Wednesday, June 29, 2011

Android app marketplace - analysis of an analysis of an analysis

There was a report on androidapps.com today about some business issues for app developers on Android

http://www.androidapps.com/games/articles/8567-android-market-missing-out-on-game-marketing-others-fill-the-gap

This is hot issue for app developers who have, perhaps unwisely, chosen Android as their platform of choice.

Let's break it down:

"Games have become an integral part of the Android experience, benefiting gamers, developers and Android alike.

The focus is games, but the analysis most likely applies at some level to other app-type as well.

"But as the rivalry between Android and iOS heats up, and third party marketplaces emerge as alternative portals for Android apps, Android games become an important experiment in software marketing and distribution."

Right - e.g. what about Amazon's Android market? How does that work, and should we be paying attention to it?

"From fragmentation issues on Android’s operating system to disappointing restrictions on app publishing in the Android Market, game developers have a lot to consider as they hope to monetize their efforts on the Android platform."

For sure. Who's the author? I like the tone already. Who's the author? It turns it it's a woman - cool - and the author of the "Twitter Survival Guide" (that sounds familiar, but who knows? Survival guide is a good alternative to "for Dummies" as a generic title). Her name is Kristen Nicole. Maybe I'll follow her on twitter.

onward:

"Android Market pricing fail
Some interesting pricing rules have been uncovered in the Android Market, disabling developers from charging fees on an app that’s been set as a free product."

Yes, right! What's up with that policy? I don't get it.

"This means developers can’t have one-day sales on apps, or run a promotion for a new app before making it paid."

Also true. Although, the "sales" and "promotions" mean giving it away. So, I guess the idea is free samples, get the word out, and let the buzz generate paid customers.

"It’s no wonder you see multiple versions of a given app in the Android Market -- what a confusing demonstration for end users."

Right. And it makes it trickier for developers, who have to juggle multiple versions.

"Game developers in particular may find this Market rule frustrating, as marketing an Android game has become a difficult and disparate experience."

Hopefully this won't be much of an issue for me, but I'm not sure.


"Rivals rule with promos

Not only is the Android Market less structured in terms of promotions when compared to the iTunes App Store, but independent marketplaces are taking advantage of the Market’s shortcomings."

Its true; with the AppStore, you feel like you're in a real store. In the app marketplace - it's more like a zoo.

"The Amazon Appstore, for instance, has made app promotions central to its strategy in gaining users, often offering full version games for free download."

Right, they have the free app per day or something.

"GetJar has turned into another important gaming portal, running similar promotions for Android games."

I wonder how my Japanese quiz game fits into these strategies. Probably not much. It's more of a long-tail thing.

"Both the Amazon Appstore and GetJar have landed exclusive Android game launches, with publishers waiting several days to make their game available on the Market after a promotion has run its course."

Ok, but it's not really my problem. Or is it? I'm thinking I should stick with the Market.

"As Appolicious Advisor Marty Gabel points out in his article on the Android Market’s questionable pricing rule, this is holding back Google in the end. The gap is opening up a range of opportunities for third-party services to monetize games, through redeemable codes, in-app purchases or other incentives."

Google has in-app purchase. I'm very curious about how this is working right now. Probably not much - otherwise, we'd be hearing good things.

"Adknowledge, the company behind Super Rewards, recognizes that relying on a single portal is a drawback for game developers, and has launched Social2Web for social game developers looking to expand beyond networks like Facebook. Combining the best of all worlds, Social2Web becomes an agnostic approach to game distribution, across mobile or the web."

It would be good to have a one size fit's all distribution channel, wouldn't it. I wonder if that's exclusive to games?


What about "adknowleged?"

"60+ billion impressions per month
80 million clicks per month
Over 10,000 advertisers"

Adknowledge, the fourth largest advertiser marketplace, specializes in performance-based marketing solutions utilizing its powerful predictive technology and completely anonymous consumer response patterns to connect advertisers with consumers across multiple channels, including email, search, domains, and social networks. With over 60 terabytes of anonymous consumer behavior data, our proprietary targeting systems run over 20 billion calculations per day to determine what ad to show to each consumer. Over 10,000 advertisers use the Adknowledge ad network to promote their offers."

Another ad company? There are so many. This one, like Jumptap, has a system for matching consumer data with ads. How does it work?

Here's the article cited:

"Social2Web Solution Enables Developers to Expand Distribution and Monetization

SAN FRANCISCO, Calif. – AllFacebook Expo – June 28, 2011 – Social game developers now have a solution that enables them to expand game distribution and monetization beyond Facebook and into the Web. Today Adknowledge launched Social2Web, the first viral game monetization solution that enables game developers to extend their reach by creating standalone versions of their Facebook games on their own URL."


Well, I'm not coming out of facebook. Drop it for now.

I'm also curious to read the article on Google's app pricing regulation:

http://www.androidapps.com/games/articles/8556-fieldrunners-developer-among-those-confused-by-pricing-rules-in-android-market


I'm going to quote the whole article here. It's definitely worth a read. It goes into detail about why such things as one-day-sales work, and the timing of free apps. That extract is also included below.

"For all the discussion about how free and open the Android system is compared to its iOS rival, there are a few quirky rules about apps in the Android Market that are not only restrictive for developers, but perhaps even for Google itself in terms of revenue.

What this means for developers is that they can’t have one-day sales on apps, or even release a brand new app for free for a week or two, before making it paid. Such behavior is commonplace in the iTunes App Store. Sure, free in the iTunes App Store means zero dollars for the developers, but the publicity surrounding the sales, and the potential of in-app purchases can really make a difference. However, in the Android Market, if developers made the mistake of changing an app to “free” for the day, then go to switch it back to, say, $0.99, they can’t. They have to create a brand new app version and re-sell it.

This is not much fun for developers (and creates confusion for consumers). One-day, or early-release sales, are a great way to rake-in publicity. That’s already been proven when top games and apps in the iTunes App Store go free, especially around holidays. No wonder we rarely see much traction, even in our very own AndroidApps price cuts section, when developers can’t even offer their apps free for a day in Google’s marketplace. It’s another reason why so many developers simply choose to offer their apps and games free and fill them with ads. That is probably a better way to generate revenue than offering them for $0.99. Google must enjoy the cut it gathers from the ads, too."


The whole article:

The Fieldrunners HD issue


"by Marty Gabel

While malware threats and copyright-infringing apps usually litter the headlines, here’s an interesting one which, admittedly, I didn’t know about until recently. Here’s section 3.3 from the Android Market Developer Distribution Agreement:

You may also choose to distribute Products for free. If the Product is free, you will not be charged a Transaction Fee. You may not collect future charges from users for copies of the Products that those users were initially allowed to download for free.
No free lunch

What this means for developers is that they can’t have one-day sales on apps, or even release a brand new app for free for a week or two, before making it paid. Such behavior is commonplace in the iTunes App Store. Sure, free in the iTunes App Store means zero dollars for the developers, but the publicity surrounding the sales, and the potential of in-app purchases can really make a difference. However, in the Android Market, if developers made the mistake of changing an app to “free” for the day, then go to switch it back to, say, $0.99, they can’t. They have to create a brand new app version and re-sell it.

This is not much fun for developers (and creates confusion for consumers). One-day, or early-release sales, are a great way to rake-in publicity. That’s already been proven when top games and apps in the iTunes App Store go free, especially around holidays. No wonder we rarely see much traction, even in our very own AndroidApps price cuts section, when developers can’t even offer their apps free for a day in Google’s marketplace. It’s another reason why so many developers simply choose to offer their apps and games free and fill them with ads. That is probably a better way to generate revenue than offering them for $0.99. Google must enjoy the cut it gathers from the ads, too.
The Fieldrunners HD issue

On Thursday, July 30, you can expect to see popular iOS game Fieldrunners finally get a release in the Android Market as Fieldrunners HD. The launch price will be $0.99. But that’s not what the developers intended. Subatomic Studios had plans to offer the game for free in the Android Market for its initial release to drum-up interest. However, like many other developers, they were stymied by Google’s rules.

I talked to Alec Shobin, PR and Marketing Manager for Subatomic Studios to find out more about this. “The Android Market is a rapidly growing and maturing distribution platform. Like any growing service they are experimenting with different functionalities in the hopes of creating something better. We have tried our best, and it is unfortunate that we could not do some of the things we had hoped to do for our customers.”

Shobin isn’t quite sure why other stores are able to let developers sell games that temporarily go free, but Google isn’t. “Despite our best intentions, the system did not allow for a free app to become paid. Hopefully these restrictions will change in the future.”
Time to open up?

Perhaps it’s time for Google to rethink some of its policies, especially if developers are still confused by the rulings. Undoubtedly, the company is making an effort to improve the user experience for customers when visiting the Android Market, but they need to do a little more to help developers. Heck, there’s not even redeemable promo codes available for developers to send out to consumers. This is a sure fire way to drum-up interest, especially if Google wants to become a bigger player in the gaming space."

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