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Startup Accelerator 'Boomtown' Launches in Boulder with Alex Bogusky's Help  

Feeling entrepreneurial: this guy is giving away 100 business ideas.

Every morning, I get an email from a site called betali.st that pitches 3 or 4 new web-based startups: You get a name, a snapshot of their home page and roughly 50-100 word description – their elevator pitch. It’s like witnessing the finals of a startup competition every day, over coffee.

There are a few things that make this email absolutely fascinating.

1. Absolutely everybody has a startup now

Or at least it seems that way. This email (and I’m sure there are others) is relentless. 7 days a week they serve up a series of mini ads for new startups and the demand appears to be so high, their revenue model is based partly on offering an ‘expedited listing service’. The startup communities are growing to the point that they are fragmenting and splintering, dividing not just by location, but also by specialist roles within startups – witness Sean Ellis’ burgeoning Growth Hackers community.

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startup, apps, media

The web is currently exploding with startups.

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2. All these people are spending a shitload of time & money

When you consider that Jeremey Rappaport recently put the true cost of developing an app at somewhere in the vicinity of $120k and 10 weeks, the cumulative investment in developing all these new apps is staggering. Even if you halve that, betali.st offers direct evidence of over a million and half dollars and 3 years of work spent developing new apps, every goddamned week. Note too, that this figure is only for development. These costs, ballpark though they are, are net of marketing, support and legals. Ker-ching.

3. In the quest for differentiation, these apps are getting seriously niche.

The language of these startup pitches is incredibly variable and probably warrants a post on its own (hint: from a copywriting perspective, it aint always pretty) but what is common is how specialised they are becoming in terms of the services they offer and, therefore, the audiences they are targetting.

In recent weeks, the email has pitched apps for rugby fans, fitness enthusiasts, disorganised photographers, semi-competitive cyclists, parents of kids with allergies… you get the picture.

There are also a lot of copycats: men’s fashion, restaurant reviews, holiday planning, stock trading and group deals are about to get even more crowded, if that’s possible.

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media, apps, fragmentation, audience

What happens when everyone’s living in their own app bubble.

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A lot of the startups are offering infrastructure services for other startups (hosting, customer service, social media monitoring, budget tracking, market research) and now there’s a raft of ‘startup in a box’ startups, such as CrateJoy, that provides everything you need to launch your own ‘subscription service’ startup. Presumably these startups will also appear on betali.st in the near future.

Once you work out what it is that a particular startup is planning to do (as it’s name suggests, most of the services on betali.st don’t technically exist yet), some of the value propositions are, frankly, outrageous: “build an ecommerce site in 20 seconds” was a recent favourite.

Obviously, not all of these startups are going to survive. In fact, almost none of them will. But, statistically, that still leaves an extraordinary number of successful apps, all doing things very, very well for small, tightly-focussed audiences.

Where did all the people go?

The media ‘fragmentation’ we witnessed with the rise of the web will become complete ‘atomisation’ as we all start disappearing into niche apps, spending time with the functionality and communities that exist only within the interface of
these ‘appified’ services.

The implications for brands are significant. Just as the strategies we used to rely on in the multi-channel world became ineffective in the post-broadcast world, we’re going to have to reinvent the role of the brand again in the post-site world.

Coke is getting a lot of attention for their wholesale abandonment of ‘the corporate webpage’ and I think that this gives as an indication of how brands are going to have to re-cast their role in this world of apps and the atomised audience it will engender.

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About the Author: Barrie Seppings blogs about making things better – for clients, brands, agencies and humans. He is currently Regional Creative Director at Ogilvy Singapore and he likes boards surf, skate and snow. Follow him on the Twitter, connect on LinkedIn, or add him on Google+

About the images: all photographs used with the permission of Martin Ollman Photography. Contact Martin directly for rights and commissions.

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