Mobile to be a Projected $70 billion Industry by 2017
The mobile apps industry is one that’s slated to hit the $70 billion mark by 2017. What can your business do to exploit this growth? Let’s discuss.
Wherever there’s digital usage, spending follows, as evidenced by 2013 – how mobile usage almost completely overshadowed desktop usage. At the time, it was revealed by Flurry that smartphone users spend 86% of their time on apps, in contrast to just 14% on the web.
In early 2014, CNN also reported how mobile usage (apps only) completely overshadowed desktop usage in January last year. At the rate which things are evolving and moving forward, it would pay to analyze what’s influencing usage and driving revenue.
We need to understand what bearing mobile usage trends have taken in order to understand how app spending is affected. As it currently stands, users are spending most of their time on mobile games, which is 37%, and social networks – about 20% accounting for Facebook alone.
It’s important to know that these segments happen to be the most lucrative at the moment. If you aren’t already striving hard in these sectors, it makes a lot of sense to invest in app marketing via games as well as social media. For example, the former could be in the form of in-app ads through a display network, while the latter could be through Facebook Ads Manager.
Revenue trends for mobile are a direct reflection of usage trends. These trends are starting to shift though: users won’t be quick to abandon social and gaming network segments. Still, app devs must stay aligned with new and emerging trends and should also consider emerging segments for new app entry as well as marketing spending.
Current Revenue Trends
As of now, gaming accounts for 74% mobile revenue. Most games are free, offering in-app purchasing. The completely-free ones account for 90% revenue, which apart from games, also includes media apps offering a free download coupled with limited content – in-app purchasing is still required to gain access to all content, most likely through a subscription.
Until 2017, revenue coming in from mobile games might likely drop from 74% to 49%, as regular apps double their share by that time, going from 26% to a robust 51%.
Where Should You Be Investing?
SaaS apps – ‘software as a service’ or ‘apps as a service’ – have been experiencing generous growth over the years, in the business-to-business app industry, that is. As you know, these are apps that help people get work done, in a better, more efficient manner.
One example of companies in this sector includes CRM (customer relationship management) solutions. RelateIQ is a well-known CRM, enabling companies to keep a check on their workforce on desktop as well as mobile – both Android and iPhone. Recently, Salesforce acquired RelateIQ for a whopping $390 million. Looking out for mobile app acquisitions like these is one way of staying ahead of the app trends curve.
Even though social networking and gaming apps are all the rage these days, it will definitely pay to give heed to emerging markets.
Got an app that needs to be refined or marketed? Have an app blueprint and want it engineered to perfection? Contact our dev team to realize your dream.
We’d also love to know your take on emerging app usage and revenue trends. Leave your two below!