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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?
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.
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