Ronnie05's Blog

Apps Stores (Part 1): Defining the global opportunity

Posted in Applications and User Interfaces, Value added services and applications by Manas Ganguly on November 8, 2010

Apple Apps store and the Google Marketplace are expanding both in terms of number of apps featured, apps downloads and user numbers. The increasingly popularity of apps store is perhaps reflected by the growing numbers of device makers and carriers who are riding the Apps store to deliver customized services or products to the consumers.

Estimating the size of the Mobile Apps opportunity
Consumers will spend $6.2 billion in 2010 in mobile application stores while advertising revenue is expected to generate $0.6 billion worldwide, according to Gartner, Inc. Analysts said mobile application stores will exceed 4.5 billion downloads in 2010, eight out of ten of which will be free to end users. Furthermore, Gartner forecasts worldwide downloads in mobile application stores to surpass 21.6 billion by 2013.Free downloads will account for 82 per cent of all downloads in 2010, and will account for 87 per cent of downloads in 2013. Worldwide mobile application stores’ download revenue exceeded $4.2 billion in 2009 and will grow to $29.5 billion by the end of 2013. This revenue forecast includes end-user spending on paid-for applications and advertising-sponsored free applications. Advertising-sponsored mobile applications will generate almost 25 per cent of mobile application stores revenue by 2013.

Apps: A sure-fire way to reach the consumer provided content is sticky enough
As Apple loves to remind people, there’s an app for just about everything. However, discovering apps that work–and that the user would actually use–can be a daunting task. According to another poll by Harris Interactive Mobile users download apps based on recommendations from other users, not basis brand recognition. Twenty-nine percent of the apps users downloaded were based on recommendations from other users, it said, and 66 percent said they purchased an app because of a review. The results of our survey are quite telling, and further proof that organizations must invest more in the user experience of their mobile apps, rather than rely solely on the brand. Users download mobile apps by their own volition. The Apps content needs to be compelling enough to create stickiness around the app such that users spend time on the app. That way, the application will be able to deliver what it is meant to deliver to the user and have mobile ads piggy-backing them to the user and thus make more money for the store, developer and the carrier. That way, mobile applications are the surefire way to extend a brand. It’s time for organizations to understand how to fully leverage the mobile channel and optimize a user-centered approach to drive adoption, as well as reinforce and drive brand loyalty. According to the study, 73 percent thought that a company’s app should be more user-friendly than its Web site. It found that users take the following criteria into consideration when downloading an app: 74 percent think an app should be to be easy to use, 75 percent think it should do exactly what they want or need it to do, and 57 percent think it should be well designed.

Continued here

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