Report: App Spending Expected to Grow in a Big Way
According to a new report from the mobile data firm App Annie, spending on mobile apps is expected to surge over the next few years—even for apps that aren’t games.
At a decade old, the App Store economy may be a mature one at this point, but the business of apps is showing no signs of slowing down just yet.
A new report from App Annie [PDF], a firm that specializes in data and insights related to mobile applications, projected that consumers will spend more than $100 billion on apps this year, up from $81 billion last year. And by 2022, the rate will increase to $156.5 billion, according to the organization’s projections.
The market, overall, represents the reach of a whole lot of people spending a little bit of money. In 2017, App Annie estimates that consumers spent an average of $20.94 per device on apps. By 2022, the firm expects that number to jump to $25.65 per device. In a news release, the company’s senior vice president of research, Danielle Levitas, says that its research points to one thing: Consumers are becoming more willing to spend money on apps.
“The app economy continues to flourish as consumers across the globe increasingly value the convenience that mobile apps deliver,” Levitas said in the release. “With consumers spending an average of nearly three hours each day in apps, it’s critical for brands and publishers to have a strong mobile channel for their customers to reach them whenever they choose from wherever they are.”
And here’s something that might be a surprise for many who have followed the app space only in passing: The growth in the app space isn’t completely being driven by games. Granted, game apps, which often have mechanics that encourage consumers to spend money for advantages in game play, represented a dominant 79 percent of spending on apps in 2017. But, by 2022, App Annie estimates that non-game apps will represent around $43 billion in spending, an increase in market share from 21 percent to 28 percent in five years.
That, of course, is good news for associations, which, like many other organizations, have become reliant on apps as a way to push forth initiatives, drive donations, and serve up content during events—and potentially after they’re over. The shifting trend lines could leave open a lot in the way of potential in the years to come.
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