Corporate Website

App vs. website: Which option brings more success?

Date
21/11/2024

When it comes to the right online communication with target groups, companies are often faced with a choice: website or own app? Reading habits, consumer behaviour, convenience, interactivity and personal preferences of potential customers make this choice an important decision. Website or an app? RYZE Digital makes a comparison.

The right online presence is crucial: it determines how customers and business partners can interact with companies - and whether they become regular customers or turn to competitors. While almost no company can do without a website, there are many differences in the actual design of the site. Simple informative pages, multimedia stories as an infinite scroll or interactive and personalised shopping experiences are just some of the many possibilities. But if you follow the "mobile first" credo, the question arises as to whether a dedicated app would not be more suitable to inspire target groups.

 

After all, more and more people are only online via their smartphones. Depending on the country, users spend around a third of their day on their mobile phones. In Germany, people spend an average of around 3.3 hours using apps - significantly more time than on the computer. Germans only use their computers for around one hour a day, regardless of whether they use a laptop or PC. In Europe, mobile devices have had a larger market share than desktop computers since last year.

 

However, the usage figures only show part of the behaviour. It also depends on the products and services that a company offers. Social networks, for example, have shifted almost entirely to mobile devices. For productive work, on the other hand, most people continue to rely on a computer, as manoeuvring through extensive Excel spreadsheets and cloud storage is still easier with a keyboard and mouse.

 

So which criteria tip the scales in favour of a website or an app depends on the individual case. Both offer potential for innovative customer communication, as our comparison shows.

Why a website is (often) still the better choice

In the beginning was the website: Online presences have been standard for many years and are an integral part of corporate communication. Apart from micro-enterprises, the self-employed or small businesses that may only manage with a social media presence, providing information via the company website is an indispensable cornerstone for companies.

 

Websites now come in many different forms. From static information portals to interactive websites or so-called web apps. Thanks to Javascript, multimedia integration and HTML 5, websites can be very interactive. It's not just your favourite online shop that runs reliably in the browser, office programs such as Microsoft Office can also function entirely via HTML and the like.

 

Websites also offer the advantage that they can generally be displayed independently of the end device and operating system. As long as an internet connection and an up-to-date browser are used, a website will be displayed. The sites also consume little storage space, user-related data can be collected and the website can be displayed in a personalised way.

 

Websites can also score points for convenience, as they can be accessed more quickly by new users without the need to download an app. This point is important because the hurdle of installing new apps is significantly higher for most people than visiting a new website. Young companies may therefore be able to score more points with an attractively designed website than with their own app, which nobody can find in the app store.

 

The costs for creating a website are generally lower, which is a point that should not be underestimated. Not only is app development more expensive, but in case of doubt, two apps have to be developed that work natively with iOS and Android, at least if the functions of a smartphone are to be fully utilised. Apps can be programmed across platforms with Flutter from Google, but here too the effort involved is significantly higher compared to creating a site.

 

In terms of appearance, the app is usually indistinguishable from an adaptive website for the user. Mobile first has also become established for websites; a modern layout adapts to the many different display sizes that are used. This is also utilised by so-called hybrid apps, which function like an app but are ultimately a browser that calls up a website - and are therefore closer to a website than an app in terms of functionality.

 

Another interesting point is the conversion rate when using a mobile device compared to a desktop computer. It seems that mobile devices are often used for browsing and product searches . On the other hand, customers prefer desktop PCs for the actual purchase. In fact, one study found that desktop users had a conversion rate of 4.14 per cent in 2019. This compares to a conversion rate of 3.36 per cent for tablet users and 1.53 per cent for smartphone users.

 

Cheaper, simpler and still mobile-friendly: so is everything in favour of a website?


Pros and cons for websites

Pro
  • Platform independence: Websites can be displayed on different end devices and operating systems.
  • More cost-effective: Creating and maintaining a website is generally cheaper than developing an app.
  • Lower hurdle: New users can access a website more quickly without having to download an app.
  • Flexibility: Websites can be quickly updated and adapted to new requirements.
  • Low storage requirements: They consume little storage space on users' devices.
Contra
  • Dependence on internet connection: Websites require an active internet connection in order to be used.
  • Limited functionality: You cannot natively access all device features (e.g. camera, microphone, GPS).
  • Less time spent on websites: Users often spend less time on websites compared to apps.
  • No push notifications: Websites cannot send direct notifications to users.
  • SEO dependency: Visibility and traffic depend heavily on search engine optimisation and marketing.

App users stay longer

When it comes to the full functionality of mobile devices, there is hardly any way around an app. Around 15 years ago, Apple presented the slogan "There is an app for that" - and millions of small programmes in the "App Store" and on "Google Play" are now making it a reality. Navigation devices, MP3 players, train tickets: many physical things have been replaced by smartphones and therefore by apps.

 

This development is even stronger in the area of communication. Writing messages, sharing pictures or recording videos is all done with a device that most people now have with them all the time. It is therefore clear that the time spent using smartphones has increased. And apps play a significant role in the fact that people are spending more and more time on their mobile phones.

 

The small icons on the home screen are not just shortcuts, but also permanent little reminders of a company or service. It is therefore not surprising that the time spent on apps is longer than on websites. The small programs also work offline and can access device features such as GPS localisation, camera and contact list. When it comes to the user experience of websites, on the other hand, companies cannot be sure whether users actually have a camera or microphone connected to their computer.

 

Push notifications can also alert users to new content from apps without having to use the programme itself at that moment. Practical for news, but also for marketing campaigns.

 

However, not everything is simple with apps. While websites fight for interest with search engine optimisation and marketing, there is usually no way around paid attention in app stores. They often cost more to develop, and even if in-app purchases can be designed very simply, Google and Apple charge a fee of up to 30 per cent for digital purchases. This can also apply to subscriptions. Depending on the company and the product sold, this can reduce the profit margin to such an extent that in-app sales are no longer worthwhile. Exceptions to the fee are regulated and rare.


Pros and cons for apps

Pro
  • Longer dwell time: Users often spend more time with apps than on websites.
  • Offline functionality: Apps can also be used without an internet connection.
  • Device integration: You can access various device features such as GPS, camera and contact list.
  • Push notifications: Apps can inform users directly about new content.
  • Strong presence: Apps offer a permanent presence and reminder of the company through their icons on the home screen.
Contra
  • Higher development costs: The creation and maintenance of an app are generally more expensive than for websites.
  • Platform dependency: Apps often have to be developed for different operating systems (iOS and Android).
  • Higher barrier to entry: Users must first download and install an app before they can use it.
  • Fees for in-app purchases: Google and Apple charge a fee of up to 30 per cent for digital purchases and subscriptions in apps, which can reduce profit margins.
  • Storage requirements: Apps consume storage space on users' devices.

E-commerce: apps are replacing more and more websites

Whether the focus is on apps or a website depends heavily on who you want to reach and why. In B2C e-commerce, there is currently a trend in many areas for apps to replace traditional websites. For some years now, smartphones and tablets have been consumers' favourite devices for online shopping.

 

Otto is a good practical example. The mail order company has been able to steadily increase its app user numbers, and growth is now significantly more relevant than that of the website. "A few years ago, mobile shopping was still rather unusual, but today shopping via an app is completely normal for many people. Apps are seen as particularly convenient, fast and secure, which is causing user numbers to skyrocket," summarises Marian Bucher, responsible for marketing and further development of the Otto app.

 

"We are seeing that app users visit us more often than webshop users, but stay for a shorter period of time. They also browse much more. Overall, this leads to increased interaction, which we would like to expand further. Also interesting: the proportion of men on the app is around a third higher than on the website, and the average age is lower on the app," adds his colleague Julian Komar.

 

The trend towards increased app usage cannot be clearly identified for every industry. There are differences depending on the target group, type of products and habits. However, the number of retail app installations increased significantly during the pandemic and the trend has continued in many places since then. In e-commerce, most sales have been made via mobile devices since 2022, with around 65 per cent of sales coming from mobile devices in 2022.

 

This not only applies to mail order companies such as Otto, but also grocery retailers such as Edeka, Rewe and Lidl can look forward to brisk demand for their apps. The industry association Bitkom announced at the beginning of 2024 that over half (58 per cent) of smartphone users in Germany have at least one grocery retailer app installed on their smartphone.

 

Whether a website or an app is more worthwhile for a company therefore depends heavily on the market it serves. The preferences of the target group are more important than weighing up the technical advantages and disadvantages. After all, the best-designed website or the most innovative app is of little use if it does not match the user's behaviour. For many companies, the right strategy will be a combination of both in order to be able to react to changes in user behaviour in the best possible way.

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