[In this reprinted Digital Storytime piece, Carisa Kluver provides an in-depth look at the marketing strategies for children apps. This is part three of a three part piece examining marketing strategies. Carisa Kluver is the sole reviewer for the iPad picture book app review site, Digital-Storytime.com. She co-founded this site with her husband, Marc, an app developer and programmer. She tries to run her site with the following three “A’s” in mind – to be Approachable, Accountable & Accurate.]

This is the third and final post in my series about marketing kids apps. [See: Part I: Three Things No Amount of Code Can Fix & Part II: How Consumers Decide to Download] We end the series with some of the stickiest questions in the app world: What’s an app worth? What price point will encourage downloads? Should an app ‘go free’ for a short time? Is it worth it to develop more apps?
I’m not an economist nor do I have a background in marketing, but I’ve been watching the kids app market pretty closely for a couple years now and do have a few thoughts to share on this topic. My expertise is really in social science, so my ideas are shaped mostly by consumer psychology (and basic market realities).
Like many aspects of app marketing, there isn’t a hard, fast rule for any app pricing decisions. It’s complicated and more importantly, a moving target. Things are changing all the time as the app store gets more crowded with new apps everyday. In the category of education alone, I counted more than 750 new apps for the iPad in just the past week!This means advice from a post in 2009 about marketing probably isn’t going to help a developer in 2011 all that much … and this post may not be very interesting (unless you’re writing a history paper) in 2013.
Harsh Reality for App Developers …
Some very nice apps aren’t going to sell. Period. The reality is that even free apps can get lost in this sea of content. There is a point when consumers actually don’t want or need another ‘app for that’. The top 50 free apps in both education and books, for instance, are more-or-less permanently held by several dozen apps that are always free … so even giving away an app can be perceived as a failure if the goal is to get into the iTunes ‘top 10′ for an app’s category. Just getting into the top 10 for free apps for a few hours can sometimes be considered wildly successful.
But does that mean a great app needs to get lost in the haystack of apps? What a discouraging message to receive just as you arrive at the AppStore with your shiny, new app. The answer is … maybe, but then again maybe not. Once you’ve come to terms with the challenging reality of the iOS app market, then you can decide what you are willing and able to do about it for a product, like a kids app, that you believe in.
Additionally, for future projects, it is so helpful to have realistic ideas about the return on investment possible for different types of apps. When your programmer can make a six figure income working for someone else, it is no small thing to know how much technical effort you need to employ to simply break even on an app. Many new, small developers are experiencing the current app market as a bit of a shock. Developers are often so totally focused on app programming & design, that the changes in the market since they first conceived their app idea, often 9-18 months earlier, have not been on their radar at all. Seismic shifts can happen in this market in less than six months, though.
One thing to consider is the variety of non-financial rewards that you may have already earned by creating an app. In the process of creating Dash & Ditto’s Playground, a sweet but underperforming 7-in-1 iPhone game app for kids, our team also learned a lot of priceless skills. Our illustrator learned about how to ‘go digital’ after a life of print projects, our programmer literally taught himself iOS and Android programming and I got the idea to start our successful review site, Digital-Storytime, as a result of our marketing efforts. Not a bad payoff, if only we can find a way to calculate this when we evaluate our original monetary goals.
Good News for Book Apps
At this point, maybe you’re ready for some good news? For book apps at least, there is a silver lining here. Digital books for kids represent an app product that consumers still desire and it’s a field that thrives on variety. The desire for good book apps, especially for kids, is still there and of all the categories in the app store, book apps tend to be among the highest priced. Consumers can get some content for free but most of the time do expect to pay for downloads for quality titles for children. For educational apps aimed at this same age group, there are also a lot of specialized areas in the market that remain untapped where paid apps should do well.
The market for children’s picture book apps is guaranteed to grow, too. A recent flurry of news articles lamented how digital kid’s books were lagging behind adult ebook sales, but they failed to take into account the fact that color options for tablet apps have not been around very long, unlike adult ‘text-only titles’ so popular as e-books over the past decade. While some may fight the transition to digital, a lot more new readers will be entering this market rather than resisting it.
Any new developers entering the book app market do need to take some publishing history into account as well. Could you have self-published your title before the digital revolution? If not, then it is important to give this new opportunity a bit of time to meet your expectations. Simply being able to self-publish your children’s book to a large market of readers, even as a free download, is nothing to dismiss as an author/illustrator. If you are simply developing book apps to take advantage of a new opportunity to make loads of cash, I’d encourage you to move on. This is a space that demands good narratives and should reward developers passionate about storytelling. Perhaps picture books simply need to sustain the creators of their content, not make millionaires out of limited development efforts?
And for those already committed to this market … I think there is a lot we don’t know … and I’m hopeful that over time the price for book apps in particular will begin to reflect the cost of producing these titles more accurately. There will likely be some narrowing of the producers of content for the industry, but how this will all play out is anyone’s guess. If you wanted ‘to live in interesting times’ for publishing … consider your wish granted.
So what are the most important factors to consider when pricing a new app?
1. Launch Price … What should you start with when launching your new kids app? Some apps launch as free to gain exposure, expand user base, extend ‘beta’ testing or lay a foundation of happy customers for the launch of a series of apps. Some apps start very high to set a ‘value point’ for consumers. Some start out low and plan to raise the price to show consumers that they are worth more. Some start out in the middle, then do a series of price drops to gain momentum for an app they believe will be popular once it is well-known. No one strategy is ideal, but depending on the app, a ‘best practices’ strategy does seem to emerge.
Continue reading at Digital Storytime and learn additional factors like price promotions, “going free”, and price change frequency here.



Research from ABI Research group shows that the demand for mobile health solutions apps are on the rise. The group predicts that sports and health apps are on pace to hit $400 million in revenue by 2016. The prediction is up from the $120 million reported revenue in 2010. This indicates market growth that will quadruple over the next four years. 