Starbucks Sends Thanksgiving Wishes via Facebook; We can "Like" via SMS

I subscribe to Starbucks' Facebook Page updates via SMS because I like to stay current with Facebook's most current brand marketer. With 5.1m Facebook fans, they tend to innovate... and also get seem to trial new Facebook features before others have access. Today, Starbucks sent Thanksgiving wishes to their fans and I noticed a seemingly new feature: the ability to "like" updates via SMS (in updates sent over the last two weeks, only "reply" function was available).

It is a natural product extension and a demonstration (as if one was needed) that brands want more tools to drive engagement and Facebook is working to enable it. It also demonstrates that the "like" function is becoming a more important part of the Facebook ecosystem - for pages, users and the feed.

First Batch of Free iPhone Apps Show Up in Top Grossing

Before Apple enabled in-application purchases, the hot debate was whether or not revenue maximization came from charging for downloads (and limiting distribution) or through in-app advertisements (and hoping for continued engagement). For game and music applications in particular, there is another option that seems to be finding success: free applications that have in-app micro-payments (either to improve / advance your character, access unique levels / tracks, etc). While it is clear that this has been successful in larger environments (ie Zynga and Facebook), it is the first time that I have noticed the model breaking into Apple's "Top Grossing Apps" category... which is usually reserved for applications that cost $0.99 - $9.99.

The two applications are Papaya Pro 3.0 (#21) and Ngmoco's Eliminate Pro (#28). The purchases are coming from in-game improvements - papayas or power cell packs - which are used for advancing inside the game. Imagine a separate scenario: the popular T-Pain application becomes free (currently $2.99) and most/all tracks are $0.99. As other apps find success like Papaya and Eliminate Pro, I suspect that more game and music applications will test the power of free distribution - after all, popularity and mass adoption is a great motivator to pay to improve your status / ranking / reputation (read more here).

Apple's Latest iPhone Advertisement: All About Big Brands

In March, I wrote about Apple's full page advertisement in the New York Times touting the iPhone as a weekend tool: "Getting the most out of your weekend, one app at a time."

In yesterday's New York Times, they ran a continuation of the ongoing campaign - but with a slight twist: promote the branded apps (I wrote a post this week about seven of the best branded iPhone apps):

"It's pretty amazing who's on the iPhone these days. From CNN to Nike, Starbucks to FedEx, there are over 100,000 apps for just about anything. Only on the iPhone and the nation's fastest 3G network." It is a poor photo, but you can see that each of the applications comes from a very recognizable name: Nike, Starbucks, eBay, CNN, Gap, ESPN, Facebook, Target, Bank of America, Whole Foods, CNN, USA Today, Avis, eTrade, Pizza Hut and Barnes & Nobles.

Also of note, other than CNN's $1.99 app, all of these applications are free. In many of Apple's advertisements - and certainly in their app recommendations - they tend to promote paid applications... but here, the brand names are intended to sell hardware and reputation rather than micro-purchases.

2010: The Year of Android?

Just a couple weeks ago, I wrote that an article named "Android is About to Explode" - citing recent growth rates (up 17% from 13% in a single month, according to AdMob) and the forthcoming line of Droid devices.

This continues to be a hot topic and I participate in related conversations almost daily: - Will Android match iPhone's marketshare by end of 2010? - If you were starting today, would you begin developing on Android or iPhone first? - Is there a greater advantage to being one of the first developers on Android or being within Apple's massive distribution store?

Today, TechCrunch has run a similar article written by Kevin Nakao, the VP of Mobile for Whitepages: "2010: The Year Android Will Shake Its Money Maker".

It lists a variety of reasons that Android can (and will) succeed this year... Most importantly is that Android itself is a carrier and hardware agnostic platform - whereas the iPhone, as great as it is, is a single device on a single network. Big difference. And one that enables Android to compete - and even win - without having the best device.

T-Mobile Got It Started Right, Verizon Will Unleash the Beast

T-Mobile launched the first Android phone in the U.S., and embraced the open platform. Any other U.S. carrier might have been tempted to meddle, but T-Mobile proved that an open platform would not be riddled with malware and abuse. With Verizon now going big on Android, we will start to see significant uptake. Verizon has 89 million customers with an average Data Revenue Per User of $15.69 to T-Mobile’s 33.5 million customers and $10 in Data Revenue Per User. Sprint has the highest data revenue per user of $19 and 48.3 million customers. In short, Verizon and Sprint will attract many more customers willing to spend more money on Android applications.

... After a week in New York City, I can say that, were I NY resident, I would turn my iPhone in for a Droid device on Verizon instantly. I would easily sacrifice some hardware and software quality for network quality (which was unbearable). That said, things work perfectly fine in San Francisco!

7 Great iPhone Apps from Big Brands: From Paint to Coffee to Sneakers

I spend a lot of time using mobile applications - in part to experience what is going on and in part to experience how brands and top players are thinking about mobile. There are plenty of unexciting and uninspired examples, but here are a few great ones. I am highlighting each for a different reason:

Sherwin Williams: Color Snap

A paint company going mobile... and making it fun and useful? I wouldn't have guessed - but this application is simple and provides clear, immediate utility. Whereas most applications struggle to be more than their .com experience on a mobile screen - Sherwin Williams allows you to snap a photo, select the interior / exterior to be painted, and receive a matching color palette. Like other commercial applications, it also includes a store locator which is location-aware.

Gucci

Gucci is brand that oozes exclusivity and style... and the application embodies that terrificly. From the photos to the user interface - everything is beautifully done, highly visual and quite innovative: rather than the standard three or four button footer, navigation is controlled through horizontal swipes.

The application also features exclusive products, deals and content - in effect, this is how Gucci attempts to provide utility to the end-user. For instance, the below pair of shoes are an iPhone exclusive style. Additionally, Gucci provides an interactive store locator.

Showtime: TV at its Best

More digital media than e-commerce, but Showtime's application is good looking, useful (has scheduling and reminders) and unique (exclusive content about their top shows and episodes):

Walmart

Another innovation from a big brand. The application lets you take a photo of your wall or available space and Walmart determines how large of a television you can accommodate. Walmart of course then suggests the best televisions to fit in that space. Clever, useful and unique:

Starbucks

Easily the brand application that I use most frequently: Starbucks "Mobile Card" app allows you to pay via your iPhone, manage your account balance, find the nearest store, etc. Starbucks also has a more social and informational application called "Starbucks" which allows users to find stores, create custom concoctions, access nutritional information and – most importantly – share the experience with friends (your favorite drinks, location, Starbucks meeting times, etc). The UI is terrific and consistent with the Starbucks brand and environment.

Starbucks Mobile Card

Starbucks App

Nike ID

I love Nike ID and have ordered a couple custom sneakers in the past... my major critique when it first launched, however, was that it was not social. You could share your creations by email - but when creating unique shoes, collecting feedback is as fun / important as sharing the finished product.

Nike solves that with the Nike ID app - sharing is inherently easier and you can view public creations (which can be starting points for your own shoe style).

Furthermore, there is something more natural and enjoyable about being able to design through finger swipes, color palettes, etc:

Amazon

Any surprise that Amazon's application is simple to use, innovative (take photos of products and they email matching suggestions) and highly useful (I have bought food, books and music directly through the app). Furthermore, it is the ultimate price checker - before checking out at Best Buy, run a product search on Amazon and you'll realize that you're probably overpaying (by a lot!).

Welcome Droid (and the Ensuing Marketing Blitz)

Droid officially launched today and, as I wrote last night, I expect Droid (and the forthcoming hardware line) to significantly increase Android's market share - and subsequently the developer attention it warrants and receives. Meanwhile, I also expect the Droid marketing blitz to to ramp aggressively. Below are a few screenshots of large, flash-based ad units across VentureBeat, Alley Insider and Verizon.com (a text ad even exists on Google's homepage).

The messaging across the campaign and its various states are: - Droid is Dropping - Droid has Arrived - And my favorite, Compromise Officially Deactivated

Android is About to Explode: 17% of Smartphone Traffic, Droid Launching

On the eve of Droid's much anticipated launch on the Verizon network, Android is poised to take off and grab challenge the Apple's recent dominance. Even with Droid's launch, Android saw significant market growth in September - representing 17% of smartphone activity vs. 13% in August. According to AdMob's September 2009 Mobile Report:

Devices running on Android accounted for 17% of smartphone traffic in the US in September 2009, up from 13% in August 2009. The HTC Dream (G1) was the number three device and the HTC Magic was the number 10 device in September 2009 in the US. As with the iPhone OS, much of the Android traffic in AdMob’s network came from applications.

The iPhone still represents 48% of smartphone activity, but Android has moved ahead of RIM (14%). And the future for Android is bright considering:

- Droid's rave reviews - Droid's multi-handset product line and low prices - Android's carrier agnostic approach (while Apple is currently tied exclusively to AT&T)

Also noteworthy, the iPhone now represents a staggering 60+% of AT&T's smartphone activity. If Droid, for instance, reached even a fraction of that dominance on Verizon (which is dominated by RIM AT ~35%), Android will realize serious growth.

iTunes Now Displays Top In App Purchases: Rock Band App Example

Last week, Apple announced In App Purchasing for free applications to Sell content, subscriptions and digital services.

Now, if you browse iTune's Top Grossing applications, you will notice that they also display the most popular In App Purchases. The example below is from Electronic Art's Rock Band, the highest grossing app on iTunes. The game itself is relatively new (notice just ~200 user reviews) and costs $9.99 per download. Just below the purchase button though is a banner to view "Top In App Purchases" - which displays the highest grossing $0.99 Rock Band tracks.

While this is a small example (Rock Band itself is new enough that the purchasing habits / offerings are light), but it is clear that Apple is trying to promote the same behaviors that are becoming so popular - and profitable - on Facebook: in-app / in-game micro transactions.

Apple: Now Use In App Purchase in Free Apps to Sell Content, Subscriptions, Digital Services

Major announcement from Apple today that has made application developers (like the one below) very excited: free applications can now be directly monetized through "In App Purchasing" - which is a key component to what is driving the success in the booming online-gaming space. Now developers have choices beyond the current options: premium applications and/or in-app advertising (standard units, sponsorship, interstitials):

"In App Purchase is being rapidly adopted by developers in their paid apps. Now you can use In App Purchase in your free apps to sell content, subscriptions, and digital services. You can also simplify your development by creating a single version of your app that uses In App Purchase to unlock additional functionality, eliminating the need to create Lite versions of your app. Using In App Purchase in your app can also help combat some of the problems of software piracy by allowing you to verify In App Purchases."