Consumers Say $5 Not Too Much for a Smartphone App Download: If it's the Right App

Based on data from its Smartphone Intelligence report, Compete, a TNS Media company, revealed more insight into the applications Smartphone users are buying, downloading and using. Compete's quarterly Smartphone Intelligence report shows, for the first time, how much Smartphone users are willing to spend for each application and the primary reasons that prevent them from downloading more. The report breaks out behavior of iPhone users versus users of other Smartphones. Below are findings from the report.

How Much Smartphone Users Spend on Apps
When Smartphone users were asked the most they've ever spent on a single application, 24 percent said that they have spent anywhere from $10-$50 for a single app. 28 percent have spent between $5-10 on a single app.

iPhone owners are not spending more on individual apps, but buying more apps overall. 86% of iPhone owners have paid at most $.99 - $9.99 on a single app, but 83% of these iPhone owners have downloaded at least 6 apps.

The Apps iPhone Users Download
The four most commonly downloaded applications, by category, for iPhone users were Games (79 percent), Entertainment (78 percent), Weather (57 percent), and Music (55 percent).

But, the top three applications used most frequently by those same owners, in order of frequency, were weather-related applications (39 percent); Facebook (25 percent) and Games (20 percent). Specific applications that iPhone owners highlight are Shazam (7 percent), a music recognition application, and Lose It (5 percent), a calorie counting application. Both applications were featured in iPhone commercials during the time this survey was fielded, indicating the influence of media on consumers' purchase and usage behavior.

Why Smartphone Users Aren't Downloading More
27 percent of Smartphone owners (but only 2 percent of iPhone owners) indicate that they have not downloaded a single application to their device. When asked for the main reason they have not added any applications to their phones, 41 percent said they don't see a need to add applications, 33 percent don't want to spend the money and 13 percent haven't added any applications because they don't know how.

When asked how they decided which applications to download to their phone, 60 percent of all Smartphone owners said they spend time looking through all the applications to discover them on their own. 30 percent of Smartphone owners look for friends / family recommendations and 30 percent look to see what apps are popular.

Through behavioral analytics and surveys, Compete's new Smartphone Intelligence report also provides insight into other aspects of Smartphone and iPhone preferences and use. Among the questions addressed in the current report are:

• How do Smartphone owners use their device when travelling?
• Has Smartphone ownership helped drive mobile banking usage?
• What features are Smartphone owners using most? What do they feel is lacking?
• How popular are location-based services among Smartphone owners?

• What role do Smartphones play in the shopping behaviors of device owners

For more information about Compete's Smartphone Intelligence report and services, please contact Danielle Nohe at dnohe@compete.com.

About Compete, Inc.
Compete, a unit of TNS media, helps the world's top brands improve their marketing based on the online behavior of millions of consumers. Leading marketers such as Carlson Hotels Worldwide, Hyundai Motor America, Upromise, Chrysler, and Verizon Wireless rely on Compete's services to create effective online experiences and highly profitable advertising campaigns. Compete's online behavior database - the largest in the industry - makes the web as ingrained in marketing as it is in people's lives.

Compete was founded in 2000 and is located in Boston, MA, with offices throughout the U.S. For more information about us, please visit http://www.competeinc.com/, or to join the conversation visit http://www.compete.com/.
About TNS media
Established in more than 30 countries, TNS media explores all the media - print, radio, TV, Internet, social media, cinema and outdoors worldwide, 24 hours a day, seven days a week, and offers a full range of insights, analyses and audience measurement services.

TNS media combines the deepest expertise in the industry to provide media and marketing intelligence including advertising expenditure monitoring, advertising creation monitoring, audience measurement, market influence analytics, online consumer behavior tracking, news monitoring, sports sponsorship evaluation and more. The TNS Media companies track more than 3 million brands and provide vital market intelligence to 16,000 customers in the world. http://www.tnsmediagroup.com

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The Kantar Group
The Kantar Group is one of the world's largest research, insight and consultancy networks. By uniting the diverse talents of more than 20 specialist companies - including the recently-acquired TNS - the group aims to become the pre-eminent provider of compelling and actionable insights for the global business community. Its 26,500 employees work across 80 countries and across the whole spectrum of research and consultancy disciplines, enabling the group to offer clients business insights at each and every point of the consumer cycle. The group's services are employed by over half of the Fortune Top 500 companies. The Kantar Group is a wholly-owned subsidiary of WPP Group plc. For further information, please visit http://www.kantargroup.com