The document summarizes trends from the iMonitor app tracking service. It finds that the number of publication-related iPad apps continues to grow rapidly. While app quality has improved, 40% still have significant issues. Most major US publishers have produced apps for only a few publications. Non-US publishers are more likely to monetize content through in-app purchases or subscriptions. Apple dominates the tablet market and app ecosystem. The document identifies some top performing apps and development partners. It concludes that the market is still evolving in areas like adoption, development practices, and monetization strategies.

1. iMonitor™
Trends & Best Practices
July, 2011
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2. Background
• iMonitor™ was launched in June 2010 to allow publishers and
agencies to share the cost of thoroughly monitoring developments
in tablet apps.
• iMonitor uses more than 100 variables to track iPad apps for:
— All magazines released globally
— National newspapers in English-speaking and Western
European countries
— Other news apps which compete with newspapers and magazines
— Companion apps
• We also track which other platforms these publishers are using, as
well as pricing across all platforms
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3. • Each app is subjected to rigorous evaluation and rated
on a 5-point scale for:
— Design
— Functionality
— Media
— Advertising, if applicable (15% have no ads)
• We roll the first 3 into the iMonitor™ App Rating
• As of today, we have evaluated more than 2200 apps – most
more than once.
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• iMo
age
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Rebecca McPheters | McPheters & Company • iMo
— A
—

4. Growth in Publication-Related iPad Apps Continues to Accelerate
iMonitor™ Reported Apps
2500
2000
1500
1000
500
0 B
Customer Trade Consumer • iMo
age
in t
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— A
—

5. It Is Still Very Early…
• Tablet adoption
• App development
• Publishers entry into
marketplace
• Subscription availability
• App marketing
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6. The U.S. Market
By 2015, the number of tablet users in the U.S. will be almost 7 times current
levels.
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Source: Forrester; McPheters & Company estimate of users in 2010 & 2011.
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7. The Importance Of Being Apple
• Apple is expected to retain a 60-70% share of tablet
sales through 2012
• To date, competitors to the iPad have failed to
get substantial traction
• According to Laptop Magazine, a recent survey of tech-savvy
consumers indicated:
— 20% already have an iPad
— 20% more expect to purchase an iPad
— 7% expect to purchase another tablet
— 53% don’t (yet) want a tablet
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8. Apple dominates the app marketplace, providing yet another reason
for consumers to prefer the iPad. While Android is growing rapidly, the
same is not true of Android apps developed specifically for tablets.
#
of
Apps
Available
350,000 333,214
300,000
250,000
206,143
200,000
150,000
100,000
100,000
50,000
29,920 26,771
11,731
170
0
Apple:
iPhone Apple:
iPad Android Android
Honeycomb Ovi Blackberry Windows
7
Source: Distimo; The Apple Blog
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9. • Not surprisingly, the evolution in the experience these
apps provide consumers since the iPad’s introduction
has been enormous.
• Nonetheless, we still find that 40% have significant
glitches that negatively affect the user experience.
— Download issues
— Crashes
— Failed links
— Faulty video
— Difficult page turns
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10. Europe Accounts For 45% Of All Apps Tracked.
Source: iMonitor 5/31
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11. In Europe The Largest Number Of Apps Come From
The UK, Italy, Germany And The Netherlands.
Source: iMonitor 5/31
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12. Many Major Publishers Are
Still On The Sidelines
• Most major publishing houses have produced
apps for only a few of their publications.
• In the US, half of major publications have
produced no apps at all, and only 40% have
produced apps for the iPad.
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13. Publications Outside of the U.S. Are More Likely to Monetize Content
Revenue Model
90%
76% 79%
80%
70% 67%
60%
50% 51% 50%
50% 43%
39%
40% 35% 33%
30%
20% 15% 14%
10%
10% 7% 5% 5% 6% 7%
5%
3%
0% 0% 0% 0%
0%
Consumer + Ad Consumer Only Ad Only Neither
U.S. Magazines International Magazines U.S. Newspapers
International Newspapers Other U.S. News Apps Other International News Apps
Source: iMonitor 5/31
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14. Most Apps Derive Their Consumer Revenue From Sales Of
Individual Issues. Newspapers Are More Likely To Derive
Consumer Revenues From Apps And Subscriptions.
Consumer Revenue
100%
90% 82%
80%
68% 68%
70%
60% 55%
47% 47%
50% 44% 43% 43%
40% 36%
31%
27% 29% 26%
30%
18% 20%
20% 14%
11% 9%
7% 7%6% 6%7% 7%
10%
0% 0%0% 0% 0% 0%0% 0%0% 0%0%
0%
Any App + Internal App Only Internal Only Issue Sub
U.S. Magazines International Magazines U.S. Newspapers
International Newspapers Other U.S. News Apps Other International News Apps
Source: iMonitor 5/31
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15. Typically, Magazine Apps Are Free–While
Publishers Charge For Issues.
Distribution of Prices, All Magazines
100%
90%
77%
80%
70%
60%
50%
40%
30%
30% 26%
20%
7% 8% 9%
10% 5% 7% 4% 7% 6%
3% 1% 1% 3% 1% 4% 0%
0%
Free $0.99 $1.99 $2.99 $3.99 $4.99 $5.99 >$5.99 NA
App Issue
Source: iMonitor 5/31
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16. What We Refer To As A Print Advertising Model Is Dominant For Most
Publication Types
Ad Model
90% 86% 86%
78%
77%
80%
70% 67%
62%
60%
50%
50% 44%
38%
40% 33%
29% 29% 26%
30% 21% 21%
20% 15% 14% 14%
10% 7% 9% 9% 8%
10% 5% 4% 4%
0% 0% 0% 0%
0%
None Print Premium Sponsored Any Other
U.S. Magazines International Magazines U.S. Newspapers
International Newspapers Other U.S. News Apps Other International News Apps
Source: iMonitor 5/31
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17. Links Are The Most Common Form Of Ad Enhancements.
Ad Enhancements
100% 100%
100%
90% 83%
80% 75%
69%
70%
60% 54%
48%
46%
50% 42%
41% 38% 38%
40%
29%
30% 25% 25% 25% 25%
18% 21%
18% 16%17%
20% 16% 15% 15%
11%11% 12%
8% 8% 6% 6%
10% 6% 4%
2%
0% 0% 0% 0% 0% 0% 0%
0%
None Web Links Video Transactional Social Media Interactivity Any Other
Capabilities
U.S. Magazines International Magazines U.S. Newspapers
International Newspapers Other U.S. News Apps Other International News Apps
Source: iMonitor 5/31
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18. WHAT MAKES
A GREAT APP?
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19. A Great App Provides A
Significantly Enhanced Experience
WELL DESIGNED
• Has features which make it easy to navigate app,
issue, sections (newspapers), and articles
• Optimized for orientation
• Extra points awarded for
— Subscriptions
— Unique features such as:
• Shopping Lists
• The Daily’s article shuffle
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20. A Great App Provides A Significantly
Enhanced Experience
HIGHLY FUNCTIONAL
• Driven by adherence to evolving set of best practices
related to time and resource conservation
— Reasonable download time
— In-app purchase
— Navigation guide
— Internal browser
— Resumable download and reading
— Ability to delete issues
• Points added for unique features such as
— Macumag: Adjust screen brightness within app
— Sunday Times of London: Download and delete by
section
— Quattroruote: Navigation guide overlaid on page
• Points deducted for replicable malfunctions
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21. A Great App Provides A Significantly
Enhanced Experience
LOTS OF RICH MEDIA CONTENT
• Points added for various types of features (links, audio, video,
animation, social media, live newsfeeds, localization, interactivity,
transactional capabilities)
• Points added for unique media features
— EPICURIOUS RECIPES & SHOPPING LIST: Create shopping list for
multiple recipes
— EVERYDAY FOOD: Send recipes via text message
— GEO MAG N°4: speak a country's name to bring
up photo gallery
— NY POST: Design your own cover for the day’s newspaper
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22. When We Apply Our Criteria To Apps
In This Market, The Standouts Are:
Best Consumer Apps
App Country Publisher Developer iMonitor
App Rating
CHIP Germany Hubert Media Adobe 14.0
DIE WELT Germany Axel Springer AG Unidentified 14.0
ZEIT ONLINE Germany Holtzbrinck Adesso 14.0
plus Publishing Group
News Magazin Austria Gruner + Jahr 13.5
Weekend Austria Mediengruppe Adobe 13.5
Magazin Lengauer +
Partner
Frankfurter Germany Mediengruppe M. WoodWing 13.5
Rundschau DuMont Schauberg
GmbH & Co. KG
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23. Key Drivers Of Consumer Traction
• Quality matters
• Less to do with circulation and
more with audience
characteristics
• Availability of subscriptions
• Issue/update frequency
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24. Development Partners
Large Multi-Publisher Developers
Top Range # of Avg. App Avg. Design Avg. Avg. Media
Apps Rating Rating Function Rating
Rating
Woodwing 142 11.1 3.9 4.3 3.0
Adobe 177 10.6 3.6 4.2 2.8
Texterity Inc. 82 8.8 3.4 3.6 1.8
BlueToad, Inc. 71 8.6 3.0 4.6 1.1
Pixelmags 135 8.0 2.9 4.0 1.0
Pocketmags 216 7.8 3.0 3.8 .9
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25. However, Having A Good Development
Partner Doesn’t Ensure Great Results.
Minimum & Maximum Ratings By Developer
15.0 14.5 14.5
12.0 11.0 11.0
9.5 9.5
9.0
7.5 7.0
6.0 6.0
6.0 5.0 5.0
3.0
0.0
Woodwing Adobe Texterity Inc. BlueToad, Inc. Pixelmags Pocketmags
Min App Rating Max App Rating
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26. It Is Still Very Early…
• Tablet adoption
• App development
• Publishers entry into
marketplace
• Subscription availability
• App marketing
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Rebecca McPheters | McPheters & Company

27. THE END
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