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App	
  Meter	
  –	
  Q2	
  2011	
  
Emerging	
   patterns	
   in	
   consumption	
   in	
   the	
   mobile	
  
app	
  economy	
  
Patrick	
  Mork	
  
     	
  
     	
                   	
  
 


Introduction	
  ...........................................................................	
  3	
  


Methodology	
  .................................................................................................................	
  3	
  



Executive	
  Summary	
  ................................................................	
  4	
  



Detailed	
  Findings	
  ...................................................................	
  7	
  


App	
  Consumption	
  .......................................................................................................	
  7	
  


       When	
  are	
  consumers	
  using	
  apps?	
  .....................................................................	
  11	
  


                                                                  ....................................................	
  12	
  
       Apps:	
  The	
  case	
  for	
  brands	
  and	
  advertisers	
  


                                        ......................................................................................	
  15	
  
       Discovery	
  and	
  App	
  Stores	
  


Conclusions	
  .................................................................................................................	
  17	
  




	
  


	
                                              	
  




	
                                                                  2	
  
 


Introduction	
  
	
  
Welcome	
  to	
  App	
  Meter!	
  	
  This	
  market	
  research	
  is	
  designed	
  to	
  give	
  us	
  a	
  snapshot	
  
of	
   where	
   the	
   app	
   industry	
   is	
   headed	
   and	
   will	
   be	
   conducted	
   2-­‐3	
   times	
   per	
  
calendar	
   year.	
   	
   App	
   Meter	
   will	
   focus	
   on	
   both	
   what’s	
   happening	
   from	
   an	
   industry,	
  
revenue	
   and	
   platform	
   point	
   of	
   view	
   as	
   well	
   as	
   what	
   is	
   happening	
   on	
   the	
  
consumer	
  front.	
  	
  The	
  data	
  sourced	
  for	
  App	
  Meter	
  comes	
  primarily	
  from	
  GetJar’s	
  
consumers,	
  publishers	
  and	
  partners	
  and	
  presents	
  only	
  a	
  view	
  of	
  apps	
  from	
  our	
  
perspective.	
  	
  As	
  one	
  of	
  the	
  world’s	
  largest	
  app	
  stores	
  with	
  1.7	
  billion	
  downloads	
  
to	
  date,	
  GetJar	
  can	
  offer	
  a	
  perspective	
  on	
  what	
  is	
  happening	
  in	
  the	
  space	
  although	
  
this	
  can’t	
  be	
  generalized	
  beyond	
  what	
  is	
  happening	
  in	
  our	
  ecosystem.	
  
	
  

Methodology	
  
	
  
This	
  issue	
  of	
  App	
  Meter	
  is	
  focused	
  on	
  consumer	
  trends	
  and	
  demographics.	
  	
  Our	
  
goal	
  with	
  this	
  research	
  was	
  to	
  get	
  a	
  better	
  understanding	
  of	
  what	
  consumers	
  are	
  
downloading,	
   which	
   platforms	
   they	
   want	
   to	
   use,	
   how	
   often	
   they	
   use	
   apps,	
  
barriers	
  to	
  downloading	
  apps	
  and	
  consumer	
  opinion	
  of	
  advertising	
  within	
  apps.	
  
	
  
Our	
   methodology	
   was	
   to	
   conduct	
   an	
   online	
   survey	
   targeting	
   GetJar’s	
   database	
   of	
  
25M	
   users	
   in	
   over	
   190	
   countries.	
   	
   The	
   survey	
   consisted	
   of	
   30	
   multiple-­‐choice	
  
questions	
  and	
  was	
  distributed	
  to	
  consumers	
  globally.	
  	
  In	
  terms	
  of	
  demographics	
  
and	
  response	
  rates:	
  
	
  
     • 2,500	
  fully	
  completed	
  surveys	
  
     • 90%	
  male	
  respondents	
  (70%	
  male	
  for	
  the	
  Americas)	
  
     • Age	
  demographics:	
  
                 o Less	
  then	
  18:	
  1.5%	
  
                 o 18-­‐25%:	
  28.2%	
  
                 o 26-­‐35:	
  38.8%	
  
                 o 36-­‐45:	
  19.3%	
  
                 o 46-­‐55:	
  8.1%	
  
                 o 56+:	
  4%	
  
     • Geography:	
  
                 o Americas:	
  25%	
  
                 o Europe,	
  Middle	
  East	
  &	
  Africa	
  (EMEA):	
  26%	
  
                 o Asia	
  &	
  Australia:	
  49%	
  
	
  
	
                                            	
  




	
                                                                3	
  
 


Executive	
  Summary	
  
	
  
	
  
The	
  first	
  thing	
  of	
  note	
  from	
  our	
  research	
  was	
  the	
  enormous	
  momentum	
  behind	
  
the	
  Android	
  platform.	
  	
  Android’s	
  growth	
  the	
  past	
  year	
  has	
  been	
  well	
  documented	
  
and	
  we’ve	
  seen	
  a	
  500%	
  growth	
  in	
  submission	
  of	
  new	
  Android	
  applications	
  to	
  the	
  
GetJar	
   store	
   over	
   the	
   same	
   period	
   last	
   year.	
   	
   Today,	
   Android	
   ranks	
   2nd	
   only	
  
behind	
  Java	
  as	
  the	
  largest	
  platform	
  by	
  submission	
  of	
  new	
  content	
  to	
  the	
  GetJar	
  
system.	
  	
  In	
  our	
  research,	
  18.2%	
  of	
  respondents	
  acknowledged	
  having	
  an	
  Android	
  
device,	
  which	
  was	
  3rd	
  after	
  Symbian	
  (31.7%)	
  and	
  Java	
  (23.1%).	
  	
  The	
  strength	
  of	
  
Java	
   and	
   Symbian	
   on	
   GetJar	
   is	
   a	
   legacy	
   of	
   our	
   international	
   business	
   and	
  
particularly	
  how	
  strong	
  our	
  Asian	
  business	
  has	
  become.	
  	
  However,	
  turning	
  to	
  the	
  
Americas	
   and	
   Europe,	
   34.9%	
   of	
   respondents	
   were	
   Android	
   users	
   in	
   the	
   former	
  
and	
  31.8%	
  were	
  Android	
  users	
  in	
  the	
  latter.	
  	
  When	
  we	
  look	
  at	
  the	
  source	
  of	
  our	
  
downloads	
   we	
   see	
   a	
   similar	
   pattern:	
   	
   Android	
   is	
   gaining	
   significant	
   ground	
   in	
  
developed	
   markets	
   like	
   the	
   United	
   States	
   and	
   Western	
   Europe	
   as	
   well	
   as	
   some	
  
more	
  developed	
  countries	
  in	
  Asia	
  most	
  notably	
  S.	
  Korea	
  and	
  Japan.	
  
	
  
Of	
  more	
  interest	
  was	
  what	
  platforms	
  consumers’	
  were	
  considering	
  with	
  regards	
  
to	
  their	
  next	
  handset.	
  	
  Here	
  the	
  situation	
  changes	
  even	
  more.	
  




                                                                                                                                      	
  
	
  
A	
  whopping	
  40%	
  of	
  consumers	
  across	
  our	
  survey	
  suggested	
  their	
  next	
  handset	
  
would	
   be	
   an	
   Android	
   phone	
   vs	
   only	
   17.9%	
   going	
   for	
   iPhone.	
   	
   Less	
   then	
   9%	
  
responded	
   they	
   would	
   stick	
   to	
   what	
   they	
   have	
   and	
   alarmingly,	
   only	
   8.2%	
  
envisioned	
  a	
  Blackberry	
  as	
  their	
  next	
  device.	
  	
  	
  


	
                                                              4	
  
 


	
  
Another	
   interesting	
   finding	
   was	
   related	
   to	
   consumer	
   use	
   of	
   applications.	
   	
   Our	
  
research	
  confirmed	
  that	
  not	
  only	
  are	
  app	
  downloads	
  per	
  user	
  increasing	
  but	
  so	
  is	
  
usage	
  compared	
  to	
  other	
  forms	
  of	
  media.	
  	
  For	
  example,	
  over	
  63%	
  of	
  consumers	
  
on	
   GetJar	
   were	
   downloading	
   apps	
   at	
   least	
   once	
   a	
   week	
   with	
   28%	
   actually	
  
downloading	
  apps	
  every	
  single	
  day.	
  	
  More	
  importantly,	
  app	
  downloads	
  were	
  also	
  
resulting	
  in	
  usage.	
  	
  57%	
  of	
  respondents	
  were	
  actually	
  using	
  apps	
  more	
  then	
  once	
  
a	
   day	
   and	
   on	
   average	
   33%	
   of	
   consumers	
   were	
   spending	
   1	
   hour	
   or	
   more	
   using	
  
their	
  mobile	
  applications	
  each	
  day.	
  	
  When	
  we	
  compared	
  app	
  usage	
  vs.	
  traditional	
  
forms	
   of	
   entertainment	
   like	
   TV	
   we	
   found	
   apps	
   were	
   actually	
   closing	
   the	
   gap.	
  	
  
Only	
  49%	
  of	
  consumers	
  surveyed	
  actually	
  were	
  spending	
  more	
  then	
  1	
  hour	
  a	
  day	
  
watching	
  TV	
  for	
  example.	
  	
  Mobile	
  has	
  also	
  started	
  to	
  slowly	
  erode	
  the	
  hold	
  of	
  the	
  
Internet	
  on	
  app	
  consumers.	
  	
  The	
  survey	
  revealed	
  that	
  among	
  GetJar	
  users,	
  30%	
  
now	
  claimed	
  to	
  be	
  using	
  mobile	
  Internet	
  more	
  then	
  Internet	
  on	
  their	
  computers.	
  	
  	
  
	
  
However,	
   not	
   all	
   apps	
   are	
   created	
   equal.	
   	
   Naturally,	
   there	
   are	
   apps	
   that	
  
consumers	
  deem	
  more	
  important	
  then	
  others.	
  	
  Although	
  over	
  600,000	
  apps	
  exist	
  
among	
   the	
   top	
   three	
   apps	
   stores	
   today,	
   the	
   reality	
   is	
   that	
   a	
   small	
   number	
   see	
  
significant	
  traffic	
  in	
  terms	
  of	
  downloads	
  and	
  an	
  even	
  smaller	
  number	
  actually	
  see	
  
repeat	
   usage.	
   	
   When	
   we	
   asked	
   consumers	
   how	
   many	
   apps	
   they	
   were	
   using	
   at	
  
least	
  once	
  a	
  week,	
  nearly	
  40%	
  said	
  they	
  used	
  3-­‐4	
  apps	
  a	
  week	
  routinely	
  vs.	
  only	
  
10%	
  saying	
  they	
  used	
  10	
  or	
  more	
  apps	
  over	
  the	
  same	
  time	
  period.	
  	
  The	
  challenge	
  
for	
   publishers	
   and	
   agencies	
   is	
   to	
   make	
   apps	
   that	
   are	
   not	
   only	
   good	
   but	
   that	
  
consumers	
   keep	
   using.	
   	
   Therefore,	
   getting	
   an	
   app	
   out	
   there	
   and	
   getting	
   it	
  
installed	
  is	
  only	
  the	
  first	
  step	
  to	
  building	
  relationships	
  with	
  consumers	
  on	
  their	
  
mobile	
   devices.	
   	
   What	
   consumers’	
   are	
   telling	
   us	
   and	
   what	
   we’ve	
   seen	
   really	
   over	
  
the	
   past	
   5	
   years	
   is	
   that	
   the	
   true	
   winners	
   in	
   the	
   mobile	
   app	
   space	
   are	
   not	
   only	
  
those	
   who	
   make	
   good	
   apps,	
   but	
   those	
   who	
   routinely	
   improve	
   and	
   re-­‐promote	
  
themselves	
   to	
   consumers	
   to	
   make	
   their	
   apps	
   an	
   indispensable	
   aspect	
   of	
   their	
  
lives.	
  	
  	
  
	
  




	
                                                                    5	
  
 




                                                                                                                                       	
  
	
  	
  	
  
Unsurprisingly,	
   the	
   research	
   also	
   clearly	
   demonstrated	
   that	
   as	
   the	
   number	
   of	
  
apps	
   available	
   increases	
   that	
   discovering	
   and	
   finding	
   the	
   right	
   apps	
   is	
   also	
  
becoming	
  more	
  of	
  a	
  challenge.	
  	
  Although	
  over	
  60%	
  of	
  consumers	
  responded	
  that	
  
they	
   were	
   pleased	
   with	
   the	
   current	
   App	
   Stores	
   they	
   were	
   using,	
   only	
   25%	
  
admitted	
   to	
   using	
   App	
   Stores	
   for	
   discovering	
   the	
   latest	
   apps.	
   	
   Nearly	
   50%	
   of	
  
respondents	
  mentioned	
  browsing	
  the	
  web	
  as	
  a	
  preferred	
  method	
  for	
  finding	
  new	
  
apps	
  with	
  16%	
  saying	
  that	
  they	
  also	
  found	
  great	
  apps	
  through	
  recommendations	
  
by	
  friends	
  or	
  by	
  using	
  social	
  media.	
  
	
  
Last	
  but	
  not	
  least	
  we	
  delved	
  into	
  the	
  evolving	
  role	
  of	
  advertising	
  in	
  mobile	
  apps	
  
and	
   tried	
   to	
   get	
   an	
   understanding	
   of	
   how	
   consumers	
   felt	
   about	
   in-­‐app	
  
advertising	
   and	
   more	
   importantly	
   how	
   they	
   felt	
   about	
   their	
   favorite	
   brands	
  
trying	
   to	
   reach	
   them	
   through	
   mobile	
   apps.	
   	
   The	
   results	
   here	
   were	
   pretty	
  
encouraging.	
   	
   Not	
   only	
   did	
   72%	
   of	
   consumers	
   claim	
   to	
   have	
   downloaded	
   apps	
  
with	
  ads	
  in	
  them	
  but	
  nearly	
  60%	
  of	
  these	
  users	
  claimed	
  they	
  would	
  repeat	
  the	
  
experience	
   again.	
   	
   By	
   and	
   large,	
   the	
   most	
   important	
   things	
   consumers	
   were	
  
looking	
  for	
  in	
  these	
  mobile	
  ads	
  were	
  specific	
  information	
  (34%)	
  or	
  news	
  about	
  
new	
  products	
  and	
  services	
  (31%).	
  	
  	
  We	
  also	
  found	
  that	
  a	
  majority	
  of	
  consumers	
  
had	
  already	
  downloaded	
  some	
  form	
  of	
  branded	
  application	
  (52%)	
  in	
  the	
  past	
  but	
  
that	
   the	
   expectation	
   of	
   these	
   consumers	
   regarding	
   the	
   quality	
   of	
   the	
   branded	
  
application	
  was	
  pretty	
  high.	
  	
  Clearly,	
  brands	
  that	
  dive	
  into	
  the	
  app	
  space	
  without	
  
having	
  a	
  quality	
  application	
  risk	
  damaging	
  consumers’	
  perception	
  of	
  their	
  brand.	
  	
  
Nearly	
  80%	
  of	
  consumers	
  surveyed	
  stated	
  that	
  the	
  quality	
  of	
  an	
  app	
  affects	
  the	
  
brands	
  trustworthiness.	
  


	
                                                              6	
  
 


Detailed	
  Findings	
  
	
  

App	
  Consumption	
  
	
  
App	
   consumption	
   among	
   the	
   target	
   audience	
   was	
   fairly	
   high.	
   	
   28%	
   of	
   consumers	
  
downloaded	
   apps	
   every	
   day	
   with	
   19%	
   of	
   downloading	
   multiple	
   times	
   a	
   day.	
  	
  
Very	
   few	
   consumers	
   could	
   be	
   considered	
   “light”	
   users	
   and	
   only	
   6%	
   were	
  
downloading	
   apps	
   less	
   then	
   once	
   every	
   3	
   months.	
   	
   Usage	
   of	
   apps	
   once	
  
downloaded	
   was	
   also	
   fairly	
   high	
   as	
   mentioned	
   above.	
   	
   However,	
   one	
   of	
   the	
  
interesting	
   findings	
   was	
   the	
   difference	
   in	
   download	
   patterns	
   between	
   regions.	
  	
  
Asians	
   had	
   a	
   tendency	
   to	
   download	
   apps	
   more	
   often	
   then	
   Americans	
   or	
   those	
  
from	
  Europe	
  (29%	
  downloading	
  once	
  or	
  more	
  per	
  day	
  vs.	
  19%	
  of	
  Americans	
  or	
  
22%	
  of	
  Europeans	
  doing	
  the	
  same).	
  	
  	
  
	
  
However,	
  usage	
  among	
  American	
  consumers	
  was	
  slightly	
  higher	
  then	
  the	
  other	
  
regions	
  with	
  74%	
  of	
  consumers	
  stating	
  they	
  were	
  using	
  their	
  apps	
  one	
  or	
  more	
  
times	
  per	
  day	
  vs.	
  71%	
  stating	
  the	
  same	
  in	
  Europe	
  and	
  65%	
  in	
  Asia.	
  	
  There	
  were	
  
also	
  some	
  differences	
  when	
  we	
  looked	
  at	
  how	
  long	
  on	
  average	
  consumers	
  were	
  
using	
   apps.	
   	
   Across	
   regions,	
   consumers	
   spent	
   nearly	
   34%	
   of	
   their	
   time	
   using	
  
apps	
   for	
   1	
   or	
   more	
   hours	
   with	
   the	
   majority	
   (31%)	
   spending	
   10	
   –	
   30	
   minutes	
  
using	
  apps.	
  
	
  




                                                                                                                                        	
  
	
                                           	
  



	
                                                              7	
  
 


Yet,	
   once	
   we	
   look	
   at	
   the	
   regional	
   picture	
   we	
   see	
   changes	
   in	
   terms	
   of	
   how	
   long	
  
consumers	
  in	
  certain	
  regions	
  are	
  using	
  apps.	
  	
  Americans	
  and	
  Asians	
  tend	
  to	
  be	
  
heavier	
   users	
   of	
   apps	
   in	
   terms	
   of	
   the	
   duration	
   per	
   session	
   with	
   35%	
   of	
   US	
  
consumers	
  using	
  apps	
  for	
  sessions	
  of	
  1	
  hour	
  or	
  more.	
  	
  Asians	
  are	
  close	
  with	
  30%	
  
using	
  apps	
  as	
  heavily.	
  	
  However,	
  Europeans	
  have	
  shorter	
  sessions	
  with	
  only	
  22%	
  
of	
  Europeans	
  spending	
  1	
  or	
  more	
  hours	
  using	
  their	
  apps.	
  
	
  
We	
   also	
   thought	
   it	
   would	
   be	
   of	
   interest	
   to	
   measure	
   app	
   sessions	
   against	
   more	
  
established	
   forms	
   of	
   media	
   such	
   as	
   TV.	
   	
   Although	
   consumers	
   by	
   and	
   large	
   are	
  
still	
   spending	
   more	
   time	
   watching	
   TV	
   versus	
   using	
   apps,	
   we	
   found	
   that	
   among	
  
GetJar’s	
   app	
   consumers	
   the	
   difference	
   wasn’t	
   as	
   striking	
   as	
   we	
   would	
   have	
  
thought.	
   	
   In	
   fact	
   when	
   we	
   looked	
   at	
   moderate	
   users	
   as	
   defined	
   as	
   a	
   person	
  
spending	
  31	
  minutes	
  to	
  an	
  hour	
  per	
  day	
  using	
  Apps	
  or	
  watching	
  TV,	
  the	
  numbers	
  
were	
   nearly	
   identical	
   with	
   20.3%	
   watching	
   TV	
   for	
   that	
   period	
   of	
   time	
   vs.	
   23%	
  
using	
  apps.	
  
	
  




                                                                                                                                                	
  
The	
  other	
  item	
  of	
  note	
  was	
  the	
  differences	
  in	
  the	
  genres	
  of	
  apps	
  used	
  in	
  different	
  
regions.	
   	
   Although	
   one	
   might	
   assume	
   consumers	
   are	
   typically	
   interested	
   in	
   the	
  
same	
   type	
   of	
   apps	
   across	
   regions,	
   this	
   was	
   only	
   partially	
   true	
   in	
   the	
   resulting	
  
survey.	
  	
  Overall,	
  games,	
  social	
  networking,	
  productivity	
  and	
  entertainment	
  were	
  
the	
  most	
  popular	
  categories	
  of	
  interest	
  when	
  we	
  asked	
  consumers	
  what	
  type	
  of	
  
apps	
  they	
  found	
  most	
  useful	
  and	
  downloaded.	
  
	
  




	
                                                                  8	
  
 




                                                                                                                                           	
  
However,	
  we	
  found	
  some	
  interesting	
  differences	
  from	
  region	
  to	
  region	
  in	
  terms	
  
of	
  what	
  consumers	
  were	
  downloading.	
  	
  Notably,	
  Americans	
  seemed	
  much	
  more	
  
interested	
   in	
   downloading	
   News,	
   Weather	
   and	
   Sports	
   apps	
   compared	
   to	
  
consumers	
  in	
  other	
  regions.	
  	
  Specifically	
  we	
  found:	
  
	
  
       • 46%	
   of	
   Americans	
   downloaded	
   and	
   used	
   Weather	
   apps	
   compared	
   to	
  
               34.5%	
  of	
  Europeans	
  and	
  only	
  20%	
  of	
  Asians	
  
       • Nearly	
   48%	
   of	
   Americans	
   downloaded	
   and	
   used	
   News	
   apps	
   vs.	
   40%	
   of	
  
               Europeans	
  and	
  36.7%	
  of	
  Asians	
  
       • Sports	
   was	
   markedly	
   more	
   important	
   in	
   the	
   Americas	
   and	
   in	
   Asia	
   with	
  
               21%	
  and	
  20%	
  respectively	
  of	
  consumers	
  using	
  sports	
  apps	
  compared	
  to	
  
               only	
  13%	
  of	
  Europeans	
  using	
  /	
  downloading	
  this	
  type	
  of	
  content.	
  
	
  
One	
   final	
   point	
   of	
   difference	
   among	
   regions	
   was	
   consumers’	
   usage	
   of	
   Security	
  
apps.	
   	
   Undoubtedly,	
   this	
   will	
   likely	
   increase	
   in	
   the	
   US	
   given	
   recent	
   scares	
   with	
  
malicious	
   Android	
   apps	
   but	
   one	
   item	
   of	
   note	
   was	
   how	
   little	
   interested	
   US	
   and	
  
European	
   consumers	
   were	
   in	
   downloading	
   or	
   using	
   Security	
   apps	
   in	
   general.	
  	
  
Asians	
   seemed	
   to	
   place	
   a	
   fair	
   amount	
   of	
   importance	
   in	
   downloading	
   and	
   using	
  
these	
  types	
  of	
  apps	
  with	
  nearly	
  39%	
  of	
  Asians	
  using	
  them.	
  	
  In	
  contrast,	
  only	
  17%	
  
of	
  Americans	
  and	
  18.6%	
  of	
  Europeans	
  showed	
  similar	
  interest.	
  
	
  
	
                                             	
  




	
                                                                9	
  
 


Overall	
  interest	
  in	
  apps	
  by	
  genre	
  in	
  the	
  US	
  was	
  as	
  follows:	
  
	
  




                                                                                                                                                 	
  
	
  Lastly,	
  we	
  decided	
  to	
  try	
  and	
  also	
  gauge	
  what	
  consumers’	
  were	
  going	
  to	
  look	
  at	
  
downloading	
   or	
   using	
   in	
   2011.	
   	
   Across	
   all	
   three	
   regions	
   Productivity,	
   Games	
   and	
  
Entertainment	
  came	
  out	
  strongly	
  with	
  the	
  US	
  and	
  Europe	
  giving	
  priority	
  to	
  the	
  
first	
   two	
   genres.	
   	
   In	
   Asia,	
   however,	
   Games	
   is	
   the	
   most	
   interesting	
   category	
   for	
  
consumers	
   followed	
   by	
   Social	
   Networking	
   and	
   Entertainment.	
   	
   This	
   makes	
  
perfect	
  sense	
  and	
  further	
  reinforces	
  our	
  research	
  from	
  last	
  year	
  where	
  we	
  found	
  
that	
  the	
  mobile	
  device	
  is	
  really	
  becoming	
  the	
  entertainment	
  and	
  communication	
  
tool	
  of	
  preference	
  for	
  Asians.	
  	
  Particularly,	
  when	
  one	
  looks	
  at	
  the	
  low	
  penetration	
  
of	
  fixed	
  broadband	
  and	
  Internet	
  access	
  in	
  markets	
  like	
  Indonesia	
  and	
  India,	
  the	
  
mobile	
  phone	
  becomes	
  the	
  logical	
  tool	
  of	
  choice.	
  	
  	
  	
  In	
  cultures	
  like	
  that	
  of	
  India	
  
and	
   Indonesia	
   where	
   the	
   family	
   and	
   the	
   concept	
   of	
   the	
   extended	
   family	
   are	
  
culturally	
   more	
   important	
   then	
   in	
   the	
   US	
   and	
   Europe,	
   keeping	
   in	
   touch	
   with	
  
loved	
  ones	
  is	
  vital	
  in	
  people’s	
  daily	
  lives.	
  	
  It’s	
  important	
  to	
  keep	
  in	
  mind	
  that	
  apps	
  
like	
  Facebook,	
  Twitter,	
  ebuddy	
  and	
  others	
  not	
  only	
  help	
  families	
  and	
  friends	
  stay	
  
connected	
   but	
   also	
   help	
   families	
   keep	
   in	
   touch	
   with	
   others	
   living	
   abroad.	
   	
   This	
   is	
  
especially	
   the	
   case	
   when	
   considering	
   how	
   important	
   these	
   apps	
   are	
   at	
   keeping	
  
the	
   cost	
   of	
   this	
   communication	
   to	
   a	
   minimum.	
   	
   Sharing	
   photos,	
   sending	
   instant	
  
messages	
   and	
   voice-­‐over-­‐IP	
   calls	
   are	
   all	
   extremely	
   inexpensive	
   for	
   consumers	
  
when	
  compared	
  to	
  the	
  ordinary	
  cost	
  of	
  making	
  long	
  distance	
  calls.	
  	
  	
  
	
  
	
                                                   	
  




	
                                                                  10	
  
 


	
  When	
  are	
  consumers	
  using	
  apps?	
  
	
  
One	
   of	
   the	
   things	
   we	
   were	
   interesting	
   in	
   discovering	
   was	
   whether	
   there	
   was	
   any	
  
particular	
  difference	
  on	
  “when”	
  consumers	
  were	
  using	
  apps.	
  	
  Did	
  the	
  time	
  of	
  day	
  
or	
  the	
  day	
  of	
  the	
  week	
  make	
  a	
  difference?	
  	
  Were	
  consumers	
  more	
  likely	
  to	
  use	
  
apps	
  at	
  night	
  after	
  work	
  when	
  they	
  had	
  some	
  time?	
  	
  Were	
  they	
  more	
  likely	
  to	
  use	
  
apps	
  on	
  weekends	
  maybe	
  as	
  a	
  way	
  to	
  relax?	
  	
  	
  
	
  
App	
   usage	
   by	
   day	
   really	
   didn’t	
   vary	
   significantly	
   as	
   we	
   can	
   see	
   from	
   the	
   chart	
  
below.	
  	
  App	
  usage	
  was	
  fairly	
  constant	
  with	
  70%	
  plus	
  of	
  users	
  using	
  apps	
  nearly	
  
every	
   day.	
   	
   As	
   we	
   would	
   have	
   anticipated	
   app	
   usage	
   was	
   slightly	
   higher	
   on	
  
weekends	
   with	
   over	
   80%	
   of	
   consumers	
   using	
   apps	
   on	
   Saturday	
   and	
   Sundays.	
  	
  
When	
  we	
  looked	
  at	
  app	
  usage	
  across	
  regions	
  by	
  day	
  we	
  didn’t	
  find	
  anything	
  very	
  
unusual	
  either.	
  	
  The	
  only	
  thing	
  of	
  note	
  here	
  was	
  that	
  Americans	
  used	
  apps	
  more	
  
consistently	
   day-­‐to-­‐day.	
   	
   Over	
   79%	
   claimed	
   to	
   use	
   apps	
   nearly	
   every	
   day	
   and	
  
85%	
  actually	
  used	
  apps	
  on	
  Fridays.	
  	
  	
  
	
  




                                                                                                                                             	
  
Subsequently	
  what	
  we	
  looked	
  at	
  was	
  whether	
  there	
  were	
  any	
  major	
  differences	
  
regarding	
   the	
   times	
   of	
   the	
   day	
   when	
   consumers	
   used	
   apps.	
   	
   Overall,	
   the	
   patterns	
  
were	
   fairly	
   similar	
   with	
   usage	
   being	
   fairly	
   even	
   throughout	
   the	
   day	
   and	
  
increasing	
   in	
   the	
   early	
   evening.	
   	
   	
   Two	
   interesting	
   differences	
   emerged	
   here.	
  	
  
First,	
   Americans	
   were	
   more	
   prone	
   to	
   use	
   apps	
   during	
   the	
   middle	
   of	
   the	
   day	
  
(before,	
  during	
  and	
  right	
  after	
  lunch	
  time)	
  with	
  48%	
  saying	
  they	
  were	
  using	
  apps	
  
during	
  this	
  time	
  of	
  the	
  day	
  compared	
  to	
  41%	
  of	
  Europeans	
  and	
  40%	
  of	
  Asians.	
  	
  
Second,	
  we	
  found	
  that	
  Asians	
  were	
  typically	
  more	
  likely	
  to	
  use	
  apps	
  late	
  at	
  night.	
  	
  


	
                                                               11	
  
 


55%	
  stated	
  they	
  used	
  apps	
  late	
  at	
  night	
  compared	
  to	
  only	
  34%	
  of	
  Americans	
  and	
  
Europeans.	
  
	
  




                                                                                                                                             	
  
	
  Apps:	
  The	
  case	
  for	
  brands	
  and	
  advertisers	
  
	
  
Naturally,	
  when	
  any	
  new	
  medium	
  comes	
  along	
  the	
  first	
  question	
  among	
  brands	
  
and	
  advertisers	
  is	
  what	
  will	
  the	
  impact	
  of	
  this	
  medium	
  be	
  on	
  their	
  business?	
  	
  Is	
  
this	
  something	
  as	
  big	
  as	
  the	
  Internet	
  or	
  is	
  it	
  just	
  a	
  passing	
  fad.	
  	
  What	
  we	
  see	
  here	
  
is	
  clearly	
  that	
  apps	
  don’t	
  seem	
  to	
  be	
  going	
  away	
  anytime	
  soon.	
  	
  If	
  anything	
  app	
  
usage	
   as	
   measured	
   by	
   most	
   key	
   metrics	
   continues	
   to	
   soar.	
   	
   Let’s	
   just	
   recap	
   some	
  
key	
  data	
  taken	
  from	
  my	
  presentation	
  at	
  SXSW	
  last	
  week:	
  
	
  
       • Over	
  8	
  billion	
  downloads	
  done	
  last	
  year	
  alone	
  
       • More	
  then	
  600,000	
  apps	
  available	
  	
  
       • Nearly	
  120	
  different	
  app	
  stores	
  available	
  globally	
  
       • 35%	
  of	
  Americans	
  used	
  apps	
  in	
  January	
  of	
  this	
  year	
  (Comscore)	
  –	
  up	
  3%	
  
             from	
  December	
  2010	
  
       • Almost	
  66M	
  Americans	
  had	
  smartphones	
  during	
  the	
  same	
  period	
  
	
  
Lastly,	
  it’s	
  worth	
  noting	
  that	
  the	
  most	
  popular	
  apps	
  today	
  are	
  reaching	
  far	
  more	
  
consumers	
  then	
  even	
  the	
  most	
  mainstream	
  TV	
  programs.	
  	
  For	
  example,	
  Shazam	
  
now	
   has	
   over	
   75	
   millions	
   users,	
   Angry	
   Birds	
   has	
   done	
   over	
   100	
   million	
  
downloads	
  and	
  ebuddy	
  	
  (the	
  popular	
  messaging	
  app)	
  has	
  done	
  over	
  60	
  million	
  
downloads	
  on	
  GetJar	
  alone.	
  	
  	
  
	
  



	
                                                                  12	
  
 


But	
   the	
   question	
   we	
   wanted	
   answered	
   was	
   “Ok,	
   but	
   what	
   does	
   this	
   mean	
   for	
  
brands	
  and	
  advertisers?”	
  
	
  
The	
  survey	
  clearly	
  showed	
  that	
  the	
  apps	
  world	
  presents	
  clear	
  opportunities	
  for	
  
brands	
  and	
  agencies	
  but	
  also	
  several	
  important	
  challenges.	
  	
  First,	
  it	
  wasn’t	
  clear	
  
that	
   brands	
   have	
   that	
   many	
   natural	
   advantages	
   in	
   the	
   app	
   economy	
   vs.	
   non-­‐
brands.	
  	
  When	
  we	
  asked	
  consumers	
  how	
  often	
  they	
  downloaded	
  branded	
  apps,	
  
43%	
   stated	
   either	
   “not	
   so	
   often”	
   or	
   “not	
   often”.	
   	
   Less	
   then	
   6%	
   seemed	
   to	
  
download	
   branded	
   apps	
   with	
   a	
   lot	
   of	
   enthusiasm.	
   	
   	
   However,	
   we	
   don’t	
   believe	
  
this	
   is	
   due	
   to	
   consumers’	
   unwillingness	
   to	
   engage	
   with	
   branded	
   apps.	
   	
   More	
  
likely,	
   it	
   has	
   to	
   do	
   with	
   the	
   fact	
   that	
   many	
   brands	
   haven’t	
   properly	
   understood	
  
how	
   to	
   engage	
   with	
   apps.	
   	
   The	
   result	
   in	
   certain	
   cases	
   has	
   been	
   apps	
   that	
   don’t	
  
necessarily	
   meet	
   consumers’	
   expectations.	
   	
   	
   Again,	
   the	
   research	
   seems	
   to	
   bare	
  
this	
  out:	
  




                                                                                                                                                 	
  
	
  What	
   this	
   may	
   be	
   telling	
   us	
   is	
   that	
   consumers	
   aren’t	
   going	
   to	
   cut	
   brands	
   any	
  
slack.	
  	
  Although	
  72%	
  will	
  download	
  a	
  branded	
  app	
  if	
  it’s	
  high	
  quality,	
  nearly	
  80%	
  
stated	
   that	
   the	
   quality	
   of	
   a	
   brand’s	
   app	
   can	
   make	
   it	
   more	
   trustworthy.	
  	
  
Intuitively,	
   this	
   can	
   also	
   have	
   the	
   reverse	
   effect.	
   	
   Consumers	
   may	
   pick	
   a	
   branded	
  
app	
  over	
  a	
  non	
  branded	
  one	
  but	
  they	
  will	
  also	
  expect	
  the	
  experience	
  to	
  be	
  better	
  
and	
  the	
  quality	
  of	
  the	
  app	
  will	
  reflect	
  on	
  what	
  the	
  consumer	
  thinks	
  of	
  the	
  brand	
  
on	
  mobile.	
  	
  Asian	
  consumers	
  were	
  even	
  more	
  vocal	
  in	
  this	
  respect.	
  	
  Although	
  a	
  
higher	
   percentage	
   of	
   them	
   had	
   downloaded	
   branded	
   apps	
   (29%	
   vs.	
   19%	
   of	
  
Americans	
   and	
   16%	
   of	
   Europeans),	
   84%	
   believed	
   the	
   quality	
   of	
   a	
   branded	
   app	
  
made	
  the	
  brand	
  trustworthy.	
  	
  	
  
	
  


	
                                                                  13	
  
 


The	
  good	
  news	
  for	
  brands	
  and	
  agencies	
  is	
  that	
  mobile	
  advertising,	
  particularly	
  in	
  
applications,	
   seems	
   to	
   be	
   making	
   inroads	
   with	
   consumers.	
   	
   To	
   try	
   and	
  
understand	
   consumers’	
   perception	
   of	
   mobile	
   ads	
   we	
   asked	
   consumers	
   two	
   basic	
  
questions:	
   	
   Had	
   they	
   ever	
   downloaded	
   apps	
   with	
   ads	
   in	
   them	
   and	
   would	
   they	
   do	
  
so	
  again.	
  	
  	
  
	
  
Overall,	
   mobile	
   ads	
   seem	
   to	
   be	
   on	
   the	
   right	
   track.	
   	
   Nearly	
   73%	
   of	
   consumers	
  
surveyed	
  had	
  downloads	
  apps	
  with	
  ads	
  in	
  them.	
  	
  In	
  the	
  US	
  this	
  was	
  even	
  more	
  
pronounced	
   with	
   nearly	
   84%	
   of	
   respondents	
   giving	
   a	
   positive	
   response.	
   	
   More	
  
importantly,	
  almost	
  59%	
  of	
  respondents	
  admitted	
  that	
  they	
  would	
  so	
  again.	
  	
  In	
  
the	
   US	
   this	
   number	
   was	
   as	
   high	
   as	
   70%	
   indicating	
   that	
   consumers	
   were	
   both	
  
more	
   familiar	
   with	
   mobile	
   ads	
   and	
   more	
   accepting	
   of	
   apps	
   using	
   this	
   business	
  
model	
   as	
   a	
   way	
   to	
   monetize	
   their	
   content.	
   	
   Interestingly,	
   Americans	
   were	
   also	
  
more	
   open	
   to	
   seeing	
   their	
   favorite	
   apps	
   have	
   advertising	
   in	
   them	
   or	
   being	
  
outright	
   sponsored	
   by	
   big	
   brand	
   with	
   73%	
   of	
   respondents	
   saying	
   they	
   were	
   fine	
  
with	
  downloading	
  a	
  cool	
  app	
  that	
  was	
  sponsored	
  by	
  a	
  third	
  party.	
  	
  	
  	
  
	
  
Naturally,	
   seeing	
   an	
   ad	
   is	
   one	
   thing	
   but	
   actually	
   clicking	
   on	
   it	
   or	
   making	
   some	
  
form	
   of	
   purchase	
   is	
   another	
   matter	
   entirely.	
   	
   Here	
   again	
   the	
   news	
   was	
  
encouraging.	
   	
   25%	
   of	
   respondents	
   admitted	
   to	
   having	
   made	
   some	
   form	
   of	
  
purchase	
  after	
  having	
  clicked	
  a	
  mobile	
  ad.	
  	
  In	
  the	
  US,	
  where	
  mobile	
  advertising	
  is	
  
perhaps	
  more	
  mature	
  and	
  a	
  bit	
  less	
  novel,	
  the	
  number	
  dropped	
  to	
  21%.	
  	
  Asians	
  
and	
   Europeans	
   showed	
   a	
   slightly	
   greater	
   propensity	
   to	
   make	
   a	
   purchase	
   after	
  
having	
   clicked	
   an	
   ad	
   with	
   26%	
   of	
   consumers	
   in	
   both	
   markets	
   claiming	
   to	
   have	
  
made	
  some	
  form	
  of	
  purchase	
  through	
  a	
  mobile	
  ad.	
  	
  	
  
	
  
	
                                              	
  




	
                                                                14	
  
 


Discovery	
  and	
  App	
  Stores	
  
	
  
With	
   over	
   600,000	
   apps	
   now	
   available	
   and	
   more	
   then	
   100	
   different	
   app	
   stores	
  
available	
   never	
   has	
   discovery	
   been	
   more	
   a	
   challenge	
   for	
   consumers.	
   	
   In	
   fact,	
  
although	
   app	
   stores	
   get	
   the	
   lion’s	
   share	
   of	
   the	
   credit	
   for	
   discovery,	
   a	
   whole	
  
industry	
  has	
  emerged	
  around	
  trying	
  to	
  enhance	
  discovery	
  for	
  consumers.	
  	
  Again,	
  
our	
   research	
   seemed	
   to	
   bear	
   out	
   some	
   of	
   the	
   different	
   ways	
   consumers	
  
discovered	
  news	
  apps.	
  
	
  




                                                                                                                                                  	
  
The	
   Internet	
   actually	
   turned	
   out	
   to	
   be	
   the	
   leading	
   way	
   in	
   which	
   consumers	
  
discovered	
   apps	
   followed	
   by	
   App	
   Stores	
   as	
   a	
   distant	
   second.	
   	
   Social	
   media	
   and	
  
friends	
   accounted	
   for	
   the	
   3rd	
   most	
   common	
   way	
   to	
   discover	
   apps.	
   	
   Mobile	
  
advertising	
  also	
  clocked	
  in	
  7%	
  of	
  responses	
  although	
  how	
  effective	
  this	
  method	
  
of	
   promoting	
   apps	
   is	
   remains	
   unproven	
   in	
   many	
   cases.	
   	
   What	
   we	
   didn’t	
   see	
   from	
  
the	
   research	
   is	
   whether	
   consumers’	
   use	
   of	
   “online”	
   included	
   online	
   variants	
   of	
  
the	
   various	
   app	
   stores	
   out	
   there.	
   	
   For	
   example,	
   it’s	
   far	
   easier	
   to	
   find	
   apps	
   on	
  
iTunes	
  then	
  directly	
  on	
  your	
  iPhone.	
  	
  Likewise,	
  Android	
  Market,	
  GetJar	
  and	
  Ovi	
  
Store	
  all	
  have	
  online	
  versions	
  of	
  their	
  app	
  stores	
  to	
  help	
  facilitate	
  discovery.	
  	
  	
  
	
  
One	
   marked	
   difference	
   in	
   the	
   US	
   was	
   that	
   consumers	
   seemed	
   to	
   rely	
   more	
   on	
  
their	
  friends	
  or	
  family	
  for	
  finding	
  new	
  apps	
  with	
  20%	
  of	
  respondents	
  saying	
  that	
  
recommendations	
  from	
  friends	
  had	
  helped	
  them	
  discover	
  new	
  apps.	
  	
  This	
  was	
  in	
  
contrast	
  to	
  Europe	
  and	
  Asia	
  whre	
  typically	
  recommendations	
  accounted	
  for	
  less	
  
then	
  13%	
  of	
  the	
  way	
  people	
  discovered	
  apps.	
  	
  
	
  


	
                                                                  15	
  
 


That	
   consumers	
   are	
   using	
   other	
   tools	
   aside	
   from	
   App	
   Stores	
   to	
   find	
   new	
   apps	
  
shouldn’t	
  necessarily	
  be	
  taken	
  as	
  a	
  sign	
  of	
  total	
  dissatisfaction	
  with	
  existing	
  app	
  
stores	
   however.	
   	
   Less	
   then	
   10%	
   responded	
   they	
   were	
   either	
   unhappy	
   or	
   very	
  
unhappy	
  with	
  existing	
  stores	
  they	
  were	
  using	
  while	
  66%	
  said	
  they	
  were	
  either	
  
very	
  content	
  or	
  content	
  with	
  their	
  current	
  app	
  store.	
  	
  	
  
	
  
When	
  asked	
  what	
  aspects	
  of	
  their	
  current	
  app	
  store	
  consumers	
  didn’t	
  like,	
  they	
  
responded	
   that	
   there	
   weren’t	
   enough	
   apps	
   (25%),	
   apps	
   were	
   too	
   expensive	
  
(20%)	
  or	
  that	
  it	
  was	
  too	
  hard	
  to	
  find	
  apps	
  (19%).	
  	
  By	
  and	
  large	
  what	
  continues	
  to	
  
matter	
  most	
  to	
  existing	
  app	
  users	
  when	
  using	
  app	
  stores	
  is:	
  
	
  
     • Ease	
  of	
  search	
  (63%	
  of	
  respondents)	
  
     • The	
  number	
  of	
  free	
  apps	
  available	
  (65%	
  of	
  respondents)	
  
     • The	
  overall	
  number	
  of	
  apps	
  available	
  (63%	
  of	
  respondents)	
  

	
  
	
                                            	
  




	
                                                               16	
  
 


Conclusions	
  
	
  
App	
   usage	
   among	
   existing	
   consumers	
   seems	
   to	
   being	
   going	
   from	
   strength	
   to	
  
strength	
   and	
   overall	
   industry	
   numbers	
   point	
   to	
   more	
   and	
   more	
   consumers	
  
joining	
  the	
  app	
  bonanza	
  every	
  day.	
  	
  That	
  said	
  clear	
  challenges	
  remain.	
  	
  	
  
	
  
On	
  the	
  one	
  hand,	
  although	
  consumers	
  are	
  downloading	
  and	
  using	
  apps,	
  they	
  are	
  
limiting	
  the	
  number	
  of	
  apps	
  they	
  really	
  engage	
  with.	
  	
  Nearly	
  60%	
  surveyed	
  were	
  
using	
   up	
   to	
   four	
   apps	
   per	
   week.	
   	
   Yet	
   the	
   number	
   using	
   10	
   or	
   more	
   apps	
   was	
   a	
  
low	
  as	
  10%.	
  	
  This	
  means	
  that	
  consumers	
  will	
  tend	
  to	
  lock	
  onto	
  apps	
  that	
  really	
  
serve	
   a	
   designed	
   purpose	
   (like	
   Maps,	
   Social	
   Networking,	
   a	
   particular	
   browser	
   or	
  
a	
   specific	
   security	
   app).	
   	
   Getting	
   and	
   staying	
   on	
   the	
   consumer’s	
   desktop	
   is	
  
becoming	
  ever	
  more	
  challenging.	
  	
  	
  
	
  
Second,	
  the	
  space	
  is	
  clearly	
  becoming	
  ultra	
  competitive.	
  	
  Even	
  for	
  larger	
  brands	
  
with	
  established	
  businesses.	
  	
  Gone	
  are	
  the	
  days	
  when	
  you	
  could	
  simply	
  develop	
  
an	
   iPhone	
   app,	
   dump	
   into	
   the	
   App	
   Store	
   and	
   rack	
   up	
   users.	
   	
   Today	
   even	
  
established	
   brands	
   need	
   to	
   build	
   quality	
   apps.	
   	
   More	
   then	
   that:	
   they	
   need	
   to	
  
routinely	
   maintain	
   and	
   update	
   these	
   apps	
   to	
   keep	
   consumers	
   interested.	
   	
   As	
   if	
  
this	
  wasn’t	
  enough,	
  brands	
  need	
  this	
  positive	
  experience	
  to	
  work	
  across	
  multiple	
  
platforms.	
   	
   Brands	
   should	
   keep	
   in	
   that	
   reaching	
   consumers	
   on	
   their	
   phones	
   is	
  
more	
   then	
   just	
   cranking	
   out	
   a	
   cute	
   iPhone	
   app.	
   	
   Consumers	
   are	
   literally	
   using	
  
thousands	
   of	
   different	
   phones.	
   	
   Android	
   alone	
   has	
   over	
   160	
   different	
   phones	
   out	
  
their	
   now	
   and	
   more	
   then	
   ½	
   dozen	
   different	
   operating	
   system	
   versions.	
  	
  
Consumers	
  will	
  expect	
  a	
  positive	
  experience	
  independently	
  of	
  the	
  device	
  and	
  will	
  
–	
   without	
   a	
   doubt	
   –	
   blame	
   the	
   brand	
   if	
   it	
   doesn’t	
   deliver	
   that	
   experience	
   they	
  
expect	
  on	
  their	
  smartphone.	
  	
  	
  
	
  
Third	
   discovery	
   is	
   and	
   will	
   continue	
   to	
   be	
   a	
   struggle.	
   	
   However,	
   brands	
   can	
  
ultimately	
  capitalize	
  on	
  this	
  given	
  their	
  marketing	
  experience	
  and	
  resources.	
  	
  If	
  
consumers	
   are	
   venturing	
   beyond	
   App	
   Stores	
   for	
   information	
   then	
   this	
   is	
   the	
  
perfect	
   way	
   for	
   established	
   brands	
   to	
   reach	
   them.	
   	
   By	
   leveraging	
   social	
   media,	
  
existing	
   marketing	
   budgets	
   and	
   mobile	
   advertising	
   they	
   can	
   make	
   their	
   case	
   to	
  
consumers	
  in	
  multiple	
  different	
  ways	
  as	
  long	
  as	
  they	
  deliver	
  a	
  robust	
  experience.	
  	
  	
  
	
  
Finally,	
   this	
   survey	
   also	
   shows	
   that	
   we	
   truly	
   live	
   in	
   a	
   global	
   world	
   even	
   where	
  
apps	
   are	
   concerned.	
   	
   Consumers	
   use	
   apps	
   differently,	
   engage	
   with	
   brands	
  
differently,	
   prefer	
   different	
   types	
   of	
   apps	
   and	
   even	
   react	
   differently	
   to	
  
advertising.	
   	
   This	
   makes	
   development	
   more	
   challenging	
   but	
   also	
   present	
  
opportunities	
   for	
   global	
   brands	
   that	
   are	
   able	
   to	
   localize	
   their	
   offers	
   and	
   tailor	
  
their	
  app	
  offering	
  to	
  the	
  particular	
  tastes	
  of	
  different	
  local	
  markets.	
  	
  	
  
	
  
In	
  conclusion,	
  the	
  App	
  Revolution	
  is	
  here	
  to	
  stay.	
  	
  Apps	
  are	
  not	
  only	
  changing	
  the	
  
way	
   we	
   live	
   and	
   work	
   but	
   also	
   fundamentally	
   marking	
   a	
   paradigm	
   shift	
   in	
   the	
  
way	
   we	
   engage	
   with	
   and	
   consume	
   content.	
   	
   Apps	
   are	
   now	
   moving	
   beyond	
  
smartphones	
   to	
   tablets,	
   computers	
   and	
   even	
   cars.	
   	
   The	
   era	
   of	
   clicking	
   and	
  
searching	
   is	
   slowly	
   but	
   surely	
   having	
   to	
   make	
   way	
   for	
   a	
   new	
   era	
   Tapping	
   and	
  
Swiping.	
  	
  This	
  change	
  will	
  have	
  profound	
  implications	
  not	
  just	
  for	
  mobile	
  content	
  
but	
   for	
   the	
   way	
   in	
   which	
   brands	
   and	
   their	
   advertisers	
   engage	
   with	
   consumers	
  


	
                                                                    17	
  
 


across	
  digital	
  media	
  in	
  general.	
  	
  It’s	
  a	
  brave	
  new	
  world	
  and	
  it’s	
  time	
  for	
  the	
  big	
  
folks	
  out	
  there	
  to	
  stop	
  dipping	
  their	
  toes	
  in	
  the	
  water.	
  	
  The	
  water	
  is	
  nice	
  and	
  cool	
  
now.	
  	
  Why	
  not	
  simply	
  dive	
  in?	
  
	
  
	
  

About	
  the	
  author	
  
	
  
Patrick	
  Mork	
  is	
  Chief	
  Marketing	
  Officer	
  at	
  GetJar	
  (www.getjar.com)	
  where	
  he	
  leads	
  
marketing,	
   PR,	
   and	
   developer	
   marketing	
   and	
   serves	
   on	
   the	
   company’s	
   executive	
  
management	
  team.	
  	
  Previously	
  he	
  spent	
  6	
  years	
  in	
  the	
  mobile	
  games	
  business	
  with	
  
glu	
   mobile	
   and	
   I-­‐play.	
   	
   Patrick	
   also	
   worked	
   in	
   strategy	
   consulting	
   at	
  
Diamondcluster	
  and	
  spent	
  5	
  years	
  with	
  PepsciCo	
  in	
  Latin	
  America.	
  	
  An	
  avid	
  fan	
  of	
  
history,	
  politics	
  and	
  video	
  games	
  he	
  has	
  spoken	
  at	
  major	
  industry	
  events	
  including	
  
SXSW,	
  CTIA,	
  Mobile	
  World	
  Congress,	
  The	
  Mobile	
  Marketing	
  Forum	
  in	
  New	
  York	
  and	
  
Los	
   Angeles,	
   Ad:Tech,	
   OMMA	
   Global	
   and	
   has	
   appeared	
   on	
   both	
   CNBC	
   and	
  
Bloomberg	
  TV	
  as	
  a	
  leading	
  expert	
  on	
  the	
  app	
  economy.	
  	
  Patrick	
  holds	
  an	
  MBA	
  from	
  
Insead	
   and	
   a	
   Bachelor	
   of	
   Science	
   for	
   the	
   Walsh	
   School	
   at	
   Georgetown	
   University.	
  	
  
For	
  more	
  visit	
  his	
  blog	
  here.	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  




	
                                                                18	
  

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App meter q2 2011

  • 1. App  Meter  –  Q2  2011   Emerging   patterns   in   consumption   in   the   mobile   app  economy   Patrick  Mork        
  • 2.   Introduction  ...........................................................................  3   Methodology  .................................................................................................................  3   Executive  Summary  ................................................................  4   Detailed  Findings  ...................................................................  7   App  Consumption  .......................................................................................................  7   When  are  consumers  using  apps?  .....................................................................  11   ....................................................  12   Apps:  The  case  for  brands  and  advertisers   ......................................................................................  15   Discovery  and  App  Stores   Conclusions  .................................................................................................................  17           2  
  • 3.   Introduction     Welcome  to  App  Meter!    This  market  research  is  designed  to  give  us  a  snapshot   of   where   the   app   industry   is   headed   and   will   be   conducted   2-­‐3   times   per   calendar   year.     App   Meter   will   focus   on   both   what’s   happening   from   an   industry,   revenue   and   platform   point   of   view   as   well   as   what   is   happening   on   the   consumer  front.    The  data  sourced  for  App  Meter  comes  primarily  from  GetJar’s   consumers,  publishers  and  partners  and  presents  only  a  view  of  apps  from  our   perspective.    As  one  of  the  world’s  largest  app  stores  with  1.7  billion  downloads   to  date,  GetJar  can  offer  a  perspective  on  what  is  happening  in  the  space  although   this  can’t  be  generalized  beyond  what  is  happening  in  our  ecosystem.     Methodology     This  issue  of  App  Meter  is  focused  on  consumer  trends  and  demographics.    Our   goal  with  this  research  was  to  get  a  better  understanding  of  what  consumers  are   downloading,   which   platforms   they   want   to   use,   how   often   they   use   apps,   barriers  to  downloading  apps  and  consumer  opinion  of  advertising  within  apps.     Our   methodology   was   to   conduct   an   online   survey   targeting   GetJar’s   database   of   25M   users   in   over   190   countries.     The   survey   consisted   of   30   multiple-­‐choice   questions  and  was  distributed  to  consumers  globally.    In  terms  of  demographics   and  response  rates:     • 2,500  fully  completed  surveys   • 90%  male  respondents  (70%  male  for  the  Americas)   • Age  demographics:   o Less  then  18:  1.5%   o 18-­‐25%:  28.2%   o 26-­‐35:  38.8%   o 36-­‐45:  19.3%   o 46-­‐55:  8.1%   o 56+:  4%   • Geography:   o Americas:  25%   o Europe,  Middle  East  &  Africa  (EMEA):  26%   o Asia  &  Australia:  49%           3  
  • 4.   Executive  Summary       The  first  thing  of  note  from  our  research  was  the  enormous  momentum  behind   the  Android  platform.    Android’s  growth  the  past  year  has  been  well  documented   and  we’ve  seen  a  500%  growth  in  submission  of  new  Android  applications  to  the   GetJar   store   over   the   same   period   last   year.     Today,   Android   ranks   2nd   only   behind  Java  as  the  largest  platform  by  submission  of  new  content  to  the  GetJar   system.    In  our  research,  18.2%  of  respondents  acknowledged  having  an  Android   device,  which  was  3rd  after  Symbian  (31.7%)  and  Java  (23.1%).    The  strength  of   Java   and   Symbian   on   GetJar   is   a   legacy   of   our   international   business   and   particularly  how  strong  our  Asian  business  has  become.    However,  turning  to  the   Americas   and   Europe,   34.9%   of   respondents   were   Android   users   in   the   former   and  31.8%  were  Android  users  in  the  latter.    When  we  look  at  the  source  of  our   downloads   we   see   a   similar   pattern:     Android   is   gaining   significant   ground   in   developed   markets   like   the   United   States   and   Western   Europe   as   well   as   some   more  developed  countries  in  Asia  most  notably  S.  Korea  and  Japan.     Of  more  interest  was  what  platforms  consumers’  were  considering  with  regards   to  their  next  handset.    Here  the  situation  changes  even  more.       A  whopping  40%  of  consumers  across  our  survey  suggested  their  next  handset   would   be   an   Android   phone   vs   only   17.9%   going   for   iPhone.     Less   then   9%   responded   they   would   stick   to   what   they   have   and   alarmingly,   only   8.2%   envisioned  a  Blackberry  as  their  next  device.         4  
  • 5.     Another   interesting   finding   was   related   to   consumer   use   of   applications.     Our   research  confirmed  that  not  only  are  app  downloads  per  user  increasing  but  so  is   usage  compared  to  other  forms  of  media.    For  example,  over  63%  of  consumers   on   GetJar   were   downloading   apps   at   least   once   a   week   with   28%   actually   downloading  apps  every  single  day.    More  importantly,  app  downloads  were  also   resulting  in  usage.    57%  of  respondents  were  actually  using  apps  more  then  once   a   day   and   on   average   33%   of   consumers   were   spending   1   hour   or   more   using   their  mobile  applications  each  day.    When  we  compared  app  usage  vs.  traditional   forms   of   entertainment   like   TV   we   found   apps   were   actually   closing   the   gap.     Only  49%  of  consumers  surveyed  actually  were  spending  more  then  1  hour  a  day   watching  TV  for  example.    Mobile  has  also  started  to  slowly  erode  the  hold  of  the   Internet  on  app  consumers.    The  survey  revealed  that  among  GetJar  users,  30%   now  claimed  to  be  using  mobile  Internet  more  then  Internet  on  their  computers.         However,   not   all   apps   are   created   equal.     Naturally,   there   are   apps   that   consumers  deem  more  important  then  others.    Although  over  600,000  apps  exist   among   the   top   three   apps   stores   today,   the   reality   is   that   a   small   number   see   significant  traffic  in  terms  of  downloads  and  an  even  smaller  number  actually  see   repeat   usage.     When   we   asked   consumers   how   many   apps   they   were   using   at   least  once  a  week,  nearly  40%  said  they  used  3-­‐4  apps  a  week  routinely  vs.  only   10%  saying  they  used  10  or  more  apps  over  the  same  time  period.    The  challenge   for   publishers   and   agencies   is   to   make   apps   that   are   not   only   good   but   that   consumers   keep   using.     Therefore,   getting   an   app   out   there   and   getting   it   installed  is  only  the  first  step  to  building  relationships  with  consumers  on  their   mobile   devices.     What   consumers’   are   telling   us   and   what   we’ve   seen   really   over   the   past   5   years   is   that   the   true   winners   in   the   mobile   app   space   are   not   only   those   who   make   good   apps,   but   those   who   routinely   improve   and   re-­‐promote   themselves   to   consumers   to   make   their   apps   an   indispensable   aspect   of   their   lives.           5  
  • 6.           Unsurprisingly,   the   research   also   clearly   demonstrated   that   as   the   number   of   apps   available   increases   that   discovering   and   finding   the   right   apps   is   also   becoming  more  of  a  challenge.    Although  over  60%  of  consumers  responded  that   they   were   pleased   with   the   current   App   Stores   they   were   using,   only   25%   admitted   to   using   App   Stores   for   discovering   the   latest   apps.     Nearly   50%   of   respondents  mentioned  browsing  the  web  as  a  preferred  method  for  finding  new   apps  with  16%  saying  that  they  also  found  great  apps  through  recommendations   by  friends  or  by  using  social  media.     Last  but  not  least  we  delved  into  the  evolving  role  of  advertising  in  mobile  apps   and   tried   to   get   an   understanding   of   how   consumers   felt   about   in-­‐app   advertising   and   more   importantly   how   they   felt   about   their   favorite   brands   trying   to   reach   them   through   mobile   apps.     The   results   here   were   pretty   encouraging.     Not   only   did   72%   of   consumers   claim   to   have   downloaded   apps   with  ads  in  them  but  nearly  60%  of  these  users  claimed  they  would  repeat  the   experience   again.     By   and   large,   the   most   important   things   consumers   were   looking  for  in  these  mobile  ads  were  specific  information  (34%)  or  news  about   new  products  and  services  (31%).      We  also  found  that  a  majority  of  consumers   had  already  downloaded  some  form  of  branded  application  (52%)  in  the  past  but   that   the   expectation   of   these   consumers   regarding   the   quality   of   the   branded   application  was  pretty  high.    Clearly,  brands  that  dive  into  the  app  space  without   having  a  quality  application  risk  damaging  consumers’  perception  of  their  brand.     Nearly  80%  of  consumers  surveyed  stated  that  the  quality  of  an  app  affects  the   brands  trustworthiness.     6  
  • 7.   Detailed  Findings     App  Consumption     App   consumption   among   the   target   audience   was   fairly   high.     28%   of   consumers   downloaded   apps   every   day   with   19%   of   downloading   multiple   times   a   day.     Very   few   consumers   could   be   considered   “light”   users   and   only   6%   were   downloading   apps   less   then   once   every   3   months.     Usage   of   apps   once   downloaded   was   also   fairly   high   as   mentioned   above.     However,   one   of   the   interesting   findings   was   the   difference   in   download   patterns   between   regions.     Asians   had   a   tendency   to   download   apps   more   often   then   Americans   or   those   from  Europe  (29%  downloading  once  or  more  per  day  vs.  19%  of  Americans  or   22%  of  Europeans  doing  the  same).         However,  usage  among  American  consumers  was  slightly  higher  then  the  other   regions  with  74%  of  consumers  stating  they  were  using  their  apps  one  or  more   times  per  day  vs.  71%  stating  the  same  in  Europe  and  65%  in  Asia.    There  were   also  some  differences  when  we  looked  at  how  long  on  average  consumers  were   using   apps.     Across   regions,   consumers   spent   nearly   34%   of   their   time   using   apps   for   1   or   more   hours   with   the   majority   (31%)   spending   10   –   30   minutes   using  apps.             7  
  • 8.   Yet,   once   we   look   at   the   regional   picture   we   see   changes   in   terms   of   how   long   consumers  in  certain  regions  are  using  apps.    Americans  and  Asians  tend  to  be   heavier   users   of   apps   in   terms   of   the   duration   per   session   with   35%   of   US   consumers  using  apps  for  sessions  of  1  hour  or  more.    Asians  are  close  with  30%   using  apps  as  heavily.    However,  Europeans  have  shorter  sessions  with  only  22%   of  Europeans  spending  1  or  more  hours  using  their  apps.     We   also   thought   it   would   be   of   interest   to   measure   app   sessions   against   more   established   forms   of   media   such   as   TV.     Although   consumers   by   and   large   are   still   spending   more   time   watching   TV   versus   using   apps,   we   found   that   among   GetJar’s   app   consumers   the   difference   wasn’t   as   striking   as   we   would   have   thought.     In   fact   when   we   looked   at   moderate   users   as   defined   as   a   person   spending  31  minutes  to  an  hour  per  day  using  Apps  or  watching  TV,  the  numbers   were   nearly   identical   with   20.3%   watching   TV   for   that   period   of   time   vs.   23%   using  apps.       The  other  item  of  note  was  the  differences  in  the  genres  of  apps  used  in  different   regions.     Although   one   might   assume   consumers   are   typically   interested   in   the   same   type   of   apps   across   regions,   this   was   only   partially   true   in   the   resulting   survey.    Overall,  games,  social  networking,  productivity  and  entertainment  were   the  most  popular  categories  of  interest  when  we  asked  consumers  what  type  of   apps  they  found  most  useful  and  downloaded.       8  
  • 9.     However,  we  found  some  interesting  differences  from  region  to  region  in  terms   of  what  consumers  were  downloading.    Notably,  Americans  seemed  much  more   interested   in   downloading   News,   Weather   and   Sports   apps   compared   to   consumers  in  other  regions.    Specifically  we  found:     • 46%   of   Americans   downloaded   and   used   Weather   apps   compared   to   34.5%  of  Europeans  and  only  20%  of  Asians   • Nearly   48%   of   Americans   downloaded   and   used   News   apps   vs.   40%   of   Europeans  and  36.7%  of  Asians   • Sports   was   markedly   more   important   in   the   Americas   and   in   Asia   with   21%  and  20%  respectively  of  consumers  using  sports  apps  compared  to   only  13%  of  Europeans  using  /  downloading  this  type  of  content.     One   final   point   of   difference   among   regions   was   consumers’   usage   of   Security   apps.     Undoubtedly,   this   will   likely   increase   in   the   US   given   recent   scares   with   malicious   Android   apps   but   one   item   of   note   was   how   little   interested   US   and   European   consumers   were   in   downloading   or   using   Security   apps   in   general.     Asians   seemed   to   place   a   fair   amount   of   importance   in   downloading   and   using   these  types  of  apps  with  nearly  39%  of  Asians  using  them.    In  contrast,  only  17%   of  Americans  and  18.6%  of  Europeans  showed  similar  interest.           9  
  • 10.   Overall  interest  in  apps  by  genre  in  the  US  was  as  follows:        Lastly,  we  decided  to  try  and  also  gauge  what  consumers’  were  going  to  look  at   downloading   or   using   in   2011.     Across   all   three   regions   Productivity,   Games   and   Entertainment  came  out  strongly  with  the  US  and  Europe  giving  priority  to  the   first   two   genres.     In   Asia,   however,   Games   is   the   most   interesting   category   for   consumers   followed   by   Social   Networking   and   Entertainment.     This   makes   perfect  sense  and  further  reinforces  our  research  from  last  year  where  we  found   that  the  mobile  device  is  really  becoming  the  entertainment  and  communication   tool  of  preference  for  Asians.    Particularly,  when  one  looks  at  the  low  penetration   of  fixed  broadband  and  Internet  access  in  markets  like  Indonesia  and  India,  the   mobile  phone  becomes  the  logical  tool  of  choice.        In  cultures  like  that  of  India   and   Indonesia   where   the   family   and   the   concept   of   the   extended   family   are   culturally   more   important   then   in   the   US   and   Europe,   keeping   in   touch   with   loved  ones  is  vital  in  people’s  daily  lives.    It’s  important  to  keep  in  mind  that  apps   like  Facebook,  Twitter,  ebuddy  and  others  not  only  help  families  and  friends  stay   connected   but   also   help   families   keep   in   touch   with   others   living   abroad.     This   is   especially   the   case   when   considering   how   important   these   apps   are   at   keeping   the   cost   of   this   communication   to   a   minimum.     Sharing   photos,   sending   instant   messages   and   voice-­‐over-­‐IP   calls   are   all   extremely   inexpensive   for   consumers   when  compared  to  the  ordinary  cost  of  making  long  distance  calls.               10  
  • 11.    When  are  consumers  using  apps?     One   of   the   things   we   were   interesting   in   discovering   was   whether   there   was   any   particular  difference  on  “when”  consumers  were  using  apps.    Did  the  time  of  day   or  the  day  of  the  week  make  a  difference?    Were  consumers  more  likely  to  use   apps  at  night  after  work  when  they  had  some  time?    Were  they  more  likely  to  use   apps  on  weekends  maybe  as  a  way  to  relax?         App   usage   by   day   really   didn’t   vary   significantly   as   we   can   see   from   the   chart   below.    App  usage  was  fairly  constant  with  70%  plus  of  users  using  apps  nearly   every   day.     As   we   would   have   anticipated   app   usage   was   slightly   higher   on   weekends   with   over   80%   of   consumers   using   apps   on   Saturday   and   Sundays.     When  we  looked  at  app  usage  across  regions  by  day  we  didn’t  find  anything  very   unusual  either.    The  only  thing  of  note  here  was  that  Americans  used  apps  more   consistently   day-­‐to-­‐day.     Over   79%   claimed   to   use   apps   nearly   every   day   and   85%  actually  used  apps  on  Fridays.           Subsequently  what  we  looked  at  was  whether  there  were  any  major  differences   regarding   the   times   of   the   day   when   consumers   used   apps.     Overall,   the   patterns   were   fairly   similar   with   usage   being   fairly   even   throughout   the   day   and   increasing   in   the   early   evening.       Two   interesting   differences   emerged   here.     First,   Americans   were   more   prone   to   use   apps   during   the   middle   of   the   day   (before,  during  and  right  after  lunch  time)  with  48%  saying  they  were  using  apps   during  this  time  of  the  day  compared  to  41%  of  Europeans  and  40%  of  Asians.     Second,  we  found  that  Asians  were  typically  more  likely  to  use  apps  late  at  night.       11  
  • 12.   55%  stated  they  used  apps  late  at  night  compared  to  only  34%  of  Americans  and   Europeans.        Apps:  The  case  for  brands  and  advertisers     Naturally,  when  any  new  medium  comes  along  the  first  question  among  brands   and  advertisers  is  what  will  the  impact  of  this  medium  be  on  their  business?    Is   this  something  as  big  as  the  Internet  or  is  it  just  a  passing  fad.    What  we  see  here   is  clearly  that  apps  don’t  seem  to  be  going  away  anytime  soon.    If  anything  app   usage   as   measured   by   most   key   metrics   continues   to   soar.     Let’s   just   recap   some   key  data  taken  from  my  presentation  at  SXSW  last  week:     • Over  8  billion  downloads  done  last  year  alone   • More  then  600,000  apps  available     • Nearly  120  different  app  stores  available  globally   • 35%  of  Americans  used  apps  in  January  of  this  year  (Comscore)  –  up  3%   from  December  2010   • Almost  66M  Americans  had  smartphones  during  the  same  period     Lastly,  it’s  worth  noting  that  the  most  popular  apps  today  are  reaching  far  more   consumers  then  even  the  most  mainstream  TV  programs.    For  example,  Shazam   now   has   over   75   millions   users,   Angry   Birds   has   done   over   100   million   downloads  and  ebuddy    (the  popular  messaging  app)  has  done  over  60  million   downloads  on  GetJar  alone.           12  
  • 13.   But   the   question   we   wanted   answered   was   “Ok,   but   what   does   this   mean   for   brands  and  advertisers?”     The  survey  clearly  showed  that  the  apps  world  presents  clear  opportunities  for   brands  and  agencies  but  also  several  important  challenges.    First,  it  wasn’t  clear   that   brands   have   that   many   natural   advantages   in   the   app   economy   vs.   non-­‐ brands.    When  we  asked  consumers  how  often  they  downloaded  branded  apps,   43%   stated   either   “not   so   often”   or   “not   often”.     Less   then   6%   seemed   to   download   branded   apps   with   a   lot   of   enthusiasm.       However,   we   don’t   believe   this   is   due   to   consumers’   unwillingness   to   engage   with   branded   apps.     More   likely,   it   has   to   do   with   the   fact   that   many   brands   haven’t   properly   understood   how   to   engage   with   apps.     The   result   in   certain   cases   has   been   apps   that   don’t   necessarily   meet   consumers’   expectations.       Again,   the   research   seems   to   bare   this  out:      What   this   may   be   telling   us   is   that   consumers   aren’t   going   to   cut   brands   any   slack.    Although  72%  will  download  a  branded  app  if  it’s  high  quality,  nearly  80%   stated   that   the   quality   of   a   brand’s   app   can   make   it   more   trustworthy.     Intuitively,   this   can   also   have   the   reverse   effect.     Consumers   may   pick   a   branded   app  over  a  non  branded  one  but  they  will  also  expect  the  experience  to  be  better   and  the  quality  of  the  app  will  reflect  on  what  the  consumer  thinks  of  the  brand   on  mobile.    Asian  consumers  were  even  more  vocal  in  this  respect.    Although  a   higher   percentage   of   them   had   downloaded   branded   apps   (29%   vs.   19%   of   Americans   and   16%   of   Europeans),   84%   believed   the   quality   of   a   branded   app   made  the  brand  trustworthy.           13  
  • 14.   The  good  news  for  brands  and  agencies  is  that  mobile  advertising,  particularly  in   applications,   seems   to   be   making   inroads   with   consumers.     To   try   and   understand   consumers’   perception   of   mobile   ads   we   asked   consumers   two   basic   questions:     Had   they   ever   downloaded   apps   with   ads   in   them   and   would   they   do   so  again.         Overall,   mobile   ads   seem   to   be   on   the   right   track.     Nearly   73%   of   consumers   surveyed  had  downloads  apps  with  ads  in  them.    In  the  US  this  was  even  more   pronounced   with   nearly   84%   of   respondents   giving   a   positive   response.     More   importantly,  almost  59%  of  respondents  admitted  that  they  would  so  again.    In   the   US   this   number   was   as   high   as   70%   indicating   that   consumers   were   both   more   familiar   with   mobile   ads   and   more   accepting   of   apps   using   this   business   model   as   a   way   to   monetize   their   content.     Interestingly,   Americans   were   also   more   open   to   seeing   their   favorite   apps   have   advertising   in   them   or   being   outright   sponsored   by   big   brand   with   73%   of   respondents   saying   they   were   fine   with  downloading  a  cool  app  that  was  sponsored  by  a  third  party.           Naturally,   seeing   an   ad   is   one   thing   but   actually   clicking   on   it   or   making   some   form   of   purchase   is   another   matter   entirely.     Here   again   the   news   was   encouraging.     25%   of   respondents   admitted   to   having   made   some   form   of   purchase  after  having  clicked  a  mobile  ad.    In  the  US,  where  mobile  advertising  is   perhaps  more  mature  and  a  bit  less  novel,  the  number  dropped  to  21%.    Asians   and   Europeans   showed   a   slightly   greater   propensity   to   make   a   purchase   after   having   clicked   an   ad   with   26%   of   consumers   in   both   markets   claiming   to   have   made  some  form  of  purchase  through  a  mobile  ad.               14  
  • 15.   Discovery  and  App  Stores     With   over   600,000   apps   now   available   and   more   then   100   different   app   stores   available   never   has   discovery   been   more   a   challenge   for   consumers.     In   fact,   although   app   stores   get   the   lion’s   share   of   the   credit   for   discovery,   a   whole   industry  has  emerged  around  trying  to  enhance  discovery  for  consumers.    Again,   our   research   seemed   to   bear   out   some   of   the   different   ways   consumers   discovered  news  apps.       The   Internet   actually   turned   out   to   be   the   leading   way   in   which   consumers   discovered   apps   followed   by   App   Stores   as   a   distant   second.     Social   media   and   friends   accounted   for   the   3rd   most   common   way   to   discover   apps.     Mobile   advertising  also  clocked  in  7%  of  responses  although  how  effective  this  method   of   promoting   apps   is   remains   unproven   in   many   cases.     What   we   didn’t   see   from   the   research   is   whether   consumers’   use   of   “online”   included   online   variants   of   the   various   app   stores   out   there.     For   example,   it’s   far   easier   to   find   apps   on   iTunes  then  directly  on  your  iPhone.    Likewise,  Android  Market,  GetJar  and  Ovi   Store  all  have  online  versions  of  their  app  stores  to  help  facilitate  discovery.         One   marked   difference   in   the   US   was   that   consumers   seemed   to   rely   more   on   their  friends  or  family  for  finding  new  apps  with  20%  of  respondents  saying  that   recommendations  from  friends  had  helped  them  discover  new  apps.    This  was  in   contrast  to  Europe  and  Asia  whre  typically  recommendations  accounted  for  less   then  13%  of  the  way  people  discovered  apps.         15  
  • 16.   That   consumers   are   using   other   tools   aside   from   App   Stores   to   find   new   apps   shouldn’t  necessarily  be  taken  as  a  sign  of  total  dissatisfaction  with  existing  app   stores   however.     Less   then   10%   responded   they   were   either   unhappy   or   very   unhappy  with  existing  stores  they  were  using  while  66%  said  they  were  either   very  content  or  content  with  their  current  app  store.         When  asked  what  aspects  of  their  current  app  store  consumers  didn’t  like,  they   responded   that   there   weren’t   enough   apps   (25%),   apps   were   too   expensive   (20%)  or  that  it  was  too  hard  to  find  apps  (19%).    By  and  large  what  continues  to   matter  most  to  existing  app  users  when  using  app  stores  is:     • Ease  of  search  (63%  of  respondents)   • The  number  of  free  apps  available  (65%  of  respondents)   • The  overall  number  of  apps  available  (63%  of  respondents)           16  
  • 17.   Conclusions     App   usage   among   existing   consumers   seems   to   being   going   from   strength   to   strength   and   overall   industry   numbers   point   to   more   and   more   consumers   joining  the  app  bonanza  every  day.    That  said  clear  challenges  remain.         On  the  one  hand,  although  consumers  are  downloading  and  using  apps,  they  are   limiting  the  number  of  apps  they  really  engage  with.    Nearly  60%  surveyed  were   using   up   to   four   apps   per   week.     Yet   the   number   using   10   or   more   apps   was   a   low  as  10%.    This  means  that  consumers  will  tend  to  lock  onto  apps  that  really   serve   a   designed   purpose   (like   Maps,   Social   Networking,   a   particular   browser   or   a   specific   security   app).     Getting   and   staying   on   the   consumer’s   desktop   is   becoming  ever  more  challenging.         Second,  the  space  is  clearly  becoming  ultra  competitive.    Even  for  larger  brands   with  established  businesses.    Gone  are  the  days  when  you  could  simply  develop   an   iPhone   app,   dump   into   the   App   Store   and   rack   up   users.     Today   even   established   brands   need   to   build   quality   apps.     More   then   that:   they   need   to   routinely   maintain   and   update   these   apps   to   keep   consumers   interested.     As   if   this  wasn’t  enough,  brands  need  this  positive  experience  to  work  across  multiple   platforms.     Brands   should   keep   in   that   reaching   consumers   on   their   phones   is   more   then   just   cranking   out   a   cute   iPhone   app.     Consumers   are   literally   using   thousands   of   different   phones.     Android   alone   has   over   160   different   phones   out   their   now   and   more   then   ½   dozen   different   operating   system   versions.     Consumers  will  expect  a  positive  experience  independently  of  the  device  and  will   –   without   a   doubt   –   blame   the   brand   if   it   doesn’t   deliver   that   experience   they   expect  on  their  smartphone.         Third   discovery   is   and   will   continue   to   be   a   struggle.     However,   brands   can   ultimately  capitalize  on  this  given  their  marketing  experience  and  resources.    If   consumers   are   venturing   beyond   App   Stores   for   information   then   this   is   the   perfect   way   for   established   brands   to   reach   them.     By   leveraging   social   media,   existing   marketing   budgets   and   mobile   advertising   they   can   make   their   case   to   consumers  in  multiple  different  ways  as  long  as  they  deliver  a  robust  experience.         Finally,   this   survey   also   shows   that   we   truly   live   in   a   global   world   even   where   apps   are   concerned.     Consumers   use   apps   differently,   engage   with   brands   differently,   prefer   different   types   of   apps   and   even   react   differently   to   advertising.     This   makes   development   more   challenging   but   also   present   opportunities   for   global   brands   that   are   able   to   localize   their   offers   and   tailor   their  app  offering  to  the  particular  tastes  of  different  local  markets.         In  conclusion,  the  App  Revolution  is  here  to  stay.    Apps  are  not  only  changing  the   way   we   live   and   work   but   also   fundamentally   marking   a   paradigm   shift   in   the   way   we   engage   with   and   consume   content.     Apps   are   now   moving   beyond   smartphones   to   tablets,   computers   and   even   cars.     The   era   of   clicking   and   searching   is   slowly   but   surely   having   to   make   way   for   a   new   era   Tapping   and   Swiping.    This  change  will  have  profound  implications  not  just  for  mobile  content   but   for   the   way   in   which   brands   and   their   advertisers   engage   with   consumers     17  
  • 18.   across  digital  media  in  general.    It’s  a  brave  new  world  and  it’s  time  for  the  big   folks  out  there  to  stop  dipping  their  toes  in  the  water.    The  water  is  nice  and  cool   now.    Why  not  simply  dive  in?       About  the  author     Patrick  Mork  is  Chief  Marketing  Officer  at  GetJar  (www.getjar.com)  where  he  leads   marketing,   PR,   and   developer   marketing   and   serves   on   the   company’s   executive   management  team.    Previously  he  spent  6  years  in  the  mobile  games  business  with   glu   mobile   and   I-­‐play.     Patrick   also   worked   in   strategy   consulting   at   Diamondcluster  and  spent  5  years  with  PepsciCo  in  Latin  America.    An  avid  fan  of   history,  politics  and  video  games  he  has  spoken  at  major  industry  events  including   SXSW,  CTIA,  Mobile  World  Congress,  The  Mobile  Marketing  Forum  in  New  York  and   Los   Angeles,   Ad:Tech,   OMMA   Global   and   has   appeared   on   both   CNBC   and   Bloomberg  TV  as  a  leading  expert  on  the  app  economy.    Patrick  holds  an  MBA  from   Insead   and   a   Bachelor   of   Science   for   the   Walsh   School   at   Georgetown   University.     For  more  visit  his  blog  here.                       18