Mobile App Revenue Trends in Digital Marketing

By January 4, 2017 September 22nd, 2019 Digital Marketing

The only constant in the digital space is that everything is always changing. One day a super-flat and bright call to action (CTA) may be all the rage, and the next it seems obsolete because of the new “hovering” drop shadow CTA that Casper used in their latest e-mail blast had an amazing click-through rate. We all know that web design and development trends are changing every single day, so why not focus on how these changes transpire into a sales-driving mobile app?

You may not believe it, but by 2017 in-app purchase revenue is expected to reach $28.9 billion. Out of this $28.9 billion in revenue, what type of app gets the largest user engagement? You guessed it: e-commerce and retail. This sparks interest in how e-commerce companies approach their online storefronts moving forward. If mobile apps drive more revenue than websites, maybe it’s time you invest in your own mobile app!

It is well known now that mobile app traffic has been skyrocketing for e-commerce, so how does that translate to online sales? You may be surprised to learn that even though in-app purchases have reached $28.9 billion, e-commerce companies have noticed that only five percent of time used on their apps is shopping related. The majority of people who use e-commerce apps are using them for their convenience to learn about updates, sales, reviews, and other supplementary promotions.

This doesn’t mean that mobile apps don’t help drive sales, they just don’t convert as well as websites. Using an app can be a very effective tool for promoting your new products, sales, events, etc; the most famous tool being push notifications. Push notifications can be ultra personalized if done right and have a much higher click-through rate than e-mails or any other type of promotion, so even if you aren’t selling directly on-app, use your push notifications wisely to help drive those sales online.

These statistics may seem scary when considering building out a mobile app for your business, but keep in mind the promotional and convenience benefits when thinking about starting your app project. The first step you should take in considering a mobile app starts with your website: Is your website fully responsive and mobile optimized? If you don’t know how to build your website to be mobile ready, you probably won’t be ready to design a mobile site either. Take the time to focus on your mobile experience first, since the majority of your users are probably accessing your website through their phone anyways, and you may be missing out on a ton of conversions because of your bad mobile user experience.

If your website is already mobile optimized, then it may be time to take the next step towards your mobile app. Apps are very expensive, but luckily, there are some companies out there, like ShopGate, who can take your mobile site and build you an app for a percent of your revenue. This can be a no-brainer for a growing company that just can’t quite afford an app yet.

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