The Business of IPhone and IPad App Deve - Wooldridge_ Dave.pdf

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Developer Success in the
iTunes App Store
The Business of iPhone and
iPad App Development
Making and Marketing Apps that Succeed
SECOND EDITION
Dave Wooldridge with Michael Schneider
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For your convenience Apress has placed some of the front
matter material after the index. Please use the Bookmarks
and Contents at a Glance links to access them.
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Contents at a Glance
Contents .............................................................................................................. v
About the Authors............................................................................................. xii
About the Technical Reviewer ......................................................................... xiii
Acknowledgments ............................................................................................ xiv
Preface .............................................................................................................. xv
Chapter 1: Seeing the Big Picture in a Crowded App Store Marketplace........ 1
Chapter 2: Doing Your Homework: Analyzing iOS App Ideas
and Performing Competitive Research ........................................ 13
Chapter 3: Protecting Your Intellectual Property .......................................... 37
Chapter 4: Your iOS App Is Your Most Powerful Marketing Tool .................. 61
Chapter 5: Social Inception: Promoting Your Apps Within Apps ................... 97
Chapter 6: Money for Nothing: When It Pays to Be Free ............................. 129
Chapter 7: Monetizing Free Apps with iAd and
Other In-App Advertising Opportunities .................................... 159
Chapter 8: Exploring the Freemium Model with In-App Purchase .............. 207
Chapter 9: Testing and Usability: Putting Your Best Foot Forward ............. 253
Chapter 10: Get the Party Started! Creating a Prerelease Buzz .................. 289
Chapter 11: Keys to the Kingdom: The App Store Submission Process ...... 353
Chapter 12: Increasing Awareness for Your iOS App .................................. 399
Appendix: Online Resources for App Research and Marketing ................... 431
Index ............................................................................................................... 437
iii
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1
1
Chapter
Seeing the Big Picture in
a Crowded App Store
Marketplace
Living in Los Angeles, there’s no shortage of Hollywood clichés. There was a time when it
seemed like everyone I met—no matter their profession—was working on a screenplay.
Now they’re all working on their own iOS apps!
And who can blame them? It’s a testament to the soaring popularity of the iPhone, iPod
touch, and iPad. There’s money to be made in the App Store, and everyone wants in on
the action.
We’ve all read about the success story of indie developer Steve Demeter. His Trism
game, along with many of the 500 other apps that were included in the initial July 2008
launch of the App Store, experienced an overwhelming explosion in sales. With some
price tags as low as 99 cents, iPhone and iPod touch owners were impulsively
downloading these inexpensive apps at a feverish pace. In the months that followed,
several of the most popular apps were already netting their creators hundreds of
thousands of dollars, allowing programmers like Steve Demeter to quit his day job to
focus full time on this lucrative opportunity.
The media quickly proclaimed the seemingly overnight sensation of the App Store as a
“gold rush” for developers. With the lure of potential riches, inspired entrepreneurs from
all over the world have downloaded the iOS SDK, racing to learn Objective-C and Cocoa
Touch in the hopes of cashing in on this software phenomenon.
Fast-forward two years to July 2010. Apple has since introduced the iOS-powered iPad,
selling more than 3 million in only the first 80 days. Combine that with the massive army
of iPhone and iPod touch users for a staggering total of more than 120 million iOS
devices sold and 7 billion app downloads from the App Store. You would think that with
1
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2
CHAPTER 1: Seeing the Big Picture in a Crowded App Store Marketplace
stats like that, it would be easier than ever to make money in the App Store, right? Think
again....
Why a Business Book for iOS Developers?
With more than 300,000 applications in the App Store and developer interest continuing
to grow at a stunning rate, industry analysts predict that number will likely double before
the end of 2012.
Think about that for a moment. When browsing through the App Store, how many new
apps do you stumble upon weekly or even monthly? 25? 50? According to Apple,
approximately 15,000 new apps and updates are submitted each week to its app
review team!
In such a crowded marketplace, it’s becoming increasingly difficult for new apps to get
noticed. Without the necessary exposure, your app may simply get lost in the endless
stream of new software that floods the App Store on a daily basis. Gone are the days
when you could quickly cobble together a simple app, throw it into the App Store, and
then sit back and wait for the large royalty checks to roll in.
The media hype machine is so good at celebrating the underdog stories of a few indie
developers who found instant wealth in the App Store that newcomers often assume
that if they build an app, the sales will come. When the anticipated avalanche of profit
turns out to be nothing more than a trickle, surprised developers quickly discover that a
Field of Dreams philosophy is no longer enough in this highly competitive market.
“Ah, but what if I’ve just created the next killer app?” you ask. “Surely Apple will want to
showcase it as a featured app in the App Store.”
Having a great product is certainly the underlying key in this equation, but it won’t be
enough. It’s true that being listed as a “Featured App,” “New and Noteworthy,” or a
“Staff Favorite” can instantly propel your sales into the stratosphere, but unfortunately,
those high-profile spotlights are not purchasable advertising spaces. Apple chooses
only a select few apps every month for those coveted spots. With thousands of new
apps vying for attention every week, your chances of getting that life-altering call from
Apple are pretty slim. In fact, you may have better odds of winning the lottery.
But don’t despair. Your killer app can certainly make a lot of money without being
featured by Apple. Like anything else in life, finding success in the current App Store
environment will require some hard work and planning, but who says the journey can’t
be fun along the way?
Tackling the New World of Mobile Marketing
If you have the benefit of working for a large software company with deep pockets, it
probably has a dedicated department to handle all of the marketing for the products you
create. But if you’re an independent developer who is responsible for managing every
aspect of your own business, then you’re all too familiar with the haunting questions that
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