Mobile Application Market Research
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The App Economy is booming and opportunity everywhere. In order to conquer this market you need to understand it first. From market research and user preferences, the app developer attitudes and opportunities just over the horizon , this document gives you a solid overview of the data and insights you need to make tough decisions about your app business.
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Mobile Application Market Research
- 3. 5.6. Mobile Ad Statistics By Age………………………………………………… 18 6. Mobile Online Demographic Trend………………………………………………………………….. 18-22 6.1 SmartPhone Trend By Age…………………………………………………. 18 6.2. SmartPhone Trend Amongst Young Users………………………………. 19 6.3. Young SmartPhone Users Activity Trend…………………………………. 20 6.4. Young Mobile Internet User Statistics …………………………………….. 21 6.5. Mobile Ad Spending Statistics by Gender………………………………… 22 6.6. Mobile Ad Spending Statistics By Platform……………………………….. 22 7. Global Market Potential for Growth……………………………………………………………….. 23-28 7.1.Two Billion Connected Devices……………………………………………………………. 23 7.2. Growth Study of Active Devices VS Population………………………….. 24 7.3.Smartphone Subscriber Base………………………………………………. 26 7.4. Internet Usage Pattern………………………………………………………. 28 8. Mobile App Money Making Trend …………………………………………. 2930 8.1. How do you make money from apps?........................................ 29 8.2. Mobile apps Download Trend(2010-2016)......................... 30 3
- 4. MARKET STUDY 1. Introduction (this section is private) ● CRAVELLER is a social geolocation based multi platform application that represents all products. ● These products are solely promoted by the users themselves through a tag rank algorithm. ● The user can have a private social network of people and be a part of a wider geo located community (so as to know for example: the best pepper steak in town, the best dance instructor in the area etc..) ● The tag algorithm will also determine the users preference, be it for social or product. ● CRAVELLER is a seller for the users. ● It provides a map for the users to locate the posted object. 2. Objective ● To look for market opportunities and it’s great potential for growth. ● To evaluate statistics of past,present and future trends in the market ● To Evaluate competitors ● This research can be used to point out areas of the smartphone market which has the best growth potential. 4
- 5. 3. Mobile Market Statistics Mobile market research is not a single-track path. The mobile world is where the "digital natives" who have grown up with the Internet and mobile phones, feel at home. This is reason enough for a complete industry to focus on the opportunities for mobile market research.The use of Smartphones is becoming a hobby. A good 25% of all mobile phones that are currently in use are Smartphones. 3.1.Mobile Industry Statistics ● 91% of adults have their mobile phone within arms reach 24/7. (Source: Nielsen as on 2013) ● By 2015, 81% of U.S. cell users will have smartphones. (Source: Goldman Sachs) ● 271 million adults in the U.S. own some type of a mobile device. (Source: Nielsen as of 2012) ● 91% of all US adults own a smartphone as on 2013. (Source:http://www.thinkhouse.com/blog/?p=716) ● The global mobile market will grow from $3.4 billion in 2010, to $22 billion in 2016. (Source: Nielsen). ● Apple and Android represent more than 75% of the smartphone market. (Source: comScore as of 2012) 3.1.1.GLOBAL MOBILE TAKEOVER As of 2013 5
- 6. (Source: http://leaderswest.com/2013/09/15/infographicgeolocationimpacts67ofallsearches/) 6
- 7. 3.2.Mobile Usage Statistics ● 86% of mobile internet users use their device while watching TV. (Source: Nielsen as on 2013) ● By 2014, mobile internet usage will overtake desktop internet usage. (Source: Nielsen) ● Adults spend more time on mobile media than they do on newspapers and magazines combined. (Source: Nielsen) Refer Chart 5.6 for statistics on the Demographics of Mobile Ad Campaign ● The usage of smartphones has been tremendous. Refer Chart 5.1. on page: 13 for statistics on the activities of smartphone users. 4.Mobile Internet Usage Statistics 4.1.Mobile Advertising Statistics ● $22 billion was spent on mobile advertising in 2012, compared to only $3 billion in 2010. (Source: Nielsen) Also refer Chart 5.2. & 5.3. for Mobile Ad Spending (20122016 ) statistics by Global & region . ● In 2012, 51% of marketers ran campaigns exclusively for mobile, only 11% did in 2011 (Source: Popai) Refer Chart 5.4. for Mobile Ad Spending statistics By Category. ● 52% of smartphone users prefer receiving offers on their mobile device. (Source: eConsultancy as on 2012) ● 30% of marketers are using mobile coupons. (Source: AerIcon as on 2012) 7
- 8. 4.2.Mobile Search Statistics As on 2012 ● 95%of mobile users use their devices for local search.(Source: Nielsen) and Location-based search revenue will reach $6B by 2017. ● 52% of all local searches are done from a mobile device. (Source: Microsoft Tag) ● 9 out of 10 mobile phone searches result in a purchase or visit. (Source: Nielsen) ● 3 out of every 5 searches are conducted on a mobile device. (Source: Nielsen) ● Mobile to win 15% of online retail sales this year. (Source: eMarketer) 4.2.1Geolocation impacts 67% of all searchesas on 2013 8
- 11. 4.3.Mobile Hospitality Statistics As on 2012 ● 50% of travel or restaurant mobile queries result in a purchase. (Source: Nielsen) ● 17% of travelers research their trip on a mobile app or website. (Source: SiliconRepublic) ● 12% of smartphone users have downloaded an app related to travel. (Source: SiliconRepublic) ● 3 in 4 travelers use their mobile device to explore their destination. (Source: SiliconRepublic) ● 5% of apps in Apple’s App Store are categorized for travel (Source: SiliconRepublic) Refer 4.2.3. for a better understanding on actions after Local Search. 4.4.Mobile Commerce Statistics As on 2012 ● 75% of mobile users use their mobile device for shopping. (Source: Nielsen) ● 52% of adult mobile phone owners use their devices while in a store to get help with purchasing decisions. (Source: Nielsen) ● 1 in 5 smartphone users scan product barcodes, and nearly 1 in 8 compare prices on their phone while in a store. (Source: comScore) ● 39% of instances where a consumer walks out of a store without buying were influenced by smartphones. (Source: MarketingLand) ● Only 19% of US retailers have an MCommerce app. (Source: eMarketer) 11
- 12. 4.5.Mobile Apps Statistics As on 2012 ● 73% of business apps use prebuying features like product research, price comparisons, inventory checks, and customer reviews, opposed to strictly purchasing (Source: Nielsen) ● 35% of marketers are working with mobile apps. (Source: AerIcon) ● 300 thousand mobile apps have been developed. (Source: Nielsen) ● 82% of mobile media time is from apps and 18% is from mobile browsers. (Source: Nielsen) Refer Chart 5.1. & 8.2. for a clearer picture of Mobile Apps in the global market. 4.6.Mobile Social Media Statistics As on 2012 ● 200 million YouTube videos are seen on mobile devices everyday. (Source: Nielsen) ● 30% of all time spent on mobile devices is using social media. (Source: Microsoft Tag) ● 91% of mobile internet access is for social activities, versus just 79% on desktops. (Source: Microsoft Tag) Over 1/3 of Facebook’s users access Facebook Mobile; 50% of Twitter’s users use Twitter Mobile. (Source: Microsoft Tag) ● 13% of marketers are using locationbased services. (Source: AerIcon) Refer 5.1. for Social Media Statistics. 12
- 13. 5.Mobile Ad Market Metrics 5.1. SmartPhone Online Activity Statistics SMS Web browsing Email Social networking Apps Streaming music Instant messaging Video/mobile TV Australia 94% 60% 55% 58% 59% 21% 33% 19% Brazil 85% 69% 66% 75% 74% 39% 57% 43% China 84% 75% 58% 62% 71% 59% 67% 39% India 45% 15% 17% 26% 13% 11% 15% 8% Italy 89% 37% 51% 47% 49% 26% 35% 17% Russia 95% 68% 55% 59% 64% 41% 34% 36% Korea 93% 80% 52% 55% 81% 40% 70% 44% Turkey 78% 37% 33% 69% 38% 22% 50% 9% UK 92% 66% 68% 63% 56% 20% 37% 19% US 86% 82% 75% 63% 62% 38% 28% 28% 13
- 14. 5.2. Mobile Ad Spending Trend Year Worldwide Ad Spending (in billions USD) US Mobile Ad Spending (in billions USD) 2012 $8.41 $4.11 2013 $13.58 $7.29 2014 $20.30 $11.33 2015 $28.45 $16.17 2016 $36.87 $21.53 Mobile advertising accounted for 18 % of paid search budgets in 2012 22.7 % of consumers used a mobile device to visit a retailer’s site in December 2012, up from 14.6 %t in 2011. 14
- 15. 5.3. Mobile Ad Spending Trend By Region (in millions USD) 2012 2013 2014 2015 2016 North America 3948.4 7162.6 11245.1 16117.9 21391.7 AsiaPacific 2653.8 3412.8 4313.8 5314.6 6191.6 Western Europe 1647.8 2735.3 4294.4 6355.7 8389.5 Latin America 79.2 140.2 259.3 414.9 580.9 Eastern Europe 70.4 117 162.1 210.8 261.4 Middle East and Africa 7.1 13.4 22.8 36.4 58.3 Mcommerce sales will account for 15% of total e commerce sales in 2013 15
- 16. 5.4. Mobile Ad Spending Statistics By Category As on 201213 Entertainment & Media 40% Technology & Telecom 22% Retail 9% Travel 7% Social & Dating 6% News & Education 6% Business & Finance 5% Lifestyle & Health 3% Automotive 1% Style & Fashion 1% 16
- 17. 5.5. Mobile Ad Revenue By Company As on 201213 Google 54.65% Facebook 13.23% Pandora 5.10% Twitter 3.64% Apple iAd 2.92% Millennial Media 1.29% Other 19.17% 17
- 18. 5.6. Mobile Ad Statistics By Age As on 2013 6. Mobile Online Demographic Trend 6.1 SmartPhone Trend By Age GENERATION APP 62% OF MOBILE USERS 2534 OWN SMARTPHONES 18
- 23. 7. Global Market Potential for Growth 7.1.India, China, and the Map to Two Billion Connected Devices ● There was a 47% increase in active smartphones and tablets in the United States between April of 2012 and April of 2013. ● Although the U.S. is in the bottom 5% of countries for connected device growth in the past year. Worldwide, growth of these devices is exploding. To be in the top 5% of countries for growth over the past year, a country’s number of active connected devices needed to more than triple. ● There are currently more than 1 billion active smartphones and tablets globally, and based on current growth rates we expect to reach 2 billion in 2014. Huge Potential for Future Growth ⇑ ● The reason even 47% growth puts the US near the bottom of countries for tablet and smartphone growth becomes clear from comparing the size of the connected device installed base and population in five countries. ● Considering China and the U.S,these two countries currently have a similarly sized connected device installed base, but China has more than 4 times as many people. ● Combine China’s largely untapped population with its rapidly growing incomes (increasing at a rate of 810% a year between 2009 and 2011, according to the World Bank) ● No wonder the connected device installed base in China grew by 149% between April of 2012 and April of 2013. 23
- 26. India and China’s large populations make them dramatic examples, but their rates of growth don’t even put them at the top of the charts.Use of smartphones and tablets grew in every country in the world last year .The countries in orange (mainly the English speaking countries, Western European countries, and the most connected parts of Asia) are other early adopters of mobile technology. Those markets still grew at rates of up to 99%, but a lot of that growth was the result of people adopting tablets as second devices. China Is A Smartphone Powerhouse Without Comparison 7.3.Smartphone Subscriber Base However, while the current scale is impressive, it is the China’s potential which is truly breathtaking. With 26
- 28. 7.4. Internet Usage Pattern The acronym BRIC because all countries (Brazil, Russia, India, China) are deemed to be at a similar stage of newly advanced economic development, it could appear as though this categorisation might need some revision. Indeed, India demonstrates a completely different internet usage pattern compared to the other ‘big three’, with mobile internet traffic making up more than half of total web consumption, primarily due to extreme scarcity of fixed broadband.. The trend is unmistakable: global smartphone growth is now being driven by emerging markets in Asia, Latin America and the Middle East, where current penetration levels are still trailing those of Western Europe, North America and Oceania. (Source: http://globalcentral.net/assets/cb757434/1378286097_TheWebcertainGlobalMobileReport2013.pdf) 28
- 29. 8. Mobile App Money Making Trend 8.1. How do you make money from apps? Consumers are less and less willing to pay upfront for apps, so app publishers have to consider other ways to try to make money, either via advertising or inapp purchasing. ● (September 2012) prediction: in 2013 there will be 81.4 billion downloads of apps, 90 % of these will be free apps ● 2016 there will be 309.6 billion app downloads, but 93 % will be free i.e. only 7 % of apps will be paid for. ● The number of downloads featuring inapp purchase will increase from 5 % of total downloads in 2011 to 30 % in 2016. The share of revenue from inapp purchases will grow from 10 % in 2011 to 41 % in 2016. ● The best way To make money from apps is that the publishers must win and maintain customer loyalty/satisfaction through superior app performance and design, then hope to make revenue through inapp purchasing. (March 2013)Trend: Inapp purchases now generate the majority of the revenue in the app stores, rapidly replacing paytodownload as the main revenue model. Inapp purchases made up 76 % of revenue in the US Apple App Store for iPhone in January 2013, up from 53 % in January 2012 (paidfor apps fell from 47 to 24 %). ● In some Asian countries, such as Hong Kong, Japan, China and South Korea, over 90 % of app 29
- 30. store revenue is from inapp purchases. In other countries, it is much less; in Germany, for example, it is only 61 %. ● (July 2012)Trend: Comparing June 2010 to June 2011, the average selling price of the top 200 paid apps in Apple’s App Store declined by 16 %, resulting in an overall 5 % reduction in revenue. (By comparison downloads of free apps increased 118 % during the same period). (Source:http://mobithinking.com/mobilemarketingtools/latestmobilestats/e#apprevenue) 8.2. Mobile apps Download Trend(2010-2016) 2011 2012 2013 2014 2015 2016 Free downloads 22.1 billion 40.6 billion 73.3 billion 119.9 billion 189 billion 287.9 billion Paidfor downloads 2.9 billion 5.0 billion 8.1 billion 11.9 billion 16.4 billion 21.7 billion Total downloads 24.9 billion 45.6 billion 81.4 billion 131.7 billion 205.4 billion 309.6 billion Percentage free downloads 88.4% 89% 90% 91% 92% 93% Source: © Gartner (September 2012)via: © mobiThinking 30
- 31. Source: ● Mobile industry Statistics, Mobile Usage Statistics, Mobile Advertising Statistics,Mobile Search Statistics, Mobile Hospitality Statistics, Mobile Commerce Statistics, Mobile App Statistics,Mobile Social Media Statistics; http://pocketyourshop.wordpress.com/2013/05/20/50mobilemarketingstats/ ● Chart 4.2.1,4.2.2,4.2.3; http://www.business2community.com/infographics/ignoringmobilesearchthinkinfographic061662 7#!oOrsm ● Chart 5.1& 8.2.; http://mobithinking.com/mobilemarketingtools/latestmobilestats/e#apprevenue ● Chart 5.3; http://mobithinking.com/blog/mobileadvertisingstatistics2013 ● Chart 5.4 & 5.6; http://www.trendhunter.com/trends/globalmobileadvertising 31