11 App Market Facts Entrepreneurs Must Know

To have or not to have an app for own business? Presently, is this the prime question in your entrepreneurial life?

What are the factors you are weighing? ROI? Growth in brand awareness and consequent sales? Success in customer acquisition and retention? Well, learn that –

• When functioning through own app, globally renowned brands have recorded a ‘hike’ in their yearly order value by 140%
• From 2015-2019, retailer mobile apps worldwide showcased a total $7 billion growth in sales (from $60 billion in 2015 to $67 billion)
• Cart abandonment is least over mobile apps – it is at a minimum of 20% in comparison to 68% and 97% experienced by sites opened at PCS and mobiles respectively
• Engagement ratio of consumers with e-commerce is 4-5X higher – when they interact with one through its app
• As per Statista, overall revenue generated by commercial apps (download, ads, in-app buys) will scale up to $188.9 billion by 2020 from what was $88 billion in 2016. That’s a 113X in growth in just 4 years
• In 2017, the number of downloaded apps by consumers stood at 178 billion and this is depicted to hit 258 billion in 2022 – projecting a 45X hike in preference for apps at the customer fraternity within 5 years
• For every 1 hour spent on the web, customers spend 7 hours over their downloaded apps

So profitability is there in devising an app for own business, right? But wait. Isn’t market survey a prime criterion before you take up any new venture? Then, why not follow the same rule before developing own business app? Pay attention to the 11 most vital insights that define the core scenario of the app market. Turn savvy over what can click and what not within app consumers and accomplish every iota of revenue an app can bring home for the parent business.

What’s Buzzing in the App Market?

#1) The Age-Group of 18-44 Spend Over 50% of Their ‘Net’ Time at Their Own Smartphone Apps.

For beginning any new endeavor first step is to know the market demographics, right? Data is in front of your eyes.
And to specify it all the more, know that the most dedicated app users are the 18-24 year-olds, whose engagement over app consumer about 66% of their total internet usage. The speed-loving millennial realize it to be both smart and convenient to simply swipe over an icon at their own mobile screen and complete a particular purchase pursuit. It comes as a delightful option to them over the monotony of opening a PC to avail of online shopping.

# 2) The Millennial are Always Ready to Spend over Mobile Apps Than Any other Digital Medium.

And this is primarily due to the ‘level apart’ UX offered by apps like Amazon, Facebook, Gmail, etc. In fact, in 2017, app purchase was zero amongst the millennial population. It is given to the quality of service, speed and mind-striking features that apps offer today that –

• At present, about 1/3rd of them purchase more than 1 app every month.

Thus, serving an enriched UX is key to your success. Follow the prime principals of –

• Keeping browsing easy and clutter-free; focusing on minimizing forms and pop-up ads
• Offering app-only offers, coupons, and discounts that give users feel of being specially treated; check the e-commerce Groupon’s app to know the exact ‘how-tos’ to this end; really how influential its ‘Deal of the Day’ for app-only customers is!
• Including a chatbot to attain customers 24*7
• Maintaining a sound post-purchase support system within the app, which allows people to easily return/exchange, review a bought product, choose preferred time and date for delivery, etc.

#3) Type of Mobiles the Targeted Market Use Does Play a Part in Determining How Much They are Going to Spend on in-App Purchases.

According to veteran digital marketers, for a business planning to launch its own app, this is one crucial factor to know about. On a standardized basis, iOS customers spend 2.5X more than Android consumers. This makes in-app spending/user $1.08 with respect to iOS gadgets and sets the same mark at $0.43 given to Android devices. Final decision rests upon you.

# 4) Through-over the World, Asians Spend the Most Over Apps, With a Proven 40X Hike Each Month.

Great to have the information about the most potential market? Wait. There’s more to look into. Along with Asia, North America is another prospective market for business apps to target. While the people there do rank second to Asians when it comes to regular in-app purchases, they surpass the latter ones in spending upon single-time in-app purchase. And as for expenditures over shopping apps, they outweigh both Asians and Europeans by a 3X pace.

#5) By Offering an Aptly Personalized Shopping Journey at the App, a Business Can Ensure an Increase at Both Conversion and in-App Spending by 27%.

And what’s more exciting? A duly customized experience can influence even those people who have never spent before on your app. The trick here is to construct promotional ads and campaigns that address the behavior, socio-cultural background and preferences of the targeted demographics. Gain access to as much user data as possible over the web and identify the steps and actions they take to complete an online purchase. OpenHome Pro is one prominent real estate app that sets a suiting example in here. The iPhone app permits realtors and brokers to nurture leads in the most personalized way possible by availing real-time information about them. From capturing potential leads to sending them follow-up mails, everything can be done in a manner tailor-made for buyers.

#6) If Promoted Through Social Media, a New App Can Secure Likelihood of Download by 10X.

When 3.2 billion people (42% of present global population) emerge to be devoted social media users, can there be any better platform to endorse a new venture?

The specific benefits that you fetch include –

• Instant recognition and arousal of interest to check the app
• Solid word-of-mouth publicity that till date stand influential for over 80% consumers in order to trust a particular brand

Not only just for the first time, but you can explore the potentialities of social media to ‘boost’ popularity of own app. Offer users scopes to ‘Like’ your service, ‘Tweet’ about the very app and ‘Pin’/’Share’ a particular product they like – all directly from the app. The more handiness you can serve higher goes acceptance ratio for your app.
Social media (likes of Facebook, Pinterest, YouTube) is prominently used by healthcare institutions like the Mayo Clinic to promote own apps over lifestyle habits, disease awareness and prevention, doctor database, etc.

#7) For an Average of 37% Millennial Consumers, Heightened Data Usage by a Mobile App Can Make Them Abandon It.

And recognize that such a fact stands true for even apps like Netflix, Instagram, Spotify etc- whose excessive data ‘demand’ often compel people to delete them. Knowing now why the renowned brands like Facebook, Flipkart, Uber offer the ‘Lite’ version to download as you reach the relevant apps in Play Store? For the sole purpose of sustaining in an user’s phone. And if you too are to achieve that, make sure to devise a ‘Lite’ edition simultaneously with a full-feature app. It allows your customers to save as much as 80MB data (by an average notion) and therein keeping your app for longer.

#8) Push Notifications can Heighten an App’s CTR by 40X.

And 82% of app users expect to get a unique ‘Push’ message from their favorite apps – as the first thing in the morning. However, note as well that about 65% of app users again keep the ‘Notification’ button switched off- mainly to avoid the boredom of viewing the irrelevant contents. At par with pro digital strategists, while indeed it is the objective to ‘Push’ people spend over the app and explore its contents, Push alerts should not be completely sales-focused. They must provide some value to users and take into notice their emotions and customs. The best practices to this end include –

• Customizing coupons for each Push message receiver by analyzing his/her push behavior
• Offering services like passes to musical concerts discounted movie and sports tickets through the alerts to target better the local consumers
• Sending ‘Pushes’ to remind people that the app is open for a long time or to know why they have not opened your app in the past days; show you ‘care’
• Announcing prizes or loyalty points in an alert to a user who has recently subscribed for a particular in-app service or has downloaded your app’s latest version; such a message in the morning surely makes consumers fall for your app.

# 9) Discovering a Mobile App isn’t Just Always at the Google Play Store or iOS App store.

In fact, when enquired only 40% of smartphone users claim to have known about an app at the app stores. The larger quotient of 60% say to have spotted most of the apps they are now using over Google Search Engine, YouTube, mobile ad platforms or through casual browsing of mobile web. This in effect depicts that if to multiply own app’s visibility and access a higher consumer base – Your app must be present at all the trending places people are looking into to download an app that fulfills their requisite. To this end, another effective way is of endorsing the app at mobile app install campaigns and thus accessing people exploring apps like yours. When actually promoted through multiple mediums (especially Google Search and mobile ad portals), the download quotient for an app goes up to 150% -while lowering the cost/retention by 20X.

#10) Recurring in-App Subscriptions for iOS Apps Make the Total Value of Consumer Spending at App Store $122 Billion.

Users find it more convenient to settle for a long-term plan offered by an app rather than switching from one to the other. They opine that this permits them to readily avail the latest and most profitable services and features of iOS apps and avail lucrative discounts on upgrade or subscription renewal.

From the business’s perspective, growth over in-app subscriptions result in –

• Increased conversion quotient
• 2x ‘hike’ in yearly consumer spending
• Winning back customers who have once abandoned the app

And to boost this subscription trend even more Apple introduced the ‘Auto-renewal Subscription’ feature to let businesses offer consumers discounts on upgrades and service reclaim.

#11) The In-App Advertising Industry Stands at a Worth of $155 Billion – That’s 62% of The Total $250 Billion Spend Over Digital Advertising.

And the re-call rate post viewing is 47% – higher than any ad viewed over PC or mobile web. One productive platform is in-app advertising, right? More when the global ROI from it dwells at a mark of $184 billion. However, keep in mind that relevancy and personalization are the two sole factors that click behind the success of in-app ads. Ensure your ads to convey this vibe to every viewer. What’s the wait any more for developing a grand app for your business? Searching for a pro development firm? Step into the world of Red Apple Technologies.

A team of ingenious developers awaits to offer you the most fitting and futuristic service over app development. And kudos to our cutting-edge digital marketing team, you can gain flawless service over promoting the app as well. Don’t you desire to have a slice of the revenue (from mobile apps) that is predicted to touch $693 billion in 2021? Choose Red Apple as your apt accomplice.