As of last fall, 52 percent of the time consumers spend online was via mobile applications, according to new data from comScore Inc. 40 percent of time spent online was via web browsers on desktops or laptops and 8 percent spent via web browsers on smartphones or tablets.
The statistics show that most consumers prefer the richer experiences that can be created with mobile app development.
There are several factors that contribute to the growth in mobile application usage. These include the increased usage of devices with large screens, new technologies and, most importantly, according to Andrew Lipsman, vice president of marketing and insights at comScore, access to faster 4G wireless data connectivity.
“Prior to 4G, browsing the web or using apps on your smartphone was slow and clunky, and consumers generally used apps only when necessary; the average consumer was not sitting on their couch or on the go heavily using mobile apps,” Andrew Lipsman says. “In the last two years, though, smartphones have become the primary platform consumers use to consume content and shop, and 4G connectivity is a big part of this movement to mobile devices and apps.”
Beyond that the apps themselves have improved. Businesses are improving their mobile applications and giving users better experiences which is helping fuel the growth. Which along with a change in behavior where we see people actively shopping or social networking while watching TV or riding a subway to work makes mobile applications incredibly important to businesses.
It is imperative that your mobile application is giving your customers the positive experiences and not turning them away.
Juniper Research estimates in a recent study that mobile phone and tablet users will make 195 billion mobile commerce transactions per year by 2019. This represents a huge jump over the 72 billion mobile commerce transactions expected this year.
With smart phones saturating the mobile phone market there will be an expansion the use of the features on these devices. Juniper’s report expects to see the highest growth rates in the NFC sector, “Here, usage is expected to be buoyed by the launch of Apple Pay, together with a host of anticipated deployments by banks using solutions based on HCE (Host Card Emulation) technology.”
Juniper is expecting to see the largest increase in transaction volumes will occur in the digital goods sector, where they foresee a “surge in micropayments for in-app purchases, notably within arenas such as social gaming.”
As businesses improve user experiences for mobile applications during the mobile application development process, customers will be more comfortable making purchases and not only volumes of transactions will increase but also amounts. But beyond the applications them selves there are a number of factors that will drive growth. Industry innovations will also push the growth of mobile transactions as Walgreens mentioned its mobile wallet payments doubled after Apple Pay came out. Additionally once we see facilities for NFC payments in quick-shopping locations, such as at gas pumps, the growth will skyrocket.
2014 was definitely a banner year when it comes to mobile ad spending. As we enter 2015, even more advertisers are expected to shift marketing budgets towards mobile in even bigger numbers.
With mobile applications in the app stores numbering well into the millions and over half of Americans now owning smartphones this isn’t surprising.
Looking at marketing budgets, a recent study by eMarketer found that the growth in mobile budgets and mobile application development is taking away from money spent on print, television and digital display advertising.
It is obvious that as mobile grows as an advertising medium that other areas will see reduced budgets. But what is unique this year is that we are starting to see digital display having reduced funds allocated to it for the first time. Digital advertising has been the heavy hitter over the past five years and many assumed that it would continue stay unfazed.
We are seeing changes in consumer behavior. Consumers are starting to lean towards mobile devices like smartphones and tablets over computers. Which means that advertisers who are looking to advertise where their customers are spending time and improve their return on investment are reducing their budgets allocated to other advertising methods and increasing their spending within the mobile medium.