Advertising and paid content open doors for content publishers
Tablets have had a notable effect on the digital media landscape, garnering plenty of attention during their short history. But do these devices really have the potential to start making money for content publishers? A survey from the Online Publishers Association (OPA) suggests that they do.
According to the research, conducted by Frank N. Magid Associates, nearly 80% of all tablet owners have purchased an app. Paid content accounts for more than a quarter of all apps downloaded. Spending levels are at a healthy starting point, with 43% of app downloaders spending more than $20 in the past year, and 23% spending more than $50.
The OPA found that well over half of tablet users would be interested in purchasing established media content such as newspapers, magazines or TV shows. No single payment model stands out as a strong preference, a signal that publishers have some room to experiment.
Ad-supported tablet content also shows promise. Respondents who regularly used newspaper or magazine apps on their tablet had more positive associations with ads than negative, as 46% felt that ads were relevant, unique and interesting, while 28% felt they were annoying. Around half indicated that they would prefer to pay for content with limited or no advertising.
“79% of app downloaders paid for content in the last year, which provides a great opportunity for publishers to generate new revenue streams,” said OPA President Pam Horan in a statement. “The tablet also provides a rich platform for advertisers, with 46% [of downloaders] indicating that they found tablet advertising within newspaper and magazine apps to be relevant, unique and interesting.”
Granted, the tablet user base is still finding its foothold. According to comScore, tablets accounted for just 1.8% of US newspaper site traffic in May 2011, while Net Marketshare found that Apple’s iPad passed 1% of all internet traffic worldwide in June. These figures will only grow as tablets become an increasingly central device for content consumption. eMarketer predicts that US tablet penetration will jump from 7.6% in 2011 to 12.8% in 2012.
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Check out today’s other article, “Mobile Social Media Usage Affects Shopping Habits.”