Mobile App Spending and Retail Trends in 2020
Over a Hundred Billion Dollars Were Spent on Mobile Applications in the Year 2020, According to a Recent Report
In the dynamic world of technology, 2020 was a significant year marked by shifts in consumer behaviour and the rise of new players. One such player is TikTok, the popular video-sharing app, which has made a notable impact on the mobile app market.
TikTok, seemingly in response to TikTok's expanding reach, introduced Shopping in Reels, a feature that allows users to shop directly within the app. This move came as TikTok was turning into a significant platform for retailers and marketers.
The year 2020 saw TikTok, owned by the company ByteDance, achieve a historic milestone. It became the first app in history to claim the top position in worldwide sales of non-gaming apps on both the Apple App Store and Google Play. On Christmas, TikTok generated $4.7 million globally, making it the top non-gaming app for consumer spending.
The Apple App Store brought in $19.3 million in entertainment spending on Christmas, while Google Play brought in $4.3 million. Interestingly, consumers spent $112 million in non-gaming apps this Christmas compared to $70.5 million in 2019, representing a 60% increase. Overall, consumers worldwide spent about $407.6 million across the Apple App Store and Google Play, a 34.5% increase from $303 million in 2019.
In the realm of entertainment, both the Apple App Store and Google Play saw entertainment as the top non-gaming spending category on Christmas. The surge in entertainment spending can be attributed to the increased time spent indoors due to the pandemic, leading to a rise in streaming and mobile gaming.
The mobile app market also saw a surge in downloads during key shopping events. On Black Friday, 2.8 million apps were downloaded, setting a new single-day record. Walmart, Amazon, and Shop were the top three most downloaded shopping apps for Black Friday 2020. On Cyber Monday, consumers spent about $10.8 billion online, and mobile purchases comprised 37% of overall sales.
Retailers have also been reworking their brick-and-mortar stores to suit shoppers. They are creating age-appropriate experiences, implementing complementary shop-in-shops, and integrating technology to enhance the shopping experience.
In a bid to further bridge the gap between social media and shopping, TikTok teamed up with Shopify to introduce shoppable video ads in October. This move was aimed at providing a seamless shopping experience for TikTok's vast user base.
Despite the successes, TikTok faced scrutiny by the Trump administration, raising questions about its future in the United States. However, the app continues to thrive, with a preliminary December report from Sensor Tower stating that global consumer spending on mobile apps and games surpassed $100 billion in 2020.
As we move forward, it will be interesting to see how these trends continue to evolve and shape the mobile app and retail landscapes.
