The “app gap” in the news
Jinfo Blog

By Jan Knight

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Whether we’re information seekers by profession or just searching for information to make a new purchase, we’re all occasionally willing to pay for that information. How much we pay and for what type of information is always the issue. A recent Fast Company story discusses how many owners of mobile devices use them to gather local news and information but most don’t use “apps” or want to spend money to do so.

The Pew Internet & American Life Project found that almost half of all Americans (47%) use their cell phones and tablet computers to obtain news and information on local weather, local businesses and restaurants. Although this relatively heavy use of phones to gather such information exists, only about 11% of those people use apps to search for this local information and only about 1% have paid for “apps” to help them do so. It’s being called the “App Gap”.

Here are a few examples of what specific local information people DO search for on their phones:
•    42% for local weather reports
•    37% to find restaurants or other businesses
•    30% to get community news or information
•    24% to check local sports scores & updates
•    22% for local traffic or public transportation
•    19% to access coupons or discounts from local stores
•    15% to get news alerts about community sent via text or email.

When asked how much they would pay for such information, 23% said they’d pay $5 (3 GPB) a month for local newspaper content online and about 18% of said they'd pay $10 (6 GPB). Most, 75%, said they were not willing to pay at all. The Pew Project cites that many news organisations are considering moving to mobile platforms and mobile apps to build new ways of generating revenue from subscribers and advertisers in local markets, but it’s clear they need to plan well.

Some publishers are testing new business and revenue models.  The Daily, Rupert Murdoch’s newspaper is the first iPad-only newspaper to exist. Launched in February 2011, readers can subscribe for 99 cents a week or $39.99 (24 GPB). It’s available only through the iPad.

Conversely, as Nancy Davis Kho’s column Smartphones: native apps continue to gain ground discusses, the UK’s Mail Online iPhone app initially required a paid subscription but has recently moved to offering a free alternative.

Many information seekers will pay for what they need and the trick is for companies and news outlets to really know their target markets and understand what’s important to them when it comes to searching for, and possibly paying for, local information and news.

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