More and more of the time we spend communicating, working, and relaxing involves looking at a mobile device, and that has huge implications for every business. According to the State of Mobile report from App Annie, the mobile analytics company, consumer and ad spend on mobile devices is expected to be $380 billion in 2020.
That's a pretty big deal, and App Annie's report lays out a range of data and trends that you should pay attention to. Fortunately, we've broken out the most important trends and data points that you should know about and what they mean for your business.
Time on Mobile
From finding directions to ordering lunch and keeping track of daily tasks, we spend a lot of time on our mobile devices. We scroll through emails, watch Stranger Things, and message our teams on Slack, and all that time adds up to three hours 40 minutes a day. Every day.
In fact, according to App Annie, that time is up 35 percent compared with 2017-2018. Understanding how your customers are spending that time is an important piece of your marketing and sales strategy.
Subscriptions Drive Revenue
Subscription services are responsible for 96 percent of all spend in non-gaming apps. The strongest categories are dating and video streaming apps, but it's also true of business and productivity tools. Regardless, 94 percent of the 250 top revenue-producing apps on iOS are monetized through subscriptions.
Mobile Ad Spend
In 2020, spending on mobile advertising is expected to reach $240 billion. That number seems staggering, but as consumers spend more time on their mobile devices, it makes sense that companies are trying to reach their customers where they are: their phones. Mobile advertising also allows companies in many cases to literally target customers where they are, which increases conversion rates and accounts for the high return on mobile ad spending.
The growing rollout of 5G networks across the U.S. will have a real impact in 2020, with gaming apps seeing the most immediate benefits on mobile devices. The ability to stream ultra-fast wireless data will mean that app developers can create more immersive experiences, especially in multi-player games.
Those benefits of 5G networks will extend to the rest of us this year as well, especially as developers take advantage of the ability to quickly process and serve up large amounts of data and information that businesses use to make important decisions, even on the go.
Social and Messaging Make Up 50 Percent of Our Time on Mobile
Half of all the time consumers spend on their mobile devices is in social media and messaging apps. That means they likely spend far more time on Instagram than they do on your online store. It also means that if you want to reach your customers, you probably shouldn't count on your online shop alone. Instead, if you haven't already, it's time to figure out how to incorporate social into your marketing strategy.