Ben Wise on Branding

Watching the world through the lens of the brand

The Branded App Industry Matures

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A recent article from BrandWeek says that branded apps are having more trouble gaining traction among users, looking mostly at iPhone apps. It is becoming increasingly difficult to reach Apple’s list of the top 100 apps, a common benchmark for success in this space. If history is any indication, this shouldn’t come as a surprise to brand marketers.

Many new categories are founded by small, nimble companies that can quickly meet an emerging consumer need. Initially, the early adopters will jump on the new services but as the market grows it will inevitably become more difficult to stand out. The bar quickly gets raised for brands trying to differentiate themselves.

While this may frustrate some brands, it is music to the ears of consumers. The novelty of mobile phone apps is wearing off and users are looking for services that add real value. Brands will be forced to provide consumers with increasingly useful products.

Another example of this can be seen in Facebook groups and fan pages. Only a few years ago it was the norm for Facebook users to join almost any group they were invited too but any interest in a given group page rarely lasted more than a week. Today, users are more discerning in what groups they will join, focusing on the groups that are of significant interest to them and can provide users with actual value. It is exactly the same thing with iPhone apps today (although some Facebook apps are still around that should have disappeared long ago!).

Once a brand has proven the capability of making a useful app, they will be able to leverage their brand and attract users to new apps more easily – a simple brand extension. However, brand extensions are most successful when done from a strong core brand. For now, they should focus on branded apps that create exception value in order to develop the strong core brand they need.

What do you think? Will mobile phone users be more selective of their branded apps?

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Written by benwisebranding

February 26, 2010 at 3:17 pm

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