Sales-Fax

Since iPhone apps were introduced a year ago, they have become the forefront of the mobile marketing industry. Shorthand for "applications," apps are programs that Apple iPhone and iPod touch owners can download directly to their devices through Apple. Developers create the apps independently, then submit them for approval to the computer company, which will then, if accepted, sell them at their creator's suggested price (which can be no cost whatsoever). They can range from video games to restaurant guides. Through a series of exclusive interviews with mobile marketing experts, app developers, and others, $ALE$-FAX NEWS has found that although the majority of apps are geared for entertainment purposes, many brands have begun to use them in their mobile marketing strategies and thus can help in future sales opportunities.
A prime example is the recently released Barnes & Noble app. Users who download the free app just need to take a picture of a book's front cover with their iPhone to find out its title, price, reviews, purchase it online, and even reserve a copy at the Barnes and Noble that's nearest to their current location (along with receiving directions on how to get there, as well as a list of upcoming in-store events).

Creating a Shift in the Industry

"The app allows us to provide better support for busy customers who want to find a store, see in-store inventory, and even reserve products while on-the-go," says Miles Williams, Mobile Product Manager for Barnes & Noble.com. Williams tells $ALE$-FAX NEWS that with the growing use of smartphones and mobile technology "Barnes & Noble wanted to give our loyal customers the ability to connect with our brand from anywhere and at any time."
"It's causing a definite shift," says Mike Wehrs, President and CEO of the Mobile Marketing Association. "The first question from a new client is: 'How quickly can you get me an iPhone app?'" When asked if the initial buzz of using iPhone apps to promote brands may be starting to wane, Wehrs laughs. "I think if anything, it's going to increase," he says. Wehrs explains that marketing with an iPhone apps, features increased audience engagement. "The return on the investment in the program goes up," he says. "Brands find it very attractive."
According to Apple, there are more than 50,000 apps available. "Developers now have the incredible opportunity to reach more than 37 million iPhone and iPod touch users around the world," say Elisa Hickey, a PR Specialist for the computer company. Hickey also says that in nine months, one billion apps were downloaded.
But for developers, it's more than just the vast number of users that piques their interest. "There are finally devices that offer the full experience for the end user," says Karl Stillner, Vice President of Business Development at Zumobi, a mobile media company that creates apps, most recently for MSNBC. According to Stillner, Apple created a "more frictionless content distribution," for its apps via similar system requirements across devices (an app that works on original iPhone will work on any newer models, like the 3G or 3GS, as well as the iPod Touch) and the already built-in billing mechanism of iTunes. All allow developers to easily create an app for the multiple iPhones without any changes for platform and seamlessly deliver them to the user.
For Bernard Kravitz, owner of TheCoderie, an Internet consulting company that creates apps (their slogan is "like a bakery but with software,"), there's also the draw of what a developer can do with the iPhone's capabilities. "The iPhone is a fully comprehensive device," says Kravitz, who explains that apps can take advantage of the hardware's ability to connect to the Internet, take a picture, and pinpoint its location via GPS. "It's all these things we've been using already, just separately," he says.

Two Types of Apps for Brand Communication

Advertisers can connect with consumers through iPhone apps two ways, either directly via their own full branded apps or as a third party advertising on a publisher app. Full branded apps, like the one released by Barnes & Noble, are meant to continue communication with already loyal consumers. "The end user has to opt in," says Wehrs. "They say 'I to want to be a part of this brand.'" Publisher apps, on the other hand, utilize a more traditional media advertising strategy to cast a wider net for what Wehrs describes as "a broader type of audience, people not aware of the brand."
An example of a publisher app is the one recently released by MSNBC. One of the first brands to advertise on it was the national electronics' chain Best Buy. "The Best Buy campaign is woven into the content of the application, and is not just sitting static at the bottom of the page," says Stillner, who explains that ads appear as messages in the scrolling news feed and users have the option of following Best Buy's twitter feed. "Also, when you go into a particular story, a BrandFrame with Best Buy messaging frames part of the story," adds Stillner. "The BrandFrame is fully actionable and leads to a landing page that is built into the application that has a featured deal of the day that is updated each day."

Risks and Advantages Over other Media

Although experts praise iPhone apps as means for advertisers to have a dialogue with their customers, they warn that its rapidly growing popularity may also pose a danger. "Unless you have a huge brand, you risk the situation of getting lost in the noise," Stillner says, and suggests that anyone planning on releasing an app should be sure to appreciate it as part of a whole strategy and not the entirety of the effort. It's a sentiment seconded by Wehrs, who warns of the danger of being caught up in the excitement of an iPhone app when their target user might not even be an iPhone user. "It [the application] looks great, but they haven't done their due diligence to find out that the iPhone is the right platform for them," he says. "You have to get the rest of the formula right. It's not just throw the app up there and people will start being a part of my marketing program. It just doesn't work like that."
But dangers and risks aside, most in the mobile marketing community are still excited about advertising through iPhone apps. "It has all the advantages of traditional digital advertising, but also can be location-aware and is presented on the most personal and referenced device anyone carries," says Stillner. According to Wehrs, it's this constant access that ensures consumers will get the advertiser's message. "They're going to stop what they're doing and see it," he says. "You can't say that about TV. You can't say that about online. You can't say that about any other media."