1. November 30 - December 1, 2011 San Francisco Design Center - ConcourseHow Big is the US App-Economy?Estimates and Forecasts 2011-2015Released at Appnation III: Show Me The Money | Created by Appnation and Rubinson Partners, Inc.

2. App-enabled life App-enabled life is a term, coined in this paper, referring to a set of behaviors by the users of mobile-application where the content and functionality of the application has become critical to ensuring the efficiency, awareness, and success of a given life activity. Ask yourself some of the following questions: How frequently do I check email on my mobile phone? Could your children live without text messaging their friends? Do you sleep with your smartphone by your bed? Do you ever bring the smartphone into the bathroom with you? (come on, admit it!) What makes mobile life so compelling? It is the incredible power of apps. And what is that power? It is the power to simplify. This was discovered out of the necessity of the small screen. Apps provide needed simplicity by extracting the value essence and create big buttons on small screens in a way that fits perfectly within the screenHow Big is the US App-Economy?Estimates and Forecasts 2011-2015 November 30 - December 1, 2011 San Francisco Design Center - Concourse

3. What is the app-economy? It is the commercialization of apps created for smartphones, tablets, eReaders, iPod touch and other app-capable devices, such as apps created to live within Facebook and internet enabled TV. In this working paper, we examine the app economy through two specific devices: smartphones and tablets, while also analyzing the virtual app- economy in Facebook. In-app advertising App download revenue App-enabled commerce (including virtual goods)How Big is the US App-Economy?Estimates and Forecasts 2011-2015 November 30 - December 1, 2011 San Francisco Design Center - Concourse

4. The U.S. App Economy Time per day accessing internet: 25 billion app downloads 1 hour on smart phones in 2011 growing to 183 2/3rds via apps billion downloads globally 1 hours on tablets (Source: IDC) Smart Phone and Tablet Ownership 200MM 180MM 150MM App economy growing 100MM 90MM from $20 billion to 84MM 50MM $76 billion by 2015 24MM 0MM 2011 2015 Estimates by Appnation and Rubinson Partners based on inputs from Smartphone Tablet Nielsen, IDC, eMarketer, Park Associates, IPSOSHow Big is the US App-Economy?Estimates and Forecasts 2011-2015 November 30 - December 1, 2011 San Francisco Design Center - Concourse

5. How big is the app economy? Nearly $20 billion in 2011 growing to $75.8 billion by 2015 Size of the US App Economy ($ Millions) App-enabled life is a term, coined in this 80,000 paper, referring to a set of behaviors by the users of mobile-application where the content and functionality of the application 60,000 has become critical to ensuring the efficiency, awareness, and success of a 40,000 given life activity. In-App Advertising 20,000 App Downloads Sales Physical Goods & Services Digital Downloads Virtual Goods 0 Source: Appnation 2011 2011 2015How Big is the US App-Economy?Estimates and Forecasts 2011-2015 November 30 - December 1, 2011 San Francisco Design Center - Concourse

6. US App download revenue is $5 billion Appnation estimates that paid app downloads will generate US App Download Revenue ($ Billions) approximately $5 billion in revenue in the US in 2011 20 This estimate is consistent with Gartner who estimates $15 billion in app download revenue worldwide. If average app prices and rates of download per smart phone and tablet 15 owner remain constant, app revenue is likely to increase in the US to nearly $12 billion by 2015. Parks Associates estimates that the 90 MM smart phone owner spend an average of $3.38 per month for app 10 downloads (averaged across different device manufacturers and accounts for those who never pay for downloads). Nielsen reports an average of 33% more download activity 5 on tablets vs. smart phones (Q3 2011 Mobile Connected Device Report) Appnations analysis of price per paid download suggests 0 the average price per paid download is 33% higher for iPads 2011 2015 vs. the average price on smartphones. Smartphones TabletsHow Big is the US App-Economy?Estimates and Forecasts 2011-2015 November 30 - December 1, 2011 San Francisco Design Center - Concourse

7. Sales of physical goods and servicesAppnation estimates app-enabled mobile commerce will be $8 billion in2011 and rise to $40 billion by 2015. In a recent survey of mobile users that Paypal conducted with the research firm IPSOS, important aspects of mobile commerce regarding incidence of buying via mobile, average price per transaction and numbers of transactions were quantified, leading to an estimate of over $800 per person being spent annually on mobile e-commerce from smart phones (for those who make transactions on their mobile device at all). In June, Techcrunch reported on Forrester estimates that mobile commerce in the US will increase five fold by 2015.How Big is the US App-Economy?Estimates and Forecasts 2011-2015 November 30 - December 1, 2011 San Francisco Design Center - Concourse

8. Virtual goods; a multi-billion dollar business Sales include virtual goods from Facebook as well as and virtual goods on mobile devices, surprising to some, are a billion dollar business. Appnation believes the market will be $2 billion in 2011, growing to $6 billion by 2015. Parks Associates surveys smart phone owners and their estimates imply a market size of $1.2 billion from smart phone owners. When we add Facebook virtual currency on computers and virtual currency on tablets, the total market is thought to be $2 billion Appnation endorses that the market is growing 35% per year which would place sales at $6 billion by 2015.How Big is the US App-Economy?Estimates and Forecasts 2011-2015 November 30 - December 1, 2011 San Francisco Design Center - Concourse

9. AcknowledgementsThis analysis was created by Rubinson Partners, Inc on behalf of Appnation III and its registered delegates. For moreinformation, please contact joelrubinson@gmail.comRubinson Partners, Inc.Joel Rubinson is President and Founder of Rubinson Partners, Inc., a marketing and research consultancy. Previously,Joel was Chief Research Officer at The ARF, where he directed the organizations research priorities and initiatives onbehalf of more than 400 advertisers, advertising agencies, associations, research firms, and media companies. Prior tojoining the ARF, Joel held senior executive positions at Synovate North America, focusing on shopper research, and NPDGroup, leading the creation of tools for brand equity management (BrandBuilder), new product forecasting (ESP),category management and designed many of their data collection and sampling methodologies as NPD changed frompaper diaries to online research. Joel began his research career at Unilever. Joel is also a published author of numerouspapers in professional journals and frequent speaker at industry conferences. He has taught the official AmericanMarketing Association advanced tutorial on brand loyalty, been a professor at NYU and lectured at Columbia, Wharton,Amos Tuck School, and the University of Rochester. Joel holds an MBA in statistics and economics from the University ofChicago and a BS from NYU.Appnation and Rubinson Partners would like to gratefully acknowledge the contributions of: The Nielsen Company,Flurry, IPSOS, Paypal and Park AssociatesHow Big is the US App-Economy?Estimates and Forecasts 2011-2015 November 30 - December 1, 2011 San Francisco Design Center - Concourse