@CloudExpo Authors: Zakia Bouachraoui, Elizabeth White, Liz McMillan, Pat Romanski, Roger Strukhoff

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Increased Consumer Downloads Do Not Result in Increased Use of Tablet Apps

GfK MRI iPanel Data Reveal That Two-Thirds of Downloaded Apps Are Free

NEW YORK, NY -- (Marketwire) -- 09/08/11 -- As more marketers use Tablet apps to compete for consumers' attention and share of mind, new data from GfK MRI's iPanel show that increased Tablet app downloads do not necessarily result in greater consumer app usage.

Among the iPanel respondents who own a Tablet and have downloaded between one and nine apps on their device, 95% say they regularly use those apps. In contrast, only 37% of owners who have 10 or more apps on their device regularly use this many apps, while only 16% who have 20 or more apps on their device regularly use this many.

                          Tablet Owners Use of Apps
         Number of Apps on Tablet Vs. Number of Apps Regularly Used
                                             % Tablet Owners Have this Many
         Number of Apps Installed           Apps Installed and Use them On a
                                                     Regular Basis
1-9 apps                                                  95%
More Than 10 apps                                         37%
More than 20                                              16%
Source.GfK MRI iPanel

How do tablet owners find out about the apps they download? Online app stores are the most powerful resource consumers have for discovering new apps. Nearly 80% of tablet owners found out about the apps they downloaded by either browsing or searching an app store or because the app was featured in an app store. Other popular ways Tablet owners find out about apps are reviews in magazines and newspapers (55% of owners), through a link within another app (24% of owners), ads on the Internet (23% of owners) and recommendations from family and friends (21% of owners).

                       How Tablet Owner Discover Apps
Method Used...                                               % Tablet Owners
Browsed through/Searched in App store/ Featured in App Store       80%
Reviews in magazines and newspapers                                55%
Link within another app                                            24%
Advertisements on the Internet                                     23%
Friends and family recommendations                                 21%
Advertisements on TV                                               16%
Advertisements in Magazines                                        12%
Advertisements in Newspapers                                        8%
Advertisements on Radio                                             7%
Source: GfK MRI iPanel

Another marketing challenge when targeting Tablet users is the paid vs. free conundrum. According to the GfK MRI iPanel, 66% of the apps that tablet owners downloaded in the last 30 days were free, while 34% were paid.

"These new insights show the challenge app marketers have when competing for Tablet users' share of mind and share of wallet," said Risa Becker, V.P Research at GfK MRI. "There seems to be a limit to the number of apps a consumer will use, regardless of how many are available to them. Moreover, consumers' reliance on free apps suggests app marketers need to continue to implement revenue plans that do not necesarilly depend on charging for apps."

The online GfK MRI iPanel is composed exclusively of adult Tablet and eReader owners. More than 3,000 consumers participated in this iPanel survey.

Please Note: GfK MRI has additional information on the app behavior of Tablet users. Click here to access a short video that shares additional insights, and visit the new Digital Intelligence section of www.gfkmri.com.

About GfK MRI
GfK MRI has a singular goal: to provide the clearest and most detailed view of American consumers -- who they are, what they buy, how they think, and the best ways to reach them. Founded in 1979, GfK MRI is the country's leading provider of magazine audience ratings, multimedia research data and penetrating insights into consumers' behavior and motivations.

GfK MRI is part of The GfK Group, headquartered in Nuremberg, Germany. The GfK Group offers the fundamental knowledge that industry, retailers, services companies and the media need to make market decisions. It delivers a comprehensive range of information and consultancy services in the three business sectors Custom Research, Retail and Technology and Media. The No. 4 market research organization worldwide operates in more than 100 countries and employs over 11,000 staff. In 2010, the GfK Group's sales amounted to EUR 1.29 billion.

For further information on GfK MRI, visit our website: www.gfkmri.com. And, follow us on Facebook (www.facebook.com/GfKMRI) and Twitter (www.twitter.com/GfKMRINews).

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Anne Marie Kelly
SVP, Marketing and Strategic Planning
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Steve Ellwanger
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