Applied Thinking - iPhone Apps 2010
Category: Thinking pieces
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"To the people who've got iPhones: you just bought one, you didn't invent it!" Marcus Brigstocke
The fact that this joke was voted into the top 10 funniest of the Fringe this year speaks volumes about the general attitude to iPhones. We know they were 'a game changing piece of innovation'; 'a phone that fell from the future'. We know that self-satisfied little look owners get as they 'tap, tap slide' their way to answers we can't hope to get off a 'normal' phone. We know we should be amazed as Shazam listens and then tells you the name of the track that's playing on the CD player. And we know that the technology is so irresistible, it apparently makes it OK to get iPhones out in the middle of a conversation.
In spite of all the hype, some in the marketing community remain reticent to join the iPhone bandwagon - perhaps because they've been burnt before. Marketeers who've never forgiven their ex digital agency for persuading them Second Life was in fact the second coming, can perhaps be forgiven at not immediately jumping at the new kid on the digital block.
As with many new marketing media opportunities such as Facebook, Twitter, iPhone, before thinking about what we 'could' activate, we might first consider whether we 'should'.
What's the commercial imperative to invest in this activity? This is where iPhone Apps and iPhone stats are becoming increasingly compelling.
Not only is the App store huge in volume terms (passing 2 billion apps downloaded this year) it's also a head turner in terms of the revenue it delivers. Pizza Hut's online ordering App generated $1m in incremental food sales. With charming functionality that lets you slide to the size of pizza you want, shake the toppings onto the pizza and then place the order directly with your nearest store. Pizza Hut also featured on the Apple ad "There's an App for that", thereby benefiting from millions of dollars of free ATL exposure. Far from being gimmicky, Pizza Hut's innovative way of connecting with early adopting consumers is benefiting the brand's image as well as the bottom line.
So whilst some brands see Apps as a serious business, why are some loath to consider them as a medium? The primary objection historically to the iPhone in the UK was the exclusive distribution deal with O2, which was seen to make the audience too limited. However, with the recent deal to extend distribution via Vodafone and Orange, the iPhone will now available to 85% of mobile users in the UK. Add to this a potential ROI of 10 times the initial investment and it makes for a compelling commercial case to fully explore the potential of this exciting new medium. A potential that, thanks to iPhones future-esque functionality, can be as inspiring creatively as it is commercially
Top Five Functionalities Exploited by Apps:
1. GPS Locator - can link virtual order to real life delivery/purchase
2. Accelerometer - can dramatize the phone being tilted
3. Touchscreen - slide and touch elements
4. Bump Phones - Dynamic Data Transfer (Bluetooth/GPS)
5. Video overlaid with Augmented Reality (3.1. Software Release)
iPhone and its Apps should therefore not only be firmly at the top of most Christmas wish lists, but firmly on marketeers' agendas in 2010. With significantly increased distribution and potential for significant commercial delivery, iPhones and Apps are much more than nice to haves.