App Annie has released The State of Mobile 2020 report. This annual appraisal provides insight into mobile’s expansive impact across industries and the global economy, highlighting publishers and brands that are outperforming their peers.
Globally, consumers accessed finance apps over 1 trillion times in 2019 up 100% from 2017. From stock management to mobile banking to payment apps, this showcases mobile central role in managing our daily lives, notes the report. Loyalty and referral programs can help to cultivate deeper engagement in finance apps. Citi bank is cited as reporting 83% of consumers – and 94% of millennials – are more likely to participate in a loyalty programme if its on mobile.
Globally the Monthly Average Users (MAU) of the top 10 FinTech apps grew 20% year on year on 2019, while banking MAU grew 15%. Although banking apps tend to have higher existing user bases, this illustrates the disruption FinTech brings – enabled and accelerated by mobile – to traditional banking services. Wallet apps by FinTech companies engaged users one more time per week than wallets by traditional banks.
This indicates an additional 52 sessions per year for users of wallet apps by FinTechs, representing millions of potential transactions each year flowing through FinTech platforms instead of banks.
The report also notes that the key to mobile is ease, accessibility and simplicity. Features like face or finger biometrics streamline the user journey, underscoring why companies cant simply port over existing user experience to mobile.
When looking at commerce, global shopping app downloads increased by 20% from 2018 to 2019 to over 5.4 billion, an indication of strong demand. Mobile has become critical for onmi-channel growth. Its not just about conversion its about mobile driving research and consideration and facilitating fulfilment.
Key findings in this report:
- Mobile Creates Company Value: Mobile-focused companies, including Uber and Alibaba, had a combined IPO valuation of $544B, 6.5x higher than companies without a mobile focus. Consumers averaged 3 hours and 40 minutes on mobile in 2019, up 35% since 2017, and downloaded 204 billion apps.
- Massive Year for Mobile Advertising: Brands continue to embrace the unprecedented reach and value of mobile, bolstering the success of Snap, Facebook, Google, Twitter, and TikTok. Advertisers will pour more than $240 billion into ad spend in 2020—up 26% from 2019.
- Subscriptions Contribute to 95% of Spend: 3 out of 4 top non-gaming apps monetize via subscriptions, with video and dating categories propelling app store spend as adoption of Tinder, Tencent Video, iQIYI, and YouTube climbs.
- Mobile Games Increase Share: Global spend on mobile games reached 56% of all game software in 2019. Spend on mobile games across all app stores projected to top $100 billion in 2020. Tencent’s Honour of Kings, Sony’s Fate/Grand Order, and Activision Blizzard’s Candy Crush Saga are examples of games that are dominating on mobile.
- Video Streaming Wars Heat Up: Nearly 25% of Netflix’s iPhone users also used Disney+ in Q4 2019, the highest overlap of users among top video streaming apps in the US, demonstrating consumers pay for multiple services.
Furthermore, Gen Z is becoming an increasingly strategic segment to business. Mobile is Gen Z’s native language. This demographic is highly engaged with apps: they have 60% more sessions per user in the most popular apps when compared to older generations.