Study Finds Gen Y Responds To App Ads
A new study by mobile application company Tapjoy and market research firm Interpret polled 2,000 consumers on mobile app attitudes and usage. The study found that adults 25-34 are more likely to value the influence of advertisements, and they recall seeing more ads while using mobile apps, particularly video ads or fully sponsored/branded apps. They also recall a larger number of ads per single app use: seven, compared to six among the total population.
Once members of this age group saw an ad within an app, half of them decided to click on it, versus 45% of typical app users. Twenty-eight percent of people 25-34 and 29% of those 18-24 have followed an ad to download another app, compared to 24% of total app users. Over one-third of adults 18-34 have downloaded an app to earn rewards, compared to 29% of typical users.
Although the most sought-after rewards for general app users are cash and gift cards, adults 25-34 are much more likely than the total to express interest in earning premium content, game credits and new apps.
The study breaks app using into several groups. One group, about 21% of the respondents, are "premium essentials" who are willing to pay for apps; they have a lot of apps and prune their number to eliminate the ones they don't like or use any more. The study said they find apps from word of mouth, and browsing the app store, but not by advertising and promotions. They are most likely to try a free version -- and if they like it, upgrade to the paid one. They also over-index for mobile games, are willing to pay for premium games and pay up front.
Another group, "researcher purchasers" -- about 29% of the respondent group -- uses social networks and recommendations to find apps, per the study. They also are more likely to respond to TV ads and promotions to learn about new games, movies, and automobiles as much as from suggestions. They have the most paid apps.
A third group of app users are "gratis only," and comprise 26% of the respondent pool. The study says once they have downloaded a free app they tend to stick with it instead of paying for a better version. They don't like ad-supported apps, however, although few are willing to get rid of ads by paying.
Finally, "fermium users," 24% of the population of app users, download a lot of apps but are very price-sensitive. The study says 88% download only the free versions of apps. More than three-quarters of them, per the study, make price the principal driver which app to get.
App users in the 25-to-34 age range said they saw on average seven ads per app use. The "premium essential" group and the "fermium users" were more likely than any other group to report seeing ads in apps. But of those who reported seeing an ad the "researcher purchaser" group was morally likely to click than anyone else. A quarter of premium essentials and fremium users were willing to download an app to get a reward, a higher number than any of the other groups.