Mobile app industry is one of the most dynamic industries.
What was true even one or two years ago may not hold true any longer. Only the latest statistics and numbers can give you the actual image.
As a developer or a mobile marketer, you need to know those numbers to stay ahead of the competition.
In this article we sum up the latest mobile marketing and app statistics that are very relevant in 2016.
Let’s dive in.
1. Emerging markets
- India, the 3rd largest smart phone market in the world, will have 317 million mobile users and 500 million internet users by 2017.
In a nutshell, India will soon become the next dream-destination for mobile marketers. With millions of mobile users, the significance of mobile marketing will increase multi fold. The mobile app industry in India will experience an exponential growth.
You can join the bandwagon by either attracting your potential customers with enterprise app or by developing apps for other businesses.
- In 2015, 52.7 % of the total global mobile phone users accessed the internet using their mobile phones. The number will increase to 61.8% in 2018.
Millions of mobile users from Africa, Asia and Latin America will contribute to this 9% growth. It means new markets will emerge and local and out-shore businesses will hone their mobile marketing to get into the new market.
- Sub-Saharan Africa is emerging as a new market. The number of smart phone users was 160 million in 2015 and supposedly will reach 540 million with 2020
Sub-Saharan Africa is emerging as a new mobile market with Symbian and Blackberry phones as the dominating forces. African market, however, has its unique challenges because of socio- economic conditions, customer preferences and network connectivity issues.
As an app developer/marketer, if you can meet those challenges, a nearly untapped goldmine is waiting for you.
- Sub-Saharan Africa will be one of the fastest growing markets globally within next 7 years. The mobile penetration of the said market will increase to 79% in 2020 from 52% in 2012.
The number of Sub-Saharan African mobile users has exploded during last few years. For instance, in 2002 only 8% Ghanaians had cell phones while that number stands at 83% in 2015( Source
Such enormous growth will attract hordes of mobile marketers and app developers for entering African market.
However, African market is different from the Western or Asian market. Smart phones are still behind of “good old” cell phones in the region; only 15% users use smart phones while 65 % still stick to cell phones.
If you can find ways to fulfill the needs of the market, early start will give you a competitive edge in coming years.
- US market Smartphone penetration has already reached near 80%. And the market is slowly approaching towards saturation.
In 2014, Smartphone penetration rate in US was 64% and by the end of 2015 the number is close to 80%.The market is about to saturate, but a lot of opportunities are still there.
On one hand, the startups and “late bloomers” will have a hard time as marketing giants are already dominating the market.
On the other, since US market is more predictable than African, Asian or Latin American mobile market and very large; you can still reap the benefits with creative app ideas.
- By 2017, demand for mobile app development services will grow at least five times faster than development capacity of app development companies
New markets are emerging; existing ones are expanding and saturated ones still have a lot to offer. The demand for app development services will soon touch the sky.
But scaling your development capacity with that rate is a big challenge.
You can solve it by outsourcing parts of your development. Skilled out-shore freelance developers or designers can reduce time and cost involved without compromising quality.
However, if you refuse to compromise security and integrity, setting up your own team and infrastructure always pays off.
2. Mobile app monetization
- The global mobile app revenue will supposedly touch the 101.1billion USD within 2020.
With 30% growth rate, app industry is one of the most profitable and promising industries currently. And it will remain so for coming years.
With millions of new mobile users, you can reap the benefits by their integrating mobile marketing with your brick-and-mortar business or simply plunge into the app development.
- Within 2017, the number of paid app downloads will be 14.78 billion. It is 37% increase from 2013.
Problem with free apps, some users might discard it after using few times or never opt for paid features. With paid app, it is a different story.
If your users are paying money to download, your apps will less likely to get discarded. And chances of paid up gradation are also much higher.
According to numbers, people are now getting more willing to spend money for superior functionality and user-experience. That means if you develop an amazing app and make it visible to your users, you will be in a position to earn more money than before.
- Only 4% of top 100 highest grossing apps in Google Play Store are paid app, compare to 31% of Apple iPad app store. Apple iPad app store has much higher app monetization potential than Google Play Store.
Based on the recent statistics by WSJ, Google play has 70% more downloads than Apple app store, yet Apple’s revenue is about 70% higher than the former. The Key reasons are,
- iOS phones are usually expensive; iOS users are from a relatively affluent back ground. They are more likely to pay than some android users from a less financially sound back ground.
- All iOS users already have credit card details punched in and payment procedure is easy. But in Google play, a having credit card on file is not mandatory, which makes purchases laborious.
Simply put, Apple app store has a higher potential of generating revenue for the app developers.
Alternatively, you can compel iOS users to purchase your app by creating the buzz with free/freemium android version first.
- In terms of discretionary retail spending, m-commerce has outmatched both already desktop e-commerce by a large margin
Though e-commerce is far from being knocked out, m-commerce is certainly dominating. And m-commerce has some serious advantages over e-commerce.
- Mobile devices are easier to carry than any laptop and users can purchase from mobile devices anywhere.
- Unlike E-commerce, internet connectivity is not mandatory for m-commerce. As long as the network is available, m-commerce is possible.
- M-commerce allows payment via balance deduction or mobile banking. E-commerce requires card swapping or credit card details which can make some customers hesitant.
- In developing countries where power is an issue, customers prefer m-commerce.
As a mobile marketer, consider getting into m-commerce and make more sales. You can even combine both e-commerce and m-commerce for improved results. However, consider target audience preference, location and other logistical factors before the final decision.
3. Mobile App audience:
- App audience is much more loyal; they usually spend 18X time using the app than mobile web.
Numbers proves that both web and app are effective in different context. Mobile web is better for more reach; apps are better at keeping the audience hooked.
So when it comes to mobile marketing, you can follow either way depending on your end goal.
- 73% smart phone users keep their most used apps on home screen and spend 50% of app usage time on their single most used app.
- 34% older Smart phone users (age 55+) use both hands for operating the smart phones compare to only 9% millennial users.
: For an app developer/marketer optimizing interface design for smooth user experience is a must. If your target users are baby boomers who use both hands, design the application while keeping their habit in mind. Vary the CTA button location, redesign menus, and play with elements for an effortless app experience.
- The time spent on personalization app has increased 332% in the year 2015.
Everybody loves to feel special and dislike “one-size fits all” approach. Your audience is no exception. They expect that your app will take their preferences into consideration
Entice your app users with a personalized experience by customizing content based on their previous choices, location etc.
Alternatively, simply allow them to choose when, where and what kind of notification/content they want to see.
- 42% US smart phone users are comfortable with sharing their location than receiving push notifications.Key takeaway: Your users value user experience over security and privacy. Don’t bombard them with frequent pop ups or notifications. And don’t compromise their security or privacy either.
Source 1: http://www.statista.com/statistics/269025/worldwide-mobile-app-revenue-forecast/
Source 2: http://www.statista.com/statistics/284202/mobile-phone-internet-user-penetration-worldwide/
Source 3: https://www.gsmaintelligence.com/research/?file=721eb3d4b80a36451202d0473b3c4a63&download
Source 4: http://ww2.frost.com/news/press-releases/sub-saharan-africa-witness-fastest-growth-mobile-usage-rates-globally-finds-frost-sullivan/
Source 5: http://www.comscore.com/Insights/Presentations-and-Whitepapers/2016/2016-US-Cross-Platform-Future-in-Focus