Apps are getting a lot of attention, and for good reason. It is estimated that over 14 billion apps will be downloaded in 2012. Consumers aren’t just downloading apps, many of them are making purchases while inside of applications. In fact, revenue from in-app purchases is expected to eclipse revenue from pay-per-downloads in the near future.
• By 2016, $46 billion in revenue is anticipated from mobile apps. That’s a fourfold increase in just 5 years.
• In-app purchases are expected to jump from $970 million in 2011 to $5.6 billion worldwide in 2015
• By 2015, in-app purchases are predicted to make up 64% of total smart phone based revenues
• Just over one in five consumers who make an in-app purchase do so during their first use of an app
• 44% of consumers who make a purchase don’t do so until at least their 10th session with the app
What Does This Mean To You?
Consumers are extremely depended on their mobile devices and apps are one of the things that have fueled their addiction. While custom development of apps can be out of many businesses reach – advertising inside of existing apps is a much more cost-effective option. One of the things you need to be mindful of is content. It seems that consumers who make in-app purchases need to spend time with the application before buying things. Make sure the content inside the app is engaging and updated often. For any app to be an effective vehicle for your goods & services, consumers need to have reasons to return to it. For more information on in-app advertising options, please contact:
Source: ABI Research; HIS Screen Digest; CNET; EMarketer