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Mobile app revenue set to skyrocket

Mobile app revenues in the US and Canada will reach nearly $22 billion in 2017, fuelled mainly by in-app purchases and in-app advertising revenues, according to Parks Associates.

"Tablet owners show a greater tendency than smartphone users to make in-app purchases, with more than 20% having upgraded from a free to a paid version of an app," said Harry Wang, health and mobile product research analyst at Parks Associates. "The mobile app market has entered a new, more mature stage where companies need to employ precise segmentation and deployment strategies in order to generate consumer interest and realise successful monetisation."

Apps will be critical to TV going forward, some say. "At Accedo, we believe that the pairing of mobile and tablet devices, the second screen, to the TV will become an important part of the user experience," said David Adams, vice president of corporate development, Accedo. "There are a number of very attractive use cases, which we believe will be readily adopted by consumers, such as using the second screen as a better way to browse and search, to control the first screen, and to view enhanced information, such as details about a specific programme."

What most companies will agree on is the importance of mobile, yet the best practises for succeeding in the space are not always clear to companies just starting out on mobile, said Michael Oiknine, CEO, Apsalar. "It's becoming evident that mobile user data will play a key role in the mobile strategies of these businesses," he said.

Steve Willmott, CEO at 3scale, added: "Apps are also increasingly becoming embedded in real world objects – with companies such as Johnson Controls wiring commercial buildings, or Samsung launching Android-controlled fridges. This shift begins to blur the distinction between online and offline."

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  • Guest (Zoya Bennet)

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    I agree with the points mentioned here that mobile apps are becoming the trend of technology and smart phones. The number of mobile app users are increasing day by day and so the revenue also reaches great height.

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