Travel, Retail And Media Are 3 Industries Taking Over The App Store
Posted yesterday by Bertrand Schmitt (@bschmitt)
Editor’s note: Bertrand Schmitt is the co-founder and CEO of App Annie.
Mobile apps have come a long way since Apple launched the App Store in 2008,
with over 5 million apps available across the leading app stores. While
many factors have contributed to the growth, the ability to reach a global
audience with a relatively small upfront investment has certainly been a
significant contributor. The potential ROI if an app is successful is huge
— just ask the creators of Flappy Bird or the Kim Kardashian app.
What’s so amazing about the growth is not simply the sheer number, but also
the variety of apps, with an app for just about every imaginable task
possible. The iOS App Store boasts 23 app categories, while Google Play has
20, and that’s not even including the sub-categories for both gaming and
newsstand apps.
Even so, not all app categories have evolved at the same pace, with gaming
and social apps leading the pack. In fact, most of the top 10 apps in Google
Play and the App Store in terms of revenue and downloads consistently
belong to either the gaming or social media categories. Not surprisingly,
social and gaming apps lead the pack in downloads and engagement, too. These
apps have pioneered the monetization strategies that quickly transformed
the app stores into the billion-dollar powerhouses they are today.
This is not to say that other app categories aren’t building steam, and
certainly the developers, brands and industries behind these apps are having
their own measure of success. While gaming once had an exclusive hold on
the top app store rankings, the travel, retail and entertainment industries
are now contending for those spots and quickly becoming the new app store
heavyweights.
Travel
Given that mobile is expected to account for a quarter of U.S. online travel
sales by 2015 — nearing $40 billion in revenue — travel brands are
investing heavily in mobile. Inherently suited to travel, mobile apps are
connecting travelers with hotels, airlines and ground transportation on the
go, fulfilling a critical need.
As the industry becomes increasingly crowded, travel aggregators — which
make up five of the Top 10 Travel and Transportation apps — are optimizing
their online offerings for smaller screens and facilitating curated search,
efficient payment processes and last-minute, location-based deals. These
aggregation apps are also maintaining their edge by adding new app features
to extend their services beyond reservation booking.
Travel App Leader: HotelTonight
As an example, HotelTonight stands out as a trailblazer in the industry. The
mobile-only company simplifies booking a last-minute hotel in just eight
seconds, with three taps and a swipe. The clean UI appeals to today’s tech-
savvy, self-sufficient traveler, and while similar self-service tools are
available from select hotels and airlines, HotelTonight lets customers
access these conveniences across thousands of brands. The company aims to
create the most frictionless hotel experience by investing in features like
mobile check-in and keyless entry.
hotel tonight screen shot
Retail
Retail apps, when leveraged effectively, can be influential at all points of
the shopping experience. Revenue from U.S. smartphone commerce is
forecasted by Forrester Research to increase from $16 billion to $46 billion
from 2013 to 2018. With the rise of “showrooming”– browsing products in-
store and purchasing them later online at a lower price — successful brick-
and-mortar retailers are responding by using apps to drive consumers back to
the physical store.
Research shows that creating an interactive in-store experience with a
mobile app can increase customer engagement by up to 5 times, moving the
needle on loyalty and sales.
Retail
Retail App Leader: The Home Depot
The Home Depot app, which customers use to browse and shop for over 600,000
products, has steadily climbed the ranks among iOS lifestyle apps by
connecting shoppers with physical storefronts. Built-in scanners enable easy
product search, GPS functionality prompts location-based coupons and
product suggestions and shopping lists linked to store maps enable efficient
shopping.
“Pick Up In Store” and “Ship to Store” saves customers shipping charges
and expedites time-sensitive projects. Overall, the app successfully guides
consumers in-store by combining the convenience of e-commerce with the
tactile experience of in-person shopping.
Media and Entertainment
With the number of digital TV viewers set to reach 145 million by the end of
2017, the entertainment industry is also turning to mobile apps to connect
with its fan base and extend the viewing experience. Netflix and other
streaming providers are making it easier to binge on your favorite shows by
tracking activity across multiple devices.
Fans are accessing everything from movie trailers to games and interactive
live chats via studio-created mobile apps. TV and film studios are offering
exclusive in-app promotions and content by partnering with content providers
and developers.
Media & Entertainment App Leader: CBS
CBS launched its popular My CBS app to boost its viewer engagement with
exclusive interactive in-app content. This includes a series of live video
chats in which viewers can tweet questions to stars of CBS shows, and the
actress/actor will respond on camera in real time. The app sends push
notifications when episodes of favorite shows are added. CBS also partnered
with Amazon to provide Prime Instant Video with exclusive episodes of
Stephen King’s Under the Dome four days after the original air date for
each of the first two seasons.
Entertainment
With more and more people interacting with brands on mobile devices, the
question isn’t if mobile apps will become a critical channel for reaching
consumers in your market — it’s when. The most successful companies will
emulate and innovate on the smart, location-aware, interactive and
frictionless apps put forth by market leaders like HotelTonight, The Home
Depot and CBS.