If you are in the app creation or development field, you should pay close attention to a part of Google’s algorithm. But it isn’t their SEO algorithm; it’s an internal algo that is used by their CEO, Larry Page, to determine whether a merger is worthwhile. It is called the “toothbrush test.”
So, what is the toothbrush test? It is very simple. Page simply asks whether the app or product produced by any company he is thinking of adding to his empire is used twice a day and makes people’s lives better. That’s it. “Will it be used twice a day and will it make people’s lives better.”
Let’s take a trip over to the US and see how it has worked with Google. Page’s toothbrush test has allowed him to become so confident that he has been able to bypass a lot of traditional factors in the decision-making process and has allowed them to cut out the investment banks because he is nearly always right. The toothbrush test mitigates his risk to a point where it is almost non-existent.
Metrics such as sales, discounted cash flow and earnings have been rendered nearly useless by Page’s insistence on usefulness and potential for long-term sustainability and growth. This has caused other Silicon Valley giants to stand up and take notice. Cisco and Facebook have joined Google in trusting their internal teams to develop their own metrics and identify their own merger targets.
Ten years ago, only 27% of acquisitions were executed without the help of an investment bank. So far this year, 69% of acquisitions were completed without using an investment bank.
So, why is this so important to us? Because investment banks were considered the best option for evaluating the financial status of a firm before a possible merger or acquisition. Google has been more successful using the toothbrush test than most companies who use investment banks to assess financial feasibility.
What it means to Mobile App Creation and Development
The “toothbrush test” is a simple way of doing what we have been telling people to do all along on this blog: find a problem that a lot of people have and solve it. If you are making a game, make sure people have a lot of reason to play it daily.
Whether you are creating a paid app or a free app in which revenues come from advertising and in-app purchases, you must figure out a way to make such a useful app or such an addictive game that people want to use it at least twice a day. Let’s look at a few apps and games and see how they do with the toothbrush test.
Facebook: Is there anyone who doesn’t use Facebook at least twice a day. Some people spend up to eight hours a day on FB. Here are the stats: 65% of those who use FB monthly use it daily. There are 139 billion monthly users. That means approximately 90.35 billion people use Facebook daily. The average time spent is 20 minutes per day. 91% of millennials use Facebook. On the mobile end, there are 727 million people who use FB monthly on mobile devices only and 894 million who use FB on a mobile device at least once a day.
Google: Google processes 3.5 billion searches per day and 1.2 trillion searches per year globally.
Game of War-Fire Age: Game of War-Fire Age has over 1 million reviews on Google Play, with 648,961 rating it at five stars. It is ranked #1 on top grossing games, bringing in $1.46 million USD in revenue on a daily basis 38,511 estimated daily downloads.
Are You Excited Yet?
Over the last few years, we have given you a lot of advice on coming up with a great app idea. It all revolves around finding a problem that a lot of people have and solving it. An easy way is to find a popular app and enhance user experience.
And now, you have a great “filter” to run it through: the toothbrush test.
If you have an idea for an app, call us today on 0417 150 796 or use the “contact us” or “say hello” page.