Going mobile: mobile website or app?

In my experience (as an iOS app developer) people overestimate the returns they'll get from being listed in the app store. It might make sense for big brands because people might search for them, but smaller brands will not be more visible than when having a mobile site. In fact, when it is necessary to search, getting an app from the store and then using it takes a lot more steps then searching in the browser and going to the website.

My standard response when people ask me about building an app is if they've considered creating a mobile site. Unless they have something platform/device specific in mind, like in app purchases, push notifications, using the camera or compass or if the UI is important, it often does not make sense to create an app.

Most important, however, is the user (surprise, surprise). What is the task the user will perform at your site/with your app? If it's something they'll only do a couple of times (or even once) it's not worth an app (unless, maybe, you want them to pay for it). Installing an app is a much bigger upfront commitment (even if it's free) than visiting a website.

For most, starting with a mobile website is the best option as the cost is lowest to develop and you reach the widest audience.

If warranted, you can follow up with apps for specific platforms.

I very much like the idea of producing webapps rather than iPhone apps in my business, and I think they could probably provide all the functionality I require.

For me the catch is monetisation. With the App Store, this is clear: I release paid apps. With webapps... Advertising seems viable, except that my apps need to work offline (and may solely be used in that way), which as far as I know scuppers the advertising approach. So what's the alternative? Set up a paywall and require users to login to get the webapp in the first place? That seems to defeat the point somewhat.

Anyone have bright ideas or links to clever thinking on the subject?

As a user I don't have any strong preference either way but the presence of a shiny icon on my home screen prompts me to visit a site more often than a bookmark that is several taps away. Adding bookmarks to the home screen on the iPhone is more realistic with folders to organize them in but it's still a multi-step process to put it there in the first place. It's unfortunate tapping a piece of glass more than once is a barrier but it just seems to work out that way these days for me.

You can do both, even using the same code base. Check out this site/app for example: http://jsway.se