| |
Android app revenue on track to beat iOS in 2017 by BI Intelligence on Mar 31, 2017, 9:48 AM Advertisement
 This story was delivered to BI Intelligence Apps and Platforms Briefing subscribers. To learn more and subscribe, please click here. An increase in app installs from the Google Play store as well as third-party Android app stores is projected to drive Android consumer spend to surpass iOS in 2017, according to app analytics firm App Annie. Despite Android taking the larger share of overall app revenue via Google Play and third-party apps stores, the iOS App Store will continue to have the single-most lucrative app store. Total global consumer spend in apps reach more than $139 billion, and global app downloads are expected to exceed 128 billion, by 2021. App Annie's app revenue forecast encompasses only consumer spending, or revenue that routes through app stores. This includes in-app purchases, paid apps, and subscriptions, but not in-app advertising. Here are the key findings from the report: - Games will remain the most lucrative segment, while subscription revenue will grow its share by 2021. In 2016, smartphone games revenue accounted for 81% of total global app revenue. However, by 2021, subscriptions for apps related to streaming, news, and dating, will grow at an annualized rate of 25% to reach roughly $34 billion in revenue. Both Google and Apple are pushing subscription apps primarily because they offer a more stable revenue stream than in-app purchases do.
- While revenue continues to be centered in mature markets, emerging markets drive download growth. The top five markets, led by China and the US, represent a massive 75% of global app store revenue. That's expected to increase to 85% by 2021, likely due to increased spending by users in mature smartphone markets. Meanwhile, emerging markets, including India, Brazil, and Indonesia, will help drive app downloads over the period. However, limited spending power will diminish their revenue potential.
- Revenue growth in China is a sign of a maturing app market, a path India is in the early stages of. In 2016, China surpassed the US as the largest iOS app revenue market. This growth will likely continue through 2021 as users become increasingly comfortable spending money in-app. And while India's users continue to drive high downloads, it's unlikely the market will provide any meaningful app revenue growth over the period.
Google is likely eyeing app revenue growth in China via third-party app stores. Although Android is the dominant smartphone OS in China, Google doesn't have a Google Play presence in the Chinese smartphone market since the company was banned in 2010. This void was filled by third-party app stores such as Tencent's Myapp, 360 Mobile Assistant, and Baidu Mobile Assistant. But Google is reportedly working with Chinese internet company NetEase in a bid to re-enter the market. App developers long considered the "pay once and play" model — in which users pay up front an app and aren't prompted to make in-app purchases — the best way to generate revenue. But as more "free-to-download" apps entered the market, users increasingly opted for these experiences. These apps offer microtransactions for in-app goods and services, and in-app ads. As the app ecosystem expands further, it will become increasingly challenging for developers to compete in a crowded market. Overall, global gross app revenue will double to reach $102 billion by 2020, according to recent projections by App Annie. As a result, app monetization strategies need to shift at least as quickly as consumer trends and preferences in order for developers to capture a piece of this growing market. Laurie Beaver, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on app monetization that explores the top app monetization strategies under user- and advertising-paid approaches, and the growing combination of both. We will also look at emerging trends that could help developers navigate the fiercely competitive app ecosystem, and address the potential barriers that developers will have to overcome to reap the benefits of the multi-billion dollar market. Here are some of the key takeaways: - The app ecosystem is expanding quickly, and it's becoming increasingly challenging for app developers to compete in a crowded market.
- To capture a piece of the growing market, app developers must adapt their strategies at least as quickly as consumer trends and preferences change.
- Developers can choose a user-paid or an advertising-paid approach to monetizing their apps. Different monetization strategies work best with different apps.
- There are a number of widespread challenges that developers must contend with both before and after they enter the app market.
In full, the report: - Provides key factors driving the expected growth of global app revenue
- Evaluates the top app monetization strategies
- Looks at emerging trends to help developers navigate the app ecosystem
- Explains the challenges that developers face to compete in the app market
- And much more
Interested in getting the full report? Here are two ways to access it: - Subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and over 100 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. » START A MEMBERSHIP
- Purchase & download the full report from our research store. » Purchase & Download Now
| |
0 comments:
Post a Comment