Nielsen Company report summary on use of connected devices such as tablets, eReaders and smartphones.

1. State of the Media
The Increasingly Connected Consumer:
Connected Devices
A look behind the growing popularity of iPads, Kindles and other devices
October 2010 (Revised)
Connected devices such as tablets, eReaders and smartphones are
seemingly everywhere and already are changing how some people
consume media. Whether it’s watching a video or accessing an
app on an iPad on the train to work, sitting at home reading a
book on a Kindle or playing the latest games on a Sony PSP, the
devices have only added to consumption of the more “traditional”
forms of media delivery such as the home computer, books
and game consoles. The Nielsen Company recently released its
inaugural Connected Devices Playbook to get a better idea of the
consumers purchasing Apple iPads, Amazon Kindles and other
similar gadgets and how they are using them.
Who Uses Connected Devices
• Early adopters of technology favor tablets, and tablet owners
own more connected devices
Chart 1. Tablets are still a nascent market favored by early adopters
Percentage of Owners Who Identify
Penetration of Connected Devices as “Early Adopters” 48%
37% 35% 35%
30%
25% 26%
21%
16%
8%
6% 4%
Smartphones* Portable Portable Netbooks eBook Tablet Smartphones* Portable Portable Netbooks eBook Tablet
game media readers computers game media readers computers
players players players players
* Smartphone penetration is derived from Nielsen’s Q2 2010 Mobile Insights study and represents individual penetration.
Connected devices figures represent household penetration
Source: The Nielsen Company

2. The Increasingly Connected Consumer: Connected Devices
How connected devices are being used
Chart 2. Many of whom own multiple devices
• Tablets are shared more than eReaders or smartphones
Average # of Connected Devices Owned
−− 46% of tablet users allow others to use their devices, while
only about one-third of smartphone and eReader users do
Tablet owners 6 the same (34% smartphone users, 33% eReader users)
eBook owners 5 Chart 3. Tablets are less personal than smartphones
Sharing of a Connected Device
Portable game
5
player owners
Gaming 62% 38%
Portable media
5
player owners
Media players 55% 45%
Netbook owners 4
Tablets 46% 54%
Source: The Nielsen Company
Netbooks 44% 56%
• Apple iPad users are younger and more of them are male
than those of other connected devices Smartphones 34% 66%
−− 65% are male, 63% are under the age of 35
−− Kindle users: 52% male, 47% under the age of 35 eReaders 33% 67%
• Amazon Kindle users are slightly wealthier, better educated I share my device I am the only user
−− 28% have incomes of $100k or more, 57% have a bachelors
degree or higher Source: The Nielsen Company
−− Pad users: 25% have incomes of $100k or more, 51% have a • The iPad trumps the iPhone for “print” and video viewing…
bachelors degree or higher
Chart 4. Print and video benefit from the iPad’s
larger screen size
Content Regularly Accessed
53% 51%
44% 41%
39%
33% 32%
25%
21% 22%
13% 11% 12%
8%
Book TV show Movie Magazines Radio News Music
iPad iPhone
Source: The Nielsen Company
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3. The Increasingly Connected Consumer: Connected Devices
• …which leads to greater engagement:
Chart 5. iPad owners spend a longer amount of time with their content
Weekday Length of Time per Session by Category - iPad Weekday Length of Time per Session by Category - iPhone 78%
49 %
44%
40% 40%
35% 37%
34% 31% 32% 33% 32%
30% 31% 31%
25% 27% 27% 29% 28%
25% 24% 24% 25%
18% 20% 22% 22% 22% 22%
19%
16% 15% 16% 18%
16% 14% 11% 15%
9%9% 8% 10% 9% 10% 9%8%
7% 7% 5%5% 5% 7% 4%
2% 3% 3% 3% 2%1%
Movies TV Books Magazines Music News Movies TV Books Magazines Music News
Less than 15 minutes 16–30 minutes 31–60 minutes 1–2 hours More than 2 hours
Source: The Nielsen Company
• Most iPad owners have downloaded an app:
Chart 6. 91% of iPad owners have downloaded an app, many of them have
already purchased apps
iPad Download Behavior Top Paid App Downloads - Apple iPad
All iPad Owners iPad Paid App Downloaders
Did not download an app
9% Games 62%
Books 54%
Music 50%
Shopping 45%
News & Headlines 45%
Downloaded
an app Celebrity & Entertainment News 44%
91% Location & Direction 42%
Movie Schedules, Buying Tickets 41%
Magazines 41%
Banking 39%
Financial Updates 39%
Social Networking 37%
Productivity 37%
Sports Information 32%
Travel Planning 24%
Source: The Nielsen Company
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4. The Increasingly Connected Consumer: Connected Devices
• Connected devices owners as a group are comfortable with
mobile advertising…
Chart 7. Connected device owners are comfortable with mobile advertising
Receptivity to Advertising
59%
I am ok with advertising
if it means that I can
access content for free
57%
I do no particularly enjoy 44%
viewing ads on my connected
devices but I do not
mind seeing them either
48%
All Connected Devic e Owners iPad Owners
Source: The Nielsen Company
• …but iPad users are much more receptive and are more likely
to make a purchase:
Chart 8. iPad users are far more receptive to advertising
Receptivity to Advertising
49%
I am more likely to look at ads
if they have an interesting video 40%
39%
46%
I enjoy ads that have interactive features 26%
27%
40%
I am more likely to click on ads
25%
that are simple text ads
25%
39%
Ads on my connected device
are new and interesting 20%
19%
37%
I like to see what ads can 23%
do on a connected device
19%
Apple iPad Apple iPhone All Connected Device Owners
Source: The Nielsen Company
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5. The Increasingly Connected Consumer: Connected Devices
Chart 9. iPad owners more likely to make a purchase after viewing an ad
Response to Advertising
36%
I made a purchase on the internet via PC
27%
24%
I made a purchase at a store
10%
12%
I made a purchase over the telephone
7%
8%
I made a purchase directly through my connected device
5%
18%
I searched for more information
18%
22%
I clicked on an ad to view the full advertisement or product offering
20%
10%
Used or requested a coupon through an ad
13%
Discussed a product or service that I saw advertised with a friend, family 7%
9%
Apple iPad All Devices
Source: The Nielsen Company
Methodology
The Connected Devices Playbook surveyed more than
5,000 connected device owners who completed an online,
self-administered survey in August 2010. The study tracked
54 different devices.
For more information, contact your Nielsen representative
at 800-988-4226 or visit www.nielsen.com
This is the fourth edition of The Nielsen Company’s State of the Media, a periodic fact sheet of key statistics
and facts about the range of issues we cover. Please feel free to use this information with attribution to
The Nielsen Company. Copyright © 2010 The Nielsen Company. All rights reserved. Printed in the USA.
Nielsen and the Nielsen logo are trademarks or registered trademarks of CZT/ACN Trademarks, LLC. 10/2202
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