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Mobile Application Market Research
By Christine Abraham
(Intech Creative LLC)
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Table Of Contents Page No. 1. Introduction………………………………………………………………………….. 4
2. Objective…………………………………………………………………………….. 4 3. Mobile Market Statistics……………………………………………………………. 57
3.1. Mobile Industry Statistics…………………………………………………. 5
3.1.1. Global Mobile Takeover…………………………………………. 6
3.2. Mobile Usage Statistics…………………………………………………… 7 4. Mobile Internet Usage Statistics………………………………………………….. 712
4.1. Mobile Advertising Statistics……………………………………………… 7
4.2. Mobile Search Statistics…………………………………………………… 8
4.2.1. Geolocation impacts 67% of all searches……………………… 8
4.2.2. Mobile Local Search Statistics…………………………………… 9
4.2.3 Statistics of Activities Post Local Search ……………………….. 10
4.3.Mobile Hospitality Statistics………………………………………………… 11
4.4.Mobile Commerce Statistics……………………………………………….. 11
4.5.Mobile Apps Statistics……………………………………………………… 12
4.6.Mobile Social Media Statistics…………………………………………….. 12
5.Mobile Ad Market Metrics………………………………………………………….. 1318
5.1. SmartPhone Online Activity Statistics …………………………………… 13
5.2. Mobile Ad Spending Trend……………………………………………….. 14
5.3. Mobile Ad Spending Trend By Region………………………………….. 15
5.4. Mobile Ad Spending Statistics By Category …………………………….. 16
5.5. Mobile Ad Revenue By Company………………………………………….. 17
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5.6. Mobile Ad Statistics By Age………………………………………………… 18
6. Mobile Online Demographic Trend………………………………………………………………….. 18-22
6.1 SmartPhone Trend By Age…………………………………………………. 18
6.2. SmartPhone Trend Amongst Young Users………………………………. 19
6.3. Young SmartPhone Users Activity Trend…………………………………. 20
6.4. Young Mobile Internet User Statistics …………………………………….. 21
6.5. Mobile Ad Spending Statistics by Gender………………………………… 22
6.6. Mobile Ad Spending Statistics By Platform……………………………….. 22
7. Global Market Potential for Growth……………………………………………………………….. 23-28
7.1.Two Billion Connected Devices……………………………………………………………. 23
7.2. Growth Study of Active Devices VS Population………………………….. 24
7.3.Smartphone Subscriber Base………………………………………………. 26
7.4. Internet Usage Pattern………………………………………………………. 28
8. Mobile App Money Making Trend …………………………………………. 2930
8.1. How do you make money from apps?........................................ 29
8.2. Mobile apps Download Trend(2010-2016)......................... 30
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MARKET STUDY
1. Introduction (this section is private)
CRAVELLER is a social geolocation based multi platform application that represents all products.
These products are solely promoted by the users themselves through a tag rank algorithm.
The user can have a private social network of people and be a part of a wider geo located
community (so as to know for example: the best pepper steak in town, the best dance instructor in
the area etc..)
The tag algorithm will also determine the users preference, be it for social or product.
CRAVELLER is a seller for the users.
It provides a map for the users to locate the posted object.
2. Objective
To look for market opportunities and it’s great potential for growth.
To evaluate statistics of past,present and future trends in the market
To Evaluate competitors
This research can be used to point out areas of the smartphone market which has the best growth
potential.
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3. Mobile Market Statistics
Mobile market research is not a single-track path. The mobile world is where the "digital natives" who
have grown up with the Internet and mobile phones, feel at home. This is reason enough for a complete
industry to focus on the opportunities for mobile market research.The use of Smartphones is becoming
a hobby. A good 25% of all mobile phones that are currently in use are Smartphones.
3.1.Mobile Industry Statistics
91% of adults have their mobile phone within arms reach 24/7. (Source: Nielsen as on 2013)
By 2015, 81% of U.S. cell users will have smartphones. (Source: Goldman Sachs)
271 million adults in the U.S. own some type of a mobile device. (Source: Nielsen as of 2012)
91% of all US adults own a smartphone as on 2013.
(Source:http://www.thinkhouse.com/blog/?p=716)
The global mobile market will grow from $3.4 billion in 2010, to $22 billion in 2016.
(Source: Nielsen).
Apple and Android represent more than 75% of the smartphone market.
(Source: comScore as of 2012)
3.1.1.GLOBAL MOBILE TAKEOVER
As of 2013
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(Source: http://leaderswest.com/2013/09/15/infographicgeolocationimpacts67ofallsearches/)
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3.2.Mobile Usage Statistics
86% of mobile internet users use their device while watching TV. (Source: Nielsen as on 2013)
By 2014, mobile internet usage will overtake desktop internet usage. (Source: Nielsen)
Adults spend more time on mobile media than they do on newspapers and magazines combined.
(Source: Nielsen) Refer Chart 5.6 for statistics on the Demographics of Mobile Ad Campaign
The usage of smartphones has been tremendous. Refer Chart 5.1. on page: 13 for statistics on the
activities of smartphone users.
4.Mobile Internet Usage Statistics
4.1.Mobile Advertising Statistics
$22 billion was spent on mobile advertising in 2012, compared to only $3 billion in 2010. (Source:
Nielsen) Also refer Chart 5.2. & 5.3. for Mobile Ad Spending (20122016 ) statistics by Global &
region .
In 2012, 51% of marketers ran campaigns exclusively for mobile, only 11% did in 2011 (Source:
Popai) Refer Chart 5.4. for Mobile Ad Spending statistics By Category.
52% of smartphone users prefer receiving offers on their mobile device. (Source: eConsultancy as
on 2012)
30% of marketers are using mobile coupons. (Source: AerIcon as on 2012)
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4.2.Mobile Search Statistics
As on 2012
95% of mobile users use their devices for local search. (Source: Nielsen) and Location-based search revenue will reach $6B by 2017.
52% of all local searches are done from a mobile device. (Source: Microsoft Tag)
9 out of 10 mobile phone searches result in a purchase or visit. (Source: Nielsen)
3 out of every 5 searches are conducted on a mobile device. (Source: Nielsen)
Mobile to win 15% of online retail sales this year. (Source: eMarketer)
4.2.1 Geolocation impacts 67% of all searches as on 2013
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4.2.2. Mobile Local Search Statistics
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4.2.3 Statistics of Activities Post Local Search
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4.3.Mobile Hospitality Statistics
As on 2012
50% of travel or restaurant mobile queries result in a purchase. (Source: Nielsen)
17% of travelers research their trip on a mobile app or website. (Source: SiliconRepublic)
12% of smartphone users have downloaded an app related to travel. (Source: SiliconRepublic)
3 in 4 travelers use their mobile device to explore their destination. (Source: SiliconRepublic)
5% of apps in Apple’s App Store are categorized for travel (Source: SiliconRepublic)
Refer 4.2.3. for a better understanding on actions after Local Search.
4.4.Mobile Commerce Statistics
As on 2012 75% of mobile users use their mobile device for shopping. (Source: Nielsen)
52% of adult mobile phone owners use their devices while in a store to get help with purchasing
decisions. (Source: Nielsen)
1 in 5 smartphone users scan product barcodes, and nearly 1 in 8 compare prices on their phone while
in a store. (Source: comScore)
39% of instances where a consumer walks out of a store without buying were influenced by
smartphones. (Source: MarketingLand)
Only 19% of US retailers have an MCommerce app. (Source: eMarketer)
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4.5.Mobile Apps Statistics
As on 2012
73% of business apps use prebuying features like product research, price comparisons, inventory
checks, and customer reviews, opposed to strictly purchasing (Source: Nielsen)
35% of marketers are working with mobile apps. (Source: AerIcon)
300 thousand mobile apps have been developed. (Source: Nielsen)
82% of mobile media time is from apps and 18% is from mobile browsers. (Source: Nielsen)
Refer Chart 5.1. & 8.2. for a clearer picture of Mobile Apps in the global market.
4.6.Mobile Social Media Statistics
As on 2012 200 million YouTube videos are seen on mobile devices everyday. (Source: Nielsen)
30% of all time spent on mobile devices is using social media. (Source: Microsoft Tag)
91% of mobile internet access is for social activities, versus just 79% on desktops. (Source: Microsoft
Tag) Over 1/3 of Facebook’s users access Facebook Mobile; 50% of Twitter’s users use Twitter Mobile.
(Source: Microsoft Tag)
13% of marketers are using locationbased services. (Source: AerIcon)
Refer 5.1. for Social Media Statistics.
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5.Mobile Ad Market Metrics
5.1. SmartPhone Online Activity Statistics
SMS Web browsing Email
Social
networking Apps
Streaming
music
Instant
messaging Video/mobile TV
Australia 94% 60% 55% 58% 59% 21% 33% 19%
Brazil 85% 69% 66% 75% 74% 39% 57% 43%
China 84% 75% 58% 62% 71% 59% 67% 39%
India 45% 15% 17% 26% 13% 11% 15% 8%
Italy 89% 37% 51% 47% 49% 26% 35% 17%
Russia 95% 68% 55% 59% 64% 41% 34% 36%
Korea 93% 80% 52% 55% 81% 40% 70% 44%
Turkey 78% 37% 33% 69% 38% 22% 50% 9%
UK 92% 66% 68% 63% 56% 20% 37% 19%
US 86% 82% 75% 63% 62% 38% 28% 28%
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5.2. Mobile Ad Spending Trend
Year Worldwide Ad Spending
(in billions USD)
US Mobile Ad Spending (in billions USD)
2012 $8.41 $4.11
2013 $13.58 $7.29
2014 $20.30 $11.33
2015 $28.45 $16.17
2016 $36.87 $21.53
Mobile advertising accounted for 18 % of paid search budgets in 2012
22.7 % of consumers used a mobile device to visit a retailer’s site in December 2012, up from 14.6 %t in 2011.
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5.3. Mobile Ad Spending Trend By Region
(in millions USD)
2012 2013 2014 2015 2016
North America 3948.4 7162.6 11245.1 16117.9 21391.7
AsiaPacific 2653.8 3412.8 4313.8 5314.6 6191.6
Western Europe 1647.8 2735.3 4294.4 6355.7 8389.5
Latin America 79.2 140.2 259.3 414.9 580.9
Eastern Europe 70.4 117 162.1 210.8 261.4
Middle East and Africa 7.1 13.4 22.8 36.4 58.3
Mcommerce sales will account for 15% of total e commerce sales in 2013
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5.4. Mobile Ad Spending Statistics By Category
As on 201213
Entertainment & Media 40%
Technology & Telecom 22%
Retail 9%
Travel 7%
Social & Dating 6%
News & Education 6%
Business & Finance 5%
Lifestyle & Health 3%
Automotive 1%
Style & Fashion 1%
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5.5. Mobile Ad Revenue By Company
As on 201213
Google 54.65%
Facebook 13.23%
Pandora 5.10%
Twitter 3.64%
Apple iAd 2.92%
Millennial Media 1.29%
Other 19.17%
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5.6. Mobile Ad Statistics By Age
As on 2013
6. Mobile Online Demographic Trend
6.1 SmartPhone Trend By Age
GENERATION APP 62% OF MOBILE USERS 2534 OWN SMARTPHONES
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6.2. SmartPhone Trend Amongst Young Users
(In UK as on 2013)
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6.3. Young SmartPhone Users Activity Trend
(In UK as on 2013)
(Source:http://infographicsmania.com/studentsmartphoneaddiction/)
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6.4. Young Mobile Internet User Statistics
As on 2013, 3 in 4 teens access the internet on cell phones, tablets, and other mobile devices.
About three in four (74%) teens ages 1217 are “mobile internet users” who say they access the internet on cell
phones, tablets, and other mobile devices at least occasionally.By comparison, 55% of adults are mobile internet
users.2 However, this gap is driven primarily by adults ages 65 and older, many of whom are not using the
internet in any capacity, let alone on a mobile device. Adults under the age of 50, on the other hand, are just as
likely as teens to be mobile internet users; 74% of adults ages 1849 access the internet on a cell phone, tablet,
or other mobile device.
Teen Internet Access Demographics % of teens in each demographic group
(Source:http://www.pewinternet.org/~/media/Files/Reports/2013/PIP_TeensandTechnology2013.pdf)
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6.5. Mobile Ad Spending Statistics by Gender
6.6. Mobile Ad Spending Statistics By Platform
As on 2012
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7. Global Market Potential for Growth
7.1.India, China, and the Map to Two Billion Connected Devices
There was a 47% increase in active smartphones and tablets in the United States between April of
2012 and April of 2013.
Although the U.S. is in the bottom 5% of countries for connected device growth in the past year.
Worldwide, growth of these devices is exploding. To be in the top 5% of countries for growth over
the past year, a country’s number of active connected devices needed to more than triple.
There are currently more than 1 billion active smartphones and tablets globally, and based on
current growth rates we expect to reach 2 billion in 2014.
Huge Potential for Future Growth ⇑
The reason even 47% growth puts the US near the bottom of countries for tablet and smartphone
growth becomes clear from comparing the size of the connected device installed base and
population in five countries.
Considering China and the U.S,these two countries currently have a similarly sized connected
device installed base, but China has more than 4 times as many people.
Combine China’s largely untapped population with its rapidly growing incomes (increasing at a
rate of 810% a year between 2009 and 2011, according to the World Bank)
No wonder the connected device installed base in China grew by 149% between April of 2012 and
April of 2013.
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7.2. Growth Study of Active Devices VS Population
We expect these same forces to continue fueling growth in connected device numbers in China,
and given the size of the Chinese population, those numbers could add up quickly.
Canada and India provide an even more dramatic comparison. They currently have similarly sized
installed bases of smartphones and tablets, but India’s population is 36 times as big as Canada’s.
India’s device penetration won’t catch up to Canada’s overnight, but when India’s rate of
penetration equals the current rate in China, then 197,561,626 additional devices will be added to
the worldwide installed base.
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Given India’s connected device installed base grew by 160% in 2012 , we don’t think that’s going to
take that long to happen.
As a result the world’s number of connected devices will increase by more than 400 million (or
about 40%) when the rate of penetration in India reaches the current rate of penetration in China.
India with 1 billion mobile phone subscribers, of which less than 10% are smartphone users, it’s little
wonder that foreign smartphone OEMs have set their eyes on the Indian market as a crucial means to
support a future wave of growth, especially as developed markets begin to show signs of saturation. The
sheer scale of India makes it a future battlefield that no smartphone vendor or app developer with global
aspirations can afford to ignore.
100%+ Growth is the New Normal
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India and China’s large populations make them dramatic examples, but their rates of growth don’t
even put them at the top of the charts.Use of smartphones and tablets grew in every country in the world
last year .The countries in orange (mainly the English speaking countries, Western European countries,
and the most connected parts of Asia) are other early adopters of mobile technology. Those markets still
grew at rates of up to 99%, but a lot of that growth was the result of people adopting tablets as second
devices.
China Is A Smartphone Powerhouse Without Comparison
7.3.Smartphone Subscriber Base
However, while the current scale is impressive, it is the China’s potential which is truly breathtaking. With
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less than 30% smartphone penetration, the country is destined to position itself in a league completely of
its own over the coming years, and it’s therefore little wonder that the country has become the number one
target for both global and local smartphone manufacturers and App Developers.which altogether is
laying the right foundation for solid doubledigit growth for the foreseeable future.
India now the world’s 3rd biggest smartphone market? Speaking of potential and scale, the only other
country in the world with the possibility of getting even somewhat close to China over the long haul would
be India. It won’t happen anytime soon, but the vast country is currently undergoing rapid
transformation, not only when it comes to the transition from feature phones to smartphones, but also
significant broader technological and socioeconomic advances. And that is why this is the right time to tap
into the mobile app market now.
The mobile markets of all of the large BRIC countries (Brazil, Russia, India, China) grew by between 100 and 199% (the growth rate for the yellow countries on the map). Much of the rest of South America and parts of Africa also grew at that same rate.
(Source: http://www.nextbigwhat.com/2billionsmartphonesandtablets2014297/)
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7.4. Internet Usage Pattern
The acronym BRIC because all countries (Brazil, Russia, India, China) are deemed to be at a similar
stage of newly advanced economic development, it could appear as though this categorisation might need
some revision.
Indeed, India demonstrates a completely different internet usage pattern compared to the other ‘big
three’, with mobile internet traffic making up more than half of total web consumption, primarilydue to
extreme scarcity of fixed broadband..
The trend is unmistakable: global smartphone growth is now being driven by emerging markets in
Asia, Latin America and the Middle East, where current penetration levels are still trailing those of
Western Europe, North America and Oceania. (Source: http://globalcentral.net/assets/cb757434/1378286097_TheWebcertainGlobalMobileReport2013.pdf)
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8. Mobile App Money Making Trend
8.1. How do you make money from apps?
Consumers are less and less willing to pay upfront for apps, so app publishers have to consider
other ways to try to make money, either via advertising or inapp purchasing.
(September 2012) prediction: in 2013 there will be 81.4 billion downloads of apps, 90 % of these will
be free apps
2016 there will be 309.6 billion app downloads, but 93 % will be free i.e. only 7 % of apps will be
paid for.
The number of downloads featuring inapp purchase will increase from 5 % of total downloads in
2011 to 30 % in 2016. The share of revenue from inapp purchases will grow from 10 % in 2011 to
41 % in 2016.
The best way To make money from apps is that the publishers must win and maintain customer
loyalty/satisfaction through superior app performance and design, then hope to make revenue
through inapp purchasing.
(March 2013)Trend: Inapp purchases now generate the majority of the revenue in the app stores, rapidly
replacing paytodownload as the main revenue model. Inapp purchases made up 76 % of revenue in the
US Apple App Store for iPhone in January 2013, up from 53 % in January 2012 (paidfor apps fell from 47
to 24 %).
In some Asian countries, such as Hong Kong, Japan, China and South Korea, over 90 % of app
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store revenue is from inapp purchases. In other countries, it is much less; in Germany, for example,
it is only 61 %.
(July 2012)Trend: Comparing June 2010 to June 2011, the average selling price of the top 200 paid
apps in Apple’s App Store declined by 16 %, resulting in an overall 5 % reduction in revenue. (By
comparison downloads of free apps increased 118 % during the same period).
(Source:http://mobithinking.com/mobilemarketingtools/latestmobilestats/e#apprevenue)
8.2. Mobile apps Download Trend(2010-2016)
2011 2012 2013 2014 2015 2016
Free downloads 22.1 billion 40.6 billion 73.3 billion 119.9 billion 189 billion 287.9 billion
Paidfor downloads 2.9 billion 5.0 billion 8.1 billion 11.9 billion 16.4 billion 21.7 billion
Total downloads 24.9 billion 45.6 billion 81.4 billion 131.7 billion 205.4 billion 309.6 billion
Percentage free downloads 88.4% 89% 90% 91% 92% 93%
Source: © Gartner (September 2012) via: © mobiThinking
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Source: Mobile industry Statistics, Mobile Usage Statistics, Mobile Advertising Statistics,Mobile Search
Statistics, Mobile Hospitality Statistics, Mobile Commerce Statistics, Mobile App Statistics,Mobile Social Media Statistics; http://pocketyourshop.wordpress.com/2013/05/20/50mobilemarketingstats/
Chart 4.2.1,4.2.2,4.2.3; http://www.business2community.com/infographics/ignoringmobilesearchthinkinfographic0616627#!oOrsm
Chart 5.1& 8.2.; http://mobithinking.com/mobilemarketingtools/latestmobilestats/e#apprevenue Chart 5.3; http://mobithinking.com/blog/mobileadvertisingstatistics2013 Chart 5.4 & 5.6; http://www.trendhunter.com/trends/globalmobileadvertising
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