I’ve written about the importance of using user-segmentation to deliver unique user / site experiences and email marketing. Here’s a brilliant example of Zynga’s Word With Friends (the mega-popular Facebook & mobile Scrabble game).

Obviously the game is predicated on multiple users playing… and that obviously starts with an invitation process. Words With Friends users your Facebook / Twitter networks to create an address book of friends playing the game.

The first people in your address book are new users (with big, prominent NEW badges next to their name). It’s a super simple, basic concept – but it’s brilliant because Zynga knows that:

- new users need to be prompted to play
- once they play a couple games, they are hooked
- current users feel a sense of goodwill / obligation to play with newly joined friends
- current users likely play within the same confined network… this broadens that

Small UI placement that makes an important difference.

I like to check in on Apple’s top grossing applications – it’s a good indication of mobile app and publisher trends. And from time to time, I have written about those trends.

… and here is a relatively important trend: each of the current top iPhone apps is freemium (“>we’ve seen hints of this in the past, but never to this degree). Eight of the ten top grossing apps are free and fifteen of the top twenty-five. These come from a variety of publishers and are almost entirely games – only one app is not a game (#21 iMuscle is a health related app – $1.99).

This is a natural evolution of improved game mechanics and better in-app purchasing flows…. both lead to more effective premium upgrades / monetization while preserving iTune’s distribution potential. For example: In January 2010, only three of the twenty-five top grossing apps had in-app purchasing enabled. Now, most of the top-grossing apps are distributed as free downloads and monetize in-application.

Earlier this week, Amazon launched the Amazon Appstore by giving away Angry Birds Rio for free (the #1 paid and top-grossing app on iOS). That promotion was in conjunction with an announcement that Amazon would giveaway one paid app for free each day.

Today’s free app should also be familiar: the ‘insanely addictive’ Doodle Jump (which, behind Angry Birds, may be the next biggest game on iOS).

Amazon is clearly moving into the application and Android space by distributing great, familiar titles in a way that fits with their brand / style: by winning on price.

Also worth noting: Angry Birds Rio is still available for free on the Appstore. When it first launched, it was marketed as expiring that day…

Today Amazon launched the Amazon Appstore for Android (more here and here). At this point, there are a slew of app stores (from your phone, computer, tablet, browser, television, alarm clock, etc.

But this is Amazon… so it’s worth paying attention because:
1. their scale and brand makes them a major player
2. they will do it in the Amazon way… technology, recommendations, price competition, etc

Did I mention price competition? Amazon launched behind Angry Birds Rio – giving the uber-popular game away… for free. It’s the #1 selling and grossing application on the iPhone. On Amazon, it’s free for today’s launch. That’s quite a promotion.

And it represents a larger pricing move: Amazon Appstore will give “a great premium app for free every day.”

I’m a sucker for info-graphics… and here is a really good one to help celebrate the success of LOLapp’s Ravenwood Fair social game (note: LOLapps is a Polaris-backed company).

Recently Ravenwood Fair hit a few notable benchmarks: namely surpassing 10,000,000 monthly actives and 1,000,000 daily actives.

While the info-graphic is fun… the data and social ‘math’ is both impressive and important (purchasing habits, virtual goods, LTV, et ). The LOLapps team is deeply analytical (as you would image with a gaming company) and highly skilled at determining … and affecting … “social clusters” (which affects virality and value).

I regularly cover trends in top grossing iPhone / iPad applications. What makes this update noteworthy is that:

- the top grossing application is free (freemium if you will as revenue comes from in-app purchases)
- three of the top five apps are freemium
- four of the top ten
- eight of the top twenty
- and nine of the top twenty-five

This is the first time in my writing that 40-50% of the top applications are free. Back in January, only three of the top twenty applications were free.

Also interesting, the Smurfs’ Village application offers relatively expensive in-app purchases: $4.99, $11.99, $29.99 and $59.99. This is a unique approach as most games offer cheaper purchases ($0.99-$4.99). The Smurfs’ are clearly going for mass adoption and sticky gameplay… and it’s working.

Following up on yesterday’s post about the impact Apple and Android are making on the gaming industry… here is a screenshot of today’s top grossing iPhone Apps. A couple notes of interest:

1. The highest grossing application is free… meaning that financial success can come from ‘freemium’ apps

2. … but don’t overlook that it is the NBA App: massive brand and timely app (the season just started)

3. Other than the NBA, every other top grossing in the app is a game

4. Most of those games are $0.99

5 … and the more expensive ones ($4.99 – $6.99) are associated with larger brands (ie Gameloft & Electronic Arts).

This is not to say that non-gaming applications are unable to succeed… but it is clear that pricing, brand and timing play a key role in popularity. This is precisely why Nintendo and others should be scared: the app-store has disrupted how games are played, shared and purchased ($0.99 vs. $29+). It also changes how those games are produced and marketed.

Lastly – while I find gaming interesting and fun, I would love to see other app categories crack these lists. It is already happening on the iPad… and I expect it will happen with the upcoming Chrome App Gallery.

Two years ago, I wrote about the looming death of portable gaming devices… seems like it happened sooner than we thought.

Yesterday, the Wall Street Journal covered Nintendo’s revamped 3DS handeld gaming device – which Nintendo is hoping will revive their declining gaming platform and business:

“The Japanese company also reported its first interim net loss in seven years, hurt by weakening overseas sales and the strength of the yen. First-half revenue fell 34% to 363.16 billion yen ($4.44 billion) from a year ago.”

While the Nintendo 3DS may be a great device (to be determined)…. the fact of the matter is that improved hardware won’t solve Nintendo’s problem. Asking consumers to buy a handheld device, carry that device, and individually buy game titles (at $29 / disc) is unreasonable.

Consumers already carry iPhone’s, iPod Touches, and Android Devices – and those platforms now have large libraries of gaming content. The games are far cheaper (free to $9.99) and wildly popular: 14/15 top grossing iPhone apps are games.

We have learned that with Apple and Android – and to a lesser degree Znyga, LOLapps, etc – consumers value gameplay and social more than game graphics and flashiness.

Fascinating chart on AlleyInsider this week noting that, for the first time ever, pay TV has lost subscribers. A little earlier in the week, the NYTimes argued that TV is changing (web, applications, on-demand) but paid television still rules the livingroom.

I shared the NYTimes article on Facebook with the following the note: “We will break our dependence. But – it will still likely include paywalls… but rather than for cable – it will be for content.”

And that’s why I believe the forthcoming Apple iTV is important to the TV / Web transition. First, it’s at the right price: supposedly $99. And knowing Apple, it be designed simply enough that connecting the device to the TV and the web will be easy as 1. 2. 3. Until now, consumers had two options – both of which disqualified the above points (price and simplicity):

1. Buy a mini-computer (ie Mac Mini or Dell Zino) and connect it to the TV. Plus: full operating system and highly customizable. Con: very expensive (~$500-$1,000), complicated and techy.

2. Purchase a brand new, web-enabled TV OR a gaming device. Pro: out of the box usage. Con: expensive and limited / poor experience, content selection, etc.

If the rumors are right – Apple can change this with:

- a $99 price point (fraction of any other reasonable alternative)

- an iOS interface that tens of millions of users are familiar (iPhone, iPod Touch, iPad)

- simple integration and web browsing (try using the web on XBox or PS3 – it’s *very* limited)

- and an unmatched catalog of content and applications (not to mention developers – which is more important)

Suddenly web browsing, iTunes, Pandora, Netflix streaming, MLB At Bat, etc are all imaginable. And its a more natural solution – at least in the short term – than through the television manufacturer, the gaming devices, etc.

No real news here – unless you are a huge Doodle Jump fan (one of the highest selling iphone apps of all time – and one of the biggest time sinks of all time).

Yesterday Doodle Jump released the newest version of their app such that it is compatible with iPhone 4 and the retina display. That’s the news – which is not why I am writing this… Rather, I was struck by how crisp and clear the imagery is. For iPhone 4 users (and to a lesser extent iPad users), graphics and web browsing looks great – thanks in part to apple and in part to designers / developers.

This is the welcome screen from the new Doodle Jump game – it’s gorgeous. And you’re probably not viewing it on an iPhone 4 screen. Its like looking at a zoomed in adobe illustrator font vs. a non-true-type font.

It is also interesting how developers are now using retina display optimized graphics as a selling point.