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Digital Marketing and a Free iPhone

Digital Marketing and a Free iPhone

Digital Marketing and a Free iPhone


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Digital Marketing and a Free iPhone

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Digital Marketing and a Free iPhone

By: Domenic Carlson

About the Author

Domenic Carlson writes on behalf of inSegment, Boston’s leader in Internet Marketing, Online Marketing, and the home of Boston SEO.

(ArticlesBase SC #2759537)

Article Source: http://www.articlesbase.com/Digital Marketing and a Free iPhone





If purchased directly from Apple or AT&T, the new iPhone 4 costs 9 for the sixteen gigabyte version, and 9 for the thirty two gigabyte. With this purchase comes a commitment to a monthly service fee for accessing the telephony and data capabilities of the device. These data plans are not required to reach the Apple App store (access to the app store can be made through the iPhone’s built in Wi-Fi capability), which currently holds over 200,000 apps, many of them coming at no charge. These free apps are made economically possible due to the fact that they are ad supported, meaning that the app is free, but advertisements sporadically appear on the screen while the app is being used. For music based apps, these ads are delivered in the form of commercials that play after a few songs have been heard. For the app setting, free delivery has proven to be an effective way of getting the app in the hands of users at no cost, while still allowing a revenue stream to flow into the pockets of the developers. In examining this successful and proven methodology, one wonders if the same practice could be applied to the iPhone hardware. Certainly, Internet Marketing experts would have no shortage of methods for delivering content to these types of customers.  In this article we will examine some ways in which Apple could financially justify distributing free, ad-supported iPhones, to an eager public.

 

In order for Apple to be able to give iPhone’s away for free, they must first be able to ensure that they would see revenue come in on the back end. With an ad supported iPhone this could easily become a reality. Let’s identify some key ways in which this hypothetical situation could become a reality.

 

Ads before everything: In accepting a free iPhone, users would have to be made aware that their experience with their iPhone would not be quite the same as that of those who acquired theirs through a purchase. Some of the freedom of use would have to be sacrificed in order to justify their free acquisition of the phone, but no functionality would have to be sacrificed. Before anything else, users would have to be aware of and agree to this altered experience.

With ad supported iPhones, many of the ads would have to be pre-loaded on the iPhone, while others could be periodically downloaded over time. The pre-loaded ads would be able to be quickly accessed by the phone and played for the user right out of the box. Branded iPhones could be possible in this context, as major advertisers might be willing to pay a small premium to have their logo appear on the iPhone, or have some of their marketing materials be part of the home screen. This home screen presence is something that could be extended upon. A small change to the iPhone code could allow for a constant streaming of ads to be delivered at all times in a sort of news ticker fashion on the bottom of the home screen, or any screen.

These ads could be for Apple products, third party products, or placed by Online Marketing companies who paid Apple a premium to be included on the hardware. There could be also be a case in which a certain company wishes to always have their ads featured upon certain actions. For example, Sony could choose to have their ads appear every time the user wishes to make a phone call. If the user attempts to initiate an outgoing a phone call, they must first watch an ad. The user could freely receive calls without delay, but every received call would result in a text message being dispatched that contained an advertisement, the user having to watch a second ad the next time they wish to make a call, or an ad being delivered in a different manner.

 

In the second and final portion of this article, we will examine some more ways in which Apple could generate revenue streams through the distribution of an ad supported iPhone.

 

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Domenic Carlson
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Domenic Carlson writes on behalf of inSegment, Boston’s leader in Internet Marketing, Online Marketing, and the home of Boston SEO.

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iphone marketing, digital marketing, online marketing, internet marketing, iphone ads, seo, sem, search engine optimization, ad supported, iphone apps

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Domenic Carlson writes on behalf of inSegment, Boston’s leader in Internet Marketing, Online Marketing, and the home of Boston SEO.

Oct 27

Digital Marketing and a Free iPhone Part 2

Digital Marketing and a Free iPhone Part 2

If purchased directly from Apple or AT&T, the new iPhone 4 costs 9 for the sixteen gigabyte version, and 9 for the thirty two gigabyte. With this purchase comes a commitment to a monthly service fee for accessing the telephony and data capabilities of the device. These data plans are not required to reach the Apple App store (access to the app store can be made through the iPhone’s built in Wi-Fi capability), which currently holds over 200,000 apps, many of them coming at no charge. These free apps are made economically possible due to the fact that they are ad supported, meaning that the app is free, but advertisements sporadically appear on the screen while the app is being used. For music based apps, these ads are delivered in the form of commercials that play after a few songs have been heard. For the app setting, free delivery has proven to be an effective way of getting the app in the hands of users at no cost, while still allowing a revenue stream to flow into the pockets of the developers. In examining this successful and proven methodology, one wonders if the same practice could be applied to the iPhone hardware. Certainly, Internet Marketing experts would have no shortage of methods for delivering content to these types of customers.In this article we will examine some ways in which Apple could financially justify distributing free, ad supported iPhones to an eager public.

 

Text Messages – At the end of our first installment, we touched briefly on the ability for Apple to make text messaging a part of their revenue gathering methods for this ad supported iPhone. In considering text messages, they would have to be heavily ad supported. In order to both write and read a text message, users would first have to either read or view an advertisement. These ads would be best served remaining consistent in length. Being subjected to a quick 5 second video ad before sending or receiving a text may get tiresome if the user texts very often, but the hope is that the iPhone experience will be strong enough that in the case of the user tiring of the ads, they would convert to an actual purchase of the hardware.

 

 

More Access to Usage Habits: Another aspect of this ad supported iPhone would be user agreeing to allow their usage to be monitored, so more targeted ads could be delivered to them. Downloaded apps, keywords in texts and emails and visited websites could be culled for information that would result in more relevant ad delivery. While most users might reject such usage monitoring, many would happily trade that bit of privacy in exchange for a free iPhone.

 

 

Other revenue streams – This type of ad supported iPhone could also offer up entirely new types of revenue streams by introducing one time fees for goods or services that come for free with an iPhone purchase. For example, the iPhone 4 currently ships with a free pair of headphones, a wall charger and a charger cable. The headphones could become a paid item, as could the other accessories. Going a bit deeper, we can examine the pre-loaded software that comes with the iPhone. Free apps such as Camera, Safari and the various utilities could remain free, but others could come with conditional charges. For example, the Contacts app could be initially free, but adding over 50 contacts could come with a one-time charge of five dollars.  Search Engine Marketing could be amped up on this free iPhone, as the user could be subjected to a larger amount of ads than the typical user when performing a search. The iPhone could also be delivered with certain features shut off, giving the user the ability to activate them for a fee. Let’s say the user is given the ad-supported iPhone, but it lacks the motion sensing abilities of the typical iPhone. The user could then be motivated to pay to unlock features. These types of charges would have to remain few and far between, however, in order to keep the value of the free iPhone from becoming redundant through all the secondary purchases. Users could even be given the option of purchasing ‘ad free blocks.’ In this situation the user could pay a fee in order to guarantee an ad free experience for a certain amount of time.

 

While an ad supported iPhone is unlikely to become a reality anytime soon, we see here that it may just be an option worth considering.

 

Domenic Carlson writes on behalf of inSegment, Boston’s leader in Internet Marketing, Search Engine Marketing, and the home of Boston SEO.

Sep 01

A Good iPhone Marketing Strategy

A Good iPhone Marketing Strategy

As with all Apple marketing, the iPhone marketing strategy is very clear, simple and clever. With the plain and simple apple icon, Apple focuses on the pure innovative style of their products without all the “fluff”. The iPhone was released by Apple in June, 2007. The ground-breaking style of the iPhone was touted for months before the initial release and has remained the best of the best when it comes to cell phones over the past several years. Before the iPhone’s official release, Apple ran four television commercials promoting the new cell phone.

The first of the commercials portrays the new iPhone as the next step up from the popular iPod. The iPod was all the rage up until this point, and the iPhone was supposed to be the next-generation iPod, oh, and it’s also a phone! The advertisement displays all of the enhanced features available in the iPod, and more, the point being “There’s never been an iPod that can do this.”

“So, say you’re watching Pirates of the Caribbean” 
Finger clicks on video and displays wide screen movie. 
“Mmm, did somebody say Calamari?” 
Finger clicks back to menu, selects Maps application to search ‘Seafood’. 
“The closest would be…” 
Map displays all seafood locations and highlights location nearest to you. 
“Ah!”

Finger clicks seafood location, and restaurant phone number displayed. iPhone dial’s.

The first four iPhone commercials flaunted the convenience, innovation, and usefulness of a single product with the functionality of not only a phone, or a music device, but a product that can, among other things, listen to music, watch videos, view photos, make conference calls, check e-mail, browse the web, and view maps.

Not only does Apple utilize television for their marketing strategy, but they make use of their website by posting videos, they also published a handful of press releases that could have been released in one single document. Apple often uses this tactic to build up hype and leave the consumer wanting more.

With Apple’s brief press releases, giving the audience little to go off, “Apple leveraged a law of social physics – news, like nature, abhors a vacuum. In the absence of real information, those who care about a product will grasp at any rumor that comes their way. Apple may publicly disavow the rumor Web sites that scramble for scraps about the companies plans, but secretly their marketing department must be delighted. It would cost a lot to buy that kind of Web advertising.” (Silverman, 2007)

The official iPhone website does more than just provide information about the product. The website provides top tips and tricks for the use of an iPhone, as well as a huge focus on apps. Almost the entire iPhone page displays images of apps, provides the “App of the Week,” the website also contains sections titled “Apps for Everything,” and the “Top Apps.” Apple’s website is a great marketing tool for current iPhone users and consumers that have an interest in purchasing the iPhone. The promotion of the apps will create a stronger source of revenue for Apple. As customers see top rated applications, they are more likely to download the app, rather than searching through 25,000+ apps to find one that may be of any value to the consumer.

Successful younger men were the target audience that Apple had originally focused on. Apple had hoped that with this target audience, and the fact that 48% of this audience did not already own an Apple iPod, would allow them to reach their forecast of 10 million sales by the end of 2008.

One month prior to the release of the iPhone, Solutions Research Group profiled a cross-section of those aware of the phone. The forecast of potential buyers for the day of the release ranked a majority of T-Mobile customers, AT&T’s only GSM-based product competitor, at 15%. The second largest group expected to purchase the new iPhone was AT&T’s existing customer base, at 12%. The Solutions Research Group also found that 72% of males, versus 28% of women were most likely to investigate the phone at its minimum price of 9. (Malley, 2007)

The obvious current target audiences for the Apple iPhone include young people between the ages of 20 and 35, affluent teenagers, “jet-setters”, and “mobile” employees who work outside of the office.

Apple is known for their simplistic, but catchy commercials. In recent television commercials for the Apple iPhone, “There’s an App for that” is the new catch phrase that places a strong focus on the apps available from the App Store. Apps, or applications, are in “every category, from games to business, education to entertainment, finance to health and fitness, productivity to social networking. These applications have been designed to take advantage of iPhone features such as Multi-Touch, the accelerometer, wireless, and GPS” (Apple, 2009). Apple currently claims to have 25,000+ apps available, and counting.

The focus on the variation of apps offered opens up the target audience greatly. There is essentially an app for everyone. As a few of the iPhone commercials advertise, you can find the snow conditions on the mountain, track calories in your lunch, find exactly where you parked your car. You can find a cab in a strange city, find your share of the bill for a table of 5, or learn to fix a wobbly bookshelf. You can read a restaurant review, read an MRI, or just read a regular old book. These are just a few of the features that Apple has promoted through television commercials. iPhone apps provide every functionality that one can imagine.

When the iPhone was initially released, it was priced at a hefty 9. Still, hundreds of thousands of people rushed out to get the new phone, forking over a third as much as they would have had they waited an extra 3 months. 3 months after the initial release, Apple reduced the price of the iPhone to 9. This enraged Apple’s loyal customers and consumers who purchased the new phone just months earlier. One year later, Apple again reduced the price of the iPhone to 9, 66% less than the original price.

In July, 2007, the Apple iPhone was all the hype. I believe that Apple’s decision to release the phone at 9 was slightly based on greed. However, their product was the most innovative out in the market place, giving Apple the freedom to price the iPhone at whatever they wanted. Many believed that Apple had cut the price after discovering lower than expected iPhone sales. Apple, however, states that the price cut was made “to spur holiday sales and predicted that Apple would meet its stated goal of selling its 1 millionth iPhone by the end of September.” (Dalrymple, 2007)

As with the product life cycle of any cell phone or Apple product, including Apple’s iPod, prices are often reduced drastically months after the initially release. Tech products are always competing against “the latest and greatest” while maintaining a relevant price in the market place. Had Apple not reduced the price of the iPhone, the customer base would have dwindled quickly as many consumers are unwilling to spend 9 on a cell phone, no matter how many useful features the phone may carry.

As the iPhone remains to be the number one smart phone around, the product continues to grow, increasing size capabilities, increasing the number of applications available, and providing new features that are released through new iterations of the phone, continue to provide a greater value to the iPhone while the pricing remains relevant.

At this time in the product life cycle, Apple continues to release enhanced iterations of the iPhone. With most iPhone users un-willing to purchase a newer version of the iPhone because of price, the target audience for the newer generation phones is new iPhone customers. With Apple’s installed base continuing to grow, they have found a way bring in reoccurring revenue from their existing customers through the sales of their application downloads. As more and more people purchase the iPhone, Apple’s audience for new customers continues to dwindle. Fortunately for Apple, they have built in another source for revenue that continues throughout the life of the product.

References

(2009). Apple: iPhone. Retrieved April 26, 2009, from Apple

Dalrymple, J (2007, Sep, 11). Lessons learned from the iPhone price cuts. PCWorld, Retrieved Apr 26, 2009, fromhttp://www.pcworld.com/article/137046/lessons_learned_from_the_iphone_price_cuts.html

Silverman, D (2007, Jul, 10). Apple’s silence helped the iPhone hype. Chron.com:Computing, Retrieved Apr 26, 2009, from http://www.chron.com/disp/story.mpl/front/4954824.html

Malley, A (2007, Jun, 6). Apple, AT&T neophytes to define iPhone audience – report. AppleInsider, Retrieved Apr 26, 2009, from AppleInsider Website

Mukherjee, A (2007, Feb, 28). iPhone under attack. Business Today, Retrieved Apr 26, 2009, from the business today website

 

Jesus has smoked most of his life. Now he writes inspiring articles for people trying to quit smoking. You can check out his recent site at http://benefitsofstoppingsmoking.netwhere he writes about the Benefits of Stopping Smoking.

Aug 25

iPhone and iPad Apps Marketing: Secrets to Selling Your iPhone and iPad Apps (Que Biz-Tech)

iPhone and iPad Apps Marketing: Secrets to Selling Your iPhone and iPad Apps (Que Biz-Tech)

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