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Under the Radar

Under the Radar 45: Ads ★★☆☆☆

 

00:00:00 ◼   ► welcome to under the radar a show about

00:00:02 ◼   ► independent iOS app development I'm

00:00:04 ◼   ► Marco Arment and I'm David Smith under

00:00:06 ◼   ► the radar is never longer than 30

00:00:08 ◼   ► minutes so let's get started so today we

00:00:12 ◼   ► wanted to talk again about the App Store

00:00:15 ◼   ► and about how at the App Store is

00:00:17 ◼   ► changing over time and especially around

00:00:20 ◼   ► this time when iOS 10 is coming out and

00:00:22 ◼   ► things are changing and especially this

00:00:24 ◼   ► year where it seems like for the first

00:00:26 ◼   ► time we're having all this change and I

00:00:29 ◼   ► don't like tumult in the App Store where

00:00:31 ◼   ► we're getting subscription of my model

00:00:33 ◼   ► of changing their search ads coming

00:00:35 ◼   ► they're purging old ad apps from the App

00:00:38 ◼   ► Store they're changing app review review

00:00:40 ◼   ► timing all kinds of things are changing

00:00:41 ◼   ► in the App Store and all that change

00:00:44 ◼   ► recently made me take a look back and do

00:00:48 ◼   ► what I like I love doing most which is

00:00:50 ◼   ► making a chart of course any time I kind

00:00:53 ◼   ► of feel nostalgic or curious

00:00:55 ◼   ► I'll try and make it to make a chart out

00:00:57 ◼   ► of that and so what happened I did and

00:00:58 ◼   ► this is a lot of we're gonna start

00:01:00 ◼   ► talking about it's an article I wrote

00:01:01 ◼   ► called evolving apps for business models

00:01:03 ◼   ► which I'll have the link to in the show

00:01:05 ◼   ► notes a lot of these things I feel are

00:01:07 ◼   ► so easy to get stuck on like the way you

00:01:10 ◼   ► feel now and these slow gradual changes

00:01:14 ◼   ► are hard to really pin down for like

00:01:16 ◼   ► what's actually been happening in the

00:01:17 ◼   ► App Store because you know it's been

00:01:19 ◼   ► quite a while since I've been it I

00:01:21 ◼   ► submitted my first app I think my first

00:01:23 ◼   ► app I submitted almost eight years ago

00:01:25 ◼   ► and a lots changed since then

00:01:28 ◼   ► and the interesting thing that I found

00:01:30 ◼   ► is when I went back to my all like my

00:01:32 ◼   ► app store sales data as far back as I

00:01:34 ◼   ► had kept it and honestly I really wish I

00:01:36 ◼   ► had my data all the way back to eight

00:01:39 ◼   ► years ago but I just don't like I

00:01:41 ◼   ► consolidated into a new like reporting

00:01:44 ◼   ► system only like three or four years ago

00:01:46 ◼   ► and certainly have dated back to then

00:01:47 ◼   ► but then nevertheless you should release

00:01:49 ◼   ► that oh it's awful it is it is one of

00:01:53 ◼   ► those classic projects which I'm sure

00:01:54 ◼   ► any developer can appreciate where it is

00:01:56 ◼   ► it is designed to work for nobody but me

00:01:58 ◼   ► like it like I do weird things it's a it

00:02:03 ◼   ► makes no sense to anybody but me but for

00:02:05 ◼   ► me it's perfect and like I have to run

00:02:07 ◼   ► like these six scripts to get all the

00:02:09 ◼   ► data in and the way I like it but it

00:02:11 ◼   ► works for me so I would not recommend

00:02:13 ◼   ► if you'd looking if you're looking for a

00:02:15 ◼   ► sales and reporting system I'm sure

00:02:17 ◼   ► there are many great hosted providers to

00:02:19 ◼   ► do what you want to do don't roll your

00:02:21 ◼   ► own I can tell you it's terrible but if

00:02:25 ◼   ► you have this data you can go back and

00:02:27 ◼   ► look at it

00:02:28 ◼   ► the most striking chart and I think the

00:02:30 ◼   ► thing that is most strongly drawn

00:02:32 ◼   ► attention to this article was I did a

00:02:34 ◼   ► chart of the percent of my revenue from

00:02:37 ◼   ► three different sources from an I

00:02:38 ◼   ► purchase from paid sales and from

00:02:40 ◼   ► advertising and the truly remarkable

00:02:43 ◼   ► thing from that graph is the way that

00:02:46 ◼   ► advertising has just been steadily

00:02:49 ◼   ► clawing away at paid sales over the last

00:02:52 ◼   ► four years to such a in such a linear

00:02:55 ◼   ► and clear way that when I first saw it I

00:02:58 ◼   ► was like wow like my date is broken like

00:02:59 ◼   ► there's no way there's this linear of a

00:03:01 ◼   ► progression like I'm doing something

00:03:02 ◼   ► wrong in my analysis but turns out check

00:03:05 ◼   ► the data this is what it is like I went

00:03:07 ◼   ► from a period in the beginning of 2012

00:03:09 ◼   ► where only about 10% of my revenue

00:03:12 ◼   ► kimkim advertising and now it's getting

00:03:15 ◼   ► close to about 80% now my revenue comes

00:03:17 ◼   ► from advertising and interestingly over

00:03:20 ◼   ► that period in our purchased in revenue

00:03:22 ◼   ► has remained almost they almost constant

00:03:25 ◼   ► like not quite it's certainly gone up

00:03:26 ◼   ► and down but roughly it's been hovering

00:03:29 ◼   ► around 15 to 20 percent of my revenue

00:03:31 ◼   ► and that's kind of fascinating to me

00:03:34 ◼   ► because it shows how in sort of stark

00:03:37 ◼   ► numbers how the App Store has been

00:03:39 ◼   ► changing in a way that I kind of feel

00:03:42 ◼   ► that this has been changing you know

00:03:43 ◼   ► it's kind of the old thing we've talked

00:03:45 ◼   ► about for so long about the race to the

00:03:47 ◼   ► bottom about lack of trials or the death

00:03:52 ◼   ► of a paid model or repeat the devaluing

00:03:54 ◼   ► of software like all these things that

00:03:55 ◼   ► you could kind of the things that we

00:03:57 ◼   ► talked about a software developers I

00:03:58 ◼   ► always find it reassuring where rather

00:04:00 ◼   ► than just kind of like wishy-washy

00:04:01 ◼   ► talking about things to actually look at

00:04:03 ◼   ► the numbers and say like is that

00:04:04 ◼   ► actually true and yeah like as somebody

00:04:07 ◼   ► who has been doing this full-time who's

00:04:09 ◼   ► been doing it with a lot of apps who's

00:04:10 ◼   ► been doing it probably more more

00:04:12 ◼   ► importantly who's tried about every

00:04:15 ◼   ► business model you can think of the ones

00:04:17 ◼   ► that have worked over time has changed

00:04:19 ◼   ► and the business model now that seems

00:04:22 ◼   ► most reliable for me is advertising and

00:04:24 ◼   ► paid sales are now

00:04:26 ◼   ► vanishingly small percentage of my SAP

00:04:28 ◼   ► and even more crazies when I look at the

00:04:30 ◼   ► chart you can see part of what makes a

00:04:31 ◼   ► paid sales so terrible because there's

00:04:35 ◼   ► these massive spikes where I launched a

00:04:36 ◼   ► new out big spike in paid sales and then

00:04:38 ◼   ► it just falls off again and that more

00:04:41 ◼   ► than anything else the thing that I you

00:04:42 ◼   ► know really don't like about paid sales

00:04:44 ◼   ► and how just volatile that is when

00:04:46 ◼   ► you're trying to make a living from it

00:04:47 ◼   ► yeah I mean we've all I mean anybody

00:04:49 ◼   ► who's ever had a paid app in the store

00:04:51 ◼   ► has seen this exact same pattern before

00:04:54 ◼   ► of like you know if you're lucky you

00:04:56 ◼   ► have the launch where you have a decent

00:04:58 ◼   ► spike and then no matter what no matter

00:05:00 ◼   ► how lucky you were at launch it just

00:05:02 ◼   ► drops off after a few days probably at

00:05:05 ◼   ► most and starts to level off into you

00:05:08 ◼   ► know basically a slowly declining

00:05:10 ◼   ► plateau after the Hat of sadness and and

00:05:14 ◼   ► uncertainty and what I found is that

00:05:17 ◼   ► every time you know if I have a paid app

00:05:19 ◼   ► suppose suppose I do like a 2.0 or 3.0

00:05:21 ◼   ► like a major update even if they get a

00:05:24 ◼   ► lot of press I might get spikes on that

00:05:27 ◼   ► day but it's never as high as the

00:05:29 ◼   ► initial launch spike and you know and

00:05:32 ◼   ► like every every spike you have

00:05:34 ◼   ► subsequent to an app's launch is usually

00:05:36 ◼   ► smaller than the one before it

00:05:38 ◼   ► to the point where now like even makes

00:05:40 ◼   ► your holidays don't really impact me at

00:05:41 ◼   ► all like used to be like Christmas used

00:05:43 ◼   ► to be a major sales day and and now like

00:05:45 ◼   ► paid apps don't even do that well it's

00:05:47 ◼   ► it's it's kind of sad really but I guess

00:05:50 ◼   ► it does you know as you're saying here

00:05:52 ◼   ► it really does reflect the the reality

00:05:54 ◼   ► of what people are doing a regardless of

00:05:55 ◼   ► how we think things should be or how we

00:05:58 ◼   ► wish things would be this shows you know

00:06:01 ◼   ► what people are actually doing how

00:06:03 ◼   ► people are choosing to spend money or

00:06:05 ◼   ► not spend money in the App Store I think

00:06:06 ◼   ► is very clear here yeah and I think it

00:06:09 ◼   ► speaks to you also how I look at this

00:06:12 ◼   ► graph and I think to myself how I glad I

00:06:14 ◼   ► am that I've been willing to experiment

00:06:17 ◼   ► a lot because the thing that I I think

00:06:21 ◼   ► is most dangerous in the App Store is

00:06:23 ◼   ► not being flexible and not trying new

00:06:26 ◼   ► things and try not moving around because

00:06:28 ◼   ► they've definitely been times as I've

00:06:30 ◼   ► gone through this we're like oh my god I

00:06:33 ◼   ► really want to do that do I not want to

00:06:34 ◼   ► do that dwell and it's interesting to

00:06:38 ◼   ► see so clearly that if I had

00:06:39 ◼   ► and if I'd been stuck on one model if

00:06:41 ◼   ► I'd said like no this is how I'm gonna

00:06:43 ◼   ► do sell my software you know it just

00:06:45 ◼   ► wouldn't have worked like if my revenue

00:06:46 ◼   ► was just my paid sales number for

00:06:49 ◼   ► example like if that's what I'd stuck to

00:06:51 ◼   ► and committed to you know I would be

00:06:53 ◼   ► consulted at this point almost certainly

00:06:55 ◼   ► I would or I'd be working you know a

00:06:57 ◼   ► nine-to-five job somewhere like there

00:06:59 ◼   ► just is there it would I would not be

00:07:00 ◼   ► able to live on that near diminishing Li

00:07:03 ◼   ► small part of the pie now and so by

00:07:07 ◼   ► being a little bit flexible on that it's

00:07:10 ◼   ► you know reassuring that like that was

00:07:12 ◼   ► the right choice because at the end what

00:07:14 ◼   ► I wanted was to be an independent to be

00:07:16 ◼   ► able to make you know make that software

00:07:17 ◼   ► I want to make and then make a living

00:07:19 ◼   ► from it and to do that it's like this is

00:07:22 ◼   ► this is what this is what that takes and

00:07:24 ◼   ► this is what that looks like now I

00:07:25 ◼   ► suppose yeah I mean you know if you look

00:07:28 ◼   ► at your graph the one that's not like a

00:07:30 ◼   ► hundred percent graph but the one that's

00:07:32 ◼   ► just like a pure spiky graph it's it's

00:07:34 ◼   ► interesting to note that like you

00:07:35 ◼   ► basically are making a pretty similar

00:07:38 ◼   ► salary steadily since about 2013 and if

00:07:42 ◼   ► you subtract the advertising from that

00:07:44 ◼   ► you see what I think most developers

00:07:46 ◼   ► have seen since 2013 which is a slowly

00:07:48 ◼   ► declining curve and and a lot of sadness

00:07:52 ◼   ► as things decline and seemingly can't

00:07:53 ◼   ► get back up so really which were you

00:07:57 ◼   ► know I think which we're gonna talk a

00:07:58 ◼   ► little more about it seems like

00:08:00 ◼   ► advertising is kind of not maybe not

00:08:02 ◼   ► saved you but certainly has been a

00:08:05 ◼   ► massive part of your success over the

00:08:07 ◼   ► last few years and it seems like that is

00:08:10 ◼   ► the kind of the missing part that a lot

00:08:12 ◼   ► of us Indies have not had over the last

00:08:14 ◼   ► few years to keep it steady you know

00:08:16 ◼   ► instead we only have those paid sale and

00:08:19 ◼   ► maybe if we're lucky in our purchase

00:08:20 ◼   ► sales like what you have but they have

00:08:23 ◼   ► about the same shape that your graph has

00:08:24 ◼   ► which is everything's getting harder and

00:08:26 ◼   ► harder and harder and money's just

00:08:28 ◼   ► getting lower and lower over time and

00:08:32 ◼   ► the willingness to experiment is

00:08:34 ◼   ► literally what's making your business

00:08:36 ◼   ► now because you know you can experiment

00:08:38 ◼   ► with different apps but if everyone

00:08:40 ◼   ► experiments with different apps but only

00:08:42 ◼   ► one or two payment models you're missing

00:08:45 ◼   ► out and part of the experimentation like

00:08:47 ◼   ► you know in this in your case

00:08:48 ◼   ► experimenting with ads and various and I

00:08:51 ◼   ► purchase schemes has really helped you

00:08:53 ◼   ► a bit over anybody who just tried to

00:08:55 ◼   ► sell an app for a few bucks and hope

00:08:56 ◼   ► that it works because that can work but

00:08:59 ◼   ► it's certainly a lot harder to make that

00:09:01 ◼   ► work and I think over time it's working

00:09:02 ◼   ► less yeah I think it speaks to also

00:09:05 ◼   ► something that I've found that's like an

00:09:08 ◼   ► unintended benefit of advertising for me

00:09:10 ◼   ► is the reliability of the income that it

00:09:14 ◼   ► gives and that's certainly not to say

00:09:15 ◼   ► that it's always been this like it's not

00:09:17 ◼   ► the same day-to-day and advertising is

00:09:19 ◼   ► notorious for especially the first day

00:09:22 ◼   ► of a new financial quarter and

00:09:24 ◼   ► especially the first day of a new year

00:09:25 ◼   ► falling off cliffs because everyone's ad

00:09:29 ◼   ► budgets kind of a big a you know they

00:09:31 ◼   ► spend them up and then you get to the

00:09:32 ◼   ► end of the month day and if a quarter

00:09:34 ◼   ► and they're like oh no we got all this

00:09:35 ◼   ► money let's just spend it and your rates

00:09:36 ◼   ► go up nicely and then the first you know

00:09:38 ◼   ► like you get you hit that January

00:09:40 ◼   ► February March and then all of a sudden

00:09:42 ◼   ► like if they just falls off so it's not

00:09:44 ◼   ► like it's completely reliable and once

00:09:45 ◼   ► you've been through one of those crazy

00:09:46 ◼   ► cliffs once or twice you kind of know

00:09:48 ◼   ► what you're looking for looking at but I

00:09:50 ◼   ► find fascinating is on a day to day

00:09:52 ◼   ► basis these my sales income from paid

00:09:55 ◼   ► things where I'm relying on somebody to

00:09:57 ◼   ► open their wallet and hand me and me $2

00:10:00 ◼   ► the variability I found between that is

00:10:03 ◼   ► is it always been way higher than from

00:10:06 ◼   ► advertising base and I think it's

00:10:07 ◼   ► largely because advertising is

00:10:09 ◼   ► functionally a measure it's like this

00:10:11 ◼   ► rough measure of the engagement of users

00:10:15 ◼   ► in my application you know how many

00:10:16 ◼   ► times they're opening it how long

00:10:17 ◼   ► they're opening it like it's that

00:10:19 ◼   ► overall usage number and the that number

00:10:24 ◼   ► is very stable to a certain point that

00:10:27 ◼   ► you know you hope you had your app has a

00:10:30 ◼   ► I guess it brings on more users than it

00:10:34 ◼   ► loses as you go you know suit that you

00:10:38 ◼   ► want you need those downloads at the

00:10:39 ◼   ► beginning and then you have some kind of

00:10:40 ◼   ► retention over time that you know some

00:10:42 ◼   ► people will stop using your app and then

00:10:44 ◼   ► they're replaced hopefully by new people

00:10:46 ◼   ► and if that number is gradually working

00:10:48 ◼   ► its way up in order for your income to

00:10:50 ◼   ► go down like obviously the rates can

00:10:52 ◼   ► drop which sometimes happens but usually

00:10:54 ◼   ► they're fairly stable and so as a result

00:10:55 ◼   ► your income just becomes fairly flat

00:10:59 ◼   ► because it's only increasing or

00:11:02 ◼   ► decreasing by the very slow adjustments

00:11:05 ◼   ► from the amount of new users you get

00:11:07 ◼   ► in the numbered users that you're losing

00:11:09 ◼   ► and so if you have a big spike in new

00:11:12 ◼   ► users it's like yay that won't actually

00:11:14 ◼   ► make a big difference to your revenue

00:11:16 ◼   ► that day though it's like it that read

00:11:18 ◼   ► that ripped that spike gets averaged out

00:11:20 ◼   ► over the next you know a few months as

00:11:22 ◼   ► your daily active sessions or whatever

00:11:26 ◼   ► the right measure would be slowly works

00:11:28 ◼   ► its way up and you know say you make a

00:11:30 ◼   ► change and people don't like it and they

00:11:32 ◼   ► leave the app it's like that'll likely

00:11:34 ◼   ► I'll be offset and the same thing like

00:11:36 ◼   ► that that it's a gradual decline and

00:11:39 ◼   ► that as a develop as an independent as

00:11:41 ◼   ► somebody who makes you like who pays my

00:11:43 ◼   ► mortgage with my app revenue that is so

00:11:47 ◼   ► reassuring that if this feeling that I

00:11:49 ◼   ► don't have to check my sales report

00:11:51 ◼   ► every day and worry that you know it's

00:11:54 ◼   ► like it is has this been a good weekend

00:11:56 ◼   ► has this like for a while had apps that

00:11:58 ◼   ► would do really well on Sundays and you

00:12:01 ◼   ► know I'd have a sometimes I'd have a

00:12:02 ◼   ► Sunday where it's something like my

00:12:04 ◼   ► sales just wouldn't be what they were

00:12:05 ◼   ► and it's like whoa like there goes 15%

00:12:08 ◼   ► of my weekly revenue because it was a

00:12:11 ◼   ► holiday or because there was an issue on

00:12:14 ◼   ► the app store and payments weren't

00:12:15 ◼   ► processing for a few hours which is

00:12:17 ◼   ► something that's happened before and you

00:12:19 ◼   ► look at those whoa this is really scary

00:12:21 ◼   ► at least with advertising and that kind

00:12:23 ◼   ► of a model and you'd say in some ways

00:12:25 ◼   ► subscriptions have a similar kind of

00:12:26 ◼   ► feel to them but it's lovely to have the

00:12:29 ◼   ► sense of these slow and slow increases

00:12:32 ◼   ► and slow decreases over time rather than

00:12:34 ◼   ► these huge spikes that are up and down

00:12:36 ◼   ► which are just so stressful our sponsor

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00:13:19 ◼   ► I've used them for a very long time now

00:13:20 ◼   ► and one of the things that they just

00:13:22 ◼   ► mentioned here in the script they're

00:13:23 ◼   ► resizing I had to do that recently and I

00:13:26 ◼   ► thought for sure I mean as an old

00:13:29 ◼   ► computer user I thought there is no

00:13:31 ◼   ► chance resizing a disk partition is

00:13:33 ◼   ► going to work it's just there's no

00:13:35 ◼   ► chance for that so I tried it first on a

00:13:37 ◼   ► server that didn't matter very much and

00:13:39 ◼   ► you have to power down the server to do

00:13:42 ◼   ► it but then it just kind of happens and

00:13:45 ◼   ► then you power the server back up and

00:13:47 ◼   ► it's fine and you it's just there you

00:13:49 ◼   ► don't have to like remap your disk or

00:13:51 ◼   ► reef repartition things it just works

00:13:53 ◼   ► and I've now I was so blown away by how

00:13:55 ◼   ► well it worked I've now done that on

00:13:57 ◼   ► like five or six occasions on some very

00:14:00 ◼   ► important servers including all of my

00:14:01 ◼   ► databases now and it worked perfectly

00:14:04 ◼   ► every time

00:14:05 ◼   ► the fact that can resize it is I know

00:14:06 ◼   ► that you know maybe this sounds crazy to

00:14:08 ◼   ► like young people who have always used

00:14:10 ◼   ► amazing services like this but I never

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00:14:47 ◼   ► off thank you very much to Linode for

00:14:49 ◼   ► supporting this show all right so we've

00:14:51 ◼   ► been talking about ads and your

00:14:54 ◼   ► transition to a diversified income

00:14:56 ◼   ► stream that includes ads in your apps

00:14:58 ◼   ► and this got me thinking a while back

00:15:02 ◼   ► you know maybe I should try ads in

00:15:05 ◼   ► overcast because the problem I was

00:15:08 ◼   ► facing so I wrote this big blog post

00:15:11 ◼   ► kind of explaining all this in more

00:15:12 ◼   ► detail but overcast has had you know

00:15:16 ◼   ► three business models now though the

00:15:18 ◼   ► first year roughly it was you know I

00:15:21 ◼   ► always wanted to be free upfront because

00:15:23 ◼   ► I have a lot of reasons why I want this

00:15:26 ◼   ► why basically market share is more

00:15:28 ◼   ► important to me than total revenue for

00:15:30 ◼   ► this app I really want max

00:15:32 ◼   ► market share and I'll try to get enough

00:15:34 ◼   ► revenue somehow once I have that so I

00:15:36 ◼   ► have the very first year I have you know

00:15:39 ◼   ► free upfront and you get some of the

00:15:41 ◼   ► features but you don't really get the

00:15:43 ◼   ► best features things like smart speed

00:15:45 ◼   ► and voice boost and like full playlists

00:15:47 ◼   ► and everything like it was pretty

00:15:48 ◼   ► limited and it was really annoying with

00:15:50 ◼   ► with like how much in the app it was

00:15:51 ◼   ► limited it basically it was not a very

00:15:54 ◼   ► good app in this limited state and yet

00:15:57 ◼   ► the vast majority of my users were using

00:15:59 ◼   ► it in that state because most people

00:16:01 ◼   ► didn't buy the one-time $5 an app

00:16:03 ◼   ► purchase to unlock the cool stuff so

00:16:07 ◼   ► trying to combat that problem about a

00:16:09 ◼   ► year ago I switched to every feature was

00:16:12 ◼   ► free and you just pay me what you want

00:16:15 ◼   ► basically I did a monthly subscription a

00:16:19 ◼   ► dollar a month and you could buy it

00:16:20 ◼   ► ahead as long as you wanted it was not

00:16:22 ◼   ► renewing it was the you know the old

00:16:23 ◼   ► kind of solution where it doesn't auto

00:16:25 ◼   ► renew so you basically just you know buy

00:16:27 ◼   ► it for five years if you wanted to give

00:16:28 ◼   ► me a bunch of money or just buy it for

00:16:29 ◼   ► three months if you wanted to try it out

00:16:31 ◼   ► but you didn't get anything for that and

00:16:33 ◼   ► I was kind of banking on people's

00:16:35 ◼   ► goodwill and it did work just not enough

00:16:38 ◼   ► it it did work enough to get me a little

00:16:42 ◼   ► over like I think just about one and a

00:16:45 ◼   ► half percent or so or two percent

00:16:47 ◼   ► roughly of of users to actually pay and

00:16:51 ◼   ► subscribe but that was not really enough

00:16:54 ◼   ► to really bring in meaningful revenue

00:16:56 ◼   ► over time so instead I switched about

00:17:00 ◼   ► six months ago I added a couple of

00:17:03 ◼   ► features that had been very highly

00:17:04 ◼   ► requested the main main one of which was

00:17:06 ◼   ► dark mode a whole dark theme of the app

00:17:09 ◼   ► i out of that too the app a that six

00:17:11 ◼   ► months ago and that I added it only for

00:17:13 ◼   ► people who were paying the voluntary

00:17:15 ◼   ► patronage and that was weird for a

00:17:17 ◼   ► number of reasons I mean first of all

00:17:19 ◼   ► now it's still called patronage but now

00:17:22 ◼   ► you get perks and so that's a little bit

00:17:24 ◼   ► odd a lot of people have ejected to the

00:17:26 ◼   ► terminology there and I understand why

00:17:29 ◼   ► and then a lot of people are mad because

00:17:32 ◼   ► people who had bought the original

00:17:34 ◼   ► five-dollar unlock everything purchased

00:17:36 ◼   ► the year earlier were very mad that here

00:17:38 ◼   ► was a new feature that they did not get

00:17:40 ◼   ► they were extremely mad and I heard from

00:17:42 ◼   ► them constantly even literally for the

00:17:44 ◼   ► last six months like it never stopped I

00:17:45 ◼   ► kept here

00:17:46 ◼   ► from them and so I don't want to make my

00:17:47 ◼   ► early customers so mad and then and then

00:17:51 ◼   ► the final problem was even that while it

00:17:53 ◼   ► did provide a nice bump to the number of

00:17:55 ◼   ► people who were paying it didn't provide

00:17:57 ◼   ► enough of a bump to make it really a

00:17:59 ◼   ► sustainable good income so I could

00:18:02 ◼   ► sustain the service on that just barely

00:18:03 ◼   ► but but I really need more to to both do

00:18:08 ◼   ► what I want to do with it and to justify

00:18:10 ◼   ► pouring a lot a lot of my time into it

00:18:12 ◼   ► rather than having to start exploring

00:18:13 ◼   ► new projects so I decided ads were worth

00:18:18 ◼   ► a try because as you said like ads make

00:18:21 ◼   ► a lot of sense now you know there's a

00:18:23 ◼   ► reason why so much that we that we

00:18:26 ◼   ► consume and use in today's technology

00:18:28 ◼   ► world is ad funded there's a big reason

00:18:31 ◼   ► for that and that is that you know you

00:18:34 ◼   ► basically anybody can use everything

00:18:36 ◼   ► they want for free you just have to

00:18:38 ◼   ► tolerate these ads and most people don't

00:18:41 ◼   ► mind ads you know I don't know anybody

00:18:43 ◼   ► who loves ads but most people don't mind

00:18:45 ◼   ► like they know people will give will

00:18:48 ◼   ► take that trade off if the trade off is

00:18:50 ◼   ► I would rather not pay but I'll take ads

00:18:53 ◼   ► or you can pay and then you won't see

00:18:56 ◼   ► ads most people will choose the the add

00:18:58 ◼   ► option there because they don't want to

00:19:00 ◼   ► pay and that's fine it seemed to make a

00:19:02 ◼   ► lot of sense the the the main risk to

00:19:05 ◼   ► this was of course that here I had this

00:19:08 ◼   ► app that is very well regarded by a lot

00:19:11 ◼   ► of people very it's used by a lot of

00:19:13 ◼   ► people many of whom were very strongly

00:19:14 ◼   ► opinionated and it looks you know had a

00:19:17 ◼   ► good design you know has it has a good

00:19:19 ◼   ► design it looks nice and a lot of people

00:19:22 ◼   ► were going to see me triads and I've had

00:19:24 ◼   ► various opinions of ads over the years

00:19:26 ◼   ► and again I I don't love them either but

00:19:29 ◼   ► I consider them kind of the the

00:19:30 ◼   ► acceptable trade-off for what we're

00:19:32 ◼   ► doing here so I was very very scared to

00:19:36 ◼   ► release this this was this was the most

00:19:38 ◼   ► nervous I've ever been about really seen

00:19:40 ◼   ► anything since I've done a 1.0 and I

00:19:42 ◼   ► released it and overall the the reaction

00:19:46 ◼   ► was better than I expected it was it's

00:19:49 ◼   ► not great I wouldn't say it's a great

00:19:51 ◼   ► reaction but I would say it's a lot less

00:19:54 ◼   ► horrible than I was predicting and that

00:19:56 ◼   ► I was prepared for my star rating is in

00:19:59 ◼   ► the crapper

00:20:00 ◼   ► this was the this is the first time

00:20:02 ◼   ► overcast has ever had a star rating

00:20:04 ◼   ► below four-and-a-half I believe now I'm

00:20:06 ◼   ► at two and a half something like that

00:20:08 ◼   ► so my ratings destroyed and that's gonna

00:20:10 ◼   ► hurt me a lot I hope that's only

00:20:12 ◼   ► temporary we will find out I'm getting a

00:20:14 ◼   ► lot of angry emails and tweets and lots

00:20:17 ◼   ► of them lots of people who are not very

00:20:20 ◼   ► kind about about this change but on the

00:20:23 ◼   ► other hand I've gotten a whole lot of

00:20:24 ◼   ► people who are totally ok with it and

00:20:27 ◼   ► like that there's no longer this weird

00:20:29 ◼   ► difference between like special features

00:20:32 ◼   ► that patrons get and you know and this

00:20:35 ◼   ► weird terminology of patron eggs that

00:20:38 ◼   ► even though it is also including special

00:20:40 ◼   ► features so now I simplified things so

00:20:44 ◼   ► now you have these ads and if you don't

00:20:46 ◼   ► want to see ads and then down the road I

00:20:48 ◼   ► might add a few little things here but

00:20:49 ◼   ► if you don't want to see ads you can buy

00:20:51 ◼   ► the annual subscription which is a new

00:20:53 ◼   ► Auto renewing kind and it's just called

00:20:55 ◼   ► overcast premium so no more like patron

00:20:57 ◼   ► eggs wording like you know no more

00:20:59 ◼   ► messing with ideas of you know goodwill

00:21:02 ◼   ► or charity over in that area because

00:21:05 ◼   ► that was as I said problematic for a lot

00:21:06 ◼   ► of people now it's just called premium

00:21:09 ◼   ► you pay ten bucks a year you get ads

00:21:10 ◼   ► this is a simplification even from the

00:21:13 ◼   ► previous subscriptions they were a

00:21:15 ◼   ► dollar a month so it was twelve dollars

00:21:17 ◼   ► a year if you paid annually this is even

00:21:19 ◼   ► cheaper ten ten dollars a year because

00:21:21 ◼   ► it's nice and simple you know and I even

00:21:24 ◼   ► adjusted on all the different currencies

00:21:25 ◼   ► around the world so that like a lot of

00:21:26 ◼   ► the Euro based ones we're gonna be like

00:21:28 ◼   ► ten fifty euro and I said now just you

00:21:31 ◼   ► know $9.99 is fine or 10 even whatever

00:21:33 ◼   ► it is so made it very simple much

00:21:36 ◼   ► clearer wording and a much honestly

00:21:38 ◼   ► simpler business model there's ads in

00:21:40 ◼   ► the app if you want to get rid of them

00:21:41 ◼   ► you pay me ten bucks a year the the

00:21:44 ◼   ► amazing thing about this is that I get

00:21:46 ◼   ► recurring revenue from anybody who's

00:21:48 ◼   ► actually using the app so I'm getting it

00:21:50 ◼   ► somewhere whether it's the ad or whether

00:21:52 ◼   ► it's subscriptions I'm getting recurring

00:21:53 ◼   ► revenue from usage and it's exactly what

00:21:55 ◼   ► you said earlier David it's like you

00:21:57 ◼   ► know I'm incentivized to keep people

00:22:00 ◼   ► using the app and to make the app good

00:22:02 ◼   ► enough the people keep coming back and

00:22:04 ◼   ► using it I don't I know longer have an

00:22:06 ◼   ► incentive of like what am I gonna do to

00:22:08 ◼   ► push people over the over like the next

00:22:10 ◼   ► big version or what kind of crazy

00:22:12 ◼   ► features can I come up with that'll make

00:22:14 ◼   ► pay and you know anger everybody else

00:22:16 ◼   ► like I really have to make the app

00:22:18 ◼   ► better now and as long as I do that I

00:22:20 ◼   ► make money from everybody who uses it

00:22:23 ◼   ► and it's not like a massive amount more

00:22:25 ◼   ► money but it is more and and the ads you

00:22:29 ◼   ► know it's a little early to say how well

00:22:30 ◼   ► the ads are working because it's only

00:22:31 ◼   ► been a few days since I've had them in

00:22:32 ◼   ► but even in these few days I've gotten a

00:22:35 ◼   ► ton of more of more subscriptions it's

00:22:39 ◼   ► not you know I haven't like doubled or

00:22:41 ◼   ► anything and but that might happen who

00:22:43 ◼   ► knows I haven't doubled yet but I

00:22:45 ◼   ► certainly have a lot more subscribe or

00:22:47 ◼   ► subscribers these are also now all in

00:22:50 ◼   ► the new apple autumn renewing system so

00:22:51 ◼   ► that means a year from now if they still

00:22:53 ◼   ► subscribe I will get 85 percent instead

00:22:55 ◼   ► of 70 percent from them which is a big

00:22:57 ◼   ► deal

00:22:57 ◼   ► and the ads are kind of making up the

00:23:00 ◼   ► difference of you know trying to give me

00:23:03 ◼   ► some money for everyone who's not a

00:23:05 ◼   ► subscriber and you know right now the

00:23:07 ◼   ► amount of money the ads are making is

00:23:08 ◼   ► fairly modest but you know it's still

00:23:10 ◼   ► very early and I still could experiment

00:23:12 ◼   ► with different placements of the ad

00:23:14 ◼   ► different formats of ads things like

00:23:16 ◼   ► that and I think it's ended up working

00:23:20 ◼   ► out the I mean I'm going to have to

00:23:22 ◼   ► figure out how the heck to make

00:23:23 ◼   ► everybody happy enough to stop giving me

00:23:24 ◼   ► 1 star reviews and sending me nasty

00:23:26 ◼   ► emails because my star rating is as I

00:23:28 ◼   ► mentioned down from four and a half to

00:23:30 ◼   ► two and a half with a very large volume

00:23:34 ◼   ► so I don't know about that but the rest

00:23:36 ◼   ► of it seems to be working ok sure and

00:23:39 ◼   ► the reality is - it's the awkward thing

00:23:41 ◼   ► of so much of this is coming I think

00:23:43 ◼   ► from the change in business model like

00:23:47 ◼   ► if this was if the app that you just

00:23:49 ◼   ► released were overcast 1.0 I doubt you

00:23:53 ◼   ► would have that same negativity because

00:23:55 ◼   ► that's just the nature of these things

00:23:57 ◼   ► where people are like oh I had this

00:23:59 ◼   ► thing it's like you were giving me this

00:24:00 ◼   ► great app for free with nothing in with

00:24:02 ◼   ► no impingement at all upon me now it's a

00:24:05 ◼   ► free app that is impinging on me

00:24:07 ◼   ► slightly by showing me you know ads at

00:24:09 ◼   ► the tops of some of the lists and so

00:24:12 ◼   ► that change it's like it feels like

00:24:13 ◼   ► you've taken something from me which

00:24:15 ◼   ► we've done really but you know that's

00:24:17 ◼   ► the way it feels I imagine and so you

00:24:19 ◼   ► know over time I suppose in some ways

00:24:20 ◼   ► it's one of the nice things where well

00:24:22 ◼   ► one day I would love for the App Store

00:24:24 ◼   ► to do like a rolling average of reviews

00:24:25 ◼   ► the next time you do an update your

00:24:27 ◼   ► review

00:24:28 ◼   ► we'll reset again and you can hopefully

00:24:30 ◼   ► put a lot of these one stars behind you

00:24:32 ◼   ► you know and just sort of go from there

00:24:35 ◼   ► yeah I think that's really you know what

00:24:38 ◼   ► I'm doing here I mean and a lot of

00:24:41 ◼   ► people have asked why I why I didn't

00:24:43 ◼   ► release this as part of a bigger 3.0

00:24:45 ◼   ► update and I think the results speak for

00:24:47 ◼   ► themselves if I have leased this as part

00:24:50 ◼   ► of a whole bunch of other features and

00:24:51 ◼   ► changes and a big push similar to

00:24:54 ◼   ► Apple's headphone jack thing the story

00:24:56 ◼   ► would have been all about the ads and

00:24:59 ◼   ► the star ratings would have been all

00:25:01 ◼   ► about the ads and the reviews would be

00:25:02 ◼   ► all about the ads and I feel like that I

00:25:05 ◼   ► I'm better off making this transition to

00:25:07 ◼   ► ad based now while I'm still in the

00:25:10 ◼   ► two-point X series and then when I do a

00:25:12 ◼   ► big 3.0 release down the road hopefully

00:25:14 ◼   ► not too far down the road but when I do

00:25:16 ◼   ► it down the road this story will already

00:25:19 ◼   ► include like people who write about

00:25:20 ◼   ► overcast people who review or guys

00:25:22 ◼   ► people who use overcast will all already

00:25:24 ◼   ► know okay this happens I had driven so

00:25:26 ◼   ► that that'll be old news you know just

00:25:27 ◼   ► like the headphone jack thing and the

00:25:29 ◼   ► iPhone this week you know we all knew

00:25:30 ◼   ► about it months ago so now it's old news

00:25:32 ◼   ► I'm real kind of accepting it and moving

00:25:34 ◼   ► on and just evaluating the iPhone on its

00:25:35 ◼   ► other merits that's how this is gonna be

00:25:37 ◼   ► I think with overcast 3.0 that you know

00:25:39 ◼   ► I'm going to be able to now do things

00:25:42 ◼   ► freely and and make the app great on its

00:25:45 ◼   ► own merits and the story won't won't be

00:25:48 ◼   ► just about the ads when I finally launch

00:25:50 ◼   ► it and perhaps even more over it seems

00:25:52 ◼   ► like imagine no not to speak for you but

00:25:55 ◼   ► there's a slightly better incentive for

00:25:56 ◼   ► you to really put that work into 3.0

00:25:59 ◼   ► because if it if it feels more

00:26:02 ◼   ► sustainable and viable it's not like

00:26:04 ◼   ► doesn't feel like you're just putting

00:26:05 ◼   ► more time after something that kind of

00:26:07 ◼   ► is slowly decaying over time that you're

00:26:09 ◼   ► just kind of you put all this effort

00:26:11 ◼   ► into a 3.0 all these new features all

00:26:13 ◼   ► those big updates and then it's like and

00:26:15 ◼   ► it's not actually gonna make any

00:26:17 ◼   ► difference at the end of the day like

00:26:18 ◼   ► you could just leave the app as it is

00:26:19 ◼   ► now and hope for the best that is

00:26:21 ◼   ► entirely correct I mean I I was really

00:26:23 ◼   ► you know not not in a very good

00:26:25 ◼   ► psychological place about the app before

00:26:26 ◼   ► long stats because revenue was just flat

00:26:29 ◼   ► and and flat at not a particularly great

00:26:32 ◼   ► level and I didn't really know what else

00:26:33 ◼   ► to do it felt hopeless and now I have

00:26:36 ◼   ► this big influx of subscribers and I

00:26:38 ◼   ► have this nice little kind of side money

00:26:39 ◼   ► from the ads

00:26:41 ◼   ► and that is amazing and that has a

00:26:43 ◼   ► little fire under me now you're totally

00:26:45 ◼   ► right it has totally turned around my

00:26:47 ◼   ► motivation I'm not thinking of like Oh

00:26:49 ◼   ► what other apps could I make to make

00:26:50 ◼   ► more money no now I'm just thinking how

00:26:53 ◼   ► do I make this even more amazing and I

00:26:55 ◼   ► have had an amazingly productive few

00:26:57 ◼   ► days since since launching me HAP's

00:26:59 ◼   ► arson selection the ads rather of just

00:27:02 ◼   ► making the app incredibly better like

00:27:05 ◼   ► getting a lot of stuff done on 3.0

00:27:06 ◼   ► working through like some navigation

00:27:08 ◼   ► changes and making some like custom

00:27:09 ◼   ► animations and you know cool stuff like

00:27:11 ◼   ► that that that you that you can kind of

00:27:13 ◼   ► only do if you're making money or if you

00:27:16 ◼   ► if you think you're going to make money

00:27:17 ◼   ► I don't have like investing into it not

00:27:19 ◼   ► just like bullet point features but like

00:27:21 ◼   ► polish and fun new things and rethinking

00:27:25 ◼   ► some of the design aspects and and you

00:27:28 ◼   ► know I'm making I made the watch app a

00:27:30 ◼   ► lot better you know for 3.0 also and now

00:27:32 ◼   ► I can think about adding it today widget

00:27:34 ◼   ► and all this bogus that now just called

00:27:35 ◼   ► widgets all this stuff that I can now do

00:27:37 ◼   ► because there's money coming in and at a

00:27:41 ◼   ► reasonable rate now that I can I can be

00:27:43 ◼   ► relatively assured of its future and and

00:27:46 ◼   ► that's something I couldn't say before

00:27:47 ◼   ► and and that made me you know honestly

00:27:49 ◼   ► quite sad pretty much all all summer as

00:27:52 ◼   ► I watched the sales just kind of

00:27:53 ◼   ► flattened but now things have turned

00:27:55 ◼   ► around and I am kind of on fire now and

00:27:59 ◼   ► I'm like plowed through and doing all

00:28:01 ◼   ► sorts of great stuff and it feels great

00:28:02 ◼   ► and I think in the long run you know

00:28:04 ◼   ► even though right now it is quite

00:28:06 ◼   ► painful to see my rating go goes so far

00:28:08 ◼   ► down the tubes and to get all these

00:28:09 ◼   ► angry messages from people but I think

00:28:11 ◼   ► long term it will be better for my users

00:28:14 ◼   ► overall yeah and I think the thing that

00:28:16 ◼   ► I love so much about this change is like

00:28:18 ◼   ► you answer with are what they are like

00:28:19 ◼   ► you can sometimes I feel like we can

00:28:20 ◼   ► moralize about them and get all like

00:28:22 ◼   ► fancy about it but at the end of the day

00:28:23 ◼   ► they're just a tool for businesses to

00:28:25 ◼   ► make money and what I love though is

00:28:27 ◼   ► that it lets you like with the things

00:28:29 ◼   ► that you're talking about the thing that

00:28:30 ◼   ► I love about that is it's allowing you

00:28:32 ◼   ► to not have to make this big case of

00:28:35 ◼   ► like I always hate the three-point owes

00:28:36 ◼   ► that feel like it's like the kitchen

00:28:38 ◼   ► it's like everything in the kitchen sink

00:28:39 ◼   ► right it's just I have to have these I

00:28:42 ◼   ► have I did all my good features in

00:28:43 ◼   ► version 1 I can made up some other stuff

00:28:45 ◼   ► for version 2 version 3 here's just

00:28:47 ◼   ► everything else I could think of is just

00:28:48 ◼   ► an assault by feature checklist it's

00:28:50 ◼   ► like now you can just say you know I'm

00:28:52 ◼   ► just gonna polish I'm just gonna keep

00:28:54 ◼   ► polishing this and

00:28:55 ◼   ► make it better and better and better

00:28:56 ◼   ► because I'm not trying to upsell you on

00:28:59 ◼   ► a paid upgrade I'm not trying to do

00:29:00 ◼   ► something like that I just want to make

00:29:01 ◼   ► the app as like the absolute best it can

00:29:04 ◼   ► be

00:29:04 ◼   ► and that sounds like an awesome place

00:29:06 ◼   ► for you to be it really man it feels

00:29:08 ◼   ► great I mean you've been here before I'm

00:29:10 ◼   ► sure like it feels great and so I'm I'm

00:29:12 ◼   ► just so happy to finally kind of be like

00:29:14 ◼   ► be back in it again and and to feel good

00:29:16 ◼   ► about its financial future again it's

00:29:19 ◼   ► awesome all right well here's hoping it

00:29:21 ◼   ► goes well and we're out of time this

00:29:23 ◼   ► week thank you everybody for listening

00:29:25 ◼   ► and we will talk to you next week bye