No End in Sight for App Market’s Fast Growth

Washington, D.C. (September 17, 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. More importantly, app users plan to increase their
usage and non-users plan to begin using apps in the near future.

“It’s no surprise that millions of Americans have embraced fun, educational, and
productivity apps,” said Jon Potter, President of the Application Developers Alliance.
“But this research documents that app developers and our industry are still at the
beginning, as more people are planning to enjoy even more apps in the very near
future.”

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 already 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 using apps in the next six months. 52% of respondents said they
mostly learn about new apps after hearing about them from friends.

"The market for mobile apps is growing, and growing fast. Innovation and strong
businesses are driving that growth but we are all benefiting from it. Better apps, better
services and more opportunity for businesses to thrive is good for us all," said Alliance
Board Member Brad Feld.

Survey respondents also reported that apps allow them to get more out of their mobile
device: 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.
“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.”

Satisfaction with apps and app upgrades is high: 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.
Find the full results of the survey here.

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.