When I tapped Linkedin App button unconsciously this afternoon, an interesting news popped up into my eyes “Consumers Spend 85% Of Time On Smartphones In Apps, But Only 5 Apps See Heavy Use“. The first thing came to my mind was that no wonder a friend of mine who worked in App development wanted to change a job recently.
It seems very hard to determine whether an App has succeeded or not.
Let’s take a look at the data.
From 2012 to 2014, people increased time spent on Apps from 23 mins to 37 mins but the number of apps that people accessed per month seemed not to change a lot.
Nielsen wanted to suggest there’s an upper limit to how many apps consumers can use on a monthly basis.
A new data on app usage comes from a Forrester Research study that analyzed 2,000 U.S. smartphone owners to better determine how users engage with the apps they have on their phones.
According to the data, most time spent Apps category ranking is :
- Social media ( Facebook, Instagram, Twitter…) 14%
- Search engine (Google) 12%
- Messaging ( What’s App, WeChat..) 8%
- Game and Music 6%
- Media (Weather, sports, fashion…) 3%
- Others 57%
The struggle of staying in the 5 spots of people’s mobile never stops. But can we say Facebook is a successful App? What kind of criteria should we use to say that?
Usage is a key point but how these Apps generate profits should be brought up on the table.
We all know that most of the tech companies’ revenue comes from advertising sales. Are all these ads on Apps effective? Is the amount of marketing expense on Apps working? Studies are still on how to evaluate digital marketing.
However, here is a number might imply something: in U.S., Only 15% of web shoppers’ money is spent on Mobile shopping. It seems the ads have not affected the purchases directly. Maybe you will say that people see the ads and then go to the shops. That is true. Some purchases are expensive and people want to touch the real products. But if the products are not likely to be bought online, why should the companies put ads online? The value chains linking ads and purchases seem to be broken.
Do the companies have better ways to do marketing? Does digital marketing have any room to improve?
The reasons why people love to browse products online but not just buy one can be:
- Products delivery: Recent studies suggest that 62 percent of American shoppers find shipping costs to be a significant deterrent to online shopping. The same study shows 40 percent of Canadian shoppers are too impatient to wait for shipping.
- Experience on Mobile shopping: loading time, page looking, and operations on mobile can be better.
- Preference of touch the real products: studies above show that 55 percent of Canadian shoppers prefer to see or touch products in-store. Some companies started to move online shopping to offline. Amazon took the strategy to let their customers feel the products in stores.
All these shows an insufficient collaboration between “online” and “offline”. Platform concept is a key for digital business and Apps, acted as a core in the platform, should integrate every section to provide a win-win situation to corporates and consumers. Once the chain was linked, the speed of online purchases would be so fast to boost the economy, bringing more profits to corporates.
A lot of innovation happens in the digital business. Apps are going to make new surprises to the world.