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Mobile Marketer’s first State of Mobile Advertising Classic Guide was released recently and shares interesting insights into mobile advertising. The guide is a compilation of information on the mobile industry from Mobile Marketer staff as well as other industry leaders. It details the number of mobile users (in the US and worldwide), trends in mobile advertising spend, types of ad formats that work best on mobile, and a variety of other factors that all effect the current state of mobile advertising.
For the moment we are going to look at the growing numbers of apps and where the numbers are headed (hint … things are looking up!). According to Mobile Marketer’s study, “the market for apps will continue to accelerate,” which we can confirm, based on what we have seen. The number of app downloads were close to 11 billion in 2010 and are expected to exceed 75 billion by 2014.
And of course where app use increases, so does the money. Mobile app revenues are also expected to increase globally, surpassing $35 billion by 2014. These numbers are truly astronomical, and show us once again the tremendous potential in advertising on the mobile web.
More on the growth of mobile app usage to come from us, so stay tuned!
Even though we are still at the beginning of 2011, this year is already being labeled by many as “the year of the mobile app.” Estimates are showing that mobile app sales in 2011 could triple from last year, reaching up to $15 billion, so those saying that apps will be big this year are definitely on to something. While Apple iOS apps have been the most popular to date, apps for Android devices are also gaining in popularity as many developers are focusing on Android apps. Interestingly, the growth rate of Android apps is actually faster than that of iOS apps, so plan on seeing many more apps for Android over the next year or two (Security Week).
With more apps out there to compete with, the question app developers must ask themselves is, what is the best way to advertise? Well, there are two ways that app developers can profit from their apps. First, they can sell an app in an app store, making money from a one-time purchase of the app. The other possibility is to promote a free app and earn revenue from advertising within the app.
Both ways generate income for the app developer, but the second way has a higher earning potential. Apps that are sold once are a one-time revenue source. An app that is given away for free has the possibility of generating revenue for the lifetime of the app. Advertising is placed within the app itself, and as often as the user clicks on ads in the app and makes a purchase or signs up for a service, the developer makes money. It is as simple as that.
To generate revenue by giving away apps for free, banners and text ads are placed within the apps. The user clicks on the ad and makes a purchase or signs up for a service or subscription. If the app developer is working through our network, the purchase will be tracked and commission for the sale credited to the developer’s account. This will happen every time the user clicks on the ads within the app and makes a subsequent purchase (or signs up for a subscription), making it possible to earn income over the lifetime of the app.
App developers can choose exactly how they want to market their apps. Developers who advertise with Sponsormob can choose to sell their apps or give them away for free and advertising within the app. We do encourage developers to consider the possibility of life-time earnings with the free app model, as the earning potential is greater, and there are no fees to pay the app store, so developers can keep more of what they earn.
According to Mobile Marketer, the analysis firm IDC is predicting that by 2014, the mobile app industry will be generating revenues of approximately $14 billion. This would be a seven-fold increase from the current statistics. This means the industry will be growing from the roughly 10.9 billion app downloads in 2010 to the better part of 80 billion app downloads that they are expecting in 2014 (Mobile Entertainment).
The article quotes IDC’s vice president of mobile and wireless research as claiming that that app developers will “appify” just about every sort of interaction that occurs in the digital world as well as in the physical world (Mobile Entertainment). This is not be as far out there as it sounds, as so far we have seen apps that can do everything from helping you decide what to serve for dinner (including a detailed shopping list for the supermarket), to keeping up with your friends new music taste, to tracking fertility and pregnancy. Crazy, we know, but this app actually exists!
It will certainly be fascinating to see what the next years bring as far as apps go, and we are not just talking only monetarily. It will be interesting to see what else we will be able to accomplish with the help of handy mobile apps.
And keeping with the ‘app theme,’ in the coming months you will also see Sponsormob roll out new features for developers, so keep watching this space!
In the ongoing discussion about everything mobile, it has been said off and on that the explosive growth of mobile apps will eventually kill the mobile web. While the numbers show that apps are very popular (one source reports that by 2015 over 25 billion mobile apps will have been downloaded – yes, that’s twenty-five billion), the death of the mobile web is most certainly not on the horizon.
Despite the huge volume of apps being downloaded, the mobile web browser is still the most widely used mobile application. A recent survey by Adobe polled over one thousand U.S. mobile device users, and the result was that 66% of users preferred the mobile web over mobile apps (Sarah Perez). A similar study by Orange in Europe showed that the findings across the pond are nearly the same. In both the UK and France, nearly 7 out of 10 users would rather access the mobile web than an app. The numbers are slightly lower in markets where the mobile industry is not as well established, such as in Spain and Poland. In these places, apps were (only) slightly more widely preferred than in what are considered the “more mature” mobile markets of countries like the UK, France, and Germany.
So even though some may believe that the mobile web may some day be dwarfed by beloved apps, the numbers seem to show us something else. Namely that the mobile web browser will continue to be king of the mobile online space, at least for the next long while.