Numbers and statistics often manage to give a holistic view of events and help analyze trends better. The exodus from the traditional mobile phone to the smartphone had started some time ago and has gained a lot of momentum, primarily due to the attractiveness of the features and services offered by the ubiquitous smartphone. Mobile apps play a pivotal role in delivering content and information into the hands of people. A recent report suggests that the number of mobile app downloads is increasing by leaps and bounds, triggered on by the way people interact with their mobile phones today.
In 2012, the number of mobile app downloads worldwide doubled to 60.1 billion, up from 29.5 billion in 2011, reveals a recent report. This two fold increase paves the way for projecting that the growth will continue in the years to come and reach 108 Billion by 2017. Analyst firm Berg Insight issued a report titled ‘The Mobile Application Market‘, capturing all the information related to mobile apps and their future projections. The report observes that the revenue from all the applications, including both direct revenues from downloads and in-app ad revenues, reached 6.4 Billion EUR in 2012. These revenues are slated to grow at a compound annual rate of 17 per cent to reach 14.1 Billion in 2017.
The increase in the number of app downloads comes mainly from the Apple iTunes Store, Google Play and other third party app stores. In the western hemisphere, it is difficult for third party app stores to gain traction when pitted against the heavyweights of Apple and Google, but in the other part of the world, the market welcomes these app stores with open arms. The success of these apps can be attributed to the local content that captures the interests of the huge domestic market. Monetization is somewhat difficult, although in app advertising and charges for downloading content are yielding results and are moderately successful.
The report proceeds to make an observation that free to download apps are on the increase and apps which have multi-platform support are more successful. In addition, social media integration and sharing is used by publishers to increase user base and to achieve more downloads. Connecting to users and engaging with them also increases the credibility of the app. With the cut throat competition to gain market share and create a niche for themselves, mobile apps are vying for the attention of the consumers. The consumer is the true winner with a plethora of apps to choose from. An increase in downloads and popularity doesn’t necessarily result in an increase in revenue; hence, publishers nowadays may have to invest a lot of time and money until their apps start reaping economic benefits.
As a consumer of these apps, do you feel the market is saturated right now or is there a way to distinguish one app from the other? Do let us know in the comments.
Image Courtesy | techwyse