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BizReport : Mobile Marketing : July 15, 2013

Forecast: App economy to push $150b by 2017

Look for revenue from apps to steadily increase over the next four years. A new forecast out from APPNATION predicts the app economy will push to at least $151 billion by 2017, that is nearly double what the economy hit in 2012.

by Kristina Knight

"Our research demonstrates that despite the massive popularity of apps and a saturated marketplace in the U.S., the overall growth rate in the app economy is still accelerating and will be until at least 2015," said APPNATION founder and CEO, Drew Ianni. "With the number of apps used per day by U.S. consumers still expanding, and as time spent on mobile devices shifts more to using apps versus other media, it is clear that there is still a lot of runway ahead of across all key sectors of the app economy. This is an incredibly exciting time as the U.S. app economy experiences its first major growth explosion, but next year will be the time we expect to see the global app market take off."

What is driving the increase? App commerce, surprisingly enough, an area that is still in its infancy. Over the next four years APPNATION predicts app based commerce will show substantial increases from in-app advertising, virtual goods and app downloads. Email, social networks and mobile enabled browsers are also expected to push more revenue.

The forecast also suggests:

• Mobile users under age 45 are using video apps at least bi-weekly now
• Most consumers say word of mouth is how they find new apps
• As more households adopt smart television, most say mobile viewing options are the biggest feature for them

"Few people really grasp how big and pervasive the app economy is, and to date, there hasn't been much clarity," said David Berkowitz, CMO, MRY. "There is so much more to know than which Facebook or iPhone game is the most popular today. Read this report for a real understanding of the most important trends and the impact of the app economy."

Image via Shutterstock

Tags: app business, app forecast, app trends, app vertising, AppNation, mobile marketing, mobile trends

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