Mobile App Usage to Soar in 2010: eMarketer

Mobile to fare better than social

JANUARY 21, 2010 – Mobile app investment should grow significantly this year, according to a report from DM2PRO and Quattro Wireless. Spending on social apps, however, will stagnate even though more marketers have already developed the applications.

Fewer than one-half of marketers created either a mobile or social app in 2009, but most plan to invest in a mobile app this year. The iPhone is the platform of choice, followed by Android.

Among those marketers who already had an app in 2009, however, Facebook was the leading platform.

Engagement was the top reason to choose either mobile or social as an app platform, but social sites were perceived as better for many top goals, including engagement, audience targeting, sharing and branding potential, and reach. Mobile scored higher on creative control and persistence.

The top one-third of advertisers and agencies using mobile apps planned to up their investments by 75% or more. Marketers who used apps reported a growing market, client demand and increased standardization in the app world as reasons to spend more in the coming months.

Those same reasons would spur publishers and marketers to develop mobile applications. They were also interested in better tools, distribution and discoverability.

Those factors will only increase in importance as apps continue to proliferate and marketers and other developers attempt to stand out from the competition. According to DM2PRO and Quattro, 15% of advertisers and agencies spent more than 60% of their app budgets on promotion in 2009, but more than one-third spent less than 5%. Promotional budgets will need to increase along with overall investment for apps to find their way to users.

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