iMedia October Breakthrough Summit - Launch Pad Day: "Are Premium iPad Experiences a Temporary...

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Are Premium iPad Experiences a Temporary Anomaly?

Transcript of iMedia October Breakthrough Summit - Launch Pad Day: "Are Premium iPad Experiences a Temporary...

Are Premium iPad Experiences a Temporary Anomaly?

Research Done in Partnership with Hearst’s LMK

LMK connects

people to their passions

The LMK Super App

• Owned by The Hearst

Corporation - Trusted name

in News & Journalism

• News, pics, stats culled from

Hearst and 1,500+ Sources

• Filtered, curated and

edited by experts

• Updated every few minutes

• Each LMK mobile passion

contains a customized News,

Photo and Data River

targeted for each passion

• Fall 2010 launch with substantial marketing campaign and Charter Advertiser integration opportunities

– Paid Mobile & Digital Advertising

– Social & Guerrilla Media

– Hearst-Owned Media (Local TV, Newspaper, Magazines and their websites)

• 150m US Smart Phone Consumers

• News-Hungry Users

• Passionate users = multiple and extended daily engagement

• 1st-To-Know & share creates ”Social Heroes” with other ‘Passionates’

LMK Audience

Marketing &

Partnership

Opportunities• Subsidize downloads

• Sponsorship

• Customer data mining and capture

• Couponing

• Combining with Hearst 360 programs

FREE! from

FREE! from

FREE! from

FREE! from

Research Overview

Quantitative Research

METHODOLOGY Online Survey – Summer 2010

AUDIENCE • iPhone Users (n=204)

• Droid/Other Smartphone Users (n=601)

• iPad Users (n=116)

SCREENING

CRITERIA

• Must own and use either an iPhone, an

app-supported Smartphone or an iPad

''It's like a dopamine squirt to be connected,'' said Dr. Ratey, [Harvard Associate Professor]

who compares the sensations created by constantly being wired to those of narcotics – a hit of pleasure, stimulation and escape. ''It takes the same pathway as our drugs of abuse and pleasure. It's an addiction,'' he said, adding that some people cannot deal

with down time or quiet moments. Without it, we are in withdrawal.''

The Lure of Data – Is it Addictive; July 6, 2003

2010 Biggest Ideas of the Year

#3: Boredom

is Extinct

IPad User have a Similar Profile

of Content Grazing

Q.36_1 How often do you get updates on your favorite topics

(sports, music, celebrities, hobbies, etc.) on your computer and smartphone?

66% 66%

76%

34% 35%

24%

0%

10%

20%

30%

40%

50%

60%

70%

80%

IPAD USERS IPHONE USERS DROID / OTHER USERS

% o

f R

esp

on

de

nts

Computer Smartphone or iPad

More than 10 times per day

Get Passion Related Updates Over 10 Times per Day

Q.28b How interested would you be in an app that

allowed you to customize it to follow multiple topics

of your choice?

94% 94% 90%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

IPAD USERS IPHONE USERS DROID / USER USERS

Interest in a Custom Multiple Passion App

All Groups Were Interested in a Universal App

IPad Users Have More Active Apps

Q.15 How many apps do you use at least once per month?

IPad User have more Paid Apps

76%

21%35%

Q.16 How many of your apps, if any, do you pay for?

Q.15 How many apps do you use at least once per month?

IPad Users Buy More Apps in

Almost Every Category

iPad users are 5X more likely to use subscription apps

33%

68%56%

19%

8%21%

23%

19% 20%18%

4% 2%9%1% 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

iPad Iphone Driod

16 + 6 to 15 2 to 5 1 0

5.9 1.3 1.1

Average # of Paid

Subscription Apps

# of Paid Subscription Apps

Q.19 How many of your paid apps are subscription based?

Q.23 How many paid apps have you stopped using?

0, 26%

0, 43% 0, 43%

1, 11%

1, 19%1, 27%2 to 5, 39%

2 to 5, 28%2 to 5, 26%6 to 10, 6%

6 to 10, 8% 6 to 10, 4%11+, 15%

11+, 2% 11+, 1%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

iPad Users iPhone Users Droid / Other Users

11+ 6 to 10 2 to 5 1 0

# of Paid Apps No Longer Used

IPad Users are Much More Likely

to Stop Using a Paid App

While IPad Users are Willing to Pay,

they Expect Value or They are Gone

Q.26 What are the most common reasons why you’ve decided to stop using or paying for an app?

56%

64%

25%

41%

0%

76%

34%

25%

18%

9%

65%

43%

26% 26%

7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Became bored with the app Updated to a better app Not using the app much Budget tightening Other reason

iPad Users iPhone Users Droid / Other Users

Top Reasons for No Longer Using an App

iPad Users Report Fewer Ad-free Apps

18%

10%

40%

10%

20%

30%

9%

36%

16%

9%

40%

20%

29%

7%

4%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0 1 2-5 6-10 11+

iPad Users iPhone Users Droid / Other Users

Q.22 How many of your paid apps contain some type of advertising?

Ipad Users Are More Likely

To Pay For Content

Monthly Spend IPAD USERSIPHONE USERS

DROID / OTHER USERS

Magazines $30 $13 $13

Newspapers $25 $10 $12

Mobile Phone Services $ 91 $93 $91

The Multi Million Dollar Question:

Is the willingness to pay for apps

driven by the early adopter

audience OR by the form factor?

Thank you!

[email protected]

www.ipglab.com