While mobile usage remains constant, there has been much hype recently about the purported ‘death of apps’, primarily due to the rise of alternatives such as bots combined with reported ‘app fatigue’. This theory is however, one that has been widely exaggerated.
- Examples of how the use of apps as we know them will change
- End-user research and key data points for the travel industry
- The biggest threat to apps – will bots and progressive apps replace native ones?
- The impact of mobile engagement on brand equity, loyalty and revenue
- Whether travel brands should still invest in native apps
The demand for apps, as well as the number of users connected to the app store, is at an all time high with Apple reporting the biggest month of sales in the history of the app store in December 2016. People are spending more time on mobile devices than they are on desktop web, with most of that time spent in apps. Advertising figures support this shift; in 2018 it is expected that mobile advertising will account for 60% of all internet advertising – overtaking the combined spend of newspaper, magazine, cinema and outdoor advertising.
From a revenue perspective the figures are staggering with app store annual revenue tipping $28 billion in 2016 and App Annie’s ‘app economy forecast’ projecting that mobile app store revenue will exceed $100 billion globally by 20201. This does not even take into account the estimated $300 billion in eCommerce sales transacted through mobile apps in 2015. All this indicates that apps are here to stay and are in fact continuing to grow significantly.
With smartphone penetration reaching an all time high, and forecasted to rise to 63% by 2018, mobile remains the most pervasive channel with which brands can connect and engage with users. The role of mobile engagement in increasing the value of every interaction with every customer cannot be understated. Think about it – what is the one device that you would not leave the house without?
Throughout this report we will delve into the reported ‘death of apps’, how apps are evolving and why it is still essential to invest in apps to drive customer engagement, enable the connected end-to-end travel experience that travellers crave, as well as capturing that all important channel shift in response to increasingly mobile-centric consumer behaviour.