Just got done reading a pretty straightforward yet thought-provoking Advertising Age article on whether or not iPhone apps are really worth it. The premise of the article is that while apps may be catchy, they may not necessarily be directly contributing to the bottom line or serving as a strategic -marketing tool (aka tying back to the brand). In the article, AdAge came up with its list of the best and worst apps when it came to brand tie-back and here's an excerpt of some of them:

Cream of the crop

• KRAFT IFOOD -- Rich, engaging and travels easily from pantry to grocery store to kitchen stove, all while building and strengthening brand loyalty.
• DUNKIN' DONUTS DUNKIN' RUN -- Not just a coffee and doughnuts ordering tool, this app announces to friends/co-workers that you're on a run. Captures all orders and you, "the hero," pick them up. Clever combo of utility and social. Now if they'd just integrate a payment system so you don't get stuck footing the bill.
• BENJAMIN MOORE BEN COLOR CAPTURE -- Using the camera feature on the iPhone 3GS, it snaps a picture of anything and finds a Ben paint color match. Closing the loop, GPS points renovators to the nearest Ben store.

Not so much

• WARNER BROS. DARK KNIGHT -- The app adds dark circles and snarly red Batman decals and scars all over your own or friends' faces when you "Jokerize" them. Harmless fun, but did it sell any tix? Not available anymore.
• PEDIGREE SHAKE AND BARK -- Take your dog's picture, record its bark and you can ... shake to replay it? It's got a cute name, and dog lovers can take a piece of their pup to work, but the features feel a bit lame. Plus, doesn't it freak out the dog?

This article brings us to a bigger point, does there really have a to be a direct brand tie-in with these apps or does the mere placement of a logo on the app suffice? Food for thought if your company is looking to ride the iPhone app wave.



-posted by Andrew

Tags: iphone, branding

Journalist John Cook has been a fixture on the Seattle business beat for more than a decade.  After covering the technology arena and penning the Venture Capital Notebook for the Seattle Post-Intelligencer for a number of years, he left the publication to co-found TechFlash, an online news site dedicated to covering the technology industry in the Pacific Northwest.  He has a particular interest in entrepreneurial adventures, and has written about companies from Avenue A to Zillow.com.   As part of our continuing series of interviews with VCs, entrepreneurs, marketers and other influential businesspeople, VOXUS asked John to share his opinions on the area's economic climate, startups and even iPhone application developers.

1)  What's your opinion of today's Seattle startup community?  Are there too many neophyte entrepreneurs trying to launch companies, or does this just signal a healthy ecosystem?  From a journalistic standpoint, how noisy is it?

There does seem to be a new sense of optimism in the startup and venture community. August was one of the busier months I can remember, though my brain is turning to mush with all of the news to cover, so take that for what it is worth.

I know some are concerned about a double dip recession. I have no idea whether that will occur or not, but my general sense is  that we didn't experience all of the pain we needed to given the radical shift in the economy that started last fall. The dot com bust of 2001-2003 actually caused much more pain in the tech sector as the Internet bubble deflated, and tens of thousands of jobs were lost in the Seattle area. We haven't seen anything that severe this time, at least in tech.

As to your question about "too many neophyte entrepreneurs" starting companies, I don't think that is necessarily a bad thing. Bill Gates and Paul Allen were neophyte entrepreneurs, as were Larry Page and Sergey Brin. Sometimes it takes a fresh set of entrepreneurial eyes to really figure out a problem, and the great thing about covering this beat is that entrepreneurs can come out of nowhere to really dominate a market. Still, at the end of the day, most will fail as you know.

2)  Many smaller companies are rebounding from an economic slump, yet larger ones are continuing a downward slide...and there's no relief yet in the ranks of the unemployed.  As a journalist, you've got a unique vantage point to see what's happening in the business community, particularly startups.  What do you think it will take for us to experience a true economic turnaround in Seattle?  And how does this affect entrepreneurs -- is opportunity knocking, or should they prepare for a long and winding road?

I have no idea what it will take for the economy to get its footing again in Seattle. But I will say this: There's plenty of opportunity for entrepreneurs out there. The business world has been turned on its head -- everything from manufacturing to media to financial services --  and that actually plays to the advantage of entrepreneurial organizations and people.

Traditional businesses are getting blown up, and new models are emerging. There's certainly no shortage of problems that entrepreneurs can set out to solve. The key question is whether the capital will be there to support these new businesses? There's still money on the sidelines, and I am seeing some capital flowing. But it is tough to get cash to fuel new businesses. Entrepreneurs should bootstrap and treat every dollar in the business as if it were the last. But that's nothing new.

3)   It seems as if iPhone app developers are everywhere these days.  Are you bored with this genre yet?  What types of technology startups are capturing your interest?  Got one hot startup you are particularly watching?

The iPhone has changed the game in mobile, the next big wave of innovation in the tech arena. So, no, I am not bored with the iPhone or the ecosystem forming around it. And it is just going to get more interesting as Google and Microsoft try to compete.

One thing that will be fascinating to watch is whether these iPhone app hobbyists actually can make a decent wage. Some will, some won't. But I have my doubts that big iPhone app businesses will form, since as readers on TechFlash have noted it is extremely difficult to build a business on the back of another company's platform.

Tags: johncook, techflash