Compete Smartphone Intelligence Survey Reveals Tablet Adoption Hurdles and Opportunities

Data Show What It May Take for Tablets to Go Mainstream

BOSTON, MA–(Marketwire) - Compete, a Kantar Media company, today released the results of its Q4 2010 Smartphone Intelligence survey, revealing that despite a surge in tablet interest, especially in the iPad and iPad 2, certain factors may be holding back some consumers from taking the plunge and buying a tablet today. In short, while there is still a threshold for monthly charges, a little less than half of consumers indicated that they are not turned off by spending $15 or more on data plans. Many consumers do, however, have sticker shock when it comes to device cost, with 55 percent of smartphone owners and 70 percent of cell phone owners saying that they won’t spend more than $300 for the must-have gadget. Seven percent each of smartphone and cell phone owners would only consider a tablet if it’s free, while almost a quarter of prospective tablet buyers say they’d plan to connect their tablets solely via wi-fi (free) rather than Mobile Broadband data (via a paid plan).

“Given these findings, it might be interesting to examine the subject more closely to identify consumers’ price thresholds for tablets and data plans,” said Danielle Nohe, director, technology and entertainment for Compete. “The winners in this space will be the ones who take our research a step further, digging deeper into consumer preferences and behavioral patterns to inform pricing and promotion strategies.”

The survey also shows that Apple got it right with the messaging around its new iPad 2, which was released after this survey was fielded. Consumers who were considering the purchase of a tablet were asked to rate the importance of various tablet features. The three features they rated as most important were battery life, overall portability and ease of use. Apple highlighted all of these features in marketing for the new device.

The consumers surveyed by Compete also dispute contention made in some eReader vendor advertisements that the reading experience on the tablet is inferior. At least for the iPad, consumers are voting with their clicks; book-related applications are among the most downloaded category of applications on the iPad. Other popular downloads include games, weather, entertainment and social networking. Similar to the behaviors Compete has uncovered in the smartphone application world, consumers most frequently rely on recommendations from friends and family to decide which apps to download to their tablet.

Compete’s quarterly Smartphone Intelligence product provides both behavioral and survey-based insights into how consumers are using iPhones, BlackBerrys and Android devices as well as tablet computers like the iPad and Samsung Galaxy Tab.

importance of features in a tablet computer

About Smartphone Intelligence
Compete’s Smartphone Intelligence combines consumer insights (through surveys) with behavioral data (through online click stream data) to reveal how smartphone owners are using their phones and tablets, the sites they visit on the mobile Web and what they like and dislike about their phone and experiences. Smartphone Intelligence subscribers will receive comprehensive quarterly reports with fresh data about smartphone use and behavior, as well as actionable recommendations tailored to their business.

Smartphone Intelligence also enables clients to go deeper with custom research addressing specific business questions relevant to unique segments of smartphone owners. Only Compete can bring in the online behavior of millions of consumers through click stream data to help answer these questions. To learn more, visit:http://compete.com/custom_/telecomSmartphone/.

About Compete
Compete, a Kantar Media company, helps the world’s top brands improve their marketing based on the online behavior of millions of consumers. Leading advertisers, agencies and publishers rely on Compete’s products and services to create engaging online experiences and highly profitable advertising campaigns. Compete’s online panel — the largest in the industry — makes the web as ingrained in marketing as it is in people’s lives. Compete is located in Boston, MA, with offices throughout the U.S. For more information, please visit http://www.compete.com/.

About Kantar Media
Established in more than 50 countries, Kantar Media helps clients master the world’s multimedia momentum through analysis of print, radio, TV, internet, cinema, mobile, social media, and outdoor worldwide. Kantar Media offers a full range of media insights and audience measurement services through its global business sectors — Intelligence, Audiences, TGI and Custom. Kantar Media companies also include Compete, Cymfony and SRDS. Drawing upon the deepest expertise in the industry, Kantar Media tracks more than 3 million brands and delivers insight to more than 22,000 customers worldwide. www.KantarMediaNA.com

About Jared DeLuca:
Jared is currently the Associate Digital Marketing Manager at Compete (Millward Brown Digital). He is a graduate of Northeastern University, having achieved his B.A. in Communication Studies. If you like what you read, you can connect with him on Google+, Twitter, or on LinkedIn.