Economic App 2017: Reshaping Industry and Lifestyles Globally

In Indonesia, the average user spends 240 minutes on the app a day – the highest among all markets analyzed by App Annie

App Annie, an app market research and data provider, has released its annual Retrospective 2017 report which uncovers the key trends driving the app market growth for the year, and various forecasts to follow through in 2018.

A major change occurred in the consumer market in 2017. Companies in industries such as finance, travel and streaming videos are undergoing a major restructuring to allow them to adapt to a market where apps have taken on a significant role in services and business operations.

Case in point: several companies noted that more than half of their sales were contributed by device channels mobile, where the opportunity to buy something is 3x more likely to occur in the app channel than browser mobile. For example, in the financial and retail industries, the ease and speed that applications offer has reduced the role of services person-to-person. Undeniably, applications have taken on a bigger role in many industries.

“Since Apple launched its app store a decade ago, which sparked the smartphone app revolution, apps have continued to revolutionize industries at an unprecedented rate until 2017. The role of apps is no longer just an ‘additional’. Applications have become an integral part of service and sales,” said Jaede Tan, Regional Director, App Annie. “With the revolution taking place, reliable analytics and information has become a crucial need for companies so they can maximize opportunities in the app economy.”

The app market is maturing, monetization opportunities are increasing

• The number of activities downloading applications globally has exceeded 175 billion. Compared to 2015, the number of users who downloaded the app increased by 60%.
• Over the same period, the amount of time users spend using apps increased by 30% to 3 hours in 2017. Consumer attention to apps continues to grow and has become the most important channel for consumer interaction. In Indonesia, the average user spends 240 minutes on the app – the highest among all markets analyzed by App Annie.
• Consumer spending on app stores has more than doubled in the past two years to more than $86 billion in 2017.
• Spending growth in developing countries will be driven by smartphone and app ownership, and the ability of apps to capture a larger market share in mature economies.

Four of the five countries with the highest number of app downloads and consumer spending are developing countries – China, India, Brazil and Russia

• India has overtaken the US to rank second by number of downloads in 2017. Use of the app in the country has been boosted by subsidies and unrestricted access to 4G services, which were introduced in September 2016.
• Indonesia was ranked 6th based on the number of downloads, an increase of 71% compared to the previous 2 years.
• Consumer spending in developing countries has grown by double digits in the past two years, led by China.
• The market in Indonesia is ranked 24th in terms of total consumer spending, an 86% increase in the last 2 years and a value of $280 million.

App usage hit a new record – smartphone users access nearly 40 apps per month.

• In almost all countries, users have more than 80 applications on their smartphones.
• High usage rates will result in more direct interaction with consumers and customer lifetime value better.

The use of mobile applications worldwide has surpassed the use of mobile browsers

• In major markets, smartphone users spend 7x more time on native apps than on mobile browsers, and access those apps 13x more often.
• Indonesians spend 88% of their time on apps compared to mobile browsers.

App crashes in the vertical continue to redefine our daily lives

• Fintech:
  • The cryptocurrency trend has increased the number of cryptocurrency applications, and the increasing number of payment applications in Asia Pacific is creating society cashless in developing countries.
  • Apps create community cashless in emerging markets in Asia. In Indonesia, financial applications have grown by 205% in the last two years.
  • In Indonesia, transportation, logistics and payment service provider Go-Jek is at the forefront of this cashless trend, with the integration of Go Pay into its application. The Go-Jek network of more than 250,000 drivers also makes a big contribution to this service where a Go-Jek user can make a deposit or top up directly through the driver.

• Retail:
  • There has been a 70%-210% increase in the amount of time consumers spend on retail applications, a huge amount of money has gone into retailers in Southeast Asia.
  • Southeast Asia is the next most prospective market for mobile commerce. The huge cash flow and expansion for retail is centered here.
  • In retail, the top 3 shopping apps in Indonesia are Tokopedia, Shopee and Bukalapak based on Monthly Active Users (MAU) on smartphones in Q4 2017

• Social media:
  • In the same period, Facebook applications still dominate in several countries. Instagram is reporting a 70% growth in the time users spend on its app thanks to new features. Telegram has increased by 75% based on Monthly Active Users (MAU) in the same period.
  • Social media is massive globally with the Facebook application dominating many markets, including Indonesia. The top 3 applications for social media in Indonesia based on smartphone MAU in 2017 are WhatsApp Messenger, Facebook and Instagram.

• Media & Entertainment:
  • Consumer spending is exploding and all markets have recorded 3-digit growth in consumer spending in the last two years due to new apps, new users and emerging monetization methods.
  • In entertainment applications, Indonesia recorded a growth of 164% in the last two years.

• Streaming Videos:
  • The first online broadcasters such as Netflix forced traditional TV to compete with online services, with the BBC launching the iPlayer service to be able to continue to compete, for example. In Indonesia, video streaming applications based on Monthly Active Users (MAU) are: YouTube, HOOQ, Viu, iflix, Miv

• Top Apps in Indonesia:
  • Based on Monthly Active Users (MAU): WhatsApp Messenger, Facebook, Instagram, LINE and BBM.
  • By Number of Downloads: Facebook, WhatsApp Messenger, Facebook Messenger, UC Browser, SHAREit

By Consumer Shopping: LINE, Sing! Karaoke, BIGO LIVE, OLX Indonesia, Netflix

Share :