We’re now six years into the mobile revolution. A lot of innovation has taken place already, and it’s obvious the momentum is only growing. So where are we today?
In the US, time spent on mobile devices continues to rise, today totaling 2 hours and 42 minutes per day. Of this time spent, app usage continues to dominate mobile web. Time spent in apps continued to increase, averaging an impressive 86% of the US mobile consumer’s time in devices, or 2 hours and 20 minutes per day. Said Flurry, “The data tells a clear story that apps, which were considered a mere fad a few years ago, are completely dominating mobile, and the browser has become a single application swimming in a sea of apps.”
Below is a breakdown of how time is spent inside mobile apps. Gaming apps have maintained a significant amount of time spent, however Social apps are still on the rise. Another notable rise in usage was productivity apps, who doubled in usage year over year.
Another interesting development (or lack thereof) over the past six years is a lack consolidation with the big franchises. For example, leaders Google and Facebook combine for less than 25% of total US consumer time, the top ten franchises combined less than 40% of time spent (ComScore). Despite considerable effort on the part of these leaders, the market is very volatile, with new players emerging constantly.
As for mobile advertising, the result should come as a surprise. Traditionally, advertising revenue distribution follows time spent distribution. Meaning, if an app creates 50% of time spent, it should command 50% of the ad revenues for that channel. But this is not the case right now in mobile.
According to eMarketer, last year Facebook earned 17.5% of the overall mobile advertising revenues. This is in line with Facebook’s 17% of the total time spent. But why is Google, occupying 18% of time spent, earning 49% of the overall mobile advertising revenues? As the mobile ad market continues to grow, this will be an interesting trend to watch.
According to Flurry, one thing is clear – “apps have won and the mobile browser is taking a back seat. Now every company in the world including Google is adjusting to that reality.”