Branded apps: the future or a flop?

Only a few months ago, we were talking up ‘apps’ as the new frontier for brands. (Turn to page 18 of our October issue to read this article.) Or something similarly cheery after Steve Jobs said that apps could become a billion dollar business.

But did we speak too soon? A report in Brandweek suggests that the hype around apps remains precisely that: hype. According to the magazine, a Facebook tool created by Nike has just 3,400 users per month. The sportswear brand might say it is still testing the app but shouldn’t brands be starting to see real results?

So why is the world of branded apps taking a while to lift off? Some critics say that companies are putting too much slick production into creating them without creating anything truly useful for their users. Social media is all about being useful to people so this doesn’t fit with the prevailing ethos.

The article suggests that the best apps are those which are simple and encourage modest expectations. For example, a Facebook app that promotes a Bud Light party cruise and helps people post photos and stay in touch afterwards…..easily managed, not overly ambitious plans.

However, it’s worth noting that the BrandWeek article comes to the same conclusion as Brand Strategy. In areas where brands aren’t regular social media participants or there is no obvious reason for them to take part in that environment, it can be better to use a partner or platform with more experience in the area. It may mean a less prominent role for the brand but it could obtain better results.

What’s your take on the role of apps?

3 Responses to “Branded apps: the future or a flop?”

  1. darika Says:

    I’d agree. As usual it’s the same old story:
    - Brands wanting to “get” something out of social media activity without “giving” anything useful
    - Lack of understanding of communities
    - Not driving interaction
    - Lack of longer term view e.g. not allowing time and interest to build the userbase

  2. Shashank Nigam Says:

    I think it’s important to shy away from absolutes. I feel social media apps will certainly play a key role in the future of brand strategy. They will complement existing initiatives, and in some cases lead the campaign too.

    I can speak from an airline branding perspective, and a number of airlines have already started taking the lead in the field. For example, Lufthansa has come up with GenFlyLounge, a social network for students; Virgin Atlantic has their own Facebook page; Malaysia Airlines and Southwest have a popular blog, and JetBlue follows people on twitter.

    Basically, to isolate the brand from the benefits of social media will be detrimental to the brand. And companies must figure out a way to do this, soon.

    P.S: You can read more case studies of airline brands in social media here: http://simpliflying.com/tag/technology-branding/

  3. pedro rocha Says:

    well…

    if it improves the community’s life… yes. If it’s irrelevant (from a user point of view), no.

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