AppsFlyer, in collaboration with Liftoff, has released it Status of application marketing for subscription applicationsan in-depth report that captures key trends that help consumers understand trends and help marketers understand how subscription apps navigate the age of digital privacy.
As subscription-based applications grow year on year (year after year), reflecting a change in consumer behavior, applications in a variety of categories have begun to adopt the subscription model. While gaming apps account for nearly 11 percent of all subscription apps, non-gaming apps (health and fitness, photography, and entertainment) make up the lion’s share of subscription apps.
Growth is also positive for app developers. Strategies for making money through subscription are predictable, easy to test, and therefore have the potential to be more profitable. In addition, in-app subscription applications receive higher revenue from subscription fees than unsubscribed applications, and developers receive 70 percent of their subscription revenue, up from 85 percent after one year.
The overall trends in the report are as follows:
- From August 2021 to March 2022, gaming application installations fell by 18% after ATT, but offline iOS application installations increased by 25% since November 2021. Even with the knowledge of data that is a well-known leader in mobile advertising in mobile gaming applications, transparency of Apple’s application tracking (ATT) has been shown to be a challenge for iOS data reality because it is based on user-level data. Subscription-based gaming apps saw a big 18 percent drop in iOS installations, and Android dropped 8 percent. Non-gaming applications, however, saw a 13% year-on-year increase in all facilities in January 2022.
- Demand for entertainment streaming applications grew by 13% in the number of iOS app installations, with the exception of North America. Apple’s entry into new and emerging markets has played a key role in this growth, with facilities up 113% in LatAm and 47% in the Indian subcontinent. However, it has moved away from the North American trend, with installations down 15% on Android and 17% on iOS, indicating that users may have too many options and are facing a very fragmented set of services; decline.
- Retarget conversion for entertainment streaming applications has doubled in Android. Remarketing is a relatively cost-effective way to close valuable subscriptions. However, due to Apple’s much smaller user-level data due to Apple’s ATT framework, the re-marketing of iOS has become a challenge. This has led to an increase in Android marketing.
- 2.1 percent of users who install subscription-free apps subscribe within 30 days of installation, compared to only 0.2 percent of game apps. In non-gaming applications, subscription to content has become almost predominant, while in games, a very small group of users spend generously on gaming applications. Securing the conversions of these players can be very valuable for gaming applications.
- Subscriptions account for an average of 82 percent of revenue for offline subscription applications, unlike games, where only 36% of revenue came from subscriptions. In terms of subscription revenue, despite a very small share of payers, 36 percent of revenue comes from subscriptions to gaming apps that offer this pricing model. Offline content subscriptions are well established and are usually the primary, if not the only, source of revenue for offline subscription applications.
- Gaming applications achieved the highest ATT selection rates at 54 percent. North American users are likely to be 32 percent more likely to choose from non-gaming apps, but non-gaming apps have shown greater differences, with a 36% lower rate of choice in Eastern Europe and Latin America at 54 percent.
“While it appeals to app marketers to adopt a subscription pricing model that allows them to better anticipate future revenue and enjoy recurring revenue, it’s essential to understand that providing a subscription model is an important commitment,” Shani said. Rosenfelder. Head of AppsFlyer Content and Mobile Insights. “When subscription applications provide ongoing value and content and create personal relationships with users. If an application is unable to fulfill its commitment to provide ongoing value and content, the subscription model will not work.
“Subscription application marketers need to focus on long-term retention, considering the challenges of acquiring new subscribers,” said Dennis Mink, SVP Marketing at Liftoff. “It’s best to start optimizing UA campaigns for registration and subscription events, and then run re-participation campaigns on Android, which can be incredibly effective.”