Snapchat, an app allowing the user to send quickly-disappearing texts, was recently valued at 10 billion dollars. No, you didn’t hear me wrong – yes, 10 billion bucks. That is enough to buy 10 of your own personal space ships and still have some change left over. This figure has left many in the industry reeling and holding their breath hoping the Great App Bubble doesn’t burst. With many still left scarred from the dot-com debacle, lots of techies are questioning the stability of the newest craze to hit the market – apps.
Why the concern over the high evaluations these apps are garnering? There are two reasons some are left biting their nails and hoping for the best: fragility in the market and the fast-pace at which technology is expanding. The market appears to be backed by very little substantive commodities. These apps mainly make their revenue from their number of users. If an app’s user growth drops so does its value and with an influx of competitors entering the ring everyday an app is only as good as its popularity in the market today. As the field continues to be flooded with apps designed for every aspect of the human experience even the largest of them is prone to being dethroned by the next big thing.
So is the Giant App Bubble about to burst? Marketing experts today can only speculate on what is next to come. One thing is for sure though…. businesses looking to make an impact in their digital marketing platforms cannot neglect the power of these apps. In fact, even the smallest investment into increasing brand presence through them is an integral part of any growth strategy. If your business has yet to take advantage of Snapchat, Instagram, or any of the number of other noteworthy apps on the marketplace today, contact our team at GMS. We have proven success in devising programs to help build our customer’s brand awareness using the latest in digital media platforms.