The State of the App Economy (July 2013), produced in partnership with Reticle Research and Paradigm Sample with contributions from analyst Billy Pidgeon, provides a robust look at today’s app economy, providing marketers, publishers and their partners with the current and longer-term forecasts and rich, timely consumer insights they need to take action today and strategically prepare for the future. The report analyzed the state of the app economy and includes current and market sizing forecasts through 2017 for key app economy sectors including the overall US app economy, in-app advertising, app-enabled commerce, app downloads, virtual goods, and digital downloads. The report also includes fresh, timely “connected consumer” behavioral and consumption data and insights based on a proprietary survey fielded to 2,500 online U.S. consumers. It also analyzes aggregated data from two key partners including a section on app usage based on data from mobile analytics company Flurry and a global appstore snapshot with data and insights from Distimo, a global analytics firm. It spans strategic and tactical concerns taking a comprehensive look at both detailed demographic breakdowns of app usage by age range across a range of 15 different genres, as well as ownership of and interest in acquiring emerging platforms. A few of the report highlights are below. The full report is available for purchase from appnationresearch.com

I. State of The App Economy: Market Sizing And Projections THE US APP ECONOMY • US in In-App Advertising • US in In-App / App-

Enabled Commerce • Total Value of App

Downloads (US) • Total Value of Virtual

Goods (US) • Total Value of Digital

Downloads (US) GLOBAL APP ECONOMY: The US, China, and The Rest II. Global Perspectives: Free vs Paid App Downloads • Google Play vs Apple App

Store: Free vs Paid App Downloads

• Apple App Store Snapshot • Google Play Snapshot

III. Appnation Connected Consumer Behavioral Insights And Usage Rankings

• SECTION IIIA: Device Ownership & Intent

• Device Ownership by Gender

• Expanding Ecosystems

• SECTION IIIB: App Discovery

• SECTION IIIC: App Usage • Entertainment App

Usage by Age Range

• Information and Communication App Usage by Age Range

• Commerce Apps

• SECTION IIID: Cloud Service Usage Differences

• SECTION IIIE: Smart TV Features

IV. APPNATION / Flurry Deep-Dive: The App Consumer

• THE CONSUMPTION

REVOLUTION: WEB vs APPS vs TV

• AUDIENCE DAY PARTING

• Overall App vs Mobile Web Consumption

• Apps Used Per Day (All US Smartphone Users)

Despite the value often associated with high download rank and positive reviews,

about 60 percent of smartphone and tablet owners say that word of mouth is one of the top ways they learn about apps, far greater than the slightly more than

40 percent of consumers who app store reviews as a top way to discover them. Developers should focus more on sending positive referrals via

established relationships than driving download rank.

Email, web browsers, and social networks lead in usage frequency as

smartphones and tablets are driving the app economy today. But emerging platforms such as connected cars and smart TVs are providing new

opportunities as well as raising questions about how they will interface with apps consumers already have. For example, nearly 11 percent of U.S.

consumers now have a vehicle that can support apps on a center console and three times as many consumers plan to purchase app-enabled TVs versus

non-app-enabled TVs in the next six months.

The majority of mobile device owners under 45 are using video apps at least a few times per week. While overall usage frequency still slightly trails that of music and game apps, video app consumption on smartphones and tablets has been on

the rise due to improvements in mobile broadband speeds and the influx of tablets that provide a stronger video experience.

Drew Ianni founded APPNATION in April 2010 and serves as Event Chairman and CEO. Previously, he served as Programming Chairman, Senior Global Analyst, Event MC, and Chairman of North America/Asia/Australasia at Ad:tech Expositions, LLC. Ianni was President & CEO of atmosphere.BBDO and served on the Board of Directors of BBDO North America. Prior to BBDO, he worked as a sell-side equity research analyst (interactive services) at prominent boutique investment bank Lazard, Freres & Co. LLC. He came to Wall Street from Jupiter Communications (now a unit of Forrester Research), where he was an online advertising analyst and later regional research director for the Asia Pacific region.

Ross has more than 16 years of experience analyzing consumer technologies. Prior to founding Reticle Research, he was executive director and principal analyst at The NPD Group. Prior to NPD, Ross founded and developed the consumer access and technology service at Jupiter Research, where he served as VP and chief research fellow. Ross shares commentary on the industry at Techspressive. He is also a senior columnist for Engadget, and has appeared in TechCrunch, CNET, ABCNews.com, The Today Show, CNN, CNBC and Fox News. He has contributed to 13 books and written over 500 articles on computing and communications technologies.

A seasoned entrepreneur and leading expert in mobile data collection and innovation, Paradigm Sample CEO Sima Vasa has deep and longstanding experience building and growing market-research businesses. In 2009 she co-founded Paradigm Sample. Prior to founding Paradigm Sample, Vasa was a Senior Partner at Momentum Market Intelligence, President of NPD Techworld at the NPD Group, and VP of the technology division at NPD. Before joining NPD, Vasa was the Program Manager of the IBM Market Intelligence Group who was responsible for all research related to PC servers.

http://www.appnationresearch.com/