Android, iPad are Biting into iPhone's Mobile App Market

Millennial Media collaborating with DIGIDAY and Stifel Nicolaus has released its third quarter survey of over 500 developers, publishers & advertisers within the mobile marketplace. The State of the Apps: Industry Snapshot reveals how the three are looking at the different platforms for this year and next.

Anticipated Apps Revenue Expected

Mobile devices have been good to publishers and advertisers alike. According to the study, 31 percent of publishers expect their apps revenue to increase 100 percent or more in 2011, with another 17 percent expecting an increase of 50 percent or more.

Preferred Platforms Today & Tomorrow

When it comes to selecting their preferred platforms, advertisers and publishers spread the wealth across platforms. Android and iPad continue to show significant growth, though iPhone still remains the top platform of choice. When it comes to influencing their platform of choice however, the report highlights the top 5 considerations -- reach, demo, better branding, ease of use and higher sales potential.

In 2010, publishers and developers chose to develop mobile applications via iPhone, Android, iPad, RIM and Windows Mobile, with the Android, iPad, Windows Mobile, and Symbian platforms showing the most growth from 2009. iPhone and RIM both saw year-over-year decreases.

Image 1: Mobile App Platforms For Which Publishers Are Developing in 2010

Looking ahead, the report indicated that publishers will be most likely adding Windows Phone 7 and the iPad to their plates in the coming year.

Branded Applications

In 2009, Consumer Packaged Goods (CPG), Retail, Auto, Entertainment and Financial companies were the top 5 verticals building apps. In 2010, entertainment unseated CPG to be first, followed by Technology, Media, Retail with CPG in fifth.

Monetizing Mobility

The report found that a small percentage of developers are using internal means to monetize their apps. A majority of those surveyed indicated that they used third-party applications, like an Ad Network, to monetize their applications.

The State of the Apps: Big Picture

Separately, each of these findings show which platforms influence publishers and advertisers as they try to develop mobile applications for their audiences. Taken together however, the State of the Apps report indicates more than just preference -- that mobile devices like the iPad and iPhone are not just a passing trend. With additional platforms edging out key players, publishers are definitely taking notice.

As we approach 2011, it’s clear that the mobile industry is expanding and those within it will be experimenting more across platforms.