The Usage and Applications of Mobile Apps

Inroduction

Mobile application, commonly known as “mobile app” is computer programme software (Janssen, n.d.) especially developed for smart phones (Lockergnome.net, 2012). Traditional software programmes are designed to run on computers or laptops. However, these programmes are exclusively created for mobiles as this device has become central to the lives of individuals (Dubreuil & Joubert, 2012). An Ericsson traffic and market report identified that 40% of the world’s smartphone users extensively use mobile apps and the Internet when they start their daily routines (Ericsson, 2012). Particularly in the US, app use is very high, as 62% users download them on their phones (nielsen.com, 2011). It was also found that 64% of mobile time is spent on apps (Nielsen.com, 2012). App use was even higher than web consumption by the end of June 2011 (Khan, 2011). It is forecasted that marketers would spend $11.6 billion on mobile campaigns by the end of 2012 (source). Interestingly, the US market alone spent $4.4 billion on app based campaigns (Schonfeld, 2011), an effective use of money, as one-third of US adults own a smart phone (Vasquez, 2011). Beyond the US, app use is taking hold throughout the world. In Australia more than 50% of population uses smart phones, with 94% using them for shopping (Ross, 2012). Similarly, in the UK 95% of individual uses smart phones and 31% of subscribers use their phones for shopping (Dubreuil & Joubert, 2012). Smart phone app use will also likely facilitate the mobile e-commerce, which is predicted to grow at a rate of 55% (compound annual rate) from 2010 to 2015 (eMarketer, 2012).

This revolution will take place because mobile usage facilitates marketers’ abilities to engage and retain existing consumers in cost effective ways that increase return on investment (O’Kane, 2013). For example, consumers can be retained easily via mobile phones and their various features such as QR codes and apps. Acquiring new consumers is five times more expensive than retaining existing customers (Murphy & Murphy, 2002). In addition, 90% less cost is incurred when marketing for a repeat purchase compared to the new or first buy (Dhar & Glazer, 2003). App users can use opt in messages via apps and can enhance engagement with brands. In addition, push campaigns that easily attract app users can be developed for mobile apps and can have a significant impact on the enquiries about products and brands (Littman, 2012). Apps can also help in sharing users’ activities on social networks (O’Kane, 2013). All of these factors lead to the conclusion that mobile apps significantly contribute in growing mobile ad spending (Vasquez, 2011), primarily for millennial as they aggressively use smart phones, particularly to shop via mobile phones (eMarketer, 2012). In the subsequent sections of this article, we will discuss about usage of mobile apps primarily in messaging, gaming and shopping. We also state role of apps in marketing, neuroscience and how apps are being used as a research instrument,branded mobile apps, in-app advertising, challenges and opportunities of mobile apps and future of the discipline.