Impact of Fourth Generation Computers
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Transcript of Impact of Fourth Generation Computers
Smartphones for Smart Journalists
Today’s Subjects
The Big Picture4G Computers - Their new role in journalism
Lessons learned building native apps for 4G Computers...for newspapers and news channels
Smartphones for Smart Journalists
The Big Picture
“Smartphones” vs. Fourth Gen Computers
A Blackberry is a smart phone.
The iPhone, iTouch, Androids, and iPads are 4G computers. And they’re only the beginning.....
The Big PictureTerminology
Primary use intention differentiates
Computing Primary Communication Primary• iPhone • Blackberry• iTouch • Etc.• iPad• Android class
The Big PictureCurrent 4G Computers
The Big Picturethe emergence of the 4th generation
The Big Picturethe emergence of the 4th generation
Recommendation
Follow Mary Meeker’s Research
Morgan Stanley
• highly mobile
• lack a keyboard, mouse and power cord
• Internet connected
• Contain profitable application ecosystems that
often replace traditional (profitless) web sites
• Gartner says >50% shipped by 2015 w/b touch screen
The Big PictureWhat makes 4G computers different?
• Apple products - Shirt pocket screen to television
• Android products - Shirt pocket screen to television
• Maybe Microsoft products
• Maybe, maybe Nokia products
• Sony, Samsung, Palm, etc. are likely also-rans
The Big PictureFuture 4G Computers
Practically speaking,
Today its Apple and Google!
Major content owners are building products for both.
The Big PictureSuppliers of 4G Computers
• kill netbooks
• reduce utilization of lap/desktops & shirt pockets
• dramatically increase the overall use of computers
• outnumber personal computers in use by 2013/4
• will soon become the primary access to the Internet
The Big Picture4G Computers will most likely....
• Average adult uses a PC 1.5 hours/day
• 4G computers are available 18 hours/day
• PCs were often shared....not 4G computers
• Content consumption by shirt-pocket 4G computers will experience dramatic growth --- via apps, not browsers or web apps
The Big Picture4G Computers increase media consumption
• It’s a bird, its a plane, its a newspaper?
• Best yet for media consumption
• The perfect traveling companion for adults & kids
• A business & recreational reader
• A teenager & gamer’s delight
• Yes, requires yet another/expanded application
• Take it very seriously
The Big PictureAbout the iPad
Adult reaction:• “oh no, not another device”• “where’s the keyboard, where’s the mouse?”• “how can I manage another device?”• “you mean now I have buy another device?”
Kids reaction:• “way cool.....”• “Dad, I need this now....”
The Big PictureAbout the iPad
The impact of the 4G iPad on development starts
The Big PictureAbout the iPad
The Big PictureAbout the iPad - You think its big today?
The Big Picture
A Significant 4G Issue:
Accessing Content on 4G Devices
3 ways:
• Native applications
• Traditional web sites
• Mobile web sites (or WAP sites)
The Big PictureAccessing Content on 4G Devices
Native applications
✓ Programs written in native languages
✓ Superior user experience
✓ Expensive, unless compared to previous mediums
The Big PictureAccessing Content on 4G Devices
Traditional web sites
✓ Difficult to use on shirt-pocket screens
✓ An “ok” user experience
✓ Render nicely on tablets
✓ Flash doesn’t work on Apple devices - HTML5
The Big PictureAccessing Content on 4G Devices
Mobile web sites
✓ Very poor user experience compared to native apps
✓ Least common denominator versions can reach most
smartphones
✓ Given a choice, users “always” select native apps
The Big PictureAccessing Content on 4G Devices
The bottom line:
Native apps win with consumers (today)
because they deliver a superior user experience.
The Big PictureAccessing Content on 4G Devices
The Big PictureNative App Growth on 4G Devices
2009 2010 estimated 2013 estimated
29.5
6.84.2
21.6
4.52.5
Native Application Sales and Revenue Estimates
App sales, in billionsApp revenue, in $billions
Apple, Inc. is today leading technology
✓ Because they listen best to consumers
✓ Because everything they deliver is profitable, they
have enormous reserves
✓ Apple products deserve serious responses
The Big PictureThe unquestioned leader in 4G Computers
Lessons Learned
building apps for 4G Computers
Subject 2
Why have 4G native apps been so successful?
From the user’s point of view......• Ease of use, superior content experience
• Price - less than a latte• Provide instant gratification
• Fulfill basic, everyday needs• Instantly informative - keeps one “in the know”
Native Applications
Why have 4G native apps been so successful?
From the content owner point of view......
• Increasingly where the eyeballs are
• Take advantage of expanded media consumption
• An opportunity for additional ad revenue
• An opportunity to return to a subscription model
Native Applications
• 30,000+ Android apps
• 180,000+ iPhone/Touch apps
• 3,500 iPad apps
• 4 billion downloads
Native Application Stats
Downloads are a prerequisite to retention, but....
“Retention” drives revenue
Attention to downloads has been excessive(today’s equivalent of “how many hits....”)
Native Application Tips
The most important element of an app:
The User Experience
Because the user experience drives user ratings,ratings determine retention, andretention drives revenue.
Native Application Tips
Get these 3 things right
The #2 & #3 most important things about an app:
1. User experience2. Responsiveness - mobile users are impatient3. Reliability - they hate repeated crashes
All three determine retention & revenueand can enhance or damage brand value.
Native Application Tips
How much should you spend on an app?
Just enough to ASSURE.....
• A first-class user experience
• A responsive app
• A reliable app
Native Application Tips
How much should you spend on an app?
$40-$80k for most apps is a ball park range
Too expensive? Lets follow the numbers.........
Native Application Tips
Native App Economics
Assumptions: Development Cost - $60,000 Average monthly users - 100,000 Monthly hosting cost - $1,500 Page views (with ads)/month/user - 72 CPM - $10 Percent of inventory sold: 30%
Native Application Tips
Native App Economics
Per User Results: Annual revenue = $2.59 Annual hosting = ( .18) Amortization of dev cost = ( .20) Gross Profit = $2.21
Times 100,000 users = $221,000 or 369% ROI
Native Application Tips
Native App Economics
THIS IS AN INVESTMENT WITH A HUGE RETURN,
NOT AN EXPENSE TO BE MINIMIZED
i.e., PENNY-WISE IS TRULY POUND-FOOLISH
Native Application Tips
Attracting DownloadsGreat user reviews are the most important way to
generate downloads.
App store ratings are key
Native Application Tips
Native Application Tips Tips To Attract Downloads
User Rankings of 4 iPad News Applications
Other tips To Attract Downloads• Build a great app - Users cannot be fooled
• In-app requests for reviews can build ratings
• Good apps get Apple’s attention & sell iPhones, etc.
• Solicit trade press reviews
• Promote in your traditional publication
• Promote on a jumbo-tron in Times Square, etc.
Native Application Tips Tips To Attract Downloads
Native Application Tips Tips To Attract Downloads
Retaining Users & Expanding Usage
Notifications - a potent traffic driver
• Pop-over screen messages (user opt in)
• Optional sounds
• Icon badges are persistant
Native Application Tips
Tips To Retain Users & Expand Usage
• Build a great user experience (your competitor will)
• Weather
• Sports scores
• Sharing features
Native Application Tips
Users want tabular text listings of articles &
thumbnail images for everyday news scans.
But they expect video when news breaks.
Native Application Tips
Design
Average graphic designers can design screen
appearances
Device professionals should design the U/E
Assure collaboration
Native Application Tips
Typical Schedule Phases
• Design/Approval (brand vs. UE)
• Programming
• Testing (allow 2 weeks for “burn-in” testing
• Allow 2 weeks for Apple approval
Native Application Tips
Monetizing Applications with Ads
Online ad inventory is infinite.CPMs will continue to drop.
Google captures 67¢ of every online ad $Don’t depend on ad revenue.
Did the game change yesterday?
Native Application Tips
Monetizing Applications with Subscriptions
Subscription revenue is a must.
iPad apps will blaze the trail.
Web sites too must be paid (iPad).
Native Application Tips
Monetizing Applications
using A “freemium” Approach
• Free content builds traffic base & promotes the paid version
• Watch & experiment
Native Application Tips
Monetizing Applications
Whatever approach you adopt, distance
yourself from the web business model.
Native Application Tips
• Retention rate s/b 40-50%
• Sessions per day - 1.5 to 2 (45-60/month)
• Minutes per session - 3 (text) to (video)
• 135 to 720 min/month (web = 51 min/mo.)
• Android : iPhone Ratio - 4:1, but changing
Native Application Expectations
• News will increasingly be consumed on screens
• News media must transition to paid access
• 24/7 coverage & video now essentials
• User experience determines winners & losers
• Media companies must invest heavily in screen technology as they still do in print equipment
Summation