IPhone App Doesn't Deliver For Papa John's

Jordan Berman of AT&T MobileClients clamoring for their own iPhone app is a phenomenon that digital agencies have become familiar with in recent months. With apps downloaded from Apple's App Store hitting 1 billion downloads last week, it's not hard to see why.

But not all marketers are necessarily impressed once they hit the App Store shelf. Jim McDonnell, marketing manager, emerging channels for Papa John's International, sounded a rare cautionary note about iPhone apps during a panel on the topic Wednesday at the OMMA Mobile conference.

McDonnell explained that the national pizza chain had decided to launch an iPhone app last year after being bombarded by mobile companies about taking the step to boost business and after seeing so many other companies introduce apps. The Papa John's app allows users to find local outlets and a shortcut to connect directly to the main mobile site ordering screen.

The results haven't blown him away. "So far, we haven't seen anything that really delivers for us as well as mobile display advertising," he said. He pointed out that smartphones, and the iPhone in particular, have been big factors in driving its mobile business. Smartphones account for nearly all traffic to its mobile site, and the iPhone alone about half.

"My motto is that people who spend money (to buy) smartphones are the people who are spending on phones," he said. But the lack of business being driven from its iPhone app has diminished the company's enthusiasm for launching apps in other app storefronts being opened by Apple competitors including BlackBerry, Palm, Microsoft and others.

"We haven't seen numbers that really made us think we need to be everywhere else yet," he said. McDonnell's skeptical take contrasted with the mostly boosterish views that typically surround any marketing discussion of iPhone apps.

Jordan Berman, who leads advanced ad solutions for AT&T, said that the company's Yellow Pages iPhone app has been downloaded 750,000 times. As the exclusive service provider for the iPhone, AT&T benefits indirectly from the success of the App Store. But it also casts a large shadow over the operator's own mobile storefront, the AT&T MEdia Mall, and similar e-commerce efforts by other carriers.

One of the built-in advantages Apple had with the App Store was the established success of iTunes in selling music and other downloadable content. Unlike in mobile carrier stores, users can make payments easily via credit card.

"This was an existing ecosystem that had overtaken Wal-Mart in selling music," noted Jonathan Zweig, CEO of Jirbo, which has created almost 50 gaming apps for the iPhone and iPod touch including "ESPN Cameraman" and "Paper Football." As one of the first app developers for the iPhone, Jirbo was able to get a jump on the competition.

With more than 35,000 iPhone apps now available, however, it's far more difficult for any one entry to get noticed. "Now you have to use display media to push traffic to your app because they're not easily searchable beyond the top 25," explained Phuc Truong, managing director, U.S. mobile marketing, at Mobext, the mobile arm of Havas' Media Contacts unit.

A recent study by Web measurement firm Compete found that most iPhone and all smartphone users found apps by browsing on their own. But marketers and agencies don't seem content to rely on serendipity or word-of-mouth to promote their wares.

Another key unpaid way to propel downloads is for an app to appear in one of the three promotional slots across the top of the App Store home page. The three spots rotate, so six new apps are showcased each week, according to Zweig. "But you can't buy that home page feature," he said. "Either they like you or they don't."

10 comments about "IPhone App Doesn't Deliver For Papa John's".
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  1. Akhil Karanam from NowOn Technologies Pvt Ltd, April 30, 2009 at 3:46 a.m.

    I believe that app should not be seen as a medium of revenue for established brands, initially. Its a medium to get connected, connected to as many people as you can. And as stated, people with smartphone and iphone who spend are not using Papa John is absurd. People who spend and are active look for healthy food. I believe Papa John has to first identify its customers and devices they use.

  2. Arve Peder Øverland from ID.mngmnt, April 30, 2009 at 7:50 a.m.

    This article and Berman's comments are meaningless without a review of the app itself. It's not about presence, but usability and function.

  3. Jim Dugan from PipPops LLC, April 30, 2009 at 8:23 a.m.

    I know it sounds trivial, but it makes a huge difference. Wash, rinse, repeat.

    To keep up with mobile marketing and, more specifically, mobile advertising, check the one and only local/global mobile site www.GripOffs.mobi with search capabilities AND allowing the businesses choosing to advertise the ability to post and edit instantly, receive real-time instant data and control their own ad campaigns including barcoded e-coupons for point of purchase at that business for instant savings for any of us using our mobile devices to show the e-coupons.

    There's no better ability for an advertiser, whether Taco Bell, Starbucks, Papa Johns (in this article), 1800flowers or all others. They advertise everywhere. Why? They want more business. Does it always work? No. As pointed out in this article.

    Does Mobile Advertising Work? YES~

    Listen, since we're talking about the iPhone app not delivering for Papa Johns, let me give y'all a perspective.

    Didn't I read somewhere that the iPhone apps take 30% of your revenue? Maybe I'm wrong, but, if not, I'll pass. Don't need you.

    People want to be able to search on their mobile devices. They would prefer to not only be able to search on their mobile devices, they want instant search capabilities and any deals that may be being offered - that's why 70% of searches on search engines (gagoogle, yayahoo) are for retail - people want to "retail". They really do want to shop. Search engines give you the location, the phone number, and OK, we got it. We're search addicts.

    So, getting back to the point of the article and reality, once the "retailers" really get mobile, even large companies like Papa Johns, they'll be right in the palm of our hands.

    Even quarterbacks have to look at their wrists most of the times for the next play unless their getting it in their ear with a microphone.

    Each play is allowed to occur in real-time, wherever the game is being played.

    Mobile marketing is here. Mobile advertising on one site that has all of the local deals no matter where you are is here. Our patent pending system is designed to not only search for your wants and your needs, but search and find your wants and needs and any associated instant deals.

    That's new - it's instant - it's what I want.

    IT isn't that hard!

    There's no paper trail, so it's better yet. We all have our phones and being able to show a barcoded e-coupon for a two for one at a local restaurant or for an upgrade at the car rental is something that I will always use.

  4. Brook Lenox, April 30, 2009 at 9:03 a.m.

    Completely agree with Arve's comments about usability and function. We've launched two apps. Pinger Phone was well liked, but did lack in usability. It just did o.k. We learned from it and launched Textfree which I (with bias) believe is a great app and soared to rank in the top 10 and now has over 1M downloads in less than 2 months.

  5. Matthew Nelson from Cox Enterprises, April 30, 2009 at 9:15 a.m.

    Agree with Akhil - the iphone users i know (yes, sample of 1) are not exactly papa john's targets. it all starts with knowing your target and i think this is yet another case of running with the herd. Have they even done an estimate of what % of iphone users might be papa john's consumers?

  6. Ryan Carney from Ball State University Center for Media Design, April 30, 2009 at 11:07 a.m.

    Why does this guy think that you can just create an app and business will shoot through the roof? Make an app that's entertaining and gives people a reason to play with it. Being able to find the local Papa John's is something I can do with a Google search; I don't need an iPhone app for that. A Papa John's iPhone app should let me create my own virtual pizza and then let me order the pizza I just created... or something to that effect.

    Make an app that's worth playing with and people will play with it, then you'll get the precious branding.

  7. Jonathan McEwan from MediaPost, April 30, 2009 at 11:38 a.m.

    It did what? Find a local store and then order from it? How does that serve the customer exactly? Doesn't Papa Johns know that all I have to do is pull up the Google Map, hit GPS to find where I am, type in Papa Johns in the search pane and then tap on the red pin closest to me. That will give me all their info with one tap I can call them, or summon up their Web site... Why clutter up my valuable iPhone pages with a meaningless app that does nothing particularly special. The caveat here is doing something for the sake of doing something. Come up with a clever app with a game or a gimmick and tie it to Papa Johns with the additional function of sending people to the order page. Now we're talking.

  8. Irene L from NA, April 30, 2009 at 5:21 p.m.

    I have an iPhone and I have at least a dozen or so apps. Let me see - do I want an app where I can find anything at all, do my banking on the run, play a game or connect with friends, co-workers and family? Or one where I can find the location of one pizza chain and order a pizza? The answer seems obvious.

  9. Robert Walch from Wizzard Media, May 1, 2009 at 7:03 p.m.

    https://mobile.papajohns.com/(S(ues44i45x4gds245rkovqc45))/iPhone/index.aspx
    This is the iPhone "app" that Papa John's is talking about - Only problem is it is a web App and that is a lot different than a Real iPhone App which is installed on your computer. Really all the link above is - is a web page optimized for the iPhone. If they don't know the difference no wonder it does not work for them.

    Rob W
    Host - Today in iPhone
    http://www.todayiniphone.com

  10. Pamela Tournier from Focus: Productivity, Inc., May 4, 2009 at 12:17 p.m.

    iPhones are about 1% of all devices out there, smartphones about 9%. 30,000+ apps vying for attention from 1% of the market. Talk about clutter!

    The Papa John's app was created without customer insight, with limited functionality and zero entertainment value (goes back to customer insight). Why WOULD it be successful?

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