Growing App Market Has Vast Untapped Potential

Washington, D.C. (September 12, 2012) - The mobile app ecosystem is poised to grow significantly in the near future, according to a study released today by the Application Developers Alliance. The research, conducted by Frank N. Magid and Associates, surveyed 1,000 online consumers and found that nearly half of the U.S. online population has downloaded an app, but only one-quarter has paid for a download. The study also found that app users plan to download more apps and non-users plan to begin using apps in the future.

“Mobile apps run the gamut from educational games for children to sophisticated health tools. It’s no surprise that Americans have so eagerly embraced them,” said Jon Potter, President of the Application Developers Alliance. “This study shows that the app ecosystem is significant and diverse, but also that this is just the beginning. Apps are being discovered and downloaded by an increasing number of people every day.”

The study found that 62% of the U.S. online population owned app-capable devices. 74% of those device owners use mobile apps, but only a quarter has paid for an app. Overall, nearly half of the U.S. online population is using apps. One-third of app users plan to use apps more often and one-third of non-app users say they are likely to begin to start using apps in the next six months.

Survey respondents also reported that apps allow them to enjoy a better mobile experience: 47 percent said they download apps because they’re easier to use than a mobile browser, 46 percent do so because apps are the most entertaining way to use their mobile device, and 44 percent said they are the fastest way to get information when using their mobile device.

“Apps allow mobile device users to do more with the technology at their fingertips,” said Josh Hartwell, Board Member and CEO of Mobile Deluxe. “We’ve barely begun to scratch the surface of what we can accomplish with this nascent and growing industry.”

Respondents to the survey who do not currently use apps cited cost, general satisfaction with the mobile browser experience, and not knowing how to find or download an app. Among non-app users, entertainment and productivity apps were the most desired.

Among app users, however, satisfaction remains high, enhanced by the availability of upgrades; 57 percent of users place great value on app upgrades, while 46 percent feel that apps are continually improving and look forward to new updates.

The study also found that consumers are satisfied with their app store experiences, with Google Play, iTunes, the Amazon App Store, and others ranked relatively close in consumer satisfaction.

About the Application Developers Alliance

The Application Developers Alliance is an industry association dedicated to meeting the unique needs of application developers. Alliance members include more than 8,000 individual application developers and dozens of companies, investors, and stakeholders in the apps ecosystem.

About Frank N. Magid Associates, Inc.

Frank N. Magid Associates, Inc. has been studying the evolving media landscape and its impact on consumer behavior for 55 years. We boast extensive cable and broadcast television, online video and mobile practices, and work with leading broadcast and cable networks, MSOs, television manufacturers, video, online and mobile content providers, mobile device manufacturers and carriers. We bring these insights and unique perspective to our survey development, analysis, and reporting.