Wednesday, September 1, 2010

Would you like an App with that?

Target, McDonald's, Burger King and GAP. What do these companies have in common? Instant name recognition for sure, but they are also part of the ever-expanding group of companies with their own authorized iPhone App**. This new category of brand management is exciting and very interesting to me. 

Prior to the smartphone era, there were only a few specific ways that a company could communicate their branding. Let's use GAP as an example. They used television advertising, web ads, billboards and store window displays that reach everyone, but not necessarily their core customer, the person who already shops at GAP. Then came email marketing, which allowed the customer to ask for advertising in their inbox. I imagine this was a huge boon for the company, as now they could reach their core customer, and the customer could choose to forward the communication to a friend. By sending coupons along with their communication, GAP gave their customers a reason to open the email, and see the advertisement, not to mention an incentive to come to a store. Now GAP has an app, and it has the potential to take direct marketing to a whole new level.

The GAP application lets you pick out clothing, put it in your virtual closet, make purchases, find a store, and post your favorite looks onto facebook. That means that one person downloading this app, and sharing their favorite outfit has the potential of reaching an innumerable amount of like-minded consumers (the app owner's friends), and therefore helping GAP grow their brand with only a little extra effort on their part. Pretty cool, huh?

It will be really interesting to see how companies choose to use-or not use-this new tool in their arsenal. I expect the market to grow virtually exponentially over a short period of time. How well the App market helps brand a company remains to be seen, but it is certainly looking like a good investment to me.





**For the uninitiated, an "App" is an application that is created to run on a specific platform, like the iPhone. Its specific purpose may range from mindless entertainment to precise medical care, but it always has a purpose.

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