Grossum Digest: What Happened in the Mobile World

October 27th, 2016

Mobile / IT News // Natalie

What's New in the Mobile World

Mobile development is rushing ahead by leaps and bounds, as more and more developers and companies rise to the task of enhancing the user experience and interfaces of mobile devices.

What happened in the field of mobile development, relevant research, new tools, and who got the Google design prize - all of this in our digest.

Research: Ads, Earnings, and the State of the Market

Conversion Levels in App Store

Analysts from Mobile Action conducted a study of advertising in the App Store. They have analyzed over 70 advertising campaigns for this reason.

Experts discovered that the average level of conversion of such ads is 49.4% and the cost of a user acquisition is as small as $0.40. The maximum amount spent on getting a single user was $2.15 and the average total cost of the advertising campaign was about $56.

This means that even if your budget is small, App Store ads will be efficient and it is worth investing. The study authors emphasize that today the entry threshold for mobile app store ads is quite lower than the conventional search engine and contextual advertising. At the same time, another thing they mention is that search advertising is entirely based on the app’s page in the App Store. Therefore one should pay attention to the description, so it contains the maximum amount of information about the app, and so the investments into the ads aren’t useless.

Who Got Most Money from iOS Apps?

App Annie has presented a report on the mobile applications market (in Russian) for the third quarter of 2016, where they have analyzed the profitability indicators for various types of iOS apps.

China became the world’s largest market by revenue from iOS app store - the developers of this country have collectively earned over $1.7 billion. The United States took the second place, and the third was taken by Japan.

In the categories section, the income level leader is the gaming group. In addition to games, China’s most high-yield apps were in such categories of “Entertainment,” “Social Networks,” “Books,” and “Photo and Video.” Entertainment apps have brought four times more revenue in the third quarter of 2016 than in last year for the iOS apps and more than three times for Android platform.

Regarding the absolute growth measure, the leader was (surprise, surprise!) Pokemon Go game that got a record high of $600 million in less than 100 days from the date of release.

The most popular apps for Android, based on the time users from the US have spent using them were Facebook, Google Chrome browser, YouTube, and Pokemon Go.

The Mobile Market Revenue Forecast

Newzoo, the authors of the Global Mobile Market Report, predict that the total revenue in 2016 will reach $44.8 billion. What should be noted is that over 80% ($36.5 billion) would be earned by game apps.

Right after the games, the most popular apps include social networking, entertainment, music, educational apps, and apps that improve the device performance.

Over half of the mobile application revenues are generated by Asia-Pacific region, the third of it - by China.

The report also provides the statistic on the global smartphone ownership. According to Newzoo, there are more than 3.39 billion mobile device users, more than 2 billion (or every third inhabitant of Earth) owns a smartphone. Obviously, these figures will only continue to rise in the future, along with the demand for mobile apps. This would, in turn, increase competition among developers to gain the attention of the end user.

Does Size Matter? How does the size of an app affect its download?

There is a perception that users don’t like apps that are “heavy” and large. The developers from the Segment company decided to test this to see if it is true.

They have increased the size of the app to 147Mb during the experiment (the original app with all the useful features was much smaller - only 3Mb).

Before this, no one spent anything on the app marketing and promotion and organic downloads were at the level of about 50 times a day. Once the application’s size increased to 150Mb, the number of downloads decreased by 66%.

Sadly, when the company returned the app size of 3Mb, the level of daily downloads didn’t go back to the previous 50-per-day. Possibly, it happened because the mobile app got a few not so good user reviews.

Developer Tools News

New Android

Google made the latest version of Android 7.1 Developer Preview available on the Nexus family devices (if their owners are Android Beta program participants).

The Developer Preview version is mainly targeted at mobile app developers, who can check out the compatibility of their applications with the new OS. The new features include night mode called Night Light, an ability to create action shortcuts for apps, the opportunity to work with a program directly from the home screen, and some other small improvements associated with touch screen operations.

Games for Telegram

Telegram messenger got a platform for HTML5 games. Besides this, the company also made an API for developers for the Gaming Platform 1.0, aiming to increase the number of regular games available in the catalog.

Games Platform supports iOS devices (iPhone 4 or later) and Android (4.4 or higher). Guidelines for the games development are available on their website. In the future, Telegram plans to have their own monetization system for games and bots.

Access to Voice Assistant

Google has promised to provide developers with the access to Google Assistant (GA) by the end of the year. With it, developers can create bots for Google Assistant and other services that work with this tool. In this way, Google wants to create an open ecosystem around the GA.

In December 2016, users will get the opportunity to create GA bots and Assistant SDK is to be released next year. Also, Google wants to allow Google Assistant on third-party devices.

Profile Expression Kit from Facebook

Facebook granted access to Profile Expression Kit to all developers. This tool lets users add video profiles from such applications as Vine, Boomerang, Beauty+, MSQRD, and Flixel.

With this Profile Expression Kit SDK, any app can integrate into the Facebook user profile and offer to add multimedia content, such as animation or processed photos.

Virtual Reality from Google

Google has introduced a beta version of the Google VR SDK - a virtual reality platform that lets you create apps and games for the Daydream platform, including virtual reality headset, smartphone, controller, and a set of applications.

The first smartphones with Daydream support will appear before the end of this year. Those developers who want to get their Daydream apps to Google Play will have to be participants of the Daydream Access Program. You can check out more details about the program here.

Design Award Winners

Google has announced the winners of the second annual Material Design Awards. The winners were selected from five different categories.

  • Brand Infusion: Asana: Team Tasks & Projects
  • Charming Engagement: Fabulous - Motivate Me!
  • Creative Navigation: C Channel (available in Japanese and Thai)
  • Expressive Layouts: Kitchen Stories
  • Focused Efficiency: Airbnb

Developers of these mobile apps have created their products in such a way that they most accurately match the concept of Google material design, and they can be used as an example.

Let's develop a better future together.

Author: Natalie

Natalie is a Project Manager who is a great team leader for her mobile development team. She is an expert when it comes to iOS and Android development and to building apps that win markets.

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