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The Minsiders

Alex Baxter

Frank Cutitta

Paul DeBraccio

Judy Franks

Dave Hendricks

Marko Hurst

Jay Lauf

Daniel Lagani

Karen Macumber

Diane Salvatore

Ken Sonenclar

Domenic Venuto

Marta Wohrle

Matthew Yorke

PAUL DEBRACCIO

Are Apps the New Main Course?

As little as a few years ago, after the dawn of the iPhone, apps were an interesting new addition to the digital landscape. Marketers found them interesting, but overall the big money was funneled into online, video and some mobile.

There was a joke making the rounds of the online ad agencies that mobile was once again going to be the next big thing. It seemed to be a mirage off in the distance.

It looks like we have finally edged close to that mirage and, thanks to competition, the iPhone is not alone in that very real-looking oasis. The Droid has exploded, as has the boring old BlackBerry, which has thousands of apps in its store. Faster speeds and functional touch screens seem to be the leading reasons for this upswing—and it appears to be a permanent upswing.

The results of a survey by Nielsen reveal that phone users are downloading more than one or two apps per month. This is significant when one considers that the average user has downloaded, in total, 40 iPhone apps, 25 Droid apps or 14 BlackBerry apps (depending on the device they use).

Marketers have gotten the message, too, and the number of commercial apps has exploded much like Internet ads did in the late ’90s and early 21st century. If a marketer does not have an app, they are viewed as old and stodgy. The entertainment industry led the way, but now every major marketer is building their own app or sponsoring those created by third parties.

Vogue created an app called Vogue Stylist in which shoppers can customize their look by taking photos of the items they own and scroll through the various trends highlighted, then hit refresh to restyle their look. Application users can buy products within Vogue Stylist from brands such as Gucci, Hudson Jeans, Kate Spade, Longchamp Paris, Nine West, Valentino and Via Spiga. This app both extends the brand and increases value to their advertisers.

Of course, games and news lead the way, with those functions topping the list of app categories used by consumers.

Fafarazzi seems to have jumped on the reality TV train with fun games that increase time spent on Web sites and iPhones. It provides fantasy sports-type games for reality TV shows. For instance, you can pick your teams from characters on Jersey Shore. When you watch the show you get points each time your character does something like Fist Pump or Puke—you get the picture. Players compete with each other for points, and they can also create groups for playing.

Fafarazzi has created these games for Bravo and others as it helps the sites increase time spent and attract more advertisers. Christian Acosta, VP, business development, at Fafarazzi said, “Successful apps become a daily tool for a user; it is one of the most effective and direct ways to stay with your audience, particularly if the app is a well-integrated part of a marketing and promotions communications program within Twitter and Facebook.”

Location-based apps, meanwhile, have put specific areas and destinations on the map, so to speak. If you have not heard of Foursquare, Gowalla and the rest you are lost in the woods, since your clients have probably used these apps by now. Local advertisers are flocking toward them, and national advertisers find them to be a great direction to head in for everything from store locations to time of day promotions.

In addition, UPC code readers and mobile coupons are changing the way people shop, and they are great POP type opportunities for advertisers and publishers.

The list is growing so fast that some of the apps discussed here may be obsolete before I finish writing. Excuse me, but I have to run—I was just notified via an app that my friends are meeting at Eataly for lunch!

Minsider Paul DeBraccio is CEO of Interevco and former head of sales for GeoCities and Tripod. Paul has also been a media planner and magazine executive at Omni, Hachette, Wenner Media and Condé Nast.

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