This document summarizes research comparing app usage habits of iPad and smartphone users. Some key findings include: - iPad users get content updates on their favorite topics over 10 times per day, engage with more apps, and have more paid apps than smartphone users. - iPad users are much more likely to pay for apps across categories and subscribe to paid subscription apps. However, they also expect value and will stop using paid apps quickly if not satisfied. - The research could not determine if the higher spending on apps by iPad users is driven by the early adopter audience or the larger screen form factor of the iPad.

1. Are Premium iPad Experiences a Temporary Anomaly?

2. Research Done in Partnership with Hearst’s LMK LMK connects people to their passions

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9. Research Overview

10. ''It's like a dopamine squirt to be connected,'' said Dr. Ratey, [Harvard Associate Professor]who compares the sensations created by constantly being wired to those of narcotics – a hit of pleasure, stimulation and escape. ''It takes the same pathway as our drugs of abuse and pleasure. It's an addiction,'' he said, adding that some people cannot deal with down time or quiet moments. Without it, we are in withdrawal.'' The Lure of Data – Is it Addictive; July 6, 2003 2010 Biggest Ideas of the Year #3: Boredom is Extinct

11. IPad User have a Similar Profile of Content Grazing Get Passion Related Updates Over 10 Times per Day Q.36_1 How often do you get updates on your favorite topics (sports, music, celebrities, hobbies, etc.) on your computer and smartphone?

12. All Groups Were Interested in a Universal App Interest in a Custom Multiple Passion App Q.28b How interested would you be in an app that allowed you to customize it to follow multiple topics of your choice?

13. IPad Users Have More Active Apps Q.15 How many apps do you use at least once per month?

14. IPad User have more Paid Apps 76% 35% 21% Q.15 How many apps do you use at least once per month? Q.16 How many of your apps, if any, do you pay for?

15. IPad Users Buy More Apps in Almost Every Category

16. iPad users are 5X more likely to use subscription apps # of Paid Subscription Apps Average # of Paid Subscription Apps 5.9 1.3 1.1 Q.19 How many of your paid apps are subscription based?

17. # of Paid Apps No Longer Used Q.23 How many paid apps have you stopped using? IPad Users are Much More Likely to Stop Using a Paid App

18. While IPad Users are Willing to Pay, they Expect Value or They are Gone Top Reasons for No Longer Using an App Q.26 What are the most common reasons why you’ve decided to stop using or paying for an app?

19. iPad Users Report Fewer Ad-free Apps Q.22 How many of your paid apps contain some type of advertising?

20. Ipad Users Are More Likely To Pay For Content

21. The Multi Million Dollar Question:Is the willingness to pay for apps driven by the early adopter audience OR by the form factor?

22. Thank you! Brian.Monahan@ipglab.com www.ipglab.com