Millions of apps are being launched every day, making the app economy more pervasive across the globe. ‘App Economy’ has become a powerful tool for businesses looking to amplify their revenue and slew user engagement opportunities. The app economy covers the entire gamut of business taking place over mobile apps, including the app’s sale, generating ad revenue, and leveraging public relations opportunities. By switching to apps, enterprises can add a new value chain; you can expect unprecedented reach and revenue while optimizing your time and cost.
Today, it is creating fortunes for publishers and businesses while upgrading the modus operandi of business operations. According to Statista, the global app economy surpassed an estimated value of USD 6.3 trillion in 2021, which is quite high compared to 2019 (USD 3.3 trillion). In the Indian landscape, app market revenue is expected to reach US$ 1,662.4 million in 2022, showcasing a compounded annual growth rate (CAGR) of 9.2% to attain US$ 2,364.6 million by 2026.
It is undoubtedly creating momentum worldwide due to the growing mobile-driven user behavior wherein users expect to get all the information or services on a unified mobile app.
What are the risks and rewards associated with a mobile app?
About 79% of all smartphone owners make the online purchase. About 80% of shoppers use their smartphones to either check a product review, make price comparisons, or look for other store locations. The absence of a mobile app can bar you from targeting or catering to such potential customers. Also, an app becomes a primary communication channel, so your customers don’t need to browse randomly, converting them into loyal ones. Just think about not having an app and be ready to bear all these risks.
On the contrary, an app can perfectly serve the mobile audience who are always in haste and have a bit finicky purchasing habits. It is a one-stop solution that offers constant availability, competitive edge, and improves customer retention by providing an omnichannel shopping experience. After experiencing the luxury of getting required products with a few taps, consumers are anticipating more on-demand services, raising the prospect of your app’s success. Additionally, it can expedite brand awareness and actively contribute to brand expansion.
So, it is better to take app development as an investment, not a liability.
So, why businesses can’t afford to escape the app economy?
The App economy is growing exponentially, mainly due to high-tech smartphones, easy access to the internet and the ability to deliver a pleasant user experience. If we talk about India in particular, it is proliferating due to affordable mobile devices coupled with an internet connection, leading to increased smartphone usage in metropolitan cities as well as tier I and II cities. If leveraged correctly, it can do wonders for a business. Let’s see why companies must partake in the app economy.
- Job creation
Currently, there are about 3.5 billion smartphone users, and this number will only grow. It means more apps need to be designed, developed, and maintained. The apparent cross-dependency of the app economy and app developers is inevitable. It is estimated that the mobile app economy will create almost 440,000 new jobs by 2024.
You will quickly become a part of this employment generation chain by developing a mobile app. There are various processes involved in app development—research, development, testing, and publishing—which is done by distinctive professionals. Even after getting the app developed, as an app owner, you employ multiple people for sales, marketing, support, etc. So, you should be proud of becoming a part of this ever-evolving ecosystem.
- Revenue generation
Mobile apps have become an integral part of the lives of smartphone users. On average, a mobile phone user spends a minimum of 3.5 hours daily, making mobile apps a highly potent revenue stream channel. Below are some of the methods to efficiently monetize mobile apps.
1. Paid Apps- Third-party developers publish their apps on Google Play or App store with a specific revenue split.
2. In-App advertising- This kind of advertising is advantageous for free apps because that becomes the sole revenue generation tool for such businesses. An array of ads can be used, including promotional video ads, banner ads, and even simple text ads. Enterprises typically yield revenue via impressions or cost per click.
3. In-App purchases- This is a popular purchase model in the gaming landscape. Usually, the app remains free, but the internal experience can be lifted via small purchases.
- Break the periphery with ‘hyperlocal’ and regional content
Every country comprises diverse communities, languages, and social norms. The scenario is even more prevalent in India, where we enjoy more than 120 languages. It is estimated that India has over 430 million active internet users, out of which 227 million belong to rural India. It means over 70 percent of internet users prefer consuming content in their native language.
Though English has become a widely accepted language among youth—but as the figures suggest—a vast majority still prefer consuming content in their native language. Apps can cater those audiences efficiently and help businesses penetrate deeper into local regions. This extra layer of personalization allows catering to an exclusive user base while preserving the essence of local languages.
The above factors make mobile apps absolutely essential in the new business world, where major transactions occur through a tiny mobile screen. So, the onus of providing superior, personalized, and convenient shopping experiences lies on mobile app development services providers who try to achieve it through well-designed, intuitive, and user-friendly mobile apps. Do you still think your business can succeed in this mobile-driven world without an app? If yes, you need to reread this blog!
As a smartphone app development company, we always want enterprises to leverage the best of mobile technology that can help them impart a pleasant user experience and unfurl a new revenue stream. Reach out to us to learn more about mobile apps!