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BizReport : Mobile Marketing : May 01, 2009

Compete: Smartphone users pay bank for apps

If you're looking for the best way to engage the mobile audience it may not be simply in advertising but in app-vertising. According to new research from Compete, smartphone users are rapidly increasing the number of apps purchased for their phones.

by Kristina Knight

Researchers found that 86% of iPhone owners have made at least one app purchase of up to $10 and 83% have purchased and downloaded at least six apps. Overall, nearly one quarter of smartphone users are spending between $10 and $50 for individual apps.

Which apps are most likely to garner attention? For iPhone users Weather (39%) and Facebook (25%) apps are most likely to be purchased, downloaded and used often. iPhone users are also likely to be engaged by the music app Shazam. For general smartphone users Games (20%) are most likely to be uses.

Although iPhone users are spending more on apps, smartphone users say they are willing to buy apps if the apps are important to them. More than 40% report they don't have a need for the apps currently available, 33% reported not wanting to spend money on apps but only 13% reported not knowing how to use apps.

For smartphone users the breaking point in price for an app seems to be about $10; for iPhone users the breaking point is around $50. Both iPhone and smartphone users seem most interested in apps costing between $1 and $9.99.

This isn't to say that smartphone and iPhone users aren't engaging with mobile ads; the study indicates that apps are quickly become more important to mobile consumers.

Tags: app-vertising, Compete Inc, iPhone, mobile advertising, mobile apps, mobile marketing, smartphones

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