DROdio

A Sanctuary for Founders and Entrepreneurs

hide

Read Next

Packaging & Distribution in the Digital Age: Or, Why Even Grandma Loves Apps

There's long been a raging debate going over HTML vs. Native Apps.  Just Googling the debate returns over 3.7 million results.

I'm here to tell you, that's the wrong way of thinking of things.

It's like debating whether oil or water will win when mixed.  You can't get the right answer if you're asking the wrong question.  While oil and water don't mix well, they can co-exist in the same bottle, and there are valid times you might want to use each.

Let's dive into the right way to think about mobile, and specifically about the role native apps will play.  A better analogy of the mobile landscape is from the point of view of a car manufacturer like Honda.  Honda makes a lot of Honda Accords -- they're its bread & butter.  But for years, Honda had a Formula One team.  A Honda Accord will never compete at the Formula One level, nor was it meant to.  And conversely, if Honda only had a Formula One team, it wouldn't have the massive market share in the auto market that the Accord and other bread & butter models provide it, but Honda did learn a lot about how to make really great engines from its Formula One program.

In the same way, mobile apps are the "Formula One" of mobile, and HTML is the Honda Accord.  You can get wide distribution across many phones by having a mobile HTML presence, but you can't do the sexy, progressive types of things that you can do with apps, because an app is typically compiled software which can leverage the specific hardware functionality of the phone (the camera, the address book, geolocation, the microphone, and many other things).

I have seen the future, and it's mobile. Just one little problem: Engagement.

Henry Blodget of BusinessInsider gave an excellent presentation titled The Future of Digital at a recent Ignition conference.

As you can see from the trendlines in the graphs below, the promise of smartphones is rapidly coming to fruition, with over 50% penetration in the US, and an especially-significant stat that by 2015 the number of broadband connections coming from mobile devices will be over 300% the number coming from fixed (i.e., desktop computer) devices. Translated, that means the promise of blazing-fast broadband on your phone is already here with 4G LTE on many new smartphones, and it's about to become ubiquitious.  And that means that people will just reach for their phone instead of walking over to a desktop computer whenever they want to do anything online.  I wrote about this phenomenon in a post about how the iPhone 5's connectivity has been growing exponentially since its introduction.

Another significant stat shown below is that the time smartphone users spend in apps is 600% greater than mobile web. As TechCrunch reported last October, mobile app downloads are skyrocketing from 2 billion in 2010 to 98 billion in 2015 -- an increase of almost 50x. And as Localytics reports, 26% of users only open an app once after downloading.  Already, engagement is a problem in mobile, and as the number of downloads skyrockets fifty fold, the problem is going to get much worse.  Just think about your own phone:  How many apps are on it that you downloaded, but never use.

Fred Wilson coined the term "30/10/10" to refer to 30% of the download base being MAUs (Monthly Active Users) and 10% of the download base being daily actives.  I believe the engagement stats for many apps are often even worse than that.  Oftentimes, as the Localytics data illustrates, 25% to 50% of users don't even open the app once after downloading it.  In a presentation from PinchMedia (now several years old), the active user rate 90 days after install was well under 5% of the download base.

Guest hasn't filled out their bio yet.
Guest
0
Vote
Advanced options  
, at :
Close