Mobile App Economy Still has a Long Way to Go.

Ever since the advent of smartphones, there has been an exponential rise in the importance of mobile application ecosystem. With close to two million applications already developed and published across various platforms, mobile app economy has become a centre stage for premium content sharing. There are various approaches followed by mobile app developers in the form of free and paid applications. While paid applications have been generating bulk of the revenue, free applications in the form of ad based and well as in-app purchases.

According to some analysts, the mobile ad spending would see a substantial rise from $8.4 billion in 2012 to $37 billion in 2016. Moreover there would also be a substantial rise in the number of freemium applications as developers are trying hard, to churn out revenue in the ever competitive app market. Over the years, generating revenue has become really hard for developers in the form of paid applications. But on the hind side, mobile marketers are optimistic that mobile channel would continue to grow in the same manner and would be a good scope for ROI.

While mobile app usage has been on the rise at a continuous rate, it is yet to reach its penultimate stage due to lack of relevant content. The major reason behind this is that most of the developers still are unable to capitalize on the requirement of their targeted audience. Most of the mobile analytics firms are trying hard to overcome this hurdle by measuring the challenges faced by the developers to reach over to their user community. Most of these analytics are tracking based, which does not give the whole picture regarding the amount of penetrations an applications has.

The main idea behind the overall app economy should be to go beyond the traffic numbers as emphasis ought to be on the app content and how it is being reflected upon the end user. The ideal approach in this way would be to analyze application affinity and democratize that information to prove better product and services.

Apple in that aspect has been highly proficient by giving developers efficient tools like UDID which has been replaced by the advertising identifier for better marketing purposes. It has also been the most profitable mobile operating system, with over $7 billion already been paid to iOS developers. With freemium model catching up among developers, that revenue will also take a huge boost. The engagement between users and developers is highly necessary for a better product. As developers will start to encompass on the user requirement, it will create a more feasible app ecosystem.