TOEIC apps: Business Case Study

Dear cipto,

You all know what an app is -- on average we have about 25 apps installed on our mobile device out of which we use 5 to 7 actively. Most of the apps available for Android and many iOS apps are free, only a few are paid. So the question is how do app developers make money? The truth of the matter is that vast majority off all apps never make any money for a number of reasons the most important being the fact that nobody ever finds them let alone downloads and installs them. You can apply the Long Tail Principle to the app market too: A few paid apps account for the vast majority of the total app revenue worldwide while there is a myriad of free apps most of which are never used by anyone.

When we talk about revenue it would be interesting to have some figures. According to CNET, the total app turnover in 2012 was about $8.4 worldwide. CNET also estimates that the total revenue generated by app sales and mobile advertising will increase to $46 by 2016. Without a doubt the mobile app market is growing faster than any other industry and there are many stakeholders who want a piece of the pie. English-Team is one of them. Our entry into the mobile app market is the world's first iOS app that features 5 full length TOEIC tests (Reading and Listening).

What is the market potential of an iOS TOEIC app? The TOEIC (Test of English For International Communication) by ETS is by far the most popular English language test. About 5 million people take the TOEIC every year and most international corporations use and recognize the TOEIC test. At the same time, the number of business executives and professional people using a smartphone is rising constantly. Already today the vast majority of all successful business professionals use an iPhone, iPad or an Android device. So, the target market for our TOEIC app is any person with an iOS device who either wants to evaluate their level of English or prepare for the TOEIC test or both.

In addition to individual test takers, the iOS TOEIC app by English-Team will also be used by organizations such as TOEIC Test Centers, language schools, universities and other educational institutions and of course, international corporations such as Allianz, Siemens, Renault and Intel who have already been actively using the TOEIC test. Our TOEIC app comes a lot of useful features. One of them is a backend content management system that allows TOEIC test centers and companies to edit existing tests as well as add new tests. The app can also be white labeled so TOEIC Test Centers and companies can put their own logo and corporate identity on the app and market it as their own.

Any app is only as good its marketing and promotion activities. So what is the most important ingredient to a successful app marketing campaign? Very simple: An great app! The commercial success of any app largely depends on how its users and customers perceive and evaluate it. If the app comes with a lot of valuable features that make the lives of lots of people easier, it soon will attract an online community which will start promoting the app through various social media platforms such as Twitter, Facebook, Google Plus, Youtube and many others.

A question that has come up a lot over the past couple of weeks is this: Why is the TOEIC app available only for iOS devices and not for Android? Well, although there is a free version of our TOEIC app, the TOEIC is still a test for business people and business is all about commercial transactions. The TOEIC itself costs about $130 and most TOEIC prep books are priced above $50 so of course our app is primarily a paid one. You can purchase the 5 TOEIC tests separately or as a bundle saving substantially. When it comes to selling apps, the Apple app store and iTunes still outperform Android apps by a ratio of 1 to 4. That is, there revenue generated through iOS apps is about 4 times higher than through Android.

Of course our goal is to develop and offer an Android version of our TOEIC app as soon as possible and that's where you come in, cipto.

Dear cipto,

If you want to learn more about the first TOEIC app featuring 5 complete TOEIC tests or even become a beta tester, please read this: iPhone/iPad users wanted as beta testers for TOEIC app If you do not wish to receive this newsletter any more, you may unsubscribe here: Unsubscribe

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