Only a couple of years after its short meteoric rise, a lack of operating capital is forcing HQ Trivia to close it’s corporate doors…
App fatigue is a reality. There’s simply too many, even though people spend a whole lot of time on their mobile devices. In fact, the average smartphone user spends 2 hours and 42 minutes on one or mobile device per day, with 2 hours and 19 minutes accounting for apps.
What’s more, smartphone consumers spend 89 percent of media time in apps but just 11 percent on the mobile web. Additionally, smartphone apps account for about half of all internet use.
While these figures seem impressive, the devil is in the details. Fewer the .01 percent of all mobile apps will return a positive ROI, being financially successful.
Approximately 52 percent of all mobile apps lose at least half their peak users after just three months, according to Mobile Marketing Engine. Now, it appears HQ Trivia has fallen victim to the fad cycle.
HQ Trivia App Shutting Down after Two-Year Run
HQ Trivia has come to an abrupt close, after it failed to land an acquisition deal that would have kept it in operation.
HQ Trivia quickly gained popularity after its initial 2017 on iOS. That popularity spiked higher later the same year when it was released on Android. But, it’s run out of cash.
CEO Rus Yusupov wrote in a company-wide email:
“Lead investors are no longer willing to fund the company, and so effective today, HQ will cease operations and move to dissolution.”
Only 1 in 10,000 apps developed break-even or are profitable. A report by Selios reveals it costs less than one-tenth to get a mobile site active user than to get a consumer to download an app. Extrapolate the numbers and it equals about $4 per new app user acquisition. Compared to the former active mobile site user acquisition of just 35 cents.