• by Erik Sass , January 17, 2011

A large majority of iPad owners would prefer free, ad-supported media to content they have to pay for, according to a new survey by Knowledge Networks, first reported on the Ad Age Web site. But by the same token, they're not exactly happy about advertising.  

Specifically, Knowledge Networks found that 86% of iPad owners would be willing to see an ad in return for free access to content, including TV shows and articles from magazines and newspapers. That compares with just 13% who said they would be willing to pay for this type of content, if they already have access to it elsewhere.

At the same time, 78% said advertising "takes away from their enjoyment of their iPad." Assuming this group includes all 13% who said they prefer paid content, this would seem to suggest that about 65% of iPad owners would grudgingly accept advertising -- even though they don't actually like it -- rather than reach for their wallets.

These figures are roughly in line with the results of a custom survey of iPad owners by Nielsen released in September 2010. Nielsen found that 57% of iPad owners said they don't mind advertising if it means they get content for free. Thirty-five percent of iPad owners told Nielsen they actually "enjoy viewing ads" on their iPads (compared to just 17% for all such devices, including other tablet computers and e-readers).

Of the minority of iPad owners in the Knowledge Networks survey who were willing to pay for content they have access to elsewhere, the average amount they were willing to pay was $2.60. Knowledge Networks also found that iPad users download about 24 apps, on average -- but only one-quarter of those are paid.

Digital media are popular applications for the iPad, but hardly ubiquitous, according to the same survey. Overall, 66% of iPad owners said they use their devices to listen to music, and 61% said they read magazines and newspapers. Half said they use their iPads to watch TV or movies.

The Knowledge Networks survey findings may represent an additional dilemma for newspaper and magazine publishers that have pinned their digital hopes on Apple's popular new tablet computer. In addition to refusing to share a variety of data about iPad owners necessary for targeting subscription offers, Apple policy forbids publishers from distributing free iPad versions of products to paid print or online subscribers. Plus, it also bars them from charging for any content that is available for free on another platform, including free newspaper Web sites.

Last week, two Dutch newspapers reported that beginning April 1, European publishers will no longer be able to distribute free iPad editions to their paid subscribers, triggering complaints that Apple has monopolistic control of content distribution.