App downloads are on the decline, so brands need to make sure their apps provide real utility.
That’s one of the key findings from a new mobile survey by search marketing agency Catalyst, in conjunction with GroupM.
The survey of 1,100 Canadians found the number of apps on users’ smartphones dropped from an average of 26 to just under 19 in the past year.
Average monthly app downloads decreased by 53% and app uninstalls increased by 29%. Notable exceptions to the downward trend in app usage are banking and emailing.
“I think some of the newness is wearing off,” said Jeff Lancaster, CEO of Catalyst, adding that people are much more discriminating about which apps they’ll download.
“There’s a real estate battle going on, where we’ve got storage limitations on our phones and data plans to deal with,” he said. “If an app is not providing real value or real utility, it’s not going to stay on people’s phones.”
One exception to the decline in apps is young millennials. Compared to other age groups, people 18 to 24 are more likely to use apps and have a greater number of apps on their phones. Their average number of total apps remained the same at 24, while all other demographics’ averages declined.
The survey also found smartphone penetration is growing quickly. In 2015, 68% of Canadians owned a smartphone, compared to 55% in 2014.
While it’s no surprise that more people own smartphones, the survey revealed an interesting trend: at-home smartphone usage has risen and on-the-go activity has declined.
For respondents who use their smartphone as their primary device, at-home usage increased for 20 out of 21 activities, including watching an episode of a show, reading the news and shopping for products.
In contrast, only four out of 21 activities (looking for a new car, checking stock quotes, checking sports scores and buying movie tickets) had an increase in share of time for usage on the go.
“People seem a lot more comfortable using their phones when they’re at home, whereas they used to run for their computer or grab a tablet for the bigger screen,” said Lancaster.
But as smartphone screens get bigger and dedicated apps get better, “people are defaulting to using their phone for most things,” he added. “The experience is getting better and it’s a lot easier to just pull your phone out of your pocket.”
Young people tend to be more engaged with their devices at home compared to other demographics. Most of the growth in six common activities is coming from those 18 to 24:
So what’s the big takeaway for marketers? “There’s a continued call to arms to Canadian brands,” said Lancaster. “With 68% penetration now, everyone is mobile, so what can we do to get into this mobile-first mentality?”
Lancaster noted Google is updating its organic search algorithm on April 21 and will increase the ranking of sites that are mobile friendly. The update, along with the shifts in mobile usage, means one thing for brands: “It’s time to prioritize having a better mobile experience with your consumers,” said Lancaster.
Catalyst’s full report can be found here: catalyst.ca/2015-mobile
