mobile application development, mobile insights

Talking Success in Mobile Application Development – 4 Things Most Development Companies Fail To See in 2013

Image Credit: www.everythingbecky.com

Don’t you feel melancholic about those good old days when skyrocketing your new mobile application was so easy and fun at the same time? All we had to was to build a stunning application which does something amazing, get the marketplaces like iTunes and Google feature us, organize a big launching event to spread the buzz and then stretch and enjoy the charts.

Well, times have changed and we in Mobiloitte like any other leading mobile development company have acknowledged that some things must be reinvented. Despite our rich portfolio of Mobile and Web application, competition does not stand still and there are 2-3 competitors in almost every major category of mobile application you can think of.

Talking about change, let’s see what has actually changed:

  • It is not easy to stand out these days.

With over 1.5 million of applications currently available on both Google Play and App Store, it is getting bit challenging to stand out and differentiate your product.  This year both marketplaces individually are expected to reach the famous Million and this is surely not an overestimated scenario. This number tells us that competition is almost 4-8 times as much as during 2009-2010 period for example.

  • Marketplace’s editorial teams further the platform’s own strategic goals

The editorial teams inside the Apple and Google stores can certainly help some applications, and they do. Still they are tilted more towards the needs of the consumer, and to the goals of the platform.

For Apple, it seems that they care more that the first 20-25 applications that a user installs are amazing experiences from well-known brands, rather than servicing the needs of the overall million applications that in the store. Being a consumer will surely be beneficial for you.  Me, standing on the developmental side would surely declare that this makes it way harder for talented but unknown developer to enter the marketplace.

  • CPI has increased dramatically

Cost per Install also witnesses similar trend. Few years ago you had a plethora of options – ranging from mobile advertising networks, incentivized install providers, “free application every day” services, and even more audacious options. More importantly, not a ton of companies were doing it, so prices remained low.

However this has changed now due to higher demand and lower supply and not everyone is happy with it. After only a short time, the supply of paid installs has tapered as Apple has banned some providers. Similarly, mobile games figured out the enormous monetization potential on iOS and Android – they have bid up the installs significantly, up to a few dollars per install. This image will give you a better representation:

Mobile application development CPI

In the case of Google, any team that has met them in the last few quarters can tell you that they are in love with tablet devices. If you want to be featured in Google Play, they strongly encourage you build a tablet app even if the market for it is minuscule.

  • Investors have become more “stingy”

Although IT and mobile ecosystem development has represented a lucrative investment opportunity for many “angels” they don’t seem to be much motivated to invest their funds into risky mobile start-ups this year.  The mobile ecosystem still captures their attention but now it has become diluted to different emerging technologies such as SaaS, Big Data companies etc.

Out of all this we can still take 2 optimistic conclusions:

    1.  The success of your mobile application on the marketplace is no longer question of good application as it used to be.

Platform building, well planned pre/post launching marketing campaigns and early tapping of the market places and ecosystems surrounding your future users is now crucial for fast effective penetration among tons of other applications. Reach us here in case you want to discuss some breakthrough marketing strategies for your mobile applications.

    2.  Smartphone adoption is 60% in the USA which still leaves a lot of scope of business (Nielsen, June 2013).

With every major technology company venturing into the smartphones industry you can be damn sure that the scope for your mobile application on the marketplace still remains strong.

What are your thought around this discussion. What do you think your preferred application development partner must focus on to navigate these changes. Share in comments…

Best,

Mobiloitte