Google targets India's next generation of app makers (GOOG, GOOGL, AAPL)

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Google has launched Android Skilling in India, a program aimed at training 2 million developers for the Android platform, according to Bloomberg.

The program will be introduced for free across about 2,000 public and private universities as well as training schools in 2016. This move indicates that Google is likely aiming to control the larger mindshare of the next generation of app developers in emerging markets such as India, Indonesia, and Brazil. These markets present a massive opportunity for app download growth, as an increasing share of these countries' populations come online through mobile devices.

But Google isn’t alone in its mission to build up an app developer ecosystem in India. In May, Apple announced plans to open up a new iOS app Design and Development Accelerator in Bengaluru to provide additional and specialized support for local iOS developers. Bengaluru is an important market for smartphone companies looking to tap into India’s massive developer community. More than 1 million people in the city work in the tech sector, and more than 40% of graduates from local universities specialize in engineering or IT, Apple notes. 

There are three primary reasons Google and Apple are investing in India:

• India’s smartphone growth is explosive. Earlier this year, India surpassed the US as the second-largest smartphone market with 220 million smartphone users; there's anestimated 191 million in the US. Nevertheless, smartphone users still account for about 22% of the roughly 980 million mobile users in India. That means there is massive opportunity for growth in the near future.
• App downloads have grown substantially and will continue to do so. The number of apps being downloaded in India is expected to reach almost 8 billion in 2016, a 92% jump from 2014, according to App Annie. This number will grow at an annualized rate of 26% through 2020 to reach an estimated 20 billion downloads.
• India is expected to overtake the US as the largest developer population globally with 4 million people by 2018, according to Google VP of product management Caesar Sengupta. As demand for apps increases, so too will the number of developers looking to carve out a space of the app market. Google and Apple will be vying to grasp the mindshare of this industry. 

However, to capture the Indian market, publishers will need to localize the apps they deploy. An integral part of building up an app ecosystem within an emerging market is ensuring there's a pool of developers building localized apps and software on devices that will appeal to domestic consumers. One of the best ways to do this is to embrace local app developers by creating incubation hubs and developer centers that offer to teach local developers to build apps for the Android or iOS platforms.

Cutting through the noise of an overcrowded app market is critical for any app developer looking to build a viable user base. There are now well over 3 million apps available across the world’s five largest app stores. Delivering the right product to the right audience at the right time in this environment is imperative to the success of any app.

The challenge of marketing an app effectively has made app-install ads — an ad unit that directs users to download a mobile app — an essential tool for developers seeking to stand out in the Google Play and Apple app stores. This is why it's not surprising that more marketers are using paid channels to drive downloads than ever before. In fact, over 80% of respondents in a survey of the top 100 grossing mobile app developers noted they plan on increasing their spend on app-install ads in 2015.

Will McKitterick, senior research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on mobile app-install ads that looks at the revenues from app-install ads and how they're expected to grow over the next five years. It also looks at the performance of app-install ads and how these metrics are expected to change over time.

Furthermore, the report examines the top app-install ad products and pricing models offered by the leading advertising platforms, including Facebook, Twitter, Yahoo, and Google, as well as newer app-install formats from Instagram and Snapchat. Looking to the future, the report examines how companies are shifting their app-install ad spend to new formats, as well as the new tools they're using to improve optimization and ad effectiveness.

Here are some key takeaways from the report:

• Mobile app-install ads — ad units that direct users to download a mobile app — are an essential tool for developers, and they account for a major share of mobile ad spend. We estimate 25% of total US mobile ad revenue was generated by app-install ads in 2015.
• A combination of new developers entering the space and rising ad budgets will drive increased spending in years to come. US app-install ad revenue will grow to over $7 billion by year-end 2020, according to BI Intelligence estimates.
• Mobile app install advertisers have traditionally invested heavily in display and interstitial ads, but are moving to mobile video and native install formats. 86% of developers currently use in-feed video app-install ads, and video ads are seen as the most effective app-install format.
• As formats like video rise in popularity, older formats are losing their appeal for install campaigns. Static nonnative ads are widely used but are not seen as effective. Free app networks and offer walls have also fallen out of favor.
• Ad platforms are now developing innovative new install formats to earn even more revenue from these lucrative ad units. New approaches, including deep linking and app streaming, are more contextualized and interactive than older ad formats.

In full, the report:

• Forecasts app-install ad spending in the US through 2020.
• Explores which app-install ad formats developers believe are most effective.
• Discusses what the most popular platforms and ad networks are doing to attract ad spending.
• Investigates new tools for marketing apps, including deep linking and app streaming.

To get your copy of this invaluable guide, choose one of these options:

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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the fast-moving world of mobile app-install ads.