This is part 2 of a 2 part series on iPhone app marketing. The first post was on the creative side of iPhone app marketing.
In this post we’ll look at the analytical side. You’ll need to not only start with a dream, but a spreadsheet!
Note: some of the tables below are very basic. These are just to get you thinking. Your projections will likely be much more complex.
iPhone App Marketing – Analytical Skills You’ll Need
- Start with a Dream (and a Spreadsheet)
- How you’ll make money
- Where you’ll spend money
- What you’ll track
Start with a Dream (and a Spreadsheet)
It’s just as important to be analytical as it is creative when creating iPhone apps. You’ll need to build projections to know whether you’ve got a hobby or a real business on your hands.
Here are some questions you need to analyze:
- How much will it really cost me* to create my app?
- How much will a customer really be worth to me?
- How much will it cost me to get new app downloads?
*I’m not sure if it’s for lack of planning but I talk to and hear about many developers who spend all their money on building their app with no money to market it. This is a sad place to be in. I’m convinced if you want to be an app development company you’ll need $5k-$50k per month to market your apps. If this is more of a hobby you can rely on more gorilla (free app marketing) tactics.
Notes – according to W3i, it costs anywhere from $30,000-$300,000 to develop an app
How’ll You’ll Make Money
It is essential that you:
- Investigate the different ways your app will generate revenue
- Create low/medium/high estimates for these revenue sources
- You evaluate the tradeoffs numerically
What are the different ways you can generate revenue?
- In app advertising
- Free apps with upgrades to paid
- Free apps with in app purchases
- Virtual currency
First I’m a big believer in free apps (not having just a paid app).
I’ve seen many developers get deep into development with a paid app, not realizing how hard it would be to promote that app. I’d encourage you to search for developers that share about what they are learning.
Where You’ll Spend Money
Before getting started you’ll need a budget. If you’re getting a quote for development leave extra budget. You don’t want to spend 30% over on development, just to realize that you’ve got no money to market your app.
I encourage you to analyze every marketing dollar you plan to spend and don’t spend much if you can’t analyze it. For example, because I can track cost per download with Admob, I usually test there. Because I can’t track cost per download with Facebook ads, I never test Facebook ads.
What You’ll Track
If this is going to be more than a hobby you’ll want to track and analyze metrics at a minimum monthly.
Here is a REALLY simple chart of what you might track and the questions you might ask yourself.
Questions you might ask & take action from:
1) Is revenue trending up or down and why?
2) Is cost/download trending up or down and why?
3) What can I do to increase my revenue?
4) What can I do to decrease my cost/download?
Don’t be offended if this is too simple…it’s just food for thought. Track what’s important to moving your business forward.
During all phases of app marketing (from conception to launch and so on), knowing your numbers and making decisions by them is essential.