Reprinted with permission from Openspace – www.openspacestore.com. The app store for you, not your device – Add-ons for all browsers now being accepted.

We’ve all been loudly prognosticating the coming death of the Web and its URLs as a result of the meteoric rise of apps and their lovable little Internets. There is no doubt that we are witnessing tectonic shifts in the way the average consumer uses the Web, but for the time being, the Web and its browsers continue to provide ample fodder for the add-on market. Though the use of apps grew exponentially in 2010 across the board, if we compare the download data for top add-ons and extensions on Firefox and Chrome with a top mobile app, like the formidable Angry Birds, the numbers may surprise you.

In November 2010, Angry Birds announced that it had reached 30 million downloads on mobile devices. Over the 11 month period since its launch, Angry Birds was downloaded (on average) 2.7 million times each month, and approximately 681,000 times each week. Okay, that’s darn impressive.

However, in comparison, the most-downloaded add-on for both Firefox and Google Chrome is Addblock Plus, which is currently averaging nearly 1 million downloads each week on Firefox and over 1.2 million downloads each week on Chrome. For Internet Explorer, the top add-on is Google Toolbar, which is averaging over 4.2 million downloads per week. Take that, Angry Birds! As you can see, the user base for add-ons and extensions continues to grow, almost hand-in-hand with the growing proliferation of apps.

The potential market for browser-based apps and add-ons continued to grow in 2010 as well: In terms of user statistics, Google announced in December that Chrome has reached the 120 million active users mark. While December numbers are not available for Firefox, in May, Mozilla said that Firefox had a user base of roughly 400 million. Data is not available for all IE iterations, but we do know that IE 9 beta has been downloaded 20 million times since its launch in September, and estimates show that IE may well be closing in on 1 billion total users.
http://www.crn.com/news/applications-os/229000014/microsoft-internet-explorer-9-beta-reaches-20-million-downloads.htm;jsessionid=tJ3pAyz+D0qAX4v8YA1KUg**.ecappj03

The mobile market, too, is expanding like wildfire. According to comScore’s November numbers, surfing the Web on mobile phones is becoming increasingly common among mobile phone users. Web browsing was the second-leading mobile activity, after texting, with more than 35 percent of mobile users searching the Web in September — a 2.2 percent increase over July — just slightly more than the 33.4 percent of mobile users who downloaded an application during the same time period.

So, at least for the time being, mobile web browsing is outpacing mobile app usage, which just goes to show that the browser itself may not yet be a legacy concept as some have claimed. With the launch of Google’s Chrome Web Store in December, which, beyond selling apps, allows developers to upload (and sell!) add-ons and extensions, web app stores symbolize an important monetization and distribution platform for add-on developers as.

More people are using browsers, apps, app stores on the Web and on their mobile devices than ever before, providing add-on developers with a nearly infinite market. The numbers are overwhelmingly encouraging, and so it seems the future of add-ons and extensions is bright!

Every year our goal is to set an agenda that pushes the conversation forward. This was especially true this year, given the changes in the way the average consumer uses the web today. To accomplish this we set keynotes that explored macro trends in user behavior, monetization, and product strategy across multiple platforms.

It was clear from keynotes, sessions, and hallway conversations that the changes impacting the web are creating new challenges and new opportunities for our industry.

We’d like to thank the conference’s platinum sponsors – Google, Mozilla, and Opera. Without their involvement and support the event simply would not happen. Additionally, we’d like to thank our speakers who took time from busy schedules to share insights on the new technologies and macro trends that are impacting our industry.

Finally, I’d like to quickly thank Robert from all of us. He has been the heart and soul of the conference since the beginning and a community builder for our industry for years.

See you all in 2011!

As the founders of Add-on-Con, it is our opinion that there’s a growing chasm between the current state of the add-on browser ecosystem and the evolution of the Web.

We think that add-on developers are increasingly focused on a legacy concept, the browser itself and the URL, and that this concentration is detrimental to the add-on ecosystem. Instead, we posit that developers should be more focused on creating applications that enhance the user experience of the Internet. This has not been an easy conclusion for us to reach, as our event is sponsored by browser vendors and is held for attendees that build software that extend the functionality of the browser itself.

The two do not have to be mutually exclusive, however, and as program chairs, we have struggled over the past few years with how the browser add-on business will compete and evolve in the face of the meteoric growth of the mobile web, large web properties, and the coming appification of the web.

Last year Add-on-Con focused on marketplaces, and overwhelming the community came to the conclusion that distribution and monetization are part of the problem facing the current add-on ecosystem, but they are not the actual root cause. To identify the real problem, one must revisit what the data revealed in the Wired article: Thanks to new technologies, improved standards, and the proliferation of connected devices, the Web is evolving beyond the URL.

The movements of big players in the industry indicate that this shift away from the traditional browser/URL model is already underway. On the browser vendor side, Google’s Chrome Web Store and Mozilla’s recently announced Open Web App Ecosystem are initiatives that signify a new identity for the Web and its browsers. Today, leading add-on companies have augmented their strategies with websites, widgets, and mobile and desktop apps.

Over the past two years, the community has assembled every December to discuss solutions to the obstacles facing the ecosystem. The goal of this year’s conference is to move the conversation away from extending the browser to one that discusses how we can make the Internet a better place for work, play and research.

The Internet has changed how people communicate and share and now it is undergoing a transformation of its own. The “appification” of the Web is a major contributor to this shift, and the actions of the browser vendors and leading add-on companies reflect this change in priorities. The question we have to ask ourselves as engineers and marketers, “are we ready to embrace this change?”

Join us on Dec 8 and 9 in Mountain View to explore life beyond port 80.

Broadened Focus, Expanded Keynotes, Deeper Insights

Add-on-Con is broadening its focus via a new, two-day format. A pre-conference day has been added to the agenda that’s filled with in-depth training sessions on the latest technologies, frameworks and implementation practices.

Complimenting the keynotes are sessions focused specifically for developers and marketers. The individual sessions will provide practical lessons learned that can be applied today.

Play Start-up: The Game to win 2 free tickets
Play Start-up: The Game and if you find your way to the top of the leaderboard you’ll win 2 free tickets to the conference. Collect users, press, and revenue while avoiding bugs and navigate your start-up to a dominant market position against other attendees.

Register early and save.
Register before October 31 for a discounted rate to Add-on-Con 2010.
Join Mozilla on the evening of December 8th for food, drinks and fun to kick off Add-on-Con. Details to come…

Add-on-Con’s Platinum Sponsors

Mozilla
Mozilla is an international non-profit organization and a global community dedicated to improving the Internet experience for people everywhere. We create free, open source products and technologies through highly disciplined, transparent and cooperative process. Everything we create is a public asset available for others to use, adapt and improve. The result is great products built by passionate people – and better choices for everyone. For more information, visit www.mozilla.com.

Google
Google’s innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top web property in all major global markets. Google’s targeted advertising program provides businesses of all sizes with measurable results, while enhancing the overall web experience for users. Google is headquartered in Silicon Valley with offices throughout the Americas, Europe and Asia. For more information, visit www.google.com.

Apps are great marketing tools. Done right, they are a compelling, interactive method for engaging end-users with your content, functionality and brand. Getting your app noticed is the challenge.

The quote, “If you build it, they will come,” doesn’t really apply to most apps. You need to be sure when building your app, that it has a gripping user experience and meets the goals of your business.

Before you begin building, ask yourself some key questions:

• What would you like to accomplish through this app? Brand awareness? Engagement? Customer acquisition?
• What is the best content on your website? Breaking news? E-commerce? Social media?
• For what topics can your organization claim industry expertise?
• What kind of functionality could better communicate your content, for example, podcasts, games, chat, or feeds?
• What is the best deployment option for your app? Is your functionality location-based? Or do you have functionality that interacts well with web content (like coupons on an e-tail site)? Your answer will determine if you must use software developers to build your app or if you can do it yourself on a cross-browser platform like Conduit or Widgetbox.

Next, you will need a marketing strategy for your app. Here are some key elements to keep in mind:

1. Customer acquisition: How are you making your app more visible to your target audience? Consider some of the ways to promote your app:

• Put the app on the home page of your website. That should be a no-brainer, but you would be surprised how many apps are buried within a website. Think like a first-time site visitor.
• For even broader reach, apps can be shared via many online app stores, such as Add-ons for Firefox, Apple Web Apps, Google Apps Marketplace, the Chrome Web Store and the Conduit App Marketplace.
• Spread the word via other marketing channels, such as email marketing campaigns and social media networks. Include bit.ly or other trackable links to your app download page in your dispatches.

1. Packaging: Imagine you’ve got the attention of a potential user; how can you best convey the advantages your app has to offer?

• This is the time to make sure you have the app “elevator pitch” packaged in an easy to digest, visually-pleasing format.
• In today’s world, browser-based apps are either deployed alongside or in place of more entrenched marketing and social media vehicles, so be sure to clearly communicate that the app complements the existing functions (e.g., Facebook, Twitter, site-specific offerings, etc.)
• Consider including a convenient link to an App FAQ. Offering reassurances that the app is safe in regards to privacy and IT concerns is vital for many users.

1. Promotions: Have you considered promotions to drive app downloads?

• Freebies resonate with many users, so think about what you have to offer and start there. For instance incentives in the form of virtual currency are a win-win for many gaming companies.
• Some marketers have even created contests to promote their apps, inviting users to download an app for a chance to win a coveted prize.
• Carry the promotion across all your marketing channels, so whether it’s a contest, free currency, or a membership of some sort, remember to integrate your app with your website, Facebook, blogs, Twitter, forums, etc.

Finally, make a habit of regularly assessing how your app is serving your business goals. After all, your app was designed to support specific aspects of your business, such as customer retention and/or brand recognition. Thus, keeping your strategic goals and app execution in alignment is an essential practice. Hopefully this sparked some thoughts on realizing the app advantage for your business.

I’ve written a new Firefox extension; it’s called True Colors, and it bleeds the colors from the web page you’re viewing into the tab bar and status bar. Think of it as Ambilight for your browser.

The technical details behind the extension are interesting, but I won’t go into detail on that here, sinceSplashnology’s blog post describing how Ambilight for video works explains 99% of the technique.

There’s another important aspect to this extension. I’ve used it as a testbed for Fat Plug’s add-on monetization system. A Fat Plug-enabled extension will add/change ads on various websites, and, in turn, funnel a portion of the revenue from those ads to the extension developer.

There’s some controversy around this technique. Mozilla has opted to deny any Fat Plug extensions that are submitted to the Mozilla Add-ons Gallery. Website owners, I imagine, wouldn’t appreciate their ads being replaced with ads that don’t earn them any money. (Although it would harm them no more than ad-blocking extensions, which Mozilla does allow.)

However, to an add-on developer, the idea is intriguing: “What if I collected half of all the website ad revenue from all of the users that use my extensions?” A developer of a popular add-on could retire after a couple of years to the sands of Grand Cayman and spend his days writing free software that needs no monetization.

So True Colors is my testbed for Fat Plug’s technology. I won’t be uploading it to Mozilla Add-ons, and I won’t be publishing it anywhere that doesn’t make the Fat Plug integration obvious. I’m not looking to stealthily trick users into becoming my little monetization machines, which is why I purposefully wrote a simple extension that doesn’t add functionality to the browser as my first foray into Fat Plug.

If you’re interested in seeing how Fat Plug modifies ads on websites, you can install True Colors, agree to the license agreement, and then set the preferences extensions.fatplug.enableoutlinediv andextensions.fatplug.enableoutlinelink to true in about:config. Any ads that Fat Plug adds or modifies will be outlined in red for your convenience.

If you’re interested in the coloring functionality but are wary of the Fat Plug integration, you can install the extension and just not agree to the license agreement. That will keep the tab and status bar coloring functionality but disable Fat Plug’s code.

A little background:

Fatplug has created an add-on monetization platform.  This allows add-on developers to monetize their current add-ons by integrating fatplug code.  This code will initiate a pop up the first time the browser is loaded with the new add-on that allows the end user to select whether of not they see advertisements that support the add-on developer.  These ad’s are served up through ad-swapping. We detect the sizes and positions of ad’s on websites and then block the original ad’s from loading and put ads from our ad network in that same position. Revenue from those advertisements is then split with add-on developers.  This seems like a perfect solution for monetization.  You can continue to give away your add-ons and make money on them too.  If the end users decides to enable fatplug their browsing will financially support the add-ons they are using without interfering with the browsing experience.

This model has created quite a stir and a lively debate. We have found as we reach out to you this follows the 80/20 rule 80% of you are ready to get paid for your hard work and are all for it. The 20% who are opposed to it tend to fall into three camps.

1. I think it’s wrong to monetize a browser add-on!

This camp is very small but there are some purist here. To them we respectively hang a “do not disturb” sign. When you can’t stand to fix another computer for your great aunt that is running windows 95 this is the guy you tell her to call. They do it for love of the game and they only accept payment in sunshine and smiles. As a capitalist pig I personally can’t understand this position but I do respect it.

2. This isn’t ethical!

This is a decision I can’t and won’t make for an add-on developer, or an end user, which is why we give them a choice. To me it is no different than changing channels during a commercial break.  In the strictest sense when you use your Tivo to skip commercials or change the channel you are stealing. Of course this too has been taken to court and once again the courts ruled on the side of the end user choosing how they will consume content. But this is a personal decision not one that should be forced on a whole community.

3. This is illegal!

Mozilla kept pulling this subversive tactic on us to make people tap the brakes “were not even sure if this is legal…” a very simple passive statement that does a great job of instilling doubt. The fact is it is legal and there are plenty of add-on models currently allowed on AMO that are very similar. Including Adaptive Blue’s GLUE, AdBlock Plus, AdChange, Cooliris, and Kynetx. Google Sidewiki is another very mainstream and hotly debated piece of software based on the same model.

All of this software is based on the same idea that the end user can choose how or when to view or consume the content.

To quote from Phil Windley’s Technometria Blog:

I understand why people who have cut their teeth and made their living creating Web sites would object when people start to mess with Web content inside the browser. The reasoning goes something like: “I worked hard to create this and want it to be just so and now you’re changing it!” But it’s ironic when people who’ve fought against that logic when the RIAA and MPAA used it in support of an outdated business model, apply that same reasoning to the Web.

With that, let me state something unequivocally:

“I claim the right to mash-up, remix, annotate, augment, and otherwise modify Web content for my purposes in my browser using any tool I choose and I extend to everyone else that same privilege.”You may not like what people do with your Web content. We can debate the business model or ethics of specific applications of client-side technologies. But don’t threaten my right to purpose-centric Web.

Does it bother you that by blocking all Fatplug enabled add-ons from AMO Mozilla made a global decision for you and your users?

The success of the iPhone App store in terms of creating developer interest in supporting that platform (due to stories of top app developers making $100K or more per month) is clearly an existence proof for both consumers’ willingness to pay small amounts to enhance their user experience and developers going to where the money is (i.e., 100,000+ high quality apps developed in less than one year). However, Firefox users (who unlike phone users aren’t conditioned to pay for anything) will probably need to be eased into such a Paid Marketplace system if it is going to be successful enough to really reward Add-on developers beyond the current $1K per month peak revenue levels being seen by a handful of top Add-on developers who are asking for Contributions via Paypal.

The Idea

In the Q&A after the keynote, it was suggested that such a Paid Marketplace might be jump-started by having Mozilla return to its users a portion of the SearchBox revenue that these users have enabled Mozilla to earn in the form of UserPoints (or KarmaPoints or Zillas or FireChips whatever). Assuming 100 UserPoints were given to every Firefox user every month, the existing Add-on Contribution system could be easily modified to allow users to make donations with either Paypal Cash or Mozilla UserPoints. All un-donated UserPoints each month would be automatically contributed to the mix of Add-ons actually in use (based on anonymous system-wide Add-on usage stats). To give them value to developers, it was suggested that these UserPoints could be backed by an actual cash-out pool that was funded by a portion of Mozilla’s SearchBox revenue.

More Information

1. The key to the idea is that it would support, but not rely on, user-directed contributions of a pre-funded amount of virtual currency (e.g., possibly called “UserPoints”) that users would donate on a monthly basis to their favorite Add-ons.
2. To ensure that all “un-donated” UserPoints are fully deployed at the end of each month a pre-defined formula (based on system-wide, Add-on usage stats) would be used to ensure 100% of the users who have benefited from installing and using at least one add-on for at least one month participate.
3. To make the ecosystem more than just a sophisticated Add-on rating system, Mozilla would agree to cash out any developer’s Add-on’s accumulated UserPoints on a monthly basis from a pool of funds that would be replenished each month with a portion of the revenue that Firefox end users generate for Mozilla by using the default browser SearchBox.

I’d love to get your feedback on this idea.

The first thing we did differently was integrate more tools for data collection:

1. Eventbrite for ticket sales
2. EventVue’s javascript widget
3. Woopra real time analytics
   1. (Woopra was used to see how SEO and SEM activities were doing in real time, I became addicted.)
   2. Page views
   3. Referrer
   4. Geography
4. Google Analytics
   1. Page views
   2. Bounce rates
   3. Search terms
   4. Referrer

The second thing we did differently was introduce a viral game on the home page that allowed people interested in the conference to promote the event in a fun interactive manner. The game had over 500 unique plays and more than 2500 total plays, which generated 325 unique posts to Twitter.

The things that did not work:

• EventVues Javascript widget
  • I worked with Josh and Rob from EventVue on a new widget they were testing. The widget allowed visitors of Add-on-Con.com to see who else was attending and then offer anyone, in there social network, a discount.
  • The service was getting some clicks, but no ticket sales and I started to get nervous so I turned it off, once off I started getting ticket sales. I turned it on again, sales stopped. Turned it off, reported my findings and Rob and Josh decided to not to turn it back on.
• Event listings:
  • Mashable 28 visits no sales
  • ReadWrite web 32 visits 1 sale
• Ads on LinkedIn generated 0 visits

VC blogs ’08 vs ’09

1. Our favorite VC bloggers were kind enough to write a post in 08 and 09, thank you:
   1. Brad Feld’s blog generated 9 sales in ’08 and 4 sales on 11 referrals in ’09
   2. Fred Wilson’s blog generated 15 sales in 08 and 0 sales on 39 referrals  in ’09
   3. Bijan Sabet’s Blog generated 9 sales in 08 and 1 sale on 5 referrals in ’09

Thank you for sponsoring and or talking about Add-on-Con ’09, it made a big a difference in the success of the ’09 event. The blogs that drove the most traffic in ’09:

1. Techcrunch.com did a great job driving traffic and sales in 08 and 09.
2. Blog.chromium.org / referrals 317
3. Developer.yahoo.com / referrals 237
4. stevesouders.com referrals 84
5. tech-wd.com referrals 74
6. thereister.o.uk referrals 55
7. thenextweb.com referals 30

The biggest surprises on traffic came from these sites or add-ons:

• Developer.yahoo.com
• Getglue.com
• meebo.com

Thanks for paying attention.

Presenter Herman Ng (Microsoft)

Designing High Quality Add-ons in Internet Explorer Add-on-Con ’09