5 Minutes With…
Even as major players like YouTube, Twitter, Facebook continue to scoop up mega user-base apps, understanding their value remains a point of debate. Cynopsis sat down with Carnival Mobile CEO Guy Horrocks, who leads the company that has powered successful apps for OREO, CNN/Time, DreamWorks Animation, Coca-Cola, to find out more.
Q: If research is repeatedly showing that mobile is where more eyeballs are moving, why do so many apps fail?
A: This is both one of the largest problems and opportunities for brands. Too many brands are still treating mobile apps like a billboard, generally with no ongoing long-term plan or value to the user. The brands that are treating their apps as valuable marketing channels, and making a direct relationship with their customers are winning (think OREO, Starbucks and Nike+).
Q: Many predict that paid apps will become obsolete in the next couple of years – what are your thoughts?
A: I think most people are finding that it’s more valuable to have a 10-50 times larger user base that they can derive value from or monetize, rather than collect a one-time payment from a much smaller audience. “Freemium” wins 9 times out of 10.
Q: With Facebook’s WhatsApp acquisition, the social network continues to concentrate on apps that extend from the original mobile platform (i.e. Paper).
A: Some brands and companies are finally starting to “focus.” Steve Jobs and Jonathan Ive always seemed to use that word, and they were talking about removing all the features until you have something really great. App users will often download an app to do one distinct thing. They’d rather have the best messaging app (WhatsApp), or best photo app (Instagram), than have an app with great messaging, photo and social features (Facebook app). I think it makes a lot of sense, and I wish most brands could learn from this.
Q: Where do you see mobile gaming going in the future will traditional video games that land on Xbox, PlayStation, etc. move to mobile gaming?
A: There’s always going to be a mix. Oculus Rift or games like Call of Duty are experiences that are better suited for a non-mobile device. In saying that though, the growth in casual mobile gaming has been and continues to be…insane.
Q: What are your thoughts on second screen TV apps?
A: People are waiting in anticipation for Apple to do something more in this space. I don’t think anyone has really nailed second screen yet. However, mobile messaging during a live sports game or TV show makes a lot of sense. We did a second screen experience for OREO during the Super Bowl last year, which unlocked a “Football” cookie during the game and gave mobile app users a chance to win $100,000 after the Super Bowl ad. Also, 4.5 percent of all users and 52 percent of active users responded for 90,000 minutes, which is amazing engagement.
Q: What are the biggest trends you see in the app industry now?
A: Apps are here to stay. The fight against mobile web for most categories is over, with apps now accounting for 86 percent of time spent on a mobile device. We are going to see more app partnerships as brands struggle to build compelling experiences and look for quick wins. Once some of the laggard brands realize that owning an ongoing mobile marketing channel via their mobile apps wins over buying ads on a one-off basis in someone else’s app, we will see more quality branded apps being released.
