Innovation

Projections indicate that 2019 will be a great year for the mobile market

Dec 11, 2018 | 252 views

App market analysis firm App Annie has posted in her blog five company forecasts for the application market in the year 2019 - and even Harry Potter was quoted in them. For the company, next year will be a milestone in the history of the application market.

Spending on the App Store will be at least $ 122 billion

The App Annie believes that application consumption on the App Store will grow five times as much as the global economy, which will cause consumers' value in the Apple store to exceed $ 122 billion, which would mean that people would spend there double the whole world-wide box-office revenue in theaters adding up all the films shown in a year.

And in this we are not talking about the application market as a whole, but only what will be raised by the purchase of applications in the Apple store - without regard to other apps stores (such as the Play Store), the revenue generated by ads within of applications and sales made in commerce and service applications (such as Uber or the Amazon app).

The main reason for this growth will be mobile games: in 2019, 75% of all mobile app purchases will be game related (whether in the purchase of the game itself or in-game items in the infamous micro-transactions), and the mobile gaming industry will continue to have the highest growth in the entire video game industry, it will also be primarily responsible for the growth of the application market.

Mobile games will grow 60%

2018 was the year we saw growth in the hardcore mobile gaming market, with the advancement of smartphone technology allowing titles like PUBG and Fortnite to launch their mobile versions, prompting multiple PC and console users to migrate to the category.

Another important event this year was the emergence of cross-platform games, which allow PC gamers, consoles and mobile phones to play together, sharing the same server and facing each other in the same phases.

As a result of these changes Appie Annie bet that in 2019 the gaming market will be less "separate" on platforms and more connected among all, and this decrease in barriers should cause more and more companies to enter the mobile gaming market - as we have seen later this year with Bethesda and Blizzard announcing new releases of their most famous franchises in versions for smartphones.

But not just the hardcore market is expected to grow in 2019. The company believes the casual games category will continue to expand steadily in recent years. And it is the growth of both types of games that will make the mobile gaming market grow by 60% by 2019. The first installations of 5G networks will also lead developers to try new mobile multiplayer mechanics, which will help amplify no only the popularity of smartphones as a serious platform for gaming as well as the streamings made from these handsets.

Media consumption via streaming

Research indicates that each person spends about seven and a half hours a day consuming media content, and this activity includes reading books, listening to music, watching TV and even creating new posts on social networks. And in 2019, every hour spent on media consumption, 10 minutes of this period will be dedicated to streaming videos on mobile devices. Expanding for the whole day, that means that on average we spend 75 minutes a day watching videos on mobile phones in applications like Netflix, which is equivalent to just over 15% of all the daily consumption of individual media.

Compared with 2016, the total time spent with video streaming applications is expected to grow about 110% by 2019, while the use of entertainment applications will grow about 520%. The main drivers of this growth will be video social networks such as Tik Tok, as well as short video applications such as Instagram and Snapchat.

The market analysis company also says Disney is poised to mess up the video streaming market because by launching Disney +, it is likely to have four of the world's top video streaming applications (Disney +, Hulu, ESPN + and ABC). The App Annie believes that this will not be interesting to the consumer, as it will further spray content on different channels, creating a scenario similar to that of cable TV and that could boost the increase in piracy.

Harry Potter: Wizards Unite

When Niantic revealed that the next game of the company would be a game similar to Pokémon Go, but in the world of Harry Potter, the company took to the delirium even those who do not have much custom of playing in the cellular. And that's what makes the analysis company believe in the success of the game.

Although the Pokémon franchise has double the market value of Harry Potter, the new Niantic game has a loyal fandom that does not mind spending its savings on branded products. In addition, the game will not suffer from the same Pokémon Go problem: while Niantic had to devote itself to explaining how a game played in augmented reality to a public who was hearing about it for the first time, such content did not will be more novelty during the launch of Wizards Unite. Thanks to this, Niantic can devote itself to really selling the game to potential new customers. The audience for the games are different, and while the game is not expected to have the same success as Pokémon Go (which reached $ 100 million in the first two weeks of release), App Annie believes that Harry's game Potter will not be far behind, and should reach the $ 100 million mark in just one month.

Internal Ads

By 2018, 62% of all the value spent on digital ads is invested in in-app ads, which translates into a 12% growth compared to 2017.

That's why Appie Annie believes that in 2019 there will be a 60% increase in the number of apps using in-app ad monetization systems, which should increase competition among advertisers, forcing them to improve their ads .

Source: App Annie