Consumers are set to install up to 85% more video streaming apps in 2021 compared with pre-Covid levels according to mobile data and analytics firm App Annie, which has released its key predictions for next year.
As 2020 reshaped and redefined daily life, while the world tried to deal with the Covid pandemic, consumers hunkered down at home and turned to the world of mobile to stay connected, entertained and informed. Q3 showed all time record figures for mobile app usage, which said the analyst is set to continue through 2021.
App Annie says that to stand out, companies should capitalise on features that cater to today’s socially distant ‘at-home’ consumers, cultivating meaningful growth in engagement into 2021.
It expects features that enable socialising, connection and shared experiences to be new priorities on roadmaps, such as Disney+ GroupWatch, which taps into the growing trend of consumers streaming together while apart.
Meanwhile, traditional video streaming providers need to monitor peripheral market movements, such as their cross-app usage, with mobile-first, user generated short-form streaming apps like TikTok and Snapchat, especially for Gen Z.
Other predictions include a boom year ahead for social media giant TikTok, which App Annie says will reach 1.2 billion average monthly active users in 2021. TikTok has seen sharp growth in active users by amassing a sizable global footprint in 2020 — nearly tripling in size since 2018.
Meanwhile, mobile will drive a 43% acceleration in ‘at home’ activities as it continues to remain the epicentre of our social and working lives while the pandemic continues. Time spent in key ‘at-home’ categories is expected to top 1.3 trillion hours on Android phones alone in 2021.
App Annie predicts a four-year CAGR of 57% and 62% in business and education in 2021, fuelled by the continued growth in collaboration and video conferencing apps like Zoom.
Economic uncertainty propelled adoption of finance apps during the first waves of Covid. App Annie expects finance apps – including retail banking and fintech providers – to continue to drive adoption into 2021 as consumers turn to their most trusted devices for peer to peer payments, banking and investing.
Finally, mobile ad spend is set to reach $290 billion in 2021, as the industry bucked the trend in 2020 and and bolstered a level of resilience for digital ad spend overall. During H1 2020, mobile ad placements increased by 70% despite reduced budgets. Given mobile’s resiliency during the pandemic, App Annie expects advertisers to continue to allocate larger portions of their budget to mobile.