With new extended reality (XR) and augmented reality offerings imminent — most likely from Apple and Meta — that need fast low latency connections to connect to cloud services, good quality connectivity is becoming even more important, on Wi-Fi as well as with mobile.
With poor mobile connectivity, users spend 20% less time in each app session while with poor Wi-Fi it’s an even greater 38% less time. After seven days, app retention rates are 49% lower for users that have seen consistently poor connectivity. Poor connectivity is commonplace. Opensignal data demonstrates that in 29% of mobile app sessions users experienced a poor signal. With Wi-Fi, 11% of app sessions had a poor signal.
Poor connectivity directly affects app revenues as well as increasing user dissatisfaction. Almost all apps are monetized either through in-app purchases or advertising. Both business models require people to continue using the app. Data.ai (formerly App Annie) reports 2022 total global app revenues were $336bn for advertising and $167bn for app store spend, of which almost all was either in-app purchases or paid subscriptions. Read the full analysis here
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