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Decline in App Store Downloads after 2013 Requires Strategic Thinking from Mobile Marketers

Friday, June 18, 2010

According to ABI Research studies, downloads of mobile applications from “app stores” will peak in 2012-2013, then begin a slow decline in numbers. Even at the end of 2015, however, some 1.2 billion apps will be downloaded.

This trend is important for mobile marketers planning their medium-term strategies, according to practice director Neil Strother. “When considering the value of mobile apps as marketing tools, planners need to take a step back from all the hoopla and ask themselves, ‘How will that work for my brand? Is it right for me? What is my audience doing? Do I even have a large mobile audience? If so, how do I craft an effective strategy?’”

If a mobile app seems a good fit for a particular company or product, then it’s back to Marketing 101. The classic steps still apply, from setting marketing goals to finding an engaging idea to creation and launch to promotion. “A key decision for most brands,” Strother notes, “will be whether to develop the app in-house or to go outside, which will be the more common route for companies whose core business is not application development.”

Promotion is all-important too, since your app may be competing for attention with 200,000 iPhone apps, 50,000-odd Android apps, and others. When your app launches, the first few days are crucial in getting the message out.

What can mobile apps achieve? A minority (such as Starbucks’ Card Mobile which turns an iPhone into a point-of-sale purchasing device) may aim to drive direct sales. But the majority are about building brand awareness and loyalty by engaging existing or potential customers in fun interactive ways. ROI for these apps is understandably harder to calculate.

Most likely to benefit from mobile applications: entertainment, gaming, banking, and travel.



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