App Annie and BusinessofApps.com recently released a 2020 mobile market forecast analysis that showed that 2019 was a landmark year, with consumer spending up 20 percent from a year earlier and a projected total of $90 billion for the full year.
The data will be even higher in 2020, with global consumer spending on the iOS App Store and Google Play reaching $105 billion (excluding third-party Android stores). Apple’s subscription service will largely drive this growth, and games will be the most powerful vertical for taking advantage of this earnings trend.
Mobile ad spending will have a larger market share than the Store. Global mobile advertising spending will increase from $190 billion in 2019 to $240 billion by 2020.
Here are Five Trends in App Annie’s Mobile Market 2020, which they believe will have a positive impact on mobile apps, game publishers, and developers.
Global consumers will spend 674 billion hours on mobile devices by 2020 as streaming war heats up
App Annie expects global consumers to spend 674 billion hours on mobile entertainment, video players, and editing products by 2020, up from the 558 billion hours expected in 2019. Established companies such as YouTube and Netflix dominate the mobile market, but a steady stream of new entrants are eager to get a piece of the growing cake.
Well-funded companies, including Disney, Apple TV, and HBO Max, are bundling services through original TV shows or innovative content formats to foster consumer subscription habits.
Competition also comes from social media, with the younger generation preferring to use their spare time to find entertainment content. Social apps such as Snapchat, Snapchat and Instagram are blurring the line between social media and entertainment, leading to more competition for consumers’ time. It is understood that since 2018, U.S. users have spent $23.1 million (about 162 million yuan) on the app.
Apple Arcade and Google Play Pass subscription models bring new revenue streams for publishers
With mobile spending currently accounting for more than 50 percent of all game revenue in the global gaming market, game subscription services will drive deeper engagement and deliver greater customer lifetime value (LTV).
Overall, this trend is heating up in the mobile sector. As of September 2019, more than 95% of consumers in the top 100 non-gaming apps on the iOS App Store and Google Play are spending on app services by purchasing subscription services. In addition, global consumers are expected to spend more than $75 billion on games by 2020.
With paid subscription services, consumers can access a wider range of content and services at a fixed cost, and subscription services will create opportunities for games that fail to succeed through app purchases or advertising monetised models.
Apple Arcade and Google Play Pass offer subscriptions to a range of exclusive games at a fixed fee, which means developers are free to design new game mechanisms without being restricted by integrating free games. This means that in addition to existing in-app purchases or in-app advertising, existing games can find new revenue streams to gain new life.
These subscription services are especially effective for families, and an environment where everything has a uniform price is especially important for parents who want to develop their children’s right view of the game, and some game-oriented players will resonate with it, as are they, and they can continue to gain innovative, well-designed games at a fixed expense.
Both Apple Arcade and Google Play Pass will be important additions to the existing app store model, and regardless of initial performance, these subscription services will play a key role in the long-term mobile game strategy and provide opportunities to further improve the mobile gaming ecosystem.
However, it will be a challenge to get consumers out of the mindset that all mobile games are free to download. To address this issue, publishers need to work actively with Apple and Google to communicate the value of game subscription services.
3. 5G is the next battleground and mobile players will be the first 5G experiencers
While speed has always been a major topic of 5G, low latency of 5G is even more exciting for gamers and developers because the hardware requirement for mobile online multiplayer games is high-quality wireless connectivity. Global lying games, including Call of Duty: Mobile, PUBG Mobile and Free Fire, are large-scale multiplayer online games, with multiplayer online game users having the longest experience in the top 10 downloads in October 2019. This also proves that mobile games call for low latency, and 5G low latency will make this type of game experience better.
5G is in its infancy, but operators are working to expand coverage to reach universal levels by 2020. The game is the first level of market validation.
While the game may be the front-runner in the use of 5G technology, it’s more than that. Ericsson’s 2019 Mobile Report predicts that by 2024, 34% of the world’s mobile communications equipment will use 5G technology and 64% of the world’s population will use 5G technology. Increased access to faster 5G networks and compatible 5G devices will simplify existing mobile channels and further strengthen the position of mobile networks in our daily lives.
IV. New types – the rise of the self-walking game
The self-walking game was a makeover of Dota and quickly became popular on Steam. As of November 2019, a number of major game developers have launched self-walking tours, including Dota Underlords of V Society, Auto Chess:Origin in Dragonest and Chess Rush at Tencent.
Self-walking games and mobile devices are highly adaptable – the game mode is simple, does not require precise operation, and eSports has become interested in such games, with the first International Chess Invitational opening a $1 million prize event, which is a The game that only emerged in January 2019 is really impressive.
In 2020, we’ll see further optimization of the mobile version of the self-walking game. The rise of such games brings to our attention the fact that the mechanics of popular games will continue to grow, and that, along the way, publishers need to look beyond the existing App Store game classification to create new types of games that will attract consumers’ attention.
V. Progressive web apps are gaining attention
Progressive web apps, or PWAs, are mobile sites that offer an app-like experience that provides users with a better experience with faster load times, and it doesn’t require users to download extra apps.
It is important that PWAs can help improve conversion rates by simplifying the user experience, which loads faster than websites and has a huge advantage in markets where network services are still slow, such as India.
PWAs bridge the gap between mobile networks and application experiences, and while complete apps are still important to ensure the best user experience and user retention, PWAs create more opportunities for first-time contact, helping to broaden the top of the funnel and provide users with a seamless experience at different stages. App Annie also said that loading and availability in low-speed environments is important for brands, especially in the news, retail and travel industries , where PWAs should be included in the mobile product system.