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Hat Media Address: Suite 5, Level 1, 15 The Corso, Manly, New South Wales, Australia 2095 Phone: (02) 8188 0692 Are Mobile Apps Worth the Cost for Businesses?

Are Mobile Apps Worth the Cost for Businesses

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Page 1: Are Mobile Apps Worth the Cost for Businesses

Hat Media

Address: Suite 5, Level 1, 15 The

Corso, Manly, New South Wales,

Australia 2095

Phone: (02) 8188 0692

Are Mobile Apps

Worth the Cost for

Businesses?

Page 2: Are Mobile Apps Worth the Cost for Businesses

Most businesses today focus on going mobile. Since 2013, it has

become a trend for companies to redesign their websites and

make them responsive. This, however, is not the sole effect of

smartphone penetration. It has also paved the way for a boom in

mobile apps.

Some, however, remain sceptical about the idea. For them, what

justifies the cost of app development? To understand this, there

is a need to look at two factors: app purpose and smartphone

penetration.

Purpose of Apps

Apps are either income-

generating or brand-

promoting. The latter is almost

always the case for

businesses, as customer

service is a way to market a

brand. When a business has a

highly useful app, there is a

tendency for the user to use it

on a daily basis. This would

make the brand more familiar

and make it more trustworthy,

thanks to the concept of the

mere-exposure effect.

Smartphone Penetration

The second important factor is smartphone penetration. A quick

look at the statistics would reveal how rapidly smartphones

created a market of its own. In 2010, the smartphone

penetration in Australia was only 24%. Four years later, that

figure jumped to 76%.

Apparently, there is no end in sight yet for this trend.

Predictions show that from 2015 to 2017, Australia would see a

2% annual growth in terms of smartphone penetration. It might

seem unimpressive, but it is important to look at the bigger

picture to understand its extent.

Page 3: Are Mobile Apps Worth the Cost for Businesses

Australia is a developed country with high Internet and

smartphone penetration. Given this fact, the slight annual

increase in the number would mean a significant jump in the

data outside the Land Down Under. Smartphone penetration

would have a massive impact on developing countries.

The Verdict

So is developing a mobile app worth it?

The short answer is yes, definitely.

Considering how the smartphone

market will continue to swallow the tech

world, it is about time for companies to

move toward app development.

Nevertheless, the true gauge for the

app’s value rests entirely on the

purpose of the company for building an

app of its own. Be it to improve

customer service or to promote the

brand, the app has to achieve its goal to

be worthy of the investment.

As long as the developer perfects the

function and the design of the app, it

will surely have a huge impact on the

marketing efforts of a business.

Resources:

http://hatmedia.com.au/marketing-agency-sydney/

http://www.statista.com/statistics/257041/smartphone-user-

penetration-in-australia/

https://www.business.qld.gov.au/business/running/marketing/o

nline-marketing/using-mobile-apps-to-build-your-business/how-

businesses-use-mobile-apps