These App Niches Are the Most Resilient to Economic Headwinds / Digital Information World
Inflation as well as supply chain disruption have created economic headwinds that make it harder for stalwart industries to survive than would otherwise have been the case. Despite the fact that this is the case, some applications in the mobile market have managed to withstand the effects of inflation and other economic factors, proving that there are still ways for companies to remain profitable in these endeavors . times.
The mobile market has been particularly good at holding the gains made in 2020, and with all that said and now out of the way, it’s important to note that time spent on these apps is increasing, as per DataAI. There was an 11% increase in average time spent by consumers on apps year over year, and this offers some hope for the future and proves that the app economy still has a lot of room to grow naturally.
Users now spend a whopping 2 billion hours browsing Android apps alone, and download numbers have also broken all records with all things considered. Downloads in both the iOS App Store and the Android Play Store saw a 13% year-over-year increase to 74.4 billion by 2022.
However, revenue is lower despite these encouraging numbers. There was a 3% decline in mobile app revenue compared to last year, suggesting that although consumers are using apps more and more, they are not spending as much money on them as they used to, although this may be picking up again. soon again
Some markets are doing much better than others, such as in Brazil where consumer spending on in-app purchases increased by 15%. Such news is encouraging because it’s the kind of thing that could potentially lead app developers to start targeting regions where revenue growth is a real possibility and leave the more difficult markets for when the economic climate calms down somewhat.
Short video apps, led by TikTok, have managed to reach a surprising level of profitability in the current financial year. Apps in this category drastically outperformed other categories, raking in nearly $700 million from app consumer spending alone. In second place are OTT apps that crossed the $200 million revenue mark, followed by dating apps, file management apps, and finally audiobook apps.
Meanwhile, live streaming apps are going through a period of serious turmoil. After being hot items in 2021, they have suffered a loss of around $100 million so far. This casts some doubt on the future of these apps and suggests that they may need to change things to keep users flowing in.
Gambling apps also saw continued growth in each quarter. MOBA (Multiplayer online battle arena) games lead the way with profits of around $400 million, but other game app categories also fared relatively well. Team Battle apps that fall into the RPG genre have had some disappointing quarters and they have suffered huge losses of around $400 million or so.
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