Thank you Gigaom

So I’m an iPhone user, and so are most of my friends … but I really think the new gold mine is Android; I was playing with the HTC Hero and Samsung Moment today, Droid Eric over the weekend, and can’t wait to get my hands on a Nexus One … With 50 new Android phones coming out this year, an open app eco-system, and 4G coming out this year, I really can’t wait to see the outcome …

Oh, I was playing with some custom phones I bought from China with Video conferencing over Wifi and it works awesome… so 4G/Wiki, Android OS, free cloud hosting, Google Voice / other VoIP providers … New communications are here, this will be an interesting year.

Before answering what does it take to make a successful iPhone application we have to define what makes an application successful. Sapient always asks why are we building something, what are we trying to achieve, and how are we going to measure it; so starting from top down, what are the business objectives, the key performance indicators, and all metrics. iPhone applications usually serve one of two purposes: drive brand or drive revenue.

Objective: Drive brand
Applications that drive brand most likely are free since they have to target a broad reach. Objective is usually increase awareness, brand recall, or word of mouth, and is traditionally measured based on simple downloads, usage, and extended with how many share with friends, stickiness, and engagement levels. A good way to take it one step further is tie in social media monitoring and analyze share and velocity of voice, general sentiment, and overall impact of the application within social conversations.

Now that we understand how to measure it, what will the application do? Nowadays brands cannot push messages to the consumers, they have to provide value and we generally call it brand as an enabler. Applications that drive brand usually fall under one of two categories: be entertaining or be useful. Entertaining applications usually have a wider adoption, more downloads, but less engagement as users open it just a few times before they get bored. Useful applications have a smaller reach but higher engagement; less users will download the application, but they will use it much more than simple entertainment applications. However the key for both types is simplicity.

Objective: Drive Revenue
Revenue can be driven directly by the application, or indirectly but multi-channel tie-in with retail and stores. Indirect revenue usually aims to drive users to store fronts, partners, or provide reasons for the user to purchase products or services. Whereas direct revenue is generated by the application. Measurement towards these objectives are always dollars.

Direct revenue can be generated from advertising or downloads, and both have different strategies. Revenue from advertising is similar to brand-driven applications: it aims to reach as many users as possible by providing free entertaining or utilities, and collect revenue through 3rd party advertising. However, download revenue can be a little more complex as it involves pricing strategy.

The secret to maximize download revenue is pricing. The most popular paid applications are priced between $0.99 and $3.99, with predominant 99 cent applications. These applications are what we call the big-fast-sales. Most users download them and use them once or twice; they’re predominantly entertainment and provide small value to the consumer, but the mass download provides great initial revenue and then stops. The most grossing applications are actually priced between $4.99 and $9.99 at 44% and account for 44% of revenue. These applications are downloaded less, but used much more often as usually they do provide value.

Here’s a simple framework to determine your iPhone application strategy

• Set objectives – what is successful?
  • Drive Brand – Free
    • Entertaining
    • Useful
  • Generate Revenue
    • Direct Revenue
      • Business models
        • Free apps
        • big fast sales
        • sustained sales
      • Revenue Models
        • Thru ads
        • Thru downloads
          • Pricing Structure
            • Most popular $0.99 at 50% and 0.99-3.99
            • Most grossing $4.99-9.99 at 44%
    • Indirect Revenue
      • Cross / Multi-channel
      • Point of Sale

Conclusion
So what does it take to make a successful iPhone application? You need a strategy, know what you want, how to get there, and how to measure. Keep it simple, make it engaging, and provide means to share and pass-along.

Panelist |   Jeannette Kocsis, SVP Digital Marketing, Harte-Hanks, Inc.
Panelist |   Ujjal Kohli, CEO, Rhythm  Media
Panelist |    Kyle Outlaw, UX lead, Razorfish
Panelist |    Ken Willner, CEO of Zumobi
Panelist |    Jamie Wells, Director, Global Trade Marketing, Microsoft  Mobile Advertising
Moderator |   Rob Gonda, Director of Digital Strategy & Innovation, Sapient

Topic was Mobile Web Vs. Mobile Applications; it was pretty interesting, Ken and Jamie as more vocal and Ujjal with some nice comments for debates. Jamie plugged Microsoft so much that it almost became a game, and I had to get back at him towards the end; he said he wanted to pick up a fight, crowd always loves that.

Please check it out, it’s long, but hopefully you’ll find it useful and entretaining.

Finally, AT&T’s long-awaited MMS update for the iPhone is finally ready. Just plug your iPhone into iTunes and hit the “Check for Update” button.

You should get the dialog message above, saying: “An update to your carrier settings for your iPhone is available. Would you like to download it now?”

Hit “Download and Update” and wait a few seconds, then go to your iPhone and launch the Messages app. There should be a little camera icon to the left of the text input box at the bottom. Hit it, and you’ll be able to send pictures or video with your text messages.

Some users are reporting they have to manually reboot their iPhone after installing the carrier update.

PS: Haven’t tested if this has any effect on the tethering profile update

The ongoing debate over Flash on the iPhone appears to be over after Adobe CEO Shantanu Narayen announced last week at the World Economic Forum that Adobe and Apple are working together in an effort to bring Flash to the iPhone.

While Narayen didn’t answer the question of whether Apple had strengthened its commitment to putting Flash on the iPhone he did point out that the ball was now in Adobe’s court. “We have the developer kit and the onus is now on us,” he said.

During the Bloomberg interview, Narayen said that Adobe plans to have over a million devices shipped by the end of the year that have Flash and he’s not just talking iPhone; the company is working on the Android platform, the Windows mobile and the Symbian platform.

Watch the five minute interview below.

This is a true sign that the music industry has accepted that the right way to manage piracy isn’t by making consumers jump through ridiculous security hoops, but by offering a high quality convenient service.

Apple will also be allowing iPhone users to download tracks directly to their phone via the 3G network as opposed to only being able to download via a wireless network.

From Apple’s perspective this could continue to boost sales of their products such as the iPod and iPhone due to increased flexibility, but it might also cause a decline in market share for iTunes as their current iPod and iPhone users will be less restricted in their choice of music download services.

The end of DRM might embolden a host of new, online download venues and other ventures as traditional album sales slump. Album sales fell 9.5 percent in 2007 while the sale of digital tracks rose 45 percent.

You can read about the iTunes changes in more detail here.

One of things I’m obviously passionate about is spotting new trends and potential new marketing opportunities. As marketers we’re all charged with looking for new opportunities to get our client’s brands out there, but to be successful we must be very conscious of timing. When is it too early to recommend a new medium or platform? When is it too late and you’re only adding to the clutter?

This problem is more acute in the digital and mobile space, thanks to the rapid evolution of technology. Let’s take a look at some of the more recent opportunities that I think have passed and use it as a platform to understand how to find the next big thing before it becomes just that — the next big thing.

Continue reading here…

For starters ARM devices will be able to view the same Flash sites that traditional Internet users do as opposed to the Flash Mobile only sites they see now. This is somewhat like what the iPhone browser did for regular website browsing.

Smart marketers will still offer experiences that are designed for a mobile experience (i.e. smaller screens, potentially slower bandwidth) but now they won’t be limited in terms of the complexity or media richness. Flash 10 will allow rich mobile experiences that will easily stream video (HD and regular) and integrate with systems like Flash Media Server 2 for collaborative multi-user experiences.

Kevin Lynch from Adobe shows a demo on a G1 after the jump. Now I just want to see it on a iPhone!

It’s free and definitely worth checking out. It’s particularly cool how it works with the GPS feature.

5 G1 Pros

1. Keyboard
As proficient as we’ve become with the iPhone’s virtual keypad, tapping touchscreen keys has its limits. Physical keyboards, like those on BlackBerrys and Treos, are much easier to use. The G1’s little keyboard will become especially important as smartphone manufacturers increasingly market their devices as pocket-based PCs, and may give the G1 a clear edge when it comes to gaming.

2. Expandable and Removable Parts
The iPhone’s sealed battery is more of a metaphoric problem than a functional one. Sure, it’s a pain not being able to swap in a new battery for long jaunts off the grid (thankfully, plenty of accessories are designed to fix this problem), and nobody likes having to ship his phone back to Apple if his battery begins to lose its charge. But this problem has drawn as much fire as it has because it is symbolic of the closed, unmodifiable nature of Apple products.

3. Integrated Compass
Not only does the G1 have GPS, it has an integrated compass that can determine which way you’re facing and give you Google Maps StreetView images of the buildings around you. It’s not that useful on its own; after all, you could just look up to see what’s around you, but we’re interested in seeing what third-party developers can do with this functionality.

4. Offline Integration with Google Apps
You can access mobile versions of most Google applications on an iPhone, but with a few exceptions (such as the Google Maps application) you’ll need to do it through the Web. The Android phone’s calendar is an offline version of the much-loved Google Calendar online application. Enter dates into your phone, and they automatically show up on your online calendar. And while you can easily set an iPhone to sync up with calendars such as Google’s there is a beautiful simplicity with the way Android replicates the online programs you are used to offline, in areas where you don’t have service.

5. Multitasking and Copy and Pasting
The iPhone can do a lot, but it can’t do a lot at once. With the exception of the iPod music-playing program, which can run in the background while you do just about anything. This does not mean that the iPhone does not multitask, it does, but Apple does not want 3rd party apps killing the battery. With Android, you can easily swipe between programs. However, it must be noted that it is still to be seen what sort of effect this will have on the phone’s memory and performance (point to Apple or Google?) It must be noted that we really do appreciate that Android allows you to copy and paste text. Perhaps it will motivate Apple to finally bring that feature to the iPhone.

5 iPhone pros

1. The G1 does not have a Real Media Player
The iPhone doesn’t just play back video—it’s one of the best (and best-looking) portable media players on the market. While we’ll certainly see developers making video playback programs for the G1, there are none built into it.

2. The iPhone is Thinner
The G1’s slide-out keyboard may be useful, but it comes at a price: The G1 takes us back to the pocket-bulging smartphones of yesteryear, while the iPhone is svelte enough to fit in the front pocket of your Levis.

3. No Multitouch
The G1 uses a capacitive touchscreen. This is the same highly sensitive type of screen found on the iPhone (most touchscreen phones use mostly inferior resistive touchscreens), and should allow the G1 to compete when it comes to touch sensitivity. But the G1 does not have the iPhone’s multitouch capability. While the G1 attempts to make up for it by utilizing “long-touches” to bring up deep menus, it loses out on the huge amount of functionality (and coolness) that comes from the iPhone’s ability to sense two fingers at once.

4. Terrible Headphone Jack
The iPhone proved that people were willing to listen to music on their cellphones. Still, most manufacturers are reluctant to put a standard 3.5 mm headphone jack on their phones, forcing customers instead to use bulky adaptors or subpar bundled headphones. The 3G iPhone bucked that trend (the original had an annoying recessed headphone jack that could only take specially made headphones), but the G1 relies on an irritating proprietary plug. To make things work, early indications are that adaptors won’t even be available when the phone first hits shelves, making the bundled headphones the only choice.

5. Internal Memory
The iPhone currently comes in 8 GB and 16 GB varieties, and we’ll likely see a 32 GB version before long. The G1 has just 192 MB of onboard memory, and comes with a 1 GB micro-SD card. That’s not really enough memory for a phone that’s supposed to be full of music and downloaded applications. If you want an 8 GB G1, you’ll have to purchase an 8 GB micro-SD card, which will push the price of the phone from $179 above the iPhone’s $199 price tag. If T-Mobile, Google and HTC really expect us to use the G1 as a mobile computer, they’ll need to give us more memory. [source]

The real reason the gPhone could take off