GARTNER: Mobile Apps Will Have Generated $77 Billion In Revenue By 2017
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AN APP WORLD: Gartner released a new report discussing its predictions for the future of the mobile app ecosystem. They believe that by 2017 apps will have been downloaded more than 268 billion times and have generated cumulative revenue of $77 billion. And apps are only going to become more pervasive in the next few years. Soon, Gartner thinks that mobile users will be relaying their personal data streams across nearly 100 mobile apps and services each day. Meaning, app ecosystems will expand beyond simply smartphones and tablets and will soon include robust markets for wearables, connected cars, and automated home appliances. (Look out for an upcoming report from BI Intelligence on the wearable app ecosystem.)
For brands, apps will represent the primary vehicle to directly reach out to and engage with consumers. And as more apps debut and adoption increases, brands will be able to capture even more data about consumers and then use it to improve content and app experiences. Gartner calls it cognizant computing; the idea that the data collected through apps and the subsequent analytics processing of this data become more and more valuable as consumers become increasingly app-centric. Through that, cognizant computing can then provide intelligent, personalized actions within apps based on user preferences and behavior history. Brands are already using smartphones and tablets to reach out to the consumer, but they should soon be prepared for consumers cycling through a multitude of apps across a number of devices on a daily basis. (Gartner)
OPERA STATE OF MOBILE ADVERTISING REPORT: "We expect to see Android's share of revenue continue to grow, but given how far ahead Apple is in the tablet space, we do not expect Android to take the lead for cross-platform monetization in 2014." Opera's latest report shows that Apple continues to dominate mobile traffic despite significant growth from Android. iOS remains the premier platform for monetization. (The Next Web)
MORE MOBILE ADS: Jonah Peretti, CEO of viral Web content aggregator Buzzfeed, thinks all companies should refocus more of their advertising efforts toward mobile. Buzzfeed, in particular, saw better engagement on mobile and Peretti claimed Buzzfeed mobile ads were clicked and shared more than desktop ads and that users are even consuming more of Buzzfeed's longform content on mobile than they are on the desktop site. Clearly, mobile continues to disrupt digital advertising for prominent media companies. (Adweek)
WELCOME, INSIDERS: The Mobile Insights newsletter is now Mobile Insider, a reflection of our increasing emphasis on the day's most important topics in mobile, as well as news exclusives of interest to industry insiders. We look forward to the newsletter becoming an even more important part of your morning routine.
LUMIA SALES FALL: This will be Nokia's final earnings report as owner and operator of its smartphone business before handing over to Microsoft, and Nokia is reporting that Lumia sales actually may have declined in the fourth quarter. These results may give some vindication to Nokia's decision to sell its Lumia division to Microsoft. Nonetheless, Lumia sales had been gaining greater traction throughout 2013, particularly in North America. (TechCrunch)
NEUTRAL NETFLIX: During the company's earnings call yesterday, Netflix discussed the roadblocks the end of net neutrality could present to its video streaming product. The company believes Netflix customers are best served under strong neutral networks and that should Internet service providers become too quick to impede bandwidth-heavy traffic, more government regulation will be needed. (Business Insider)
FACEBOOK MOBILE AD NETWORK: Facebook is running a test to deliver Facebook ads within third-party mobile apps as a way to help improve mobile monetization for developers across the board. It seems Facebook may capitalize on its extensive network of user data to become the top ad network for mobile ad targeting. (Facebook)
SNAPCHAT SECURITY FAILS AGAIN: Snapchat made a visual verification test for new users in order to hopefully weed out potential new spam robots from the app. Unfortunately, the new security system has been called a "joke" by multiple security experts and one hacker, Steven Hickson, has already laid out how to break through. Snapchat has several security issues to work out before it can get back on track. (TechCrunch)
LENOVO BUYS IBM SERVERS: Lenovo has agreed to purchase the server unit of IBM's business for about $2.3 billion. After becoming the top PC maker in the world, and crashing the smartphone market party, Lenovo will use IBM's server business as a way to pad margins. It's another step toward Lenovo's plan to focus on enterprise. (Bloomberg)
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