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BREAKING NEWS & VIEWS

Apps Are the Next Publishing Platform
Tuesday, December 29, 2009

Publishers have already embraced the social and mobile applications platform as the next place to extend their brands, but we are only at the beginning of a significant disruption in the way media are published and distributed. According to a new Quattro Wireless study that included over 100 publishers, 63% of content providers have developed an app.

Among publishers, the iPhone is proving to be more attractive even than Facebook. Among those media brands that have developed an app, 87% deployed on the iPhone and only 48% had an app for Facebook. Blackberry (44%) and Android (39%) were lower on the content priority list. A relatively large 28% of publishers have developed apps for their own online communities. The former darling of publishers, MySpace has fallen almost entirely off of developers’ radar, with only 7% of publishers creating discrete apps for that social network.

Quattro finds that publishers have different goals in mind for social vs. mobile apps. With social apps, media look for sharing potential and viral distribution power as well as better audience targeting. About a third of publishers (34%) expect to see an expansion of 100,000 to 500,000 in their brand reach from social apps, with 29% expecting 50,000 to 100,000. About a fifth (20%) are looking for more than 1 million in new audience members from their social deployments.

On the mobile side, publishers expect brand persistence and clickthroughs. Clearly, media are looking for mobile to monetize, with 52% of those with phone-based apps using ad support and 39% combining ads with direct-to-user fees. Only 25% are using mobile primarily to drive Web site traffic or extend their visibility. Currently, 21% of publishers are relying on user fees only to support a mobile app. But publishers also report that mobile revenue is in its very earliest stages. More than half of respondents (52%) say they get less than 1% of their revenues from mobile ads or sponsorships. Twenty-three percent of publishers say they get between 1% and 5% of revenues from mobile.

The actual contours of the digital apps environment remain unclear as we head into 2010 because many of the relevant devices that will carry apps into the future have not been deployed. While the smart phone and Facebook worlds are important environments for testing content and revenue models, many publishers await larger, lusher canvasses such as the long-rumored Apple tablet pc and other e-reader devices with touch and color screens. As large screen HDTVs roll out with Internet connectivity built-in, the living room screen could become another home to branded apps. Often overlooked, the enormous installed base of Xbox, Playstation 3 and Wii game consoles also represent a promising technology and audience base on which apps could flourish.

If you have breaking news to share please contact Steve Smith at ssmith@accessintel.com

COMMENTS
1.
Couldn't agree with you more, Steve...

http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=119426#comments
Posted by Diane Mermigas on Tuesday, December 29, 2009 @ 02:44 PM
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