Why has Adidas bought an app for 220 million? Why has Under Armor bought the Endomo apps for 85 and MyFitnesspal for $ 475 million?
Just like the gold rush these days we are witnessing the purchase of mobile applications by large commercial brands. Just a few months ago, news broke of the acquisition by the American sports multinational Under Armor of two famous apps Endomondo for $ 85 million and MyFitness Pal for $ 475 million and now the acquisition of the popular Runtastic app by the group Adidas for an amount of 240 million euros. Altogether Under Armor acquires at a stroke 120 million users and Adidas 70 million potential clients.
What are the reasons why they have led these huge multinationals to buy these ready-made applications and not to develop their own apps?
Let's analyze the advantages that they bring you:
– A great saving in time. Because all phases of development are being skipped and you don't have to create an app from scratch. It's fast. – Lower cost. The production and development investments, the huge advertising and promotion expenses have already been made and most importantly, their successful impact on target audiences can be evaluated and analyzed. This for large companies has a great value that adds to the price of their acquisitions. – Their position in the application stores. When they buy these apps they are also buying their position in the Rankin of the App Store and Google play, the comments and ratings of users, the number of downloads, benefits they are generating, copyrights and intellectual property. – They minimize the risk. When launching a new application to the market, they run the risk of whether it will be successful or accepted, but in this way they reduce the risks of failure. – The number of users. To be able to have such a huge database and a community of target customers (we are talking about more than 200 million consumers of sports equipment) that relate to their brands by contributing new ideas, interacting in real time through their mobile phones to discover habits current consumption and future trends. This is what is worth so many millions.
Article written by Wualapp.com, platform for buying and selling apps, for WWWhatsnew.
Sources: Under Amou | Endomondo Statement | Adidas Group.