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Perspectives on the Phenomenon apps get real

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What's different about mobile apps this time around? Are they here to stay? gravitytank, an innovation and growth consultancy based in Chicago, recently completed a comprehensive study on mobile apps - those bite-sized applications on smartphones that are changing how we interact with software, our phones, big brands, our health, and much more. This overview presentation explores how our perceptions about apps evolved over the course of the study -- from fun games to valuable tools that have a potentially profound impact on unexpected industries -- and delivers the quantitative proof that apps are a powerful force in software and consumer behavior. Also included is an app-user segmentation model created specifically as a result of this study. For a compelling romp through the ethnos and data, check out our 4-minute documentary made from 20+ consumers and 20+ app developers who were integral to the stud: www.gravitytank.com/apps. Find more at gravitytank.com/apps or call gravitytank at 773-620-4830.

TRANSCRIPT

Page 1: gravitytank // Apps Get Real Presentation

Perspectives on the Phenomenon

appsget real

Page 2: gravitytank // Apps Get Real Presentation

B L A C K B E R R Y S T O R M

35%of app phone users say “Having apps on my phone has changed my life.”

“My life has definitely changed since I started using apps. If I didn’t have this thing, I could not be doing what I’m doing simultaneously

[writing a cocktail book, managing a restaurant, and starting a liquor company]. There’s just no way. It would be impossible.” —Adam

Page 3: gravitytank // Apps Get Real Presentation

“When the iPhone launched, it was a $500 piece of crap. Now, with apps, it’s a mini-computer.” —Ryan

54%say apps have changed how they think about their phone

A P P L Ei P H O N E

Page 4: gravitytank // Apps Get Real Presentation

G O O G L E G 1

“OK, now that’s really cool. [re ShopSavvy app, using bar codes to search for products in stores]. In fact, if that’s all it did,

I would’ve gotten the phone.” —Dr. Larry

67%report that the ability to download apps and games drove them to buy their phone

Page 5: gravitytank // Apps Get Real Presentation

SECTION 1 // Introduction

5 // apps get real // © 2009 gravitytank

And then there were apps

How are apps different this time?

Who uses apps and why?

How do they buy, use, and shop for apps?

Are apps a fad or something more?

Page 6: gravitytank // Apps Get Real Presentation

SECTION 1 // Introduction

“We have almost 20 years of experience with mobile applications for the phone, but apart from the viral spread of texting in the U.S., and companies like DoCoMo in Japan, the business model for apps was flawed, the handsets were flawed, the networks were too slow, and the carriers didn’t see the real market for it.” —Trip, app developer

“Comparing Palm apps to iPhone apps is like comparing Space Invaders to games on a Wii.”—Chris, iPhone user

These apps are not like those apps

Page 7: gravitytank // Apps Get Real Presentation

SECTION 1 // Introduction

7 // apps get real // © 2009 gravitytank

These apps are not programs of the PC variety

more game likemore ‘synthesized’more instant

Page 8: gravitytank // Apps Get Real Presentation

SECTION 1 // Introduction

These apps are not the mobile web

“In a webpage you are subjecting yourself to your web browsers whims. If you’re trying to do more than one thing at once, it doesn’t work. Web apps don’t do things well.”—Josh

Page 9: gravitytank // Apps Get Real Presentation

SECTION 1 // Introduction

9 // apps get real // © 2009 gravitytank

GEN 1Phonecirca 1983

GEN 3aPP-Phonecirca 2008

GEN 2SmartPhonecirca 2001

talk talkemailcalendar

talkemailcalendar

THe THird generATion of mobile

+ grocery list+ game machine+ white board+ bank teller+ flashlight+ light sabre+ anatomy text+ exercise coach+ travel guide+ web browser+ alarm clock+ magic flute+ weather check-

new & improved

app-phone

new & improved

app-phone

These phones are not smartphones

Page 10: gravitytank // Apps Get Real Presentation

...It’s sort of like record companies making the transition away from se

lling

viny

l.”

—Alex, dev

elop

er

“You can now think differ-ently about creating soft-ware, because the licensing and distribution problems are now off your plate...

To understand these apps, think music

Page 11: gravitytank // Apps Get Real Presentation

SECTION 1 // Introduction

11 // apps get real // © 2009 gravitytank

appsfuturewhousesappsappslife cycle

apps,inc.lifewithapps

Today we’ll take a look at

Page 12: gravitytank // Apps Get Real Presentation

SECTION 1 // Introduction

12 // apps get real // © 2009 gravitytank

About our methodologyEach section of this report integrates primary-source research collected by gravitytank as part of our effort to develop a robust and multidimensional portrait of apps, app users and app developers. These sources include:

ethnograPhic reSearchgravitytank conducted 20 in-depth interviews with heavy app users in San Francisco and Chicago during March and April of 2009.

DeveloPer interviewSWe conducted 20 interviews with app coders.

Quantitative SurveyFinally, gravitytank fielded two online surveys to a total of more than 1,000 smartphone users in April and May of 2009.

MYSPACE

Page 13: gravitytank // Apps Get Real Presentation

viDeocan be founD at

www.gravitytank.com/aPPS

Page 14: gravitytank // Apps Get Real Presentation

whousesapps

SECTION 2

Page 15: gravitytank // Apps Get Real Presentation

SECTION 2 // who uses apps

15 // apps get real // © 2009 gravitytank

RC

LO

recenT converTs Recent converts are new smartphone users who experiment with apps. They think apps are fun and nice to have on a phone, but they don’t see apps as game-changers.

CEconsTAnTly enTerTAined The constantly entertained use their phones primarily for social and media purposes. They are younger, predominately male, and seem to have a deep-rooted fear of boredom.

life opTimizers Optimizers see their phones as digital extensions of their brains. They use them to manage their busy lives and to improve their ability to make the most out of the opportunities each day presents.

36%

20%

44%

iPhone and G1

Page 16: gravitytank // Apps Get Real Presentation

SECTION 2 // who uses apps

16 // apps get real // © 2009 gravitytank

Bberry/WinMo

RCrecenT converTs Recent converts are new smartphone users who experiment with apps. They think apps are fun and nice to have on a phone, but they don’t see apps as game-changers.

CEconsTAnTly enTerTAined The constantly entertained use their phones primarily for social and media purposes. They are younger, predominately male, and seem to have a deep-rooted fear of boredom.

Bberry/WinMo

iPhone/G1 Bberry/WinMo

27%

30%

43%

LOlife opTimizers Optimizers see their phones as digital extensions of their brains. They use them to manage their busy lives and to improve their ability to make the most out of the opportunities each day presents.

Page 17: gravitytank // Apps Get Real Presentation

SECTION 2 // who uses apps

17 // apps get real // © 2009 gravitytank

> recenT converTs

Melissa• My motto

“If it’s easy, I’ll try it.”• My phone

is fun and makes life easier.• Apps are

a great plus but a bit overwhelming.

“It’s fun to use apps. Grocery iQ totally makes shopping more fun, and keeps me so organized.”

PHONE OWNERSHIP

RECENT CONVERTSRC

APP ENGAGEMENT

CE = Constantly Entertained LO = Life Optimizers

This is my first smartphone

55% /45%LO

38% /62%CE

...Use apps every day72%...Number of apps currently on phone 20 ...New apps added last month 8

80% (LO), 83% (CE) 28% (LO), 21% (CE) 11% (LO), 14% (CE)...Dollars spent on apps last month

$2.80 ...Have never paid for an app 40%

$4.50 (LO), $7.10 (CE) 26% (LO), 21% (CE)

NOT VERYtech focused

76%

I use apps...

only 22% “like to have the latest and best technology”

I’ve hadothers in the past

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

786262574837353330272725252323202017152

MOST POPULAR APPS (penetration %)

GAMES

SOCIAL NETWORKING

WEATHER

ENTERTAINMENT

MUSIC

UTILITIES

HEALTHCARE & FITNESS

NEWS

REFERENCE

PHOTOGRAPHY

SPORTS

LIFESTYLE

NAVIGATION

PRODUCTIVITY

TRAVEL

MEDICAL

FINANCE

BOOKS

EDUCATION

OTHER

(80*)

(58)

(68)

(58)

(63)

(38)

(28)

(47)

(32)

(36)

(35)

(27)

(41)

(33)

(29)

(28)

(32)

(22)

(22)

(2)

19%

51%

66%LO

73%CE

24%CE

3%LO

3%CE

30%LO

TOP 5 REASONS FOR DOWNLOADING APPS

It’s new and I’m curious about what it does (32%)

It was recommended by a friend who uses it (40%)

It seems like a fun and entertaining escape (45%)

It makes my life easier in some way (53%)

It was free(57%*)77%

57%

53%

47%

42%

2

1

3

4

5

APP OPINIONS

(23%*)Apps are overwhelming — there are just too many of them

63%

(28%)Apps are like candy — a fun treat with little nutritional value

52%

(50%)Apps help me get more done and keep organized

25%

(37%)I’m sure there are better apps, but I don’t know what they are

63%

(40%)I can’t imagine using a phone without apps

10%

(54%)Apps have changed how I think about my phone

30%

24%

WHOARE

THEY?

30%

36AVERAGE

AGE

65%FEMALE

55%MARRIED

42%HAVE KIDSat home

48%COLLEGE GRAD

or higher

* versus total all app-phone users (iPhone and G1)

Page 18: gravitytank // Apps Get Real Presentation

SECTION 2 // who uses apps

18 // apps get real // © 2009 gravitytank

PHONE OWNERSHIP

RECENT CONVERTSRC

APP ENGAGEMENT

CE = Constantly Entertained LO = Life Optimizers

This is my first smartphone

55% /45%LO

38% /62%CE

...Use apps every day72%...Number of apps currently on phone 20 ...New apps added last month 8

80% (LO), 83% (CE) 28% (LO), 21% (CE) 11% (LO), 14% (CE)...Dollars spent on apps last month

$2.80 ...Have never paid for an app 40%

$4.50 (LO), $7.10 (CE) 26% (LO), 21% (CE)

NOT VERYtech focused

76%

I use apps...

only 22% “like to have the latest and best technology”

I’ve hadothers in the past

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

786262574837353330272725252323202017152

MOST POPULAR APPS (penetration %)

GAMES

SOCIAL NETWORKING

WEATHER

ENTERTAINMENT

MUSIC

UTILITIES

HEALTHCARE & FITNESS

NEWS

REFERENCE

PHOTOGRAPHY

SPORTS

LIFESTYLE

NAVIGATION

PRODUCTIVITY

TRAVEL

MEDICAL

FINANCE

BOOKS

EDUCATION

OTHER

(80*)

(58)

(68)

(58)

(63)

(38)

(28)

(47)

(32)

(36)

(35)

(27)

(41)

(33)

(29)

(28)

(32)

(22)

(22)

(2)

19%

51%

66%LO

73%CE

24%CE

3%LO

3%CE

30%LO

TOP 5 REASONS FOR DOWNLOADING APPS

It’s new and I’m curious about what it does (32%)

It was recommended by a friend who uses it (40%)

It seems like a fun and entertaining escape (45%)

It makes my life easier in some way (53%)

It was free(57%*)77%

57%

53%

47%

42%

2

1

3

4

5

APP OPINIONS

(23%*)Apps are overwhelming — there are just too many of them

63%

(28%)Apps are like candy — a fun treat with little nutritional value

52%

(50%)Apps help me get more done and keep organized

25%

(37%)I’m sure there are better apps, but I don’t know what they are

63%

(40%)I can’t imagine using a phone without apps

10%

(54%)Apps have changed how I think about my phone

30%

24%

WHOARE

THEY?

30%

36AVERAGE

AGE

65%FEMALE

55%MARRIED

42%HAVE KIDSat home

48%COLLEGE GRAD

or higher

* versus total all app-phone users (iPhone and G1)

PHONE OWNERSHIP

RECENT CONVERTSRC

APP ENGAGEMENT

CE = Constantly Entertained LO = Life Optimizers

This is my first smartphone

55% /45%LO

38% /62%CE

...Use apps every day72%...Number of apps currently on phone 20 ...New apps added last month 8

80% (LO), 83% (CE) 28% (LO), 21% (CE) 11% (LO), 14% (CE)...Dollars spent on apps last month

$2.80 ...Have never paid for an app 40%

$4.50 (LO), $7.10 (CE) 26% (LO), 21% (CE)

NOT VERYtech focused

76%

I use apps...

only 22% “like to have the latest and best technology”

I’ve hadothers in the past

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

786262574837353330272725252323202017152

MOST POPULAR APPS (penetration %)

GAMES

SOCIAL NETWORKING

WEATHER

ENTERTAINMENT

MUSIC

UTILITIES

HEALTHCARE & FITNESS

NEWS

REFERENCE

PHOTOGRAPHY

SPORTS

LIFESTYLE

NAVIGATION

PRODUCTIVITY

TRAVEL

MEDICAL

FINANCE

BOOKS

EDUCATION

OTHER

(80*)

(58)

(68)

(58)

(63)

(38)

(28)

(47)

(32)

(36)

(35)

(27)

(41)

(33)

(29)

(28)

(32)

(22)

(22)

(2)

19%

51%

66%LO

73%CE

24%CE

3%LO

3%CE

30%LO

TOP 5 REASONS FOR DOWNLOADING APPS

It’s new and I’m curious about what it does (32%)

It was recommended by a friend who uses it (40%)

It seems like a fun and entertaining escape (45%)

It makes my life easier in some way (53%)

It was free(57%*)77%

57%

53%

47%

42%

2

1

3

4

5

APP OPINIONS

(23%*)Apps are overwhelming — there are just too many of them

63%

(28%)Apps are like candy — a fun treat with little nutritional value

52%

(50%)Apps help me get more done and keep organized

25%

(37%)I’m sure there are better apps, but I don’t know what they are

63%

(40%)I can’t imagine using a phone without apps

10%

(54%)Apps have changed how I think about my phone

30%

24%

WHOARE

THEY?

30%

36AVERAGE

AGE

65%FEMALE

55%MARRIED

42%HAVE KIDSat home

48%COLLEGE GRAD

or higher

* versus total all app-phone users (iPhone and G1)

Page 19: gravitytank // Apps Get Real Presentation

SECTION 2 // who uses apps

19 // apps get real // © 2009 gravitytank

PHONE OWNERSHIP

RECENT CONVERTSRC

APP ENGAGEMENT

CE = Constantly Entertained LO = Life Optimizers

This is my first smartphone

55% /45%LO

38% /62%CE

...Use apps every day72%...Number of apps currently on phone 20 ...New apps added last month 8

80% (LO), 83% (CE) 28% (LO), 21% (CE) 11% (LO), 14% (CE)...Dollars spent on apps last month

$2.80 ...Have never paid for an app 40%

$4.50 (LO), $7.10 (CE) 26% (LO), 21% (CE)

NOT VERYtech focused

76%

I use apps...

only 22% “like to have the latest and best technology”

I’ve hadothers in the past

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

786262574837353330272725252323202017152

MOST POPULAR APPS (penetration %)

GAMES

SOCIAL NETWORKING

WEATHER

ENTERTAINMENT

MUSIC

UTILITIES

HEALTHCARE & FITNESS

NEWS

REFERENCE

PHOTOGRAPHY

SPORTS

LIFESTYLE

NAVIGATION

PRODUCTIVITY

TRAVEL

MEDICAL

FINANCE

BOOKS

EDUCATION

OTHER

(80*)

(58)

(68)

(58)

(63)

(38)

(28)

(47)

(32)

(36)

(35)

(27)

(41)

(33)

(29)

(28)

(32)

(22)

(22)

(2)

19%

51%

66%LO

73%CE

24%CE

3%LO

3%CE

30%LO

TOP 5 REASONS FOR DOWNLOADING APPS

It’s new and I’m curious about what it does (32%)

It was recommended by a friend who uses it (40%)

It seems like a fun and entertaining escape (45%)

It makes my life easier in some way (53%)

It was free(57%*)77%

57%

53%

47%

42%

2

1

3

4

5

APP OPINIONS

(23%*)Apps are overwhelming — there are just too many of them

63%

(28%)Apps are like candy — a fun treat with little nutritional value

52%

(50%)Apps help me get more done and keep organized

25%

(37%)I’m sure there are better apps, but I don’t know what they are

63%

(40%)I can’t imagine using a phone without apps

10%

(54%)Apps have changed how I think about my phone

30%

24%

WHOARE

THEY?

30%

36AVERAGE

AGE

65%FEMALE

55%MARRIED

42%HAVE KIDSat home

48%COLLEGE GRAD

or higher

* versus total all app-phone users (iPhone and G1)

PHONE OWNERSHIP

RECENT CONVERTSRC

APP ENGAGEMENT

CE = Constantly Entertained LO = Life Optimizers

This is my first smartphone

55% /45%LO

38% /62%CE

...Use apps every day72%...Number of apps currently on phone 20 ...New apps added last month 8

80% (LO), 83% (CE) 28% (LO), 21% (CE) 11% (LO), 14% (CE)...Dollars spent on apps last month

$2.80 ...Have never paid for an app 40%

$4.50 (LO), $7.10 (CE) 26% (LO), 21% (CE)

NOT VERYtech focused

76%

I use apps...

only 22% “like to have the latest and best technology”

I’ve hadothers in the past

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

786262574837353330272725252323202017152

MOST POPULAR APPS (penetration %)

GAMES

SOCIAL NETWORKING

WEATHER

ENTERTAINMENT

MUSIC

UTILITIES

HEALTHCARE & FITNESS

NEWS

REFERENCE

PHOTOGRAPHY

SPORTS

LIFESTYLE

NAVIGATION

PRODUCTIVITY

TRAVEL

MEDICAL

FINANCE

BOOKS

EDUCATION

OTHER

(80*)

(58)

(68)

(58)

(63)

(38)

(28)

(47)

(32)

(36)

(35)

(27)

(41)

(33)

(29)

(28)

(32)

(22)

(22)

(2)

19%

51%

66%LO

73%CE

24%CE

3%LO

3%CE

30%LO

TOP 5 REASONS FOR DOWNLOADING APPS

It’s new and I’m curious about what it does (32%)

It was recommended by a friend who uses it (40%)

It seems like a fun and entertaining escape (45%)

It makes my life easier in some way (53%)

It was free(57%*)77%

57%

53%

47%

42%

2

1

3

4

5

APP OPINIONS

(23%*)Apps are overwhelming — there are just too many of them

63%

(28%)Apps are like candy — a fun treat with little nutritional value

52%

(50%)Apps help me get more done and keep organized

25%

(37%)I’m sure there are better apps, but I don’t know what they are

63%

(40%)I can’t imagine using a phone without apps

10%

(54%)Apps have changed how I think about my phone

30%

24%

WHOARE

THEY?

30%

36AVERAGE

AGE

65%FEMALE

55%MARRIED

42%HAVE KIDSat home

48%COLLEGE GRAD

or higher

* versus total all app-phone users (iPhone and G1)

PHONE OWNERSHIP

RECENT CONVERTSRC

APP ENGAGEMENT

CE = Constantly Entertained LO = Life Optimizers

This is my first smartphone

55% /45%LO

38% /62%CE

...Use apps every day72%...Number of apps currently on phone 20 ...New apps added last month 8

80% (LO), 83% (CE) 28% (LO), 21% (CE) 11% (LO), 14% (CE)...Dollars spent on apps last month

$2.80 ...Have never paid for an app 40%

$4.50 (LO), $7.10 (CE) 26% (LO), 21% (CE)

NOT VERYtech focused

76%

I use apps...

only 22% “like to have the latest and best technology”

I’ve hadothers in the past

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

786262574837353330272725252323202017152

MOST POPULAR APPS (penetration %)

GAMES

SOCIAL NETWORKING

WEATHER

ENTERTAINMENT

MUSIC

UTILITIES

HEALTHCARE & FITNESS

NEWS

REFERENCE

PHOTOGRAPHY

SPORTS

LIFESTYLE

NAVIGATION

PRODUCTIVITY

TRAVEL

MEDICAL

FINANCE

BOOKS

EDUCATION

OTHER

(80*)

(58)

(68)

(58)

(63)

(38)

(28)

(47)

(32)

(36)

(35)

(27)

(41)

(33)

(29)

(28)

(32)

(22)

(22)

(2)

19%

51%

66%LO

73%CE

24%CE

3%LO

3%CE

30%LO

TOP 5 REASONS FOR DOWNLOADING APPS

It’s new and I’m curious about what it does (32%)

It was recommended by a friend who uses it (40%)

It seems like a fun and entertaining escape (45%)

It makes my life easier in some way (53%)

It was free(57%*)77%

57%

53%

47%

42%

2

1

3

4

5

APP OPINIONS

(23%*)Apps are overwhelming — there are just too many of them

63%

(28%)Apps are like candy — a fun treat with little nutritional value

52%

(50%)Apps help me get more done and keep organized

25%

(37%)I’m sure there are better apps, but I don’t know what they are

63%

(40%)I can’t imagine using a phone without apps

10%

(54%)Apps have changed how I think about my phone

30%

24%

WHOARE

THEY?

30%

36AVERAGE

AGE

65%FEMALE

55%MARRIED

42%HAVE KIDSat home

48%COLLEGE GRAD

or higher

* versus total all app-phone users (iPhone and G1)

Page 20: gravitytank // Apps Get Real Presentation

SECTION 2 // who uses apps

20 // apps get real // © 2009 gravitytank

PHONE OWNERSHIP

RECENT CONVERTSRC

APP ENGAGEMENT

CE = Constantly Entertained LO = Life Optimizers

This is my first smartphone

55% /45%LO

38% /62%CE

...Use apps every day72%...Number of apps currently on phone 20 ...New apps added last month 8

80% (LO), 83% (CE) 28% (LO), 21% (CE) 11% (LO), 14% (CE)...Dollars spent on apps last month

$2.80 ...Have never paid for an app 40%

$4.50 (LO), $7.10 (CE) 26% (LO), 21% (CE)

NOT VERYtech focused

76%

I use apps...

only 22% “like to have the latest and best technology”

I’ve hadothers in the past

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

786262574837353330272725252323202017152

MOST POPULAR APPS (penetration %)

GAMES

SOCIAL NETWORKING

WEATHER

ENTERTAINMENT

MUSIC

UTILITIES

HEALTHCARE & FITNESS

NEWS

REFERENCE

PHOTOGRAPHY

SPORTS

LIFESTYLE

NAVIGATION

PRODUCTIVITY

TRAVEL

MEDICAL

FINANCE

BOOKS

EDUCATION

OTHER

(80*)

(58)

(68)

(58)

(63)

(38)

(28)

(47)

(32)

(36)

(35)

(27)

(41)

(33)

(29)

(28)

(32)

(22)

(22)

(2)

19%

51%

66%LO

73%CE

24%CE

3%LO

3%CE

30%LO

TOP 5 REASONS FOR DOWNLOADING APPS

It’s new and I’m curious about what it does (32%)

It was recommended by a friend who uses it (40%)

It seems like a fun and entertaining escape (45%)

It makes my life easier in some way (53%)

It was free(57%*)77%

57%

53%

47%

42%

2

1

3

4

5

APP OPINIONS

(23%*)Apps are overwhelming — there are just too many of them

63%

(28%)Apps are like candy — a fun treat with little nutritional value

52%

(50%)Apps help me get more done and keep organized

25%

(37%)I’m sure there are better apps, but I don’t know what they are

63%

(40%)I can’t imagine using a phone without apps

10%

(54%)Apps have changed how I think about my phone

30%

24%

WHOARE

THEY?

30%

36AVERAGE

AGE

65%FEMALE

55%MARRIED

42%HAVE KIDSat home

48%COLLEGE GRAD

or higher

* versus total all app-phone users (iPhone and G1)

PHONE OWNERSHIP

RECENT CONVERTSRC

APP ENGAGEMENT

CE = Constantly Entertained LO = Life Optimizers

This is my first smartphone

55% /45%LO

38% /62%CE

...Use apps every day72%...Number of apps currently on phone 20 ...New apps added last month 8

80% (LO), 83% (CE) 28% (LO), 21% (CE) 11% (LO), 14% (CE)...Dollars spent on apps last month

$2.80 ...Have never paid for an app 40%

$4.50 (LO), $7.10 (CE) 26% (LO), 21% (CE)

NOT VERYtech focused

76%

I use apps...

only 22% “like to have the latest and best technology”

I’ve hadothers in the past

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

786262574837353330272725252323202017152

MOST POPULAR APPS (penetration %)

GAMES

SOCIAL NETWORKING

WEATHER

ENTERTAINMENT

MUSIC

UTILITIES

HEALTHCARE & FITNESS

NEWS

REFERENCE

PHOTOGRAPHY

SPORTS

LIFESTYLE

NAVIGATION

PRODUCTIVITY

TRAVEL

MEDICAL

FINANCE

BOOKS

EDUCATION

OTHER

(80*)

(58)

(68)

(58)

(63)

(38)

(28)

(47)

(32)

(36)

(35)

(27)

(41)

(33)

(29)

(28)

(32)

(22)

(22)

(2)

19%

51%

66%LO

73%CE

24%CE

3%LO

3%CE

30%LO

TOP 5 REASONS FOR DOWNLOADING APPS

It’s new and I’m curious about what it does (32%)

It was recommended by a friend who uses it (40%)

It seems like a fun and entertaining escape (45%)

It makes my life easier in some way (53%)

It was free(57%*)77%

57%

53%

47%

42%

2

1

3

4

5

APP OPINIONS

(23%*)Apps are overwhelming — there are just too many of them

63%

(28%)Apps are like candy — a fun treat with little nutritional value

52%

(50%)Apps help me get more done and keep organized

25%

(37%)I’m sure there are better apps, but I don’t know what they are

63%

(40%)I can’t imagine using a phone without apps

10%

(54%)Apps have changed how I think about my phone

30%

24%

WHOARE

THEY?

30%

36AVERAGE

AGE

65%FEMALE

55%MARRIED

42%HAVE KIDSat home

48%COLLEGE GRAD

or higher

* versus total all app-phone users (iPhone and G1)

$2.80 Dollars spent on apps last month

$4.50 (LO) $7.10 (CE)

40% Have never paid for an app

26% (LO) 21% (CE)

72% Use apps every day

80% (LO)83% (CE)

20 Number of apps currently on phone

28% (LO)21% (CE)

8 New apps added last month

11% (LO)14% (CE)

Page 21: gravitytank // Apps Get Real Presentation

SECTION 2 // who uses apps

21 // apps get real // © 2009 gravitytank

> consTAnTly enTerTAined

Josh• My motto

Boredom is to be avoided at all cost.”• My phone

gives me instant access to entertainment.

• Apps are the latest way to feed my addiction.

“I can’t remember what I did before the iPhone. Nothing. I did nothing.”

PHONE OWNERSHIP

CONSTANTLY ENTERTAINEDCE

APP ENGAGEMENT

RC = Recent Converts LO = Life Optimizers

This is my first smartphone

76% /24%RC

55% /45%LO

TECHJUNKIES

I use apps...

59% “like to have the latest and best technology”

I’ve hadothers in the past

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

806460585545414136292927272623222220121

MOST POPULAR APPS (penetration %)

GAMES

MUSIC

WEATHER

ENTERTAINMENT

SOCIAL NETWORKING

NAVIGATION

PHOTOGRAPHY

NEWS

SPORTS

UTILITIES

FINANCE

EDUCATION

TRAVEL

REFERENCE

BOOKS

LIFESTYLE

PRODUCTIVITY

HEALTH & FITNESS

MEDICAL

OTHER

(80*)

(63)

(68)

(58)

(58)

(41)

(36)

(47)

(35)

(38)

(32)

(22)

(29)

(32)

(22)

(27)

(33)

(28)

(18)

(2)

3% 30%RC

51%RC

66%LO

3%LO

19%RC

30%LO

* versus total all app-phone users (iPhone and G1)

TOP 5 REASONS FOR DOWNLOADING APPS

It makes my life easier in some way (53%)

It makes my phone look cool (17%)

It was recommended by a friend who uses it (40%)

It was free (57%)

It seems like a fun and entertaining escape (45%*)54%

47%

39%

36%

35%

2

1

3

4

5

APP OPINIONS

(41%*)I like talking about apps with friends

55%

(50%)Apps help me get more done and keep organized

40%

(37%)I’m sure there are better apps, but I don’t know what they are

27%

(23%)Apps are overwhelming — there are just too many of them

14%

WHOARE

THEY?

28AVERAGE

AGE

68%MALE

42%MARRIED

67%HAVE KIDS

at home

40%COLLEGE GRAD

or higher

24%

73%

62%

38%

...Use apps every day 80%...Number of apps currently on phone 21 ...New apps added last month 14

72% (RC), 83% (LO) 20% (RC), 28% (LO) 8% (RC), 11% (LO)...Dollars spent on apps last month

$7.10 ...Have never paid for an app 21%

$2.80 (RC), $4.50(LO) 40% (RC), 26% (LO)

Page 22: gravitytank // Apps Get Real Presentation

SECTION 2 // who uses apps

22 // apps get real // © 2009 gravitytank

PHONE OWNERSHIP

CONSTANTLY ENTERTAINEDCE

APP ENGAGEMENT

RC = Recent Converts LO = Life Optimizers

This is my first smartphone

76% /24%RC

55% /45%LO

TECHJUNKIES

I use apps...

59% “like to have the latest and best technology”

I’ve hadothers in the past

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

806460585545414136292927272623222220121

MOST POPULAR APPS (penetration %)

GAMES

MUSIC

WEATHER

ENTERTAINMENT

SOCIAL NETWORKING

NAVIGATION

PHOTOGRAPHY

NEWS

SPORTS

UTILITIES

FINANCE

EDUCATION

TRAVEL

REFERENCE

BOOKS

LIFESTYLE

PRODUCTIVITY

HEALTH & FITNESS

MEDICAL

OTHER

(80*)

(63)

(68)

(58)

(58)

(41)

(36)

(47)

(35)

(38)

(32)

(22)

(29)

(32)

(22)

(27)

(33)

(28)

(18)

(2)

3% 30%RC

51%RC

66%LO

3%LO

19%RC

30%LO

* versus total all app-phone users (iPhone and G1)

TOP 5 REASONS FOR DOWNLOADING APPS

It makes my life easier in some way (53%)

It makes my phone look cool (17%)

It was recommended by a friend who uses it (40%)

It was free (57%)

It seems like a fun and entertaining escape (45%*)54%

47%

39%

36%

35%

2

1

3

4

5

APP OPINIONS

(41%*)I like talking about apps with friends

55%

(50%)Apps help me get more done and keep organized

40%

(37%)I’m sure there are better apps, but I don’t know what they are

27%

(23%)Apps are overwhelming — there are just too many of them

14%

WHOARE

THEY?

28AVERAGE

AGE

68%MALE

42%MARRIED

67%HAVE KIDS

at home

40%COLLEGE GRAD

or higher

24%

73%

62%

38%

...Use apps every day 80%...Number of apps currently on phone 21 ...New apps added last month 14

72% (RC), 83% (LO) 20% (RC), 28% (LO) 8% (RC), 11% (LO)...Dollars spent on apps last month

$7.10 ...Have never paid for an app 21%

$2.80 (RC), $4.50(LO) 40% (RC), 26% (LO)

PHONE OWNERSHIP

CONSTANTLY ENTERTAINEDCE

APP ENGAGEMENT

RC = Recent Converts LO = Life Optimizers

This is my first smartphone

76% /24%RC

55% /45%LO

TECHJUNKIES

I use apps...

59% “like to have the latest and best technology”

I’ve hadothers in the past

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

806460585545414136292927272623222220121

MOST POPULAR APPS (penetration %)

GAMES

MUSIC

WEATHER

ENTERTAINMENT

SOCIAL NETWORKING

NAVIGATION

PHOTOGRAPHY

NEWS

SPORTS

UTILITIES

FINANCE

EDUCATION

TRAVEL

REFERENCE

BOOKS

LIFESTYLE

PRODUCTIVITY

HEALTH & FITNESS

MEDICAL

OTHER

(80*)

(63)

(68)

(58)

(58)

(41)

(36)

(47)

(35)

(38)

(32)

(22)

(29)

(32)

(22)

(27)

(33)

(28)

(18)

(2)

3% 30%RC

51%RC

66%LO

3%LO

19%RC

30%LO

* versus total all app-phone users (iPhone and G1)

TOP 5 REASONS FOR DOWNLOADING APPS

It makes my life easier in some way (53%)

It makes my phone look cool (17%)

It was recommended by a friend who uses it (40%)

It was free (57%)

It seems like a fun and entertaining escape (45%*)54%

47%

39%

36%

35%

2

1

3

4

5

APP OPINIONS

(41%*)I like talking about apps with friends

55%

(50%)Apps help me get more done and keep organized

40%

(37%)I’m sure there are better apps, but I don’t know what they are

27%

(23%)Apps are overwhelming — there are just too many of them

14%

WHOARE

THEY?

28AVERAGE

AGE

68%MALE

42%MARRIED

67%HAVE KIDS

at home

40%COLLEGE GRAD

or higher

24%

73%

62%

38%

...Use apps every day 80%...Number of apps currently on phone 21 ...New apps added last month 14

72% (RC), 83% (LO) 20% (RC), 28% (LO) 8% (RC), 11% (LO)...Dollars spent on apps last month

$7.10 ...Have never paid for an app 21%

$2.80 (RC), $4.50(LO) 40% (RC), 26% (LO)

Page 23: gravitytank // Apps Get Real Presentation

SECTION 2 // who uses apps

23 // apps get real // © 2009 gravitytank

PHONE OWNERSHIP

CONSTANTLY ENTERTAINEDCE

APP ENGAGEMENT

RC = Recent Converts LO = Life Optimizers

This is my first smartphone

76% /24%RC

55% /45%LO

TECHJUNKIES

I use apps...

59% “like to have the latest and best technology”

I’ve hadothers in the past

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

806460585545414136292927272623222220121

MOST POPULAR APPS (penetration %)

GAMES

MUSIC

WEATHER

ENTERTAINMENT

SOCIAL NETWORKING

NAVIGATION

PHOTOGRAPHY

NEWS

SPORTS

UTILITIES

FINANCE

EDUCATION

TRAVEL

REFERENCE

BOOKS

LIFESTYLE

PRODUCTIVITY

HEALTH & FITNESS

MEDICAL

OTHER

(80*)

(63)

(68)

(58)

(58)

(41)

(36)

(47)

(35)

(38)

(32)

(22)

(29)

(32)

(22)

(27)

(33)

(28)

(18)

(2)

3% 30%RC

51%RC

66%LO

3%LO

19%RC

30%LO

* versus total all app-phone users (iPhone and G1)

TOP 5 REASONS FOR DOWNLOADING APPS

It makes my life easier in some way (53%)

It makes my phone look cool (17%)

It was recommended by a friend who uses it (40%)

It was free (57%)

It seems like a fun and entertaining escape (45%*)54%

47%

39%

36%

35%

2

1

3

4

5

APP OPINIONS

(41%*)I like talking about apps with friends

55%

(50%)Apps help me get more done and keep organized

40%

(37%)I’m sure there are better apps, but I don’t know what they are

27%

(23%)Apps are overwhelming — there are just too many of them

14%

WHOARE

THEY?

28AVERAGE

AGE

68%MALE

42%MARRIED

67%HAVE KIDS

at home

40%COLLEGE GRAD

or higher

24%

73%

62%

38%

...Use apps every day 80%...Number of apps currently on phone 21 ...New apps added last month 14

72% (RC), 83% (LO) 20% (RC), 28% (LO) 8% (RC), 11% (LO)...Dollars spent on apps last month

$7.10 ...Have never paid for an app 21%

$2.80 (RC), $4.50(LO) 40% (RC), 26% (LO)

PHONE OWNERSHIP

CONSTANTLY ENTERTAINEDCE

APP ENGAGEMENT

RC = Recent Converts LO = Life Optimizers

This is my first smartphone

76% /24%RC

55% /45%LO

TECHJUNKIES

I use apps...

59% “like to have the latest and best technology”

I’ve hadothers in the past

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

806460585545414136292927272623222220121

MOST POPULAR APPS (penetration %)

GAMES

MUSIC

WEATHER

ENTERTAINMENT

SOCIAL NETWORKING

NAVIGATION

PHOTOGRAPHY

NEWS

SPORTS

UTILITIES

FINANCE

EDUCATION

TRAVEL

REFERENCE

BOOKS

LIFESTYLE

PRODUCTIVITY

HEALTH & FITNESS

MEDICAL

OTHER

(80*)

(63)

(68)

(58)

(58)

(41)

(36)

(47)

(35)

(38)

(32)

(22)

(29)

(32)

(22)

(27)

(33)

(28)

(18)

(2)

3% 30%RC

51%RC

66%LO

3%LO

19%RC

30%LO

* versus total all app-phone users (iPhone and G1)

TOP 5 REASONS FOR DOWNLOADING APPS

It makes my life easier in some way (53%)

It makes my phone look cool (17%)

It was recommended by a friend who uses it (40%)

It was free (57%)

It seems like a fun and entertaining escape (45%*)54%

47%

39%

36%

35%

2

1

3

4

5

APP OPINIONS

(41%*)I like talking about apps with friends

55%

(50%)Apps help me get more done and keep organized

40%

(37%)I’m sure there are better apps, but I don’t know what they are

27%

(23%)Apps are overwhelming — there are just too many of them

14%

WHOARE

THEY?

28AVERAGE

AGE

68%MALE

42%MARRIED

67%HAVE KIDS

at home

40%COLLEGE GRAD

or higher

24%

73%

62%

38%

...Use apps every day 80%...Number of apps currently on phone 21 ...New apps added last month 14

72% (RC), 83% (LO) 20% (RC), 28% (LO) 8% (RC), 11% (LO)...Dollars spent on apps last month

$7.10 ...Have never paid for an app 21%

$2.80 (RC), $4.50(LO) 40% (RC), 26% (LO)

PHONE OWNERSHIP

CONSTANTLY ENTERTAINEDCE

APP ENGAGEMENT

RC = Recent Converts LO = Life Optimizers

This is my first smartphone

76% /24%RC

55% /45%LO

TECHJUNKIES

I use apps...

59% “like to have the latest and best technology”

I’ve hadothers in the past

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

806460585545414136292927272623222220121

MOST POPULAR APPS (penetration %)

GAMES

MUSIC

WEATHER

ENTERTAINMENT

SOCIAL NETWORKING

NAVIGATION

PHOTOGRAPHY

NEWS

SPORTS

UTILITIES

FINANCE

EDUCATION

TRAVEL

REFERENCE

BOOKS

LIFESTYLE

PRODUCTIVITY

HEALTH & FITNESS

MEDICAL

OTHER

(80*)

(63)

(68)

(58)

(58)

(41)

(36)

(47)

(35)

(38)

(32)

(22)

(29)

(32)

(22)

(27)

(33)

(28)

(18)

(2)

3% 30%RC

51%RC

66%LO

3%LO

19%RC

30%LO

* versus total all app-phone users (iPhone and G1)

TOP 5 REASONS FOR DOWNLOADING APPS

It makes my life easier in some way (53%)

It makes my phone look cool (17%)

It was recommended by a friend who uses it (40%)

It was free (57%)

It seems like a fun and entertaining escape (45%*)54%

47%

39%

36%

35%

2

1

3

4

5

APP OPINIONS

(41%*)I like talking about apps with friends

55%

(50%)Apps help me get more done and keep organized

40%

(37%)I’m sure there are better apps, but I don’t know what they are

27%

(23%)Apps are overwhelming — there are just too many of them

14%

WHOARE

THEY?

28AVERAGE

AGE

68%MALE

42%MARRIED

67%HAVE KIDS

at home

40%COLLEGE GRAD

or higher

24%

73%

62%

38%

...Use apps every day 80%...Number of apps currently on phone 21 ...New apps added last month 14

72% (RC), 83% (LO) 20% (RC), 28% (LO) 8% (RC), 11% (LO)...Dollars spent on apps last month

$7.10 ...Have never paid for an app 21%

$2.80 (RC), $4.50(LO) 40% (RC), 26% (LO)

Page 24: gravitytank // Apps Get Real Presentation

SECTION 2 // who uses apps

24 // apps get real // © 2009 gravitytank

PHONE OWNERSHIP

CONSTANTLY ENTERTAINEDCE

APP ENGAGEMENT

RC = Recent Converts LO = Life Optimizers

This is my first smartphone

76% /24%RC

55% /45%LO

TECHJUNKIES

I use apps...

59% “like to have the latest and best technology”

I’ve hadothers in the past

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

806460585545414136292927272623222220121

MOST POPULAR APPS (penetration %)

GAMES

MUSIC

WEATHER

ENTERTAINMENT

SOCIAL NETWORKING

NAVIGATION

PHOTOGRAPHY

NEWS

SPORTS

UTILITIES

FINANCE

EDUCATION

TRAVEL

REFERENCE

BOOKS

LIFESTYLE

PRODUCTIVITY

HEALTH & FITNESS

MEDICAL

OTHER

(80*)

(63)

(68)

(58)

(58)

(41)

(36)

(47)

(35)

(38)

(32)

(22)

(29)

(32)

(22)

(27)

(33)

(28)

(18)

(2)

3% 30%RC

51%RC

66%LO

3%LO

19%RC

30%LO

* versus total all app-phone users (iPhone and G1)

TOP 5 REASONS FOR DOWNLOADING APPS

It makes my life easier in some way (53%)

It makes my phone look cool (17%)

It was recommended by a friend who uses it (40%)

It was free (57%)

It seems like a fun and entertaining escape (45%*)54%

47%

39%

36%

35%

2

1

3

4

5

APP OPINIONS

(41%*)I like talking about apps with friends

55%

(50%)Apps help me get more done and keep organized

40%

(37%)I’m sure there are better apps, but I don’t know what they are

27%

(23%)Apps are overwhelming — there are just too many of them

14%

WHOARE

THEY?

28AVERAGE

AGE

68%MALE

42%MARRIED

67%HAVE KIDS

at home

40%COLLEGE GRAD

or higher

24%

73%

62%

38%

...Use apps every day 80%...Number of apps currently on phone 21 ...New apps added last month 14

72% (RC), 83% (LO) 20% (RC), 28% (LO) 8% (RC), 11% (LO)...Dollars spent on apps last month

$7.10 ...Have never paid for an app 21%

$2.80 (RC), $4.50(LO) 40% (RC), 26% (LO)

PHONE OWNERSHIP

CONSTANTLY ENTERTAINEDCE

APP ENGAGEMENT

RC = Recent Converts LO = Life Optimizers

This is my first smartphone

76% /24%RC

55% /45%LO

TECHJUNKIES

I use apps...

59% “like to have the latest and best technology”

I’ve hadothers in the past

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

806460585545414136292927272623222220121

MOST POPULAR APPS (penetration %)

GAMES

MUSIC

WEATHER

ENTERTAINMENT

SOCIAL NETWORKING

NAVIGATION

PHOTOGRAPHY

NEWS

SPORTS

UTILITIES

FINANCE

EDUCATION

TRAVEL

REFERENCE

BOOKS

LIFESTYLE

PRODUCTIVITY

HEALTH & FITNESS

MEDICAL

OTHER

(80*)

(63)

(68)

(58)

(58)

(41)

(36)

(47)

(35)

(38)

(32)

(22)

(29)

(32)

(22)

(27)

(33)

(28)

(18)

(2)

3% 30%RC

51%RC

66%LO

3%LO

19%RC

30%LO

* versus total all app-phone users (iPhone and G1)

TOP 5 REASONS FOR DOWNLOADING APPS

It makes my life easier in some way (53%)

It makes my phone look cool (17%)

It was recommended by a friend who uses it (40%)

It was free (57%)

It seems like a fun and entertaining escape (45%*)54%

47%

39%

36%

35%

2

1

3

4

5

APP OPINIONS

(41%*)I like talking about apps with friends

55%

(50%)Apps help me get more done and keep organized

40%

(37%)I’m sure there are better apps, but I don’t know what they are

27%

(23%)Apps are overwhelming — there are just too many of them

14%

WHOARE

THEY?

28AVERAGE

AGE

68%MALE

42%MARRIED

67%HAVE KIDS

at home

40%COLLEGE GRAD

or higher

24%

73%

62%

38%

...Use apps every day 80%...Number of apps currently on phone 21 ...New apps added last month 14

72% (RC), 83% (LO) 20% (RC), 28% (LO) 8% (RC), 11% (LO)...Dollars spent on apps last month

$7.10 ...Have never paid for an app 21%

$2.80 (RC), $4.50(LO) 40% (RC), 26% (LO)

$7.10 Dollars spent on apps last month

$2.80 (RC) $4.50(LO)

21%Have never paid for an app

40% (RC) 26% (LO)

80%Use apps every day

72% (RC) 83% (LO)

21 Number of apps currently on phone

20% (RC) 28% (LO)

14 New apps added last month

8% (RC)11% (LO)

Page 25: gravitytank // Apps Get Real Presentation

SECTION 2 // who uses apps

25 // apps get real // © 2009 gravitytank

> life opTimizers

Kate• My motto

“Use every second.”• My phone

is my external brain. I can’t live without it.

• Apps help me get the most out of every second.

“I feel like my iPhone is my significant other. There’s a lot that I have to keep up with, and if I can offload some of that, and access it when I want to, that’s what works.”

I’ve hadothers in the past

I’ve hadothers in the past

LIFE OPTIMIZERSLO

APP ENGAGEMENT

RC = Recent Converts CE = Constantly Entertained

76% /24%RC

38% /62%CE

FAIRLY HIGHtech engagement

I use apps...

46% “like to have the latest and best technology”

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

828169616059514943414039343433332423184

MOST POPULAR APPS (penetration %)

WEATHER

GAMES

MUSIC

NEWS

SOCIAL NETWORKING

ENTERTAINMENT

PRODUCTIVITY

UTILITIES

NAVIGATION

FINANCE

REFERENCE

SPORTS

PHOTOGRAPHY

HEALTHCARE & FITNESS

LIFESTYLE

TRAVEL

BOOKS

MEDICAL

EDUCATION

OTHER

(68*)

(80)

(63)

(47)

(58)

(58)

(33)

(38)

(41)

(32)

(32)

(35)

(36)

(28)

(27)

(29)

(22)

(18)

(22)

(2)

3% 73%CE

30%RC

24%CE

51%RC

19%RC

3%CE

TOP 5 REASONS FOR DOWNLOADING APPS

It was recommended by a friend who uses it (40%)

It is easier to access than websites (27%)

It was free (57%)

It will make me more productive (44%)

It makes my life easier in some way (53%*)74%

72%

60%

39%

37%

2

1

3

4

5

APP OPINIONS

Apps help me get more done and keep organized

75%

(35%)Having apps on my phone has changed my life

53%

(50%)Apps are like candy — a fun treat with little nutritional value

12%

(26%)Apps are essential to being more productive in my work

45%

(54%)Apps have changed how I think about my phone

71%

WHOARE

THEY?

30%

66%

35AVERAGE

AGE

50%MALE /

FEMALE

60%MARRIED

41%HAVE KIDS

at home

53%COLLEGE GRAD

or higher

55%

45%

PHONE OWNERSHIP

...Use apps every day 83%...Number of apps currently on phone 28 ...New apps added last month 11

72% (RC), 80% (CE) 20% (RC), 21% (CE) 8% (RC), 14% (CE)...Dollars spent on apps last month

$4.50 ...Have never paid for an app 26%

$2.80 (RC), $7.10 (CE) 40% (RC), 21% (CE)

This is my first smartphone

(50%*)

* versus total all app-phone users (iPhone and G1)

Page 26: gravitytank // Apps Get Real Presentation

SECTION 2 // who uses apps

26 // apps get real // © 2009 gravitytank

I’ve hadothers in the past

I’ve hadothers in the past

LIFE OPTIMIZERSLO

APP ENGAGEMENT

RC = Recent Converts CE = Constantly Entertained

76% /24%RC

38% /62%CE

FAIRLY HIGHtech engagement

I use apps...

46% “like to have the latest and best technology”

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

828169616059514943414039343433332423184

MOST POPULAR APPS (penetration %)

WEATHER

GAMES

MUSIC

NEWS

SOCIAL NETWORKING

ENTERTAINMENT

PRODUCTIVITY

UTILITIES

NAVIGATION

FINANCE

REFERENCE

SPORTS

PHOTOGRAPHY

HEALTHCARE & FITNESS

LIFESTYLE

TRAVEL

BOOKS

MEDICAL

EDUCATION

OTHER

(68*)

(80)

(63)

(47)

(58)

(58)

(33)

(38)

(41)

(32)

(32)

(35)

(36)

(28)

(27)

(29)

(22)

(18)

(22)

(2)

3% 73%CE

30%RC

24%CE

51%RC

19%RC

3%CE

TOP 5 REASONS FOR DOWNLOADING APPS

It was recommended by a friend who uses it (40%)

It is easier to access than websites (27%)

It was free (57%)

It will make me more productive (44%)

It makes my life easier in some way (53%*)74%

72%

60%

39%

37%

2

1

3

4

5

APP OPINIONS

Apps help me get more done and keep organized

75%

(35%)Having apps on my phone has changed my life

53%

(50%)Apps are like candy — a fun treat with little nutritional value

12%

(26%)Apps are essential to being more productive in my work

45%

(54%)Apps have changed how I think about my phone

71%

WHOARE

THEY?

30%

66%

35AVERAGE

AGE

50%MALE /

FEMALE

60%MARRIED

41%HAVE KIDS

at home

53%COLLEGE GRAD

or higher

55%

45%

PHONE OWNERSHIP

...Use apps every day 83%...Number of apps currently on phone 28 ...New apps added last month 11

72% (RC), 80% (CE) 20% (RC), 21% (CE) 8% (RC), 14% (CE)...Dollars spent on apps last month

$4.50 ...Have never paid for an app 26%

$2.80 (RC), $7.10 (CE) 40% (RC), 21% (CE)

This is my first smartphone

(50%*)

* versus total all app-phone users (iPhone and G1)

I’ve hadothers in the past

I’ve hadothers in the past

LIFE OPTIMIZERSLO

APP ENGAGEMENT

RC = Recent Converts CE = Constantly Entertained

76% /24%RC

38% /62%CE

FAIRLY HIGHtech engagement

I use apps...

46% “like to have the latest and best technology”

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

828169616059514943414039343433332423184

MOST POPULAR APPS (penetration %)

WEATHER

GAMES

MUSIC

NEWS

SOCIAL NETWORKING

ENTERTAINMENT

PRODUCTIVITY

UTILITIES

NAVIGATION

FINANCE

REFERENCE

SPORTS

PHOTOGRAPHY

HEALTHCARE & FITNESS

LIFESTYLE

TRAVEL

BOOKS

MEDICAL

EDUCATION

OTHER

(68*)

(80)

(63)

(47)

(58)

(58)

(33)

(38)

(41)

(32)

(32)

(35)

(36)

(28)

(27)

(29)

(22)

(18)

(22)

(2)

3% 73%CE

30%RC

24%CE

51%RC

19%RC

3%CE

TOP 5 REASONS FOR DOWNLOADING APPS

It was recommended by a friend who uses it (40%)

It is easier to access than websites (27%)

It was free (57%)

It will make me more productive (44%)

It makes my life easier in some way (53%*)74%

72%

60%

39%

37%

2

1

3

4

5

APP OPINIONS

Apps help me get more done and keep organized

75%

(35%)Having apps on my phone has changed my life

53%

(50%)Apps are like candy — a fun treat with little nutritional value

12%

(26%)Apps are essential to being more productive in my work

45%

(54%)Apps have changed how I think about my phone

71%

WHOARE

THEY?

30%

66%

35AVERAGE

AGE

50%MALE /

FEMALE

60%MARRIED

41%HAVE KIDS

at home

53%COLLEGE GRAD

or higher

55%

45%

PHONE OWNERSHIP

...Use apps every day 83%...Number of apps currently on phone 28 ...New apps added last month 11

72% (RC), 80% (CE) 20% (RC), 21% (CE) 8% (RC), 14% (CE)...Dollars spent on apps last month

$4.50 ...Have never paid for an app 26%

$2.80 (RC), $7.10 (CE) 40% (RC), 21% (CE)

This is my first smartphone

(50%*)

* versus total all app-phone users (iPhone and G1)

Page 27: gravitytank // Apps Get Real Presentation

SECTION 2 // who uses apps

27 // apps get real // © 2009 gravitytank

I’ve hadothers in the past

I’ve hadothers in the past

LIFE OPTIMIZERSLO

APP ENGAGEMENT

RC = Recent Converts CE = Constantly Entertained

76% /24%RC

38% /62%CE

FAIRLY HIGHtech engagement

I use apps...

46% “like to have the latest and best technology”

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

828169616059514943414039343433332423184

MOST POPULAR APPS (penetration %)

WEATHER

GAMES

MUSIC

NEWS

SOCIAL NETWORKING

ENTERTAINMENT

PRODUCTIVITY

UTILITIES

NAVIGATION

FINANCE

REFERENCE

SPORTS

PHOTOGRAPHY

HEALTHCARE & FITNESS

LIFESTYLE

TRAVEL

BOOKS

MEDICAL

EDUCATION

OTHER

(68*)

(80)

(63)

(47)

(58)

(58)

(33)

(38)

(41)

(32)

(32)

(35)

(36)

(28)

(27)

(29)

(22)

(18)

(22)

(2)

3% 73%CE

30%RC

24%CE

51%RC

19%RC

3%CE

TOP 5 REASONS FOR DOWNLOADING APPS

It was recommended by a friend who uses it (40%)

It is easier to access than websites (27%)

It was free (57%)

It will make me more productive (44%)

It makes my life easier in some way (53%*)74%

72%

60%

39%

37%

2

1

3

4

5

APP OPINIONS

Apps help me get more done and keep organized

75%

(35%)Having apps on my phone has changed my life

53%

(50%)Apps are like candy — a fun treat with little nutritional value

12%

(26%)Apps are essential to being more productive in my work

45%

(54%)Apps have changed how I think about my phone

71%

WHOARE

THEY?

30%

66%

35AVERAGE

AGE

50%MALE /

FEMALE

60%MARRIED

41%HAVE KIDS

at home

53%COLLEGE GRAD

or higher

55%

45%

PHONE OWNERSHIP

...Use apps every day 83%...Number of apps currently on phone 28 ...New apps added last month 11

72% (RC), 80% (CE) 20% (RC), 21% (CE) 8% (RC), 14% (CE)...Dollars spent on apps last month

$4.50 ...Have never paid for an app 26%

$2.80 (RC), $7.10 (CE) 40% (RC), 21% (CE)

This is my first smartphone

(50%*)

* versus total all app-phone users (iPhone and G1)

I’ve hadothers in the past

I’ve hadothers in the past

LIFE OPTIMIZERSLO

APP ENGAGEMENT

RC = Recent Converts CE = Constantly Entertained

76% /24%RC

38% /62%CE

FAIRLY HIGHtech engagement

I use apps...

46% “like to have the latest and best technology”

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

828169616059514943414039343433332423184

MOST POPULAR APPS (penetration %)

WEATHER

GAMES

MUSIC

NEWS

SOCIAL NETWORKING

ENTERTAINMENT

PRODUCTIVITY

UTILITIES

NAVIGATION

FINANCE

REFERENCE

SPORTS

PHOTOGRAPHY

HEALTHCARE & FITNESS

LIFESTYLE

TRAVEL

BOOKS

MEDICAL

EDUCATION

OTHER

(68*)

(80)

(63)

(47)

(58)

(58)

(33)

(38)

(41)

(32)

(32)

(35)

(36)

(28)

(27)

(29)

(22)

(18)

(22)

(2)

3% 73%CE

30%RC

24%CE

51%RC

19%RC

3%CE

TOP 5 REASONS FOR DOWNLOADING APPS

It was recommended by a friend who uses it (40%)

It is easier to access than websites (27%)

It was free (57%)

It will make me more productive (44%)

It makes my life easier in some way (53%*)74%

72%

60%

39%

37%

2

1

3

4

5

APP OPINIONS

Apps help me get more done and keep organized

75%

(35%)Having apps on my phone has changed my life

53%

(50%)Apps are like candy — a fun treat with little nutritional value

12%

(26%)Apps are essential to being more productive in my work

45%

(54%)Apps have changed how I think about my phone

71%

WHOARE

THEY?

30%

66%

35AVERAGE

AGE

50%MALE /

FEMALE

60%MARRIED

41%HAVE KIDS

at home

53%COLLEGE GRAD

or higher

55%

45%

PHONE OWNERSHIP

...Use apps every day 83%...Number of apps currently on phone 28 ...New apps added last month 11

72% (RC), 80% (CE) 20% (RC), 21% (CE) 8% (RC), 14% (CE)...Dollars spent on apps last month

$4.50 ...Have never paid for an app 26%

$2.80 (RC), $7.10 (CE) 40% (RC), 21% (CE)

This is my first smartphone

(50%*)

* versus total all app-phone users (iPhone and G1)

I’ve hadothers in the past

I’ve hadothers in the past

LIFE OPTIMIZERSLO

APP ENGAGEMENT

RC = Recent Converts CE = Constantly Entertained

76% /24%RC

38% /62%CE

FAIRLY HIGHtech engagement

I use apps...

46% “like to have the latest and best technology”

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

828169616059514943414039343433332423184

MOST POPULAR APPS (penetration %)

WEATHER

GAMES

MUSIC

NEWS

SOCIAL NETWORKING

ENTERTAINMENT

PRODUCTIVITY

UTILITIES

NAVIGATION

FINANCE

REFERENCE

SPORTS

PHOTOGRAPHY

HEALTHCARE & FITNESS

LIFESTYLE

TRAVEL

BOOKS

MEDICAL

EDUCATION

OTHER

(68*)

(80)

(63)

(47)

(58)

(58)

(33)

(38)

(41)

(32)

(32)

(35)

(36)

(28)

(27)

(29)

(22)

(18)

(22)

(2)

3% 73%CE

30%RC

24%CE

51%RC

19%RC

3%CE

TOP 5 REASONS FOR DOWNLOADING APPS

It was recommended by a friend who uses it (40%)

It is easier to access than websites (27%)

It was free (57%)

It will make me more productive (44%)

It makes my life easier in some way (53%*)74%

72%

60%

39%

37%

2

1

3

4

5

APP OPINIONS

Apps help me get more done and keep organized

75%

(35%)Having apps on my phone has changed my life

53%

(50%)Apps are like candy — a fun treat with little nutritional value

12%

(26%)Apps are essential to being more productive in my work

45%

(54%)Apps have changed how I think about my phone

71%

WHOARE

THEY?

30%

66%

35AVERAGE

AGE

50%MALE /

FEMALE

60%MARRIED

41%HAVE KIDS

at home

53%COLLEGE GRAD

or higher

55%

45%

PHONE OWNERSHIP

...Use apps every day 83%...Number of apps currently on phone 28 ...New apps added last month 11

72% (RC), 80% (CE) 20% (RC), 21% (CE) 8% (RC), 14% (CE)...Dollars spent on apps last month

$4.50 ...Have never paid for an app 26%

$2.80 (RC), $7.10 (CE) 40% (RC), 21% (CE)

This is my first smartphone

(50%*)

* versus total all app-phone users (iPhone and G1)

Page 28: gravitytank // Apps Get Real Presentation

SECTION 2 // who uses apps

28 // apps get real // © 2009 gravitytank

I’ve hadothers in the past

I’ve hadothers in the past

LIFE OPTIMIZERSLO

APP ENGAGEMENT

RC = Recent Converts CE = Constantly Entertained

76% /24%RC

38% /62%CE

FAIRLY HIGHtech engagement

I use apps...

46% “like to have the latest and best technology”

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

828169616059514943414039343433332423184

MOST POPULAR APPS (penetration %)

WEATHER

GAMES

MUSIC

NEWS

SOCIAL NETWORKING

ENTERTAINMENT

PRODUCTIVITY

UTILITIES

NAVIGATION

FINANCE

REFERENCE

SPORTS

PHOTOGRAPHY

HEALTHCARE & FITNESS

LIFESTYLE

TRAVEL

BOOKS

MEDICAL

EDUCATION

OTHER

(68*)

(80)

(63)

(47)

(58)

(58)

(33)

(38)

(41)

(32)

(32)

(35)

(36)

(28)

(27)

(29)

(22)

(18)

(22)

(2)

3% 73%CE

30%RC

24%CE

51%RC

19%RC

3%CE

TOP 5 REASONS FOR DOWNLOADING APPS

It was recommended by a friend who uses it (40%)

It is easier to access than websites (27%)

It was free (57%)

It will make me more productive (44%)

It makes my life easier in some way (53%*)74%

72%

60%

39%

37%

2

1

3

4

5

APP OPINIONS

Apps help me get more done and keep organized

75%

(35%)Having apps on my phone has changed my life

53%

(50%)Apps are like candy — a fun treat with little nutritional value

12%

(26%)Apps are essential to being more productive in my work

45%

(54%)Apps have changed how I think about my phone

71%

WHOARE

THEY?

30%

66%

35AVERAGE

AGE

50%MALE /

FEMALE

60%MARRIED

41%HAVE KIDS

at home

53%COLLEGE GRAD

or higher

55%

45%

PHONE OWNERSHIP

...Use apps every day 83%...Number of apps currently on phone 28 ...New apps added last month 11

72% (RC), 80% (CE) 20% (RC), 21% (CE) 8% (RC), 14% (CE)...Dollars spent on apps last month

$4.50 ...Have never paid for an app 26%

$2.80 (RC), $7.10 (CE) 40% (RC), 21% (CE)

This is my first smartphone

(50%*)

* versus total all app-phone users (iPhone and G1)

I’ve hadothers in the past

I’ve hadothers in the past

LIFE OPTIMIZERSLO

APP ENGAGEMENT

RC = Recent Converts CE = Constantly Entertained

76% /24%RC

38% /62%CE

FAIRLY HIGHtech engagement

I use apps...

46% “like to have the latest and best technology”

...FREQUENTLY ...ALL THE TIME...OCCASIONALLY

THE TICKER

828169616059514943414039343433332423184

MOST POPULAR APPS (penetration %)

WEATHER

GAMES

MUSIC

NEWS

SOCIAL NETWORKING

ENTERTAINMENT

PRODUCTIVITY

UTILITIES

NAVIGATION

FINANCE

REFERENCE

SPORTS

PHOTOGRAPHY

HEALTHCARE & FITNESS

LIFESTYLE

TRAVEL

BOOKS

MEDICAL

EDUCATION

OTHER

(68*)

(80)

(63)

(47)

(58)

(58)

(33)

(38)

(41)

(32)

(32)

(35)

(36)

(28)

(27)

(29)

(22)

(18)

(22)

(2)

3% 73%CE

30%RC

24%CE

51%RC

19%RC

3%CE

TOP 5 REASONS FOR DOWNLOADING APPS

It was recommended by a friend who uses it (40%)

It is easier to access than websites (27%)

It was free (57%)

It will make me more productive (44%)

It makes my life easier in some way (53%*)74%

72%

60%

39%

37%

2

1

3

4

5

APP OPINIONS

Apps help me get more done and keep organized

75%

(35%)Having apps on my phone has changed my life

53%

(50%)Apps are like candy — a fun treat with little nutritional value

12%

(26%)Apps are essential to being more productive in my work

45%

(54%)Apps have changed how I think about my phone

71%

WHOARE

THEY?

30%

66%

35AVERAGE

AGE

50%MALE /

FEMALE

60%MARRIED

41%HAVE KIDS

at home

53%COLLEGE GRAD

or higher

55%

45%

PHONE OWNERSHIP

...Use apps every day 83%...Number of apps currently on phone 28 ...New apps added last month 11

72% (RC), 80% (CE) 20% (RC), 21% (CE) 8% (RC), 14% (CE)...Dollars spent on apps last month

$4.50 ...Have never paid for an app 26%

$2.80 (RC), $7.10 (CE) 40% (RC), 21% (CE)

This is my first smartphone

(50%*)

* versus total all app-phone users (iPhone and G1)

$4.50 Dollars spent on apps last month

$2.80 (RC) $7.10 (CE)

26%Have never paid for an app

40% (RC) 21% (CE)

83%Use apps every day

72% (RC) 80% (CE)

28 Number of apps currently on phone

20% (RC) 21% (CE)

11 New apps added last month

8% (RC)14% (CE)

Page 29: gravitytank // Apps Get Real Presentation

lifewith apps

SECTION 3

Page 30: gravitytank // Apps Get Real Presentation

SECTION 3 // life with apps

30 // apps get real // © 2009 gravitytank

...is different

35%

Of aPP PhOne useRs say

“Having apps on my phone has changed my life.”

“Apps have changed my life. I didn’t realize I could do so much on the phone: work, school, re-membering stuff, getting stuff done.”—Ryan

“It’s a life management tool.”—Heather

“I’m constantly using it. I use it to text teachers and get ahold of people in the building. And using apps that my boss wouldn’t be happy if he knew.”—Eric

“Here is my iPhone. If you get one, it will change your life.”—Melissa

“It makes you more productive, more effective, forget less.”—Greg

“I think it changed the way that I could be successful at what I was doing.”—Ashwin

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SECTION 3 // life with apps

31 // apps get real // © 2009 gravitytank

Life with apps

App-phone users report that about 40% of their phone use is on apps

Phone ≠˙ 29 interactions / day, 117minutes spent / day

a P P S ≠˙ 12 interactions / day, 55 minutes spent / day

In short bursts

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SECTION 3 // life with apps

32 // apps get real // © 2009 gravitytank

A small set of core apps

21TOTalaPPs

On aveRageOf These,

>7aRe used EvErY DAY

iPhone and G1 users

hOw many aPPs dO yOu use every Day?

24%

26%

1-2 6+

3-4 5-6

21%

29%

24%

26%

1-2 6+

3-4 5-6

21%

29%

Page 33: gravitytank // Apps Get Real Presentation

SECTION 3 // life with apps

33 // apps get real // © 2009 gravitytank

90%

80%

70%

60%

50%

40%

30%

20%

10%

10%0% 20% 30% 40% 50%

Penetration (% saying “I downloaded an app from this category on my phone”)

Frequency of use(% saying “I use them every day”)

A handful of app categories get the lion’s share of usage

Page 34: gravitytank // Apps Get Real Presentation

SECTION 3 // life with apps

34 // apps get real // © 2009 gravitytank

Life with apps% less time app users spend on other activities/devices as a result of apps

0-5-10-15-20-25

-24%

-24%

-23%

-22%

-22%

-20%

-20%

-20%

-19%

-14%

-12%

-12%

MP3 PLAYER

READING A NEWSPAPER

WATCHING T.V.

PORTABLE GAMING DEVICES

USING A COMPUTER

GAME CONSOLE

READING A BOOK

TALKING ON THE PHONE

USING GPS DEVICE

DIGITAL CAMCORDER

INTERNET TABLET

DIGITAL VIDEO RECORDER/DVR/TIVO

Page 35: gravitytank // Apps Get Real Presentation

SECTION 3 // life with apps

35 // apps get real // © 2009 gravitytank

Apps replace...

Level

Notebook

Alarm clock

Sticky notes

Anatomy Book

Baby Rattle Flashlight Stethoscope

Metronome

Page 36: gravitytank // Apps Get Real Presentation

SECTION 3 // life with apps

36 // apps get real // © 2009 gravitytank

Why?

Page 37: gravitytank // Apps Get Real Presentation

SECTION 3 // life with apps

37 // apps get real // © 2009 gravitytank

benefit 1

ENTErTAINED“I never have to be bored.”

benefit 2

PrODUCTIvE“I can get more things done anytime, anywhere.”

benefit 3

CONNECTED“I can constantly be in touch with people and info.”

63% Of aPP-PhOne useRs say“Apps keep me entertained when I’m idle.”

34%Of aPP-PhOne useRs say“Apps help me stay connected to the people and info I care about.”

50%Of aPP-PhOne useRs say“Apps help me get more done and keep organized.”

Why?

Page 38: gravitytank // Apps Get Real Presentation

SOlITAIrE

“Apps make it so much more entertaining. Just when you are bored...I was at the hospital for 2.5 hours. I was playing Solitaire and Word Search. It was just really easy. In study hall if I’m done and there’s nothing to do, it’s just really easy.”

“We had a Spanish field trip and we were watching a movie, and we played Solitaire, Word Search, and Tetris. It was cool.”

Tasia and megan keep busy

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SECTION 3 // life with apps

39 // apps get real // © 2009 gravitytank

These apps are not programs of the PC variety

EntertainedParty tricks

A hybrid between a game and a tech demo, these apps are designed to impress others by highlighting the amazing things your app phone can do.

“If I want to show people something cool about my phone, I show them Smule [Ocarina], my flute app.” —Jared, iPhone user

“These are short stories about people having bad experiences. They make you go “oh man that sucks.”—Josh, iPhone user

“It's like a $600 teething toy. We give it to our baby when she's eating to distract her while we try to shovel food in her mouth. She plays with the Knock on Wood one. It's mindless, but she likes the noise, and she can do it. —Greg

“You can connect to your iTunes library on the computer and have access to all your music. Even though this phone is only 8 gigs and I have about 100 gigs of music on my computer I can listen to whatever I want from there at work.”—Jeff

“It's a tool that allows you to draw, and you can draw straight into a canvas or you can draw on top of photo.”—Kate

“It’s a silly app. It’s a calendar, and you put in an x if you achieved whatever you wanted to achieve. I have one called Sugarless. You can check how many days you haven’t had sugar.” —Kate

“Evernote is just a good way to get your ideas out, and spill them into your InBox. It’s not perfect but it has a lot of potential.”—Ryan

“I wasn’t tracking runs before. Now I know how far I run and how long it takes me. It’s helping me run more.”—Kim

“I even use the flashlight application if I have to go into the baby's room in the middle of the night to give her Tylenol... It's perfect: I always know where my phone is; I don't always know where a random flashlight is in the house.”—Melissa

“I’ve got the stars program which would be great at night. It tells you which star clusters are there in the sky based on your location.”—Chris, app-phone user

“Facebook kind of goes with me wherever I go. I check it 5-6 times a day. Its always easy so it's always updating so that's kind of fun.”—Kim, iPhone user

“I can enter my stock portfolio in there and see everything going on. I touch a symbol and see all of the news associated with it. I find that to be a better interface than websites like fidelity.com.”—Josh, iPhone user and developer

Quick getaways

Wanna get away? These apps provide a quicker and cheaper escape than Southwest. Books, music, and games are essential quick escapes during a typical day.

Pacifiers

Apps designed to entertain the little ones. Great to have on your phone, until the little punk refuses to give it back.

Broadcast 2.0

These apps let us access and broad-cast content from remote sources, whether they be our hard drives or new broadcasting mediums.

Creators

Unleashing the creative force in all of us, these apps enable users to compose music, manipulate photos, and create flipbook animations. Their simplicity gets people started down the creative path more easily.

Life organizers

Life organization apps help people stay on top of things from the mundane — tedious lists, passwords and to dos — to the aspira-tional — exercise schedules, streaks and weight loss.

Work facilitators

These apps allow people to coordi-nate, plan and conduct supporting tasks for work whether alone or with collaborators. Includes classic organizational tools and new ones.

Active ware

From grocery shopping to exercising and traveling, these apps make any activity more productive and enjoyable. They become essential gear for previously non-mobile experi-ences. Anyone for app-style bird- watching ?

Can openers

Can openers are those incredibly useful apps that do one thing really well; you may need them only once in a while, but you're sure glad that you have them. From levels to currency converters, these apps turn phones into Swiss Army knives.

Instant genius

Reference materials give you access to a focused data set and make you instantly knowledgeable on any subject anywhere at any time. Also known as the end of all ongoing bar and dinner-table debates.

Social IV

Social apps keep us connected and communicating with our friends and co-workers. They are direct decedents of the original purpose of a phone, but they bring added functionality and capability to a mobile device.

Pulse checkers

News, finance, sport scores, weather, blogs and more — these apps provide users with an instant connection to what’s happening and what matters.

Productive Connected

Ocarina FML Simplify MediaKnock on Wood Brushes Streaks iMapMyRunEvernote Flashlight Stars StocksFacebook

EXAMPLE APP EXAMPLE APP EXAMPLE APP

BENEFIT 1 BENEFIT 2 BENEFIT 3

SEGMENTS SEGMENTS SEGMENTS

Page 40: gravitytank // Apps Get Real Presentation

GrOCErY iQ

“If there is something missing, I reference my phone app and open Grocery iQ. I have the Safeway list and [store] what should be on the juice list. I can go in and check every juice I have and then, for notes, I put the UPC code. It saves me time.”

Jared in the grocery store

Page 41: gravitytank // Apps Get Real Presentation

PICASA

“If you’re a problem solver, you want as many tools as you can get in your tool kit as you can have. Not every problem can be solved with simple tools. This provides tools that I wouldn’t normally have. The likelihood that 5-10% of apps will end up delivering is probably not that great. But even a couple percent will give me things that I couldn’t do if I didn’t have it with me.”

dr larry in the lab

Page 42: gravitytank // Apps Get Real Presentation

SECTION 3 // life with apps

42 // apps get real // © 2009 gravitytank

These apps are not programs of the PC variety

EntertainedParty tricks

A hybrid between a game and a tech demo, these apps are designed to impress others by highlighting the amazing things your app phone can do.

“If I want to show people something cool about my phone, I show them Smule [Ocarina], my flute app.” —Jared, iPhone user

“These are short stories about people having bad experiences. They make you go “oh man that sucks.”—Josh, iPhone user

“It's like a $600 teething toy. We give it to our baby when she's eating to distract her while we try to shovel food in her mouth. She plays with the Knock on Wood one. It's mindless, but she likes the noise, and she can do it. —Greg

“You can connect to your iTunes library on the computer and have access to all your music. Even though this phone is only 8 gigs and I have about 100 gigs of music on my computer I can listen to whatever I want from there at work.”—Jeff

“It's a tool that allows you to draw, and you can draw straight into a canvas or you can draw on top of photo.”—Kate

“It’s a silly app. It’s a calendar, and you put in an x if you achieved whatever you wanted to achieve. I have one called Sugarless. You can check how many days you haven’t had sugar.” —Kate

“Evernote is just a good way to get your ideas out, and spill them into your InBox. It’s not perfect but it has a lot of potential.”—Ryan

“I wasn’t tracking runs before. Now I know how far I run and how long it takes me. It’s helping me run more.”—Kim

“I even use the flashlight application if I have to go into the baby's room in the middle of the night to give her Tylenol... It's perfect: I always know where my phone is; I don't always know where a random flashlight is in the house.”—Melissa

“I’ve got the stars program which would be great at night. It tells you which star clusters are there in the sky based on your location.”—Chris, app-phone user

“Facebook kind of goes with me wherever I go. I check it 5-6 times a day. Its always easy so it's always updating so that's kind of fun.”—Kim, iPhone user

“I can enter my stock portfolio in there and see everything going on. I touch a symbol and see all of the news associated with it. I find that to be a better interface than websites like fidelity.com.”—Josh, iPhone user and developer

Quick getaways

Wanna get away? These apps provide a quicker and cheaper escape than Southwest. Books, music, and games are essential quick escapes during a typical day.

Pacifiers

Apps designed to entertain the little ones. Great to have on your phone, until the little punk refuses to give it back.

Broadcast 2.0

These apps let us access and broad-cast content from remote sources, whether they be our hard drives or new broadcasting mediums.

Creators

Unleashing the creative force in all of us, these apps enable users to compose music, manipulate photos, and create flipbook animations. Their simplicity gets people started down the creative path more easily.

Life organizers

Life organization apps help people stay on top of things from the mundane — tedious lists, passwords and to dos — to the aspira-tional — exercise schedules, streaks and weight loss.

Work facilitators

These apps allow people to coordi-nate, plan and conduct supporting tasks for work whether alone or with collaborators. Includes classic organizational tools and new ones.

Active ware

From grocery shopping to exercising and traveling, these apps make any activity more productive and enjoyable. They become essential gear for previously non-mobile experi-ences. Anyone for app-style bird- watching ?

Can openers

Can openers are those incredibly useful apps that do one thing really well; you may need them only once in a while, but you're sure glad that you have them. From levels to currency converters, these apps turn phones into Swiss Army knives.

Instant genius

Reference materials give you access to a focused data set and make you instantly knowledgeable on any subject anywhere at any time. Also known as the end of all ongoing bar and dinner-table debates.

Social IV

Social apps keep us connected and communicating with our friends and co-workers. They are direct decedents of the original purpose of a phone, but they bring added functionality and capability to a mobile device.

Pulse checkers

News, finance, sport scores, weather, blogs and more — these apps provide users with an instant connection to what’s happening and what matters.

Productive Connected

Ocarina FML Simplify MediaKnock on Wood Brushes Streaks iMapMyRunEvernote Flashlight Stars StocksFacebook

EXAMPLE APP EXAMPLE APP EXAMPLE APP

BENEFIT 1 BENEFIT 2 BENEFIT 3

SEGMENTS SEGMENTS SEGMENTS

Page 43: gravitytank // Apps Get Real Presentation

SECTION 3 // life with apps

43 // apps get real // © 2009 gravitytank

50% of aPP-Phone uSerS agree“help me get more done and stay organized.”

26% of aPP-Phone uSerS feel“apps are essential to their work productivity.”

Page 44: gravitytank // Apps Get Real Presentation

YAHOO

“I use cab time to be my time. I have Facebook on my BlackBerry, I usually update my status so mainly my parents know where I am. I check stocks. I usually use the Yahoo application. It has all my Yahoo page information. In my line of work, it’s not good to use client resources to surf the Web and do personal stuff. This is pretty nice. I downloaded it a month ago, and it allows me to do everything I need to on the PC. I use my Yahoo People as much as other people do... I check stocks, industry news, it’s all in there.”

ryan in the cab

Page 45: gravitytank // Apps Get Real Presentation

FACEBOOK

“I’m on Facebook way too much now that I have my phone. I never used to use it before. It’s quicker and easier, and it kind of goes with me wherever I go. I check it five to six times a day. It’s always easy and always updating, which makes it kind of fun. It’s maybe made me a less social person, because I know what they’re doing without talking to them.”

Kim, facebook addict

Page 46: gravitytank // Apps Get Real Presentation

EntertainedParty tricks

A hybrid between a game and a tech demo, these apps are designed to impress others by highlighting the amazing things your app phone can do.

“If I want to show people something cool about my phone, I show them Smule [Ocarina], my flute app.” —Jared, iPhone user

“These are short stories about people having bad experiences. They make you go “oh man that sucks.”—Josh, iPhone user

“It's like a $600 teething toy. We give it to our baby when she's eating to distract her while we try to shovel food in her mouth. She plays with the Knock on Wood one. It's mindless, but she likes the noise, and she can do it. —Greg

“You can connect to your iTunes library on the computer and have access to all your music. Even though this phone is only 8 gigs and I have about 100 gigs of music on my computer I can listen to whatever I want from there at work.”—Jeff

“It's a tool that allows you to draw, and you can draw straight into a canvas or you can draw on top of photo.”—Kate

“It’s a silly app. It’s a calendar, and you put in an x if you achieved whatever you wanted to achieve. I have one called Sugarless. You can check how many days you haven’t had sugar.” —Kate

“Evernote is just a good way to get your ideas out, and spill them into your InBox. It’s not perfect but it has a lot of potential.”—Ryan

“I wasn’t tracking runs before. Now I know how far I run and how long it takes me. It’s helping me run more.”—Kim

“I even use the flashlight application if I have to go into the baby's room in the middle of the night to give her Tylenol... It's perfect: I always know where my phone is; I don't always know where a random flashlight is in the house.”—Melissa

“I’ve got the stars program which would be great at night. It tells you which star clusters are there in the sky based on your location.”—Chris, app-phone user

“Facebook kind of goes with me wherever I go. I check it 5-6 times a day. Its always easy so it's always updating so that's kind of fun.”—Kim, iPhone user

“I can enter my stock portfolio in there and see everything going on. I touch a symbol and see all of the news associated with it. I find that to be a better interface than websites like fidelity.com.”—Josh, iPhone user and developer

Quick getaways

Wanna get away? These apps provide a quicker and cheaper escape than Southwest. Books, music, and games are essential quick escapes during a typical day.

Pacifiers

Apps designed to entertain the little ones. Great to have on your phone, until the little punk refuses to give it back.

Broadcast 2.0

These apps let us access and broad-cast content from remote sources, whether they be our hard drives or new broadcasting mediums.

Creators

Unleashing the creative force in all of us, these apps enable users to compose music, manipulate photos, and create flipbook animations. Their simplicity gets people started down the creative path more easily.

Life organizers

Life organization apps help people stay on top of things from the mundane — tedious lists, passwords and to dos — to the aspira-tional — exercise schedules, streaks and weight loss.

Work facilitators

These apps allow people to coordi-nate, plan and conduct supporting tasks for work whether alone or with collaborators. Includes classic organizational tools and new ones.

Active ware

From grocery shopping to exercising and traveling, these apps make any activity more productive and enjoyable. They become essential gear for previously non-mobile experi-ences. Anyone for app-style bird- watching ?

Can openers

Can openers are those incredibly useful apps that do one thing really well; you may need them only once in a while, but you're sure glad that you have them. From levels to currency converters, these apps turn phones into Swiss Army knives.

Instant genius

Reference materials give you access to a focused data set and make you instantly knowledgeable on any subject anywhere at any time. Also known as the end of all ongoing bar and dinner-table debates.

Social IV

Social apps keep us connected and communicating with our friends and co-workers. They are direct decedents of the original purpose of a phone, but they bring added functionality and capability to a mobile device.

Pulse checkers

News, finance, sport scores, weather, blogs and more — these apps provide users with an instant connection to what’s happening and what matters.

Productive Connected

Ocarina FML Simplify MediaKnock on Wood Brushes Streaks iMapMyRunEvernote Flashlight Stars StocksFacebook

EXAMPLE APP EXAMPLE APP EXAMPLE APP

BENEFIT 1 BENEFIT 2 BENEFIT 3

SEGMENTS SEGMENTS SEGMENTS

Page 47: gravitytank // Apps Get Real Presentation

appslife cycle

SECTION 4

Page 48: gravitytank // Apps Get Real Presentation

SECTION 4 // apps lifecycle

48 // apps get real // © 2009 gravitytank

Consumer Shift

THENAuTo repAir

NOWsHopping

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SECTION 4 // apps lifecycle

49 // apps get real // © 2009 gravitytank

The power of the software retail model

greATselecTion AlWAys

fresH

unbeATAblelocATion

rigorous quAliTysTAndArds

AlWAysloW prices

sTreAmlinedcHecKouT

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SECTION 4 // apps lifecycle

50 // apps get real // © 2009 gravitytank

HOW ARE APPSDOWNLOADED?

It was recommended by a friend who uses it

It will make me more productive

It seems like a fun and entertaining escape

It makes my life easier in some way

It was free57%

53%

45%

44%

40%

2

1

3

4

5

It’s an application I alreadyuse on my computer

It uses the capabilities of the phone well

It’s easier to access than websites

It seems easy to use

It’s new and I’m curious about what it does32%

31%

27%

27%

22%

7

6

8

9

10

HOW DO PEOPLE FIND OUTABOUT NEW APPS?

HOW OFTEN DO YOULOOK FOR NEW APPS?

TOP 10 REASONSTO DOWNLOAD AN APP

Browsing apps by popularity on Android Market

Recommendations from technol-ogy websites and blogs

Reviews in the iTunes App Store

Recommendations from friends

Browsing the top 25 lists or featured lists on iTunes App Store53%

50%

39%

27%

22%

Other reviews

Reviews in the Android Market

Magazines

Television22%

15%

13%

13%0

5

10

15

20

25

More than oncea day

Oncea day

Couple of times

a week

Oncea week

Couple of times

a month

Once a month or less

........... 27% 73% ...........

11% 13% 24% 21% 21% 8%

...of apps are down-loaded directly to the phone

...are downloaded to a computer, then

synced

½of all app-phone owners

look for new apps at least a couple of times per week

Finding apps

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SECTION 4 // apps lifecycle

51 // apps get real // © 2009 gravitytank

HOW ARE APPSDOWNLOADED?

It was recommended by a friend who uses it

It will make me more productive

It seems like a fun and entertaining escape

It makes my life easier in some way

It was free57%

53%

45%

44%

40%

2

1

3

4

5

It’s an application I alreadyuse on my computer

It uses the capabilities of the phone well

It’s easier to access than websites

It seems easy to use

It’s new and I’m curious about what it does32%

31%

27%

27%

22%

7

6

8

9

10

HOW DO PEOPLE FIND OUTABOUT NEW APPS?

HOW OFTEN DO YOULOOK FOR NEW APPS?

TOP 10 REASONSTO DOWNLOAD AN APP

Browsing apps by popularity on Android Market

Recommendations from technol-ogy websites and blogs

Reviews in the iTunes App Store

Recommendations from friends

Browsing the top 25 lists or featured lists on iTunes App Store53%

50%

39%

27%

22%

Other reviews

Reviews in the Android Market

Magazines

Television22%

15%

13%

13%0

5

10

15

20

25

More than oncea day

Oncea day

Couple of times

a week

Oncea week

Couple of times

a month

Once a month or less

........... 27% 73% ...........

11% 13% 24% 21% 21% 8%

...of apps are down-loaded directly to the phone

...are downloaded to a computer, then

synced

½of all app-phone owners

look for new apps at least a couple of times per week

Finding apps

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SECTION 4 // apps lifecycle

52 // apps get real // © 2009 gravitytank

Of These,

5aRe PAID fOR

hOw much have yOu sPenT On new aPPs In the laSt month?

21 TOTalaPPs

7%

25% 25%

22%

12%

10%

$.99 $1.00 –$2.99

$3.00 –$5.99

$6.00 –$9.99

$10.00 –$19.99

+$20

37%

31%

17%

14%

Medical

Games

Books

Education

Music

Photography

Productivity

Entertainment

Sports

Navigation

Health & Fitness

Finance

Utilities

News

Reference

Travel

Other

Lifestyle

Social Networking

Weather

3.1

6.6

2.8

3.2

8.3

5.1

3.6

3.7

4.4

4.5

3.1

3.7

4.8

3.4

2.8

4.3

2.2

3.2

2.4

2.5

$6.80

$6.10

$5.70

$5.50

$5.30

$5.00

$4.70

$4.20

$4.20

$4.00

$3.50

$3.40

$3.20

$2.80

$2.70

$2.60

$2.50

$2.30

$2.00

$1.70

Total spent per category*

How satisfied are you with your most expensive app?

What is the most you have ever paid for an app?

Average # of appson phone

* among app-phone users whohave apps from these categories

In the past month, how much have you spent to acquire new apps?

Terrible

Not very good

Reasonable

34%

29% Excellent value

Very good

22%

11%

4%

$13+Nothing

$1–$6

$7–$12

Paying for apps

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SECTION 4 // apps lifecycle

53 // apps get real // © 2009 gravitytank

Paying for apps

7%

25%

25%

22%

12%

10%

$.99

$1.00 – $2.99

$3.00 – $5.99

$6.00 – $9.99

$10.00 – $19.99

$20.00 +

What is the most you have ever paid for an app?

How satisfied areyou with your most

expensive app?

TERRIBLE

NOT VERY GOOD

REASONABLE

EXCELLENT VALUE

VERY GOOD 34%

29%

22%11%

4%

73%

69%

63%

of those,

have bought an app that cost more than $2.99

of app-phone users con-sider their most expen-sive app an excellent or very good value

of all app-phone users have paid for at least one app

7%

25%

25%

22%

12%

10%

$.99

$1.00 – $2.99

$3.00 – $5.99

$6.00 – $9.99

$10.00 – $19.99

$20.00 +

What is the most you have ever paid for an app?

How satisfied areyou with your most

expensive app?

TERRIBLE

NOT VERY GOOD

REASONABLE

EXCELLENT VALUE

VERY GOOD 34%

29%

22%11%

4%

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SECTION 4 // apps lifecycle

54 // apps get real // © 2009 gravitytank

Trial, churn and deleting

people deleTe Apps for A vArieTy of reAsons:

59% It didn’t really do what I was hoping it would

48% I found a better alternative

45% It just got old and boring

44% It was really slow to run

35% It caused technical problems on my phone

30% It was hard to use and complicated

18% I forgot I had it

12% I couldn’t just pick it up and use it

11% I didn’t like the way the design/ graphics looked

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55 // apps get real // © 2009 gravitytank

For some, so much is too much

63% of recent convertS uSerS Say“apps are overwhelming — there are just too many of them.”

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SECTION 4 // apps lifecycle

56 // apps get real // © 2009 gravitytank

Developer Shift

FORSALEFORSALE

THEN:builder

NOW:mArKeTer

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SECTION 4 // apps lifecycle

57 // apps get real // © 2009 gravitytank

meeT THe neW boss

fAcing THe music

losT in App-sTore limbo

Welcome to the jungle

broTHer, cAn you spAre 99 cenTs?

Page 58: gravitytank // Apps Get Real Presentation

appsfutureSECTION 6

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SECTION 5 // apps future

60 // apps get real // © 2009 gravitytank

Apps grow up

7% of aPP-Phone uSerS

said they see apps as a fad.

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These apps are not programs of the PC variety

% of people who are extremely or very interested in apps for:

76%

RESTAURANTS (coupons, menus, ordering, reservations, etc.)

71%

BANKS (account details, etc.)

69%

BIG CHAIN STORES (prices, product info and availability, sales and promotions, etc.)

67%

GROCERY STORES (lists, prices, sales, etc.)

62%

WEB-BASED RETAILERS (prices, product info and availability, sales and promotions, online shopping, etc.)

52%

AIRLINES(prices, flight times, special fares, etc.)

52%

HOTELS(reservations, availability and prices, loyalty points, etc.)

51%

CREDIT CARD COMPANIES (current balance, transaction history, etc.)

48%

DOCTORS OFFICES(appointments, billing, etc.)

47%

PHARMACIES(prescription renewals, etc.)

% of people who are extremely or very interested in apps for:

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SECTION 5 // apps future

62 // apps get real // © 2009 gravitytank

These apps are not programs of the PC variety

“If you had a patient who’s enrolled in a study and were able to type in their compliance with their medications and the side effects they had as opposed to waiting for their monthly visit, if they — in real time, without any skin off their back — could send you a note and it would go into a database, you can start to think about getting reliable information faster.”—Ashwin, chief resident, app user

46%of people believe that in the future, they “will be able to get help from a doctor in diagnosing and treating a health issue remotely.”

Netter’s Anatomy Flash CardsCategory: MedicalRated 4+Seller: Modality Inc.© Modality Inc.Version 1.2

$39.99

Page 62: gravitytank // Apps Get Real Presentation

“We need to teach them the way they learn. The students learn from these devices. I would rather spend $300 and give all them an iPhone. I could never afford to upgrade 700 PC’s [with educational software]. If we could use the phones, I wouldn’t have to spend the money on maintaining, upgrading them and bringing in technicians.”

I don’t want to waste our money on books. They’re worthless. [Apps and smartphones] are engaging, immediate, automatic... kids respond to technology. You want to seduce them into learning... use the technology that they use.”

dr. T, apps and the future of education

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64 // apps get real // © 2009 gravitytank

Beyond Apple

70% of blackberry anD winDowS mobile uSerS are “extremely” or “very interested” in an iPhone like app store

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These apps are not programs of the PC variety

“We’re clearly looking at a 1.0 version of the App Store... What’s happening nowwill transform the software business, but we’re just beginning.”—Alex, iPhone app developer and trainer

Only 7% of people see apps as a fad.

Page 65: gravitytank // Apps Get Real Presentation

gravitytank is a Chicago-based innovation consultancy that helps companies grow in meaningfully different ways. We do this by integrating intimate knowledge of the consumer with sharp strategy and informed design. Collaborating with a range of Fortune 500 clients, we identify new market opportunities, develop clear strategies for entry or growth, and support implementation efforts as required.

An executive summary of the publication can be downloaded from the gravitytank website at

http://www.gravitytank.com/apps/

© gravitytank, 2009

gravitytank114 West Illinois StreetFloor 3Chicago, Il 60654T 312. 988. 3000F 312. 988. 9165www.gravitytank.com