How apps are redefining lifestyles and industries worldwide

Tuesday, 23 January, 2018

The app economy is reshaping industries, according to a new report.

App Annie has released its annual report, 2017 Retrospective, which reveals key trends driving the app market’s growth for the year.

2017 saw continued app disruption in all consumer businesses, with industries such as finance, travel and video streaming going through major restructuring as apps come to the fore of their services and operations.

Some businesses are receiving more than half of their sales via mobile channels, within which app users are three times more likely to spend than mobile web users. In industries such as finance and retail, the convenience and immediacy of apps have made traditional person-to-person services less relevant for consumers.

“A decade after Apple’s launch of its app store heralded the smartphone app revolution, apps continue to reshape entire industries on an unprecedented level in 2017. Apps no longer play a mere supplementary role in these sectors and have grown to become an integral part of their services and sales,” said Jaede Tan, regional director at App Annie.

“Against this changing backdrop, sound app analytics and insights have become imperative for businesses looking to make the most out of the app economy.”

The report also reveals that global app downloads surpassed 175 billion, with users downloading 60% more apps in 2017 than in 2015. In the same period, daily time spent on apps rose by 30%, hitting three hours in 2017. Consumer spending in app stores more than doubled over past two years, to exceed $86 billion in 2017. In addition, growth in spending is set to be driven by strong smartphone and app adoption in developing economies and apps’ ability to capture greater share of wallet in mature economies.

In Australia, there has been a rise in the use of FinTech apps, up 25% in the past year, while sessions in retail apps have increased by 80% over the past two years. In the media and entertainment industries, consumer app spend has risen 292% when comparing 2017 with 2015. The top five video streaming apps in Australia were YouTube, Netflix, AFL Live, ABC iView and Foxtel Go. Total spend in gaming apps has climbed 50% over the past three years.

Top apps by total monthly users in Australia include Facebook Messenger, Facebook, InstaGram, WhatsApp Messenger and Snapchat. Meanwhile, the most-downloaded games were Pokemon Go, Candy Crush Saga, Clash of Clans, Words with Friends, and then Monopoly at Maccas. Apps making the most money in Australia include Tinder, Netflix, Spotify Zoosk and Youtube.

Four of the top five countries by downloads and consumer spend are emerging markets — China, India, Brazil and Russia.

Other findings from the report include:

Total consumer app spend in Australia reached US$1.08 billion — the 8th highest globally.
India overtook the United States to become the number two country by downloads in 2017, with app usage driven by the introduction of subsidised, unlimited 4G access in September 2016.
Top markets have seen double-digit percentage growth in consumer spend over the last two years, with China significantly the largest market by consumer spend.
The average smartphone user accessed close to 40 apps per month.
Australians spent an average of 140 min per day on their phones in 2017.
In most markets, the average user has more than 80 apps on their phone.
In major markets, smartphone users spend seven times more time in native apps than mobile browsers, and access them 13 times more often.
Booming interest in cryptocurrency has led to a rise in cryptocurrency apps, while increasingly pervasive payment apps in APAC are creating cashless societies in emerging markets.
There was a 70% to 210% increase in total time spent in retail apps, massive funding rounds for retailers focused in Southeast Asia.
Facebook’s app continues to dominate leaderboards for most markets, Instagram saw 70% growth in time spent over the past two years owing to new features, while Telegram saw 75% increase in monthly active users (MAU) in the same time period.
Online-first broadcasters like Netflix are forcing traditional TV providers to compete with online services, with BBC launching their iPlayer to remain competitive.