• by Mark Walsh  @markfwal, April 6, 2009

With the iPhone sparking a new wave of enthusiasm for mobile marketing, launching a branded iPhone application seems to have become the latest de riguer item in the digital arsenal. But just because brands can create an iPhone app, should they? To answer that and other questions, Online Media Daily spoke with Neil Strother, a mobile analyst with Forrester Researcher, about an upcoming report looking at whether consumer brands should consider their own apps and how they should approach the format.

Should all consumer marketers be considering a branded iPhone app?

It's not for every brand. They should take a long look it and not just do it because of the hype. When you actually look at the number of major brands developing an iPhone app, it's not that overwhelming. Smart brands are asking if it really fits their needs. The approach has to be to know your customers and figure that out ahead of time. A portion of Bank of America customers, for example, were already doing mobile banking on the iPhone, so BofA said: 'Here's a platform we know some of our customers are already on' and they got on board at start of (Apple's) App Store.

Kraft's iFood app has drawn a lot of attention as a model for successful iPhone apps. What's the recipe, as it were, for a successful app?

From Kraft's standpoint, the iFood app was really well-thought-out and the audience was a large enough target that the app made sense. They said we have the videos, the recipes and for them it was a way to become a mobile utility. Betty Crocker has something similar. I'm not saying every consumer packaged goods company should jump in, but the point is that for some brands a smaller (audience) footprint is okay because it brings new a level of interactivity around a brand or awareness about products. This is much different than if Kraft had bought a TV sponsorship on "American Idol" or done something online.

Is utility a key ingredient for any branded app?

Another approach is to create an app for people to enjoy and have fun. Zippo's virtual lighter app has gotten something like 2 million downloads and generated a lot of buzz. The goal wasn't so much to make money, but more about branding. Coke's spin-the-bottle and Magic Coke Bottle apps are lighthearted and whimsical. So it can be that a brand is trying to connect on a more emotional or fun level. But an app doesn't have to fall into just two buckets: utility or fun. Nike has an app called Nike Goal for the iPhone in Italy that shows goal highlights and (Series A) scores and standings, so it's both a utility and fun.

How do brands measure success with iPhone apps?

Downloads are definitely the key initial metric. Beyond that it's trying to figure out deeper insights into actual usage. Some of the metrics on this are still emerging, so it's not really easy to tell. Between the blogosphere and Twitter, you can get a pretty good idea early if people are having any trouble or can't download an app easily. Hard data is more difficult to come by, but companies such as Flurry, Mobiclix and Pinch Media are developing analytics around the App Store.

You might be able to gain insights through customer surveys and listening about how people use applications.

How much does it cost to develop an iPhone app?

In terms of what a big brand might spend across media, it can be affordable, at least the initial app development costs. $20,000 or $25,000 for Coca-Cola on worldwide scale is not trivial money, but it's not a $10 million campaign around a new Coke bottle cap. If you have an app that's relatively well-received, you can continue to improve it to meet the needs of customers and brand objectives. It just adds another layer of effort.

With more than 25,000 apps offered in the App Store now, how do new ones get noticed?

Brands might want to promote an app on their Web site or in a TV placement or in print or through the blogosphere -- you can promote in a number of different ways. As a brand you can't have total control over that, but can do some successful things to get recognized. But you also have to have reasonable expectations. If you're customer base is only partially on the iPhone -- let's say 2% of your audience is on the iPhone -- than your expectations should be on same order. If you've been traditionally associated with mobile products, than your chances of gaining traction will go up quite a bit, while a bank or packaged goods company numbers are going to be lower.

With rival storefronts rolling out for BlackBerry, Windows Mobile, Android-based and other devices, should marketers look beyond just the iPhone in developing apps?

Our advice is to stick with iPhone, but definitely keep your eyes on the other ones. If you don't have an iPhone app and you're considering it, you might say, 'our audience leans more toward Microsoft so we'll build one for the Windows Mobile platform.' Or a company might say, 'we know a lot of our users are on the BlackBerry, so let's go with BlackBerry app because we know we'll get a good uptake there.' The Ovi store from Nokia is another. As a brand, you need to think of it in the larger sense. It's not about making a laundry list of app stores, but understanding who your customers are and what devices they're on today, or reaching an audience you want to expand further into.