When can an iPhone app be bad for business?

A couple months ago, I discovered the joy of LOLcats. The buzz generated by the LOLcats brand of humor is a case study on the power of the internet. The best way to attempt to explain it is that Lolcats is the internet version of an inside joke, a really really cute inside joke. You just need to see it for yourself. But I digress.

I have subscribed to 5 different mailing lists offered under the “I Can Has Cheezburger” brand, including “Engrish Funny,” “ROFLrazzi,” “FAIL Blog,” “Loldogs,” and “Lolcats.” This means that every day, I recieve emails containing hilarious captioned pictures and links directing me to the website for more silliness. The business model behind these emails is simple: Click the link, comment on the picture, and spend time on the main website … which enables the website to charge higher advertising fees justified through higher traffic.

In the interactive field, iPhone apps are a constant topic of discussion. And, of course, we are supposed to be defining the potential applications of emerging technologies. But at what point does “being on the edge of cool” stop justifying new ventures that don’t seem to contribute to the bottom line? This is where Lolcats comes in.

My daily emails began promoting the “I Can Has Cheezburger” iPhone app. As a consumer, I was all over that app. As a business-minded individual, I found myself wondering how the app contributes to the revenue model. In some cases, applications may send you to the website, encourage you to spend time/money elsewhere, or, of course, charge a fee. The LOLcats application really does none of the above. It simply provides entertainment to the users. In this case, an iPhone app is actually counterproductive. You see, as any logical person would do, I have unsubscribed from my daily Lolcats emails. No more inbox flooding. No more going to the website. All that remains is one click - I pull up my iPhone app, and I’m instantly entertained.

I am a big believer in the value of brand equity - usually, when a consumer is spending more time with your brand, it’s a good thing. But if they are spending more time with your brand, while driving less money to your brand…the math simply doesn’t add up. I would pay for this iPhone app. I might link to the website to comment. But please don’t tell the Lolcats. They’ll turn me into nomz

This entry was posted on Friday, November 14th, 2008 at 12:34 pm and is filed under Digital. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.