Statistics help quantify and verify any given idea or trend. This is also true in the case of mobile apps.
We already know the increased relevance of apps in our digital space. One glance over a smartphone menu shows our dependence on mobile apps for the simplest of tasks.
And yet, cold hard numbers help underline notions and ideas we already have. Businesses today, even entrepreneurs, are considering the possibility of starting a mobile app. However, every responsible business looks at the numbers before jumping into development.
In case you’re weighing the possibility of creating an app, we’ve made it easier for you. Here are ten statistics that show why mobile apps are an absolute essential for your business.
In this blog
- 85% shoppers prefer apps over mobile websites for online shopping
- 57% digital media consumption was channeled by mobile apps
- There are 2.87 million apps on Google Play and 1.96 million on App Store
- The ROI of every dollar spend on user experience is $100
- Targeted notifications reduce app abandonment to 16%
- Session duration of Android & iOS apps is 6.7 minutes and 5.6 minutes respectively
- User spending on app stores to increase by 92% in 2022
- App-based startups have 825% higher IPO than non-app based startups
- A 5% increase in customer retention can result in a profit increase between 25-95%
- Building a mobile app only takes 15 minutes, and it’s affordable too
#1: 85% shoppers prefer apps over mobile websites for online shopping
85% is a big number when we speak about the online shopping community at large. If 85% shoppers prefer mobile apps over mobile websites, the consequences go beyond ecommerce.
Almost everyone shops online. An 85% preference for mobile apps suggests that websites have fallen way down the pecking order. It is also obvious to suggest that people who like apps for shopping would be comfortable using apps for various other activities as well.
User preference has to be a major factor if you’re thinking about creating an app. Businesses make key decisions based on the way users interact with content online.
An overwhelming preference for apps amongst online shoppers should not motivate ecommerce businesses alone. We can extrapolate this trend further and safely assume that a majority of customers across majo verticals prefer the ease of mobile apps.
There are many reasons mobile apps are preferable to websites. The following points highlight some of the differentiating points:
- Apps are much more accessible compared to websites. Your users and customers can open your app with a simple tap. To open a website, users have to go through a browser and enter the URL. Compared to the instant accessibility of the app, websites are distant from a user experience standpoint
- In general, apps are faster than mobile websites. While apps are built to perform in a native device environment, websites are built to perform in a browser. This makes websites less equipped to mesh with software and hardware specs of a device.
- Apps offer direct connectivity to users with features like push notifications and in-app messaging. For websites, these retention-based marketing tactics are difficult to implement.
- Because of better performance and personalization, apps beat websites from a user experience standpoint.
Looking at these points and the 85% statistic, businesses should be more inclined to create an app and meet user expectations.
#2: 57% digital media consumption was channeled by mobile apps
In 2018, more than half of all digital media was consumed through mobile apps.
This figure is indicative of multiple underlying trends.
Firstly, mobile apps are now the primary medium of content consumption. People find apps much more convenient to read an article, watch a movie, or browse through social media.
Second, apps are now powerful and responsive enough to provide a smooth experience for different kinds of content. For example, watching a movie was not something apps could achieve eight or ten years back.
Now, mobile apps can even handle 3D video. This is also a testament to massive strides made in smartphone hardware.
Third, this number will lean further towards apps as next generation users come into the mix. This is because the newer generation users are more comfortable with using apps.
Considering this statistic is from 2018, the percentage could only have shifted further towards mobile apps. If your concern is that not enough people use mobile apps, this statistic should pour cold water over that notion.
#3: There are 2.87 million apps on Google Play and 1.96 million on App Store
Why is this stat important?
Let’s take an example. Search ‘shopping’ on Google and check the number of search results generated. There is a good chance Google generates over 10 billion search results.
This is a good indicator of the scale of competition in the world of websites. For any major segment or niche, you are likely to run into many competitors vying for the same audience and search visibility.
Compare this with mobile apps. The number of apps on both Google Play and App Store totals to somewhere in the millions. This is a very small number compared to the more intense competition amongst websites.
Not many companies have a mobile app in the market, yet. This makes the prospect of launching a mobile app even more rewarding. With less competition, it is much easier for businesses to establish a brand presence with a mobile app than a website.
Launching a mobile app also signals brand authority and trust. Almost every business today has a website, but having a mobile app on Google Play and App Store adds an extra layer of trust.
#4: The ROI of every dollar spend on user experience is $100
You might feel that a mobile website is ample for your business. Even while an app will inevitably improve user experience, your instincts might tell you to stick with your website.
You should then look at this statistic closely. Every time you invest in optimizing the experience of your users, you can 100x your investment.
It is always better to utilize existing users than looking for new ones. By starting a mobile app and offering a valuable experience to your customers, you can make great returns on your investment.
The problem here is the high cost of app development. For many businesses, the cost of starting a mobile app is a bridge too far.
AppMySite enables you to build a high performance native app, designed to offer seamless and memorable mobile experiences. The performance
#5: Targeted notifications reduce app abandonment to 16%
It is difficult to reach the right customers with the optimal message when you’re solely relying on your website.
Investing tons of money into Facebook and Google ads will help you reach the right audience. However, relying on ad spend for targeted marketing is not sustainable in the long run.
You might think of email marketing as a sound alternative. It is more sustainable in the long run, but doesn’t promise a high level of engagement. Email open rates on average are between 15-20%, and companies generally send one promotional email in a week.
How can a mobile app help?
With apps, you can use push notifications to create a regular channel of communication. A study from Upland shows that geo-targeted notifications bring the abandonment rate down to 16%, from an average of 25%.
By starting a mobile app, you can reach your audience regularly and use targeted notifications to enhance retention. The main advantage of an app is that it opens up channels like push notifications.
On AppMySite, you can send push notifications to your app users from within your account. While push notification segmentation is on our product roadmap, you can still use Firebase to segment your notifications to specific app audiences.
#6: Session duration of Android & iOS apps is 6.7 minutes and 5.6 minutes respectively
The session duration of mobile apps may not mean much by itself. When we compare this with the average session duration of websites, these numbers will mean.
The average session duration of websites is 2-3 minutes. Even if we account for some error in these numbers, there is still enough gap between website and app session durations.
People like spending more time on apps than websites. There are many reasons for this. Most significantly, apps offer better performance and a far more immersive experience than websites.
Online success requires constant engagement with the target audience. With low session durations on websites, this becomes difficult for businesses.
Apps can bridge the gap with better performance and UX KPIs. By starting an app for your business, you can engage with your target audience for longer periods and gain deeper insights into their preferences.
This can further help you configure your push notifications and app marketing campaigns to suit the specific needs of your audience.
#7: User spending on app stores to increase by 92% in 2022
When we speak of app development, we have to speak of app monetization.
No sensible business can start an app without having a monetization channel in mind. Even if you choose to work with an affordable app maker like AppMySite, it is necessary to plan how you’re going to monetize your app.
Both Google Play and App Store are the major platforms app users lean on to discover apps. As the statistic above shows, app store spending is expected to skyrocket in the coming year.
There are many reasons behind this. Growth of the subscription model has largely been driven by mobile apps. This is why apps like Tinder and Netflix are the highest earning apps in the market.
Spending on app stores is also driven by in-app purchases. Much of the premium mobile gaming industry is driven by large spending by users on in-app purchases.
This level of spend on the app stores highlights the potential of the app space in general. Remember, app store spending is only one part of the app industry. With its growth already bursting and expected to rise by 92%, businesses should feel confident about betting on the app space.
As we mentioned earlier, competition in the app space is not yet at its peak. This presents a unique opportunity for businesses today to get a leg up on the competition and establish their presence in the app space.
#8: App-based startups have 825% higher IPO than non-app based startups
We all read tech news articles about a new app company or platform launching an IPO every now and then.
To get a good idea about where a specific vertical is headed, looking at its performance in the stock market is a good idea. As the statistic here shows, app-based startups tend to get a phenomenally higher IPO than non-app based companies.
IPOs tend to signal where the market is going and which sectors have the best chance of growing at an exponential rate.
For a new company with a simple website, launching an app is the best way to become part of a growing industry. You can give your company a chance to be part of a booming space rife with investment opportunities and growth.
With all projections pointing towards further growth in the app space, there will never be a better time to start a mobile app for your business.
#9: A 5% increase in customer retention can result in a profit increase between 25-95%
User acquisition costs are rising partly because people don’t have a large attention span anymore. Even with targeted advertising and smart marketing techniques around, it is difficult to keep hold of customers for a long time.
Let’s assume someone visits your website once and purchases a product. What can you realistically do to bring the customer back?
You can use email outreach, which is a shot in the dark as email open rates are generally between 15-20%. The odds are worse than flipping a coin and expecting it to land one way.
You can use remarketing to target the same customer with Facebook or Google ads. This is a good idea for the short run, but not sustainable as a long-term marketing strategy.
You essentially need a way to keep hold of every customer you convert. Doing this is difficult with a website as the above points show. An app, however, can be a decent solution.
Retaining customers with an app is easier for a number of reasons. With an app, you become instantly accessible to your customers. The need to rely on paid ads and emails diminishes as your users can simply access your app.
With a smart push notification strategy and sound app performance, you can cut down on app abandonment as well. Apps can open the door to help you retain your customers and rely less on customer acquisition at every turn.
#10: Building a mobile app only takes 15 minutes, and it’s affordable too
With AppMySite’s app creator, you can realistically create a mobile app that performs well and offers all the cutting edge features customers demand.
To get started, you simply need a WordPress website or a WooCommerce store. AppMySite essentially allows you to import all your website data to a carefully constructed native app environment.
Any change you make to your website is then reflected automatically in the app. You can also manage other auxiliary modules like app appearance, settings, push notifications, app monetization and more from within your AppMySite account.
You don’t need a steep learning curve to understand how to create an app on AppMySite. A few minutes on the platform will familiarize you with the whole process.
We all instinctively believe that mobile apps are taking over the digital landscape. However, a business cannot operate on instinct alone. There needs to be a hard and cold analysis backing up the trends disrupting the tech space.
This piece covers ten top-draw statistics that clearly show why you should create a mobile app for your business. Each statistic here shows how mobile apps are crucial for the present and future growth of brands and companies across the board.
The statistics covered in this blog have been discussed in previous blogs on AppMySite. You can visit them to know more about the source of these statistics, and learn about other app-related data: