The document summarizes the findings of a survey on mobile app developers, advertisers, agencies, and publishers. It found that iPhone was the dominant platform but Android adoption was growing. Mobile app budgets were expected to increase significantly. Developers focused on iPhone for its reach but saw opportunities in Android's open source approach. Advertisers valued engagement and user feedback from apps over metrics like monthly users. Publishers expected mobile revenues to increase over 50% on average.

1. What’s the Hap’s on Apps?State of the Industry SurveyDigiday: APPS, LA12/10/09

2. DM2Events/ DM2MediaWe want to provide real information on the cutting edge of choices that you need to make in your day jobs – what to make of the latest technologies, which is worth your time and attention, where you can find the resources to help. In that vein, DM2PRO.com has been built as a kind of knowledge base for case studies, video from shows like this, and research studies designed to help you understand the state of the industry in which you participate. Unlike our sister publication digiday:DAILY, it is a paid site, but at just $20/month, one way we can afford to do the work we do.2

3. Partnership/MethodologyLike any good “membership” organization, we rely on practitioners in the field to help us ask the right questions, which is why we turned to Lynn and Quattro. This apps survey is both larger and more granular than the August survey. Uses Quattro’s client lists to expand DM2PRO’s access to the developer community. With a larger respondent set, we were able to see if there were subtle differences between developers who:worked for advertisers & agenciesworked for publishers or developed apps as a businessdeveloped just social apps, just mobile apps or both mobile and social apps

4. MethodologyWe were also able to ask developers whose livelihood is based on making apps how they promoted and monetized them. Besides developers, we reached out to essentially the same group of advertisers, agencies and publishers to look deeper into what platforms they were using for mobile and social apps:Specifically, was Android gaining ground against the iPhone?What ad units did they consider most effective?Were they still as satisfied with their apps experience nearly a half year later?How did they feel about ad nets?

5. MethodologyLast but not least, we asked the entire group what mobile phone they employed for personal use. (Any correlation between that and the platform for which they developed?)While slicing these groups into more categories reduced the sample size on some questions considerably, we reached an almost equal number of developers vs. advertisers and agencies, and a higher number of publishers overall.We had more than 605 respondents by 12/10

6. +600 Respondents236125244N=605©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

7. ADVERTISERS AND AGENCIES7

8. ADVERTISERS / AGENCY / MARKETERSNearly 130 Agencies repliedN=199©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

9. ADVERTISERS / AGENCY / MARKETERS54% say NON=234©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

10. ADVERTISERS OR MARKETERS WHO HAVE USED APPSSlightly more dedicated social than mobile agencies/advertisers, but considerably more do both. N=95©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

11. ADVERTISERS OR MARKETERS WHO HAVE USED APPSFacebook leads overall, then iPhone. Own branded community and MySpace rank higher than AndroidN=95©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

12. ADVERTISERS OR AGENCIES WHO HAVE USED MOBILE APPSiPhone: 95%RIM 44%Advertisers and agencies who develop mobile apps still rank RIM over Android. (Android INTENT is higher among those just planning apps)Android 31%15%N=39©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

13. PUBLISHERS / ADVERTISERS / AGENCIES WHO HAVE NOT DEVELOPED MOBILE APPS, BUT PLAN TOiPhone: 91%Android 39%65% plan to develop mobile apps in 2010RIM 33%19%N=107©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

14. ADVERTISERS OR AGENCIES WHO HAVE USED MOBILE APPSThe top third of this market expects their mobile apps budget to increase by more than 75%, some by greater than 200%N=39©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

15. ADVERTISERS OR AGENCIES WHO HAVE USED MOBILE APPSBigger market, client demand, more standardization lead as things that could push mobile appsN=41©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

16. ADVERTISERS OR AGENCIES WHO HAVE USED MOBILE APPSMore than a third spend less than 5% of their current budgets on promotion. Note that a good 15% spends more than 60%... N=40©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

17. ADVERTISERS OR AGENCIES WHO HAVE USED MOBILE APPS: HOW DO THEY PROMOTE?N=40©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

18. ADVERTISERS OR AGENCIES WHO HAVE USED MOBILE APPSIn choosing an network to help place ads in mobile apps, they care about targeting capability first, then reach. N=30©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

19. ADVERTISERS OR AGENCIES WHO HAVE USED MOBILE APPSEngagement and user feedback lead even the number of monthly active users and the impact on product sales as what makes an app effective for advertisers or agenciesN=40©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

20. WHAT CATEGORIES OF ADVERTISER IS MOST ENGAGED IN MOBILE APPS? CPGRetailAutomotiveEntertainmentFinancialHealth/PharmaMediaTechB2BBeverageN=40©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

21. WHAT CATEGORIES ARE LEAST ENGAGEDB2BHealth/PharmaMediaRetailFinancialEntertainmentTravelCPGTechAutoN=98©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

22. PUBLISHERS / ADVERTISERS / AGENCIES WHO HAVE NOT DEVELOPED MOBILE APPSAll of the above… and 33 write-in reasons! (But many said they’re planning apps in early 2010.) N=82©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

23. PUBLISHERS23

24. PUBLISHERSContent publishers, 88%N=106©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

25. PUBLISHERS WHO HAVE DEVELOPED APPSiPhone leads even Facebook among publishers who’ve developed appsN=54©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

26. PUBLISHERS WHO DEVELOP MOBILE APPSMajority monetize through ad salesN=53©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

27. PUBLISHERS WHO DEVELOP MOBILE APPS>35% of publishers – in tough times – expect their mobile REVENUES to increase by greater than 50%N=54©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

28. DEVELOPERS28

29. DEVELOPERS: Mostly Mobile74.5%24.1%1.4%N=214©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

30. MOBILE or MOBILE + SOCIAL DEVELOPERS: Overwhelmingly entrepreneurialENTREPRENEUR: 83.1%N=178©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

31. DEVELOPERS: IPHONE LEADS FOR PERSONAL USE60.9%40.6%15%3.4%N=212©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

32. DEVELOPERS DIVIDED INTO:Those who work for agencies or advertisersThose who work for publishersEntrepreneurs (those who develop apps as a business)Ad supported, sold to consumers or either32

33. ADVERTISER/ AGENCY MOBILE DEViPhone Dominates, but Android Has Crossed the Critical 60% MarkiPhone: 92%Android: 61.5%Agency employed developers focus most of their attention on iPhone; but 2/3 develop for Android. (Overlap was allowed.)BB 38.5%N=13©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

34. ADVERTISER/ AGENCY MOBILE DEV BUDGETS ON THE RISEAd/Agency apps budget on the rise; in at lease a couple of cases, substantially. N=11©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

35. ADVERTISER/ AGENCY DEVELOPMENT BUDGETS TO RISE SHARPLY FOR MOSTWhile “advertiser/social” development spending has leveled off, mobile apps development is on a steep incline. With online advertising inching downward, 58% of agency mobile developers expect increases of more than 40%. N=12©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

36. DEVELOPERS WHO SELL APPS &/OR ADSN=147©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

37. DEVELOPERS WHO SELL APPS &/OR ADSiPHONE: 76.4% Android ~57%Ad-savvy developers lean toward iPhone, but Android close behindBB 22%Palm 8.3%N=72©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

38. Developers who sell apps with out without ads:iPhone is about reach, Android has a number of things going for it – including open source – but reach isn’t the least important. N=72©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

39. Developers who build apps for sale:iPhone: Reach and ease of use. Android, ease of use, open sourceN=25©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

40. DEVELOPERS WHO BUILD APPS FOR SALE:Apps developers care equally about revenue and reputation / user feedback. The lower the score the higher the rating.N=26©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

41. DEVELOPERS WHO SELL APPS/SUPPORT WITH ADSWhen we turn to ad-supported apps – whether or not they’re sold – age target matters more. N=74©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

42. DEVELOPERS WHO SELL APPS:Developers who sell apps less focused on a particular demographicN=26©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

43. DEVELOPERS WHO SELL APPS W/WO ADS:Few spend more than 20% promoting their apps. N=72©2009 DM2PRO.com “State of the Industry: APPS” in collaboration with Quattro Wireless

44. Case Study: Superpages44OBJECTIVEDrive downloads of the Superpages® application for local information among iPhone users STRATEGY AND PROGRAMTarget ads to the Quattro Wireless iPhone in-app network, reaching more than 12 million unique users

45. Drive directly to the App Store via click-to-download banners

46. Optimize results in real-time with Q Elevation targeting technology and creative rotation