for them with banners that link directly to the app store. If they are a bit more serious they could buy some google ad space and get even more exposure across the web. If the app has depth, originality, is useful and developers build a brand name for their company (look at gameloft for example) while getting their product known, I think there are a lot of people that will buy their app for more than $.99.

The app store is also a very young platform and new distribution model, as apps and games get more complex and have more features the developer can grow their brand name over time by adding to their titles and naturally charge more. And if the developer's product is cheap crap, it will naturally fall out of existence and no one will really care (except maybe that developer ) while the developers that people value will grow a brand name and a following.

To sum things up, I see nothing unhealthy about the app store, period.

 

[jfarmer]

But how? TV? Internet? iPhone optimized websites like ESPN.com? Ideas?

Well, *that* knowledge is worth something. If you're interested drop me a line and maybe we can find a way to work together.

 

[ZiggyPastorius]

I agree with Hockenberry, but I think there's another side to this.

Which are there more of out in the world, iPhones or iPod touches? iPod touches, most certainly. Who is the most likely market for an iPod touch? For an iPhone? I'm guessing teenagers for the earlier and adults/businessmen/et cetera for the latter.

With the rating system + expensive apps, you would see adults who do real work with their phones buying and complimenting these apps that really help them, whereas kids come on and rate one star and go "This app's too expensive. Gay." I think teenagers and people without a lot of money for "pro" apps make up the majority of the customers in the app store, and I think it's that reason you see more of these free and cheap apps hitting #1, not necessarily because people have to make their apps cheap.

 

[Arran]

But how? TV? Internet? iPhone optimized websites like ESPN.com? Ideas?

The App Store lets the developer link directly to their own website where they can pitch their app however they want.

I've often found myself wondering whether to buy an app, clicked on the link to the developer's website or support page and been sorely disappointed. Often it's just a single page, "coming soon", sort-of website. A missed marketing opportunity, if you ask me.

 

[Spades]

Take out adverts on webpages with links right back to your app in the store.

But then aren't you linking to the same place where the cheaper, crappier version of your program sits, right next to yours?

Of course the cheaper, better version may be there as well. But I can see how it's not a friendly system for the developer.

 

[dwd3885]

Farmer's take on the situation is absolutely correct.

If you want your app to be successful you have to market it, not just put it up on the App Store and expect people to flock to it. If you don't have a website, create one and feature the app with embedded video on what it does and how you use it. Take out adverts on webpages with links right back to your app in the store.

This is common sense to me but then again I work in the Marketing/Design industry.

Yep, exactly. The developer needs to learn that you don't just put your product on a page and expect it to get great results. You have to market it somehow. If you don't market it, then you get what you deserve.

 

[Small White Car]

Farmer's take on the situation is absolutely correct.

If you want your app to be successful you have to market it, not just put it up on the App Store and expect people to flock to it. If you don't have a website, create one and feature the app with embedded video on what it does and how you use it. Take out adverts on webpages with links right back to your app in the store.

This is common sense to me but then again I work in the Marketing/Design industry.

That applies to the real world, where there are many ways to sell a product.

Since the app store is the ONLY place these programs can be sold, the rules are much different.

In the real world, selling 5,000 apps for $1 or 250 apps for $20 works out the same. In the iTunes world, however, the $10 app falls off the top-25 list very quicly and is never heard from again no matter how good it is, because those 250 buyers are nothing compared to the 5,000 buying the $1 app.

John Gruber suggested that they multiply price by units sold and list them in THAT order (without giving the number itself). By those rules, both of these applications would continue to be listed together. That's another way of fixing the problem instead of my "multiple price lists" idea.

 

[alexbates]

Farmer's take on the situation is absolutely correct...

Exactly what I am thinking. I have been concerned that some of the apps that I bought a couple of moths ago for $9.99 have now dropped down to as low as $0.99. (Like Cro-mag rally and Moto Chaser) This is not encouraging me to buy any more applications from the companies that do that. The right way to market is not by using the Top 25, but by advertising in the media, without having to lower the price of your application.

 

[Luke1robb]

That applies to the real world, where there are many ways to sell a product.

Since the app store is the ONLY place these programs can be sold, the rules are much different.

In the real world, selling 5,000 apps for $1 or 250 apps for $20 works out the same. In the iTunes world, however, the $10 app falls off the top-25 list very quicly and is never heard from again no matter how good it is, because those 250 buyers are nothing compared to the 5,000 buying the $1 app.

John Gruber suggested that they multiply price by units sold and list them in THAT order (without giving the number itself). By those rules, both of these applications would continue to be listed together. That's another way of fixing the problem instead of my "multiple price lists" idea.

I think we're getting onto something with the gross profits ranked list, but then couldn't a developer have a friend buy a $500 version of their app in the first day and then change the price to whatever they wanted and cattapult themselves in the top 10?

 

[Luke1robb]

Well, *that* knowledge is worth something. If you're interested drop me a line and maybe we can find a way to work together.

Hey Farmer message me if you could... I'm not a developer...yet, but I'm very interested in getting involved with apps and the app store in some way, possibly working with or for someone to develop, market, review, betatest, or something. Frankly I'll be honest, I love my iPhone and I could see myself working with them forever. HAHA, there you go, I am an addicted fanboy.

 

[Small White Car]

I think we're getting onto something with the gross profits ranked list, but then couldn't a developer have a friend buy a $500 version of their app in the first day and then change the price to whatever they wanted and cattapult themselves in the top 10?

I think the scale of these things will blow away a plan like that very quickly.

They'd be competing with programs making thousands of dollars. It's possible someone might cheat by spending $5,000 on their app the first day. But the second day? Third day? I think Apple would be suspicious of something that cost that much and was selling so briskly.

Remember, they eventually fixed the problem with people naming their apps with a blank space to be placed before the "a" names. They are looking for this kind of stuff and fixing it when they find it.

 

[celavato]

Jesse Farmer hit the nail on the head. Every developer should read his essay. It's just like YouTube videos. I've seen so many companies upload a video to YouTube and think that's all they have to do for it to go viral. Nope. They need to market the hell out of it.

 

[krye]

True. The iTunes Store may be the place where you purchase the app, but it doesn't necessarily have to be the place where you advertise it. I have installed several apps on my iPhone because of the link on the developer's website, not because I found it in iTunes.

 

[iOrlando]

I agree with the points:

1) If i have an app that i think should be worth $7 bucks...how would someone know what its like before buying? Maybe reviews online with video snipets would help...but I want to see how it plays. If an app is $0.99, i wouldnt care much...if i dont like it, i just wont play it, but at $7 bucks..i want to know I would like it.
2) These developers have no means of marketing their apps to the masses, so that is alittle unrealistic, but it is very comparable to a new music artist. they can pretty easily get their song on itunes, but how would someone find them?

 

[bbrosemer]

Simple Solution

Just like there are pricing tiers in the submitting the apps, if there was a top paid in each tier, I think this would be an easy and promising solution for the app store. Some people just aren't happy paying $20 for any iPhone app no matter how useful it is. Therefore I think this tier top app in each section would push people in each category to create better apps in each tier.

 

[kdarling]

Windows Mobile, Symbian and Blackberries have had thousands of apps for years. And most of them have been available via easy to find places like Handango. You can even search by category.

Sometimes I've gone out searching for a particular kind of app. But rarely. More often, I see an advertisement in a magazine, or read a review or announcement in somebody's blog.

So I have to agree... advertising is a necessary step.

 

[fordyingseasons]

I agree with the points:
1) If i have an app that i think should be worth $7 bucks...how would someone know what its like before buying? Maybe reviews online with video snipets would help...but I want to see how it plays. If an app is $0.99, i wouldnt care much...if i dont like it, i just wont play it, but at $7 bucks..i want to know I would like it.

Many developers release limited free "lite" versions for this purpose

2) These developers have no means of marketing their apps to the masses, so that is alittle unrealistic, but it is very comparable to a new music artist. they can pretty easily get their song on itunes, but how would someone find them?

Your absolutely right, new artists send out free sample cd's of their music, set up a myspace page to get their name out. If someone with money (a record label) likes them then they give them more capital to market themselves. If the masses think that artist is good, they become a hit. Look at ngmoco they are kind of like an early record company in the app store helping the guy who is making Rolando make a top notch product that can be sold for more.

 

[GQB]

catch me if I'm wrong but the app store is basically the only means of getting the app to the vast majority of customers, so where are they supposed to look elsewhere to get higher prices.

This argument (not your comment, but the overall topic) is akin to claiming that shelf placement in a supermarket is 100% responsible for sales.
Yes, shelf placement is important. And an entire mechanism (or shall we call it graft) dictates shelf placement. In addition, there's a whole marketing decision around placing cheap impulse buys right at the register where a talented whiney kid can get a few things thrown into the cart at the last minute. And some adjustment to the rating/review system needs to be evolved by Apple in conjunction with developers. For example, as a buyer, I want to know what version a specific comment is refering to.

But any producer who relied purely on shelf placement to drive sales would be out of business quickly.
Developers have to take control of their own marketing (as opposed to distribution, which is what the iTunes app store is), and start
- advertising
- promoting
- demo-ing (on YouTube or their own web sites)
- bundling.
- etc etc etc

 

[MacLogically]

Market forces should be allowed to take their own course. Of course apples marketing and positioning of apps will have an in impact on price points but if this is currently swayed in favour of the consumer (which personally I don't believe) isn't that a good thing?

 

[iChan]

I think the only $9.99 apps that have really succeed beyond the honeymoon period of the first two weeks of the app store, are mostly Gameloft games. Gameloft has repeatedly hit it out of the park with their games and they seem to show no sign of stopping.

Intua's beatmaker, admittedly very niche seems to be doing very well also... they haven't succumbed to the "race to the bottom"

 

[BigNTasty]

Have a Weighted System

It should be weighted. (10) 0.99 apps should = (1) 9.99 app. when being shown as the most popular on the app store. That way it encourges developers to find that sweet spot between quanitity and price. =-)

 

[WVUAppleSeed]

God for bid developers make something consumer friendly in the worst economic time in America's history.

This guy is just pissed he's not making more dough. Get over it.