Data: The use of entertainment applications has increased by 13% on an annual basis

AppsFlyer, in partnership with Liftoff, has launched Application marketing status for subscription applicationsan in-depth report containing key insights that detail consumer trends and help merchants understand how subscription applications navigate the digital privacy era.

As subscription-based applications grew during the year (on an annual basis), reflecting the change in user behavior, applications in many categories began to adopt the subscription model. While gaming applications account for almost 11% of all subscription applications, non-gaming applications (health and fitness, photography and entertainment) make up the lion’s share of subscription applications.

Growth is also positive for application developers. Subscription-based revenue strategies are predictable, easy to test, and therefore have the potential to be more profitable. In addition, subscription apps in app stores receive a higher share of subscription fee revenue than non-subscription apps, with developers receiving 70% of subscription revenue, up to 85% after one year.

Global trends in the report include:

  • Game app installations fell by 18% after the ATT from August 2021 to March 2022, but non-gaming iOS app installations increased by 25% from November 2021. Although gaming apps are well-known leaders in mobile advertising due to their data reliability, the reality of iOS data after Apple’s Application Tracking Transparency (ATT) transparency has proved challenging because of their reliance on user-level data. Game apps that offer subscriptions have fallen sharply by 18 percent in iOS installations, with Android down 8 percent. However, non-gaming applications saw a 13% increase in the total number of installations on an annual basis in January 2022.
  • Demand for entertainment streaming apps grew by 13% year-over-year in the number of iOS app installations, excluding North America. Apple’s market penetration of new and emerging markets has played a role in this growth, with installations increasing by 113 percent in Lat Am and 47 percent in the Indian subcontinent. However, North America has deviated from the trend of declining installations by 15% for Android and 17% for iOS, which probably shows that users have too many choices and face a highly fragmented range of services, some of which may be dropped out during the economic downturn.
  • The remarketing conversion for entertainment streaming apps has doubled on Android. Remarketing is a relatively cost-effective solution for closing many valuable subscriptions. However, due to much less user-level data as a result of Apple’s ATT framework, iOS remarketing has become a challenge. This has led to an increase in remarketing activities on Android.
  • 2.1% of users who install non-gaming applications that offer a subscription continue to subscribe within 30 days of installation, compared to only 0.2% of gaming applications that convert. In non-gaming applications, content subscriptions have become virtually widespread, while in games it is only a very small group of users who spend generously on gaming applications. Providing conversions from these players can be extremely valuable for gaming applications.
  • Subscriptions generate 82% of revenue generated on average for non-gaming subscription applications, as opposed to games where only 36% of revenue comes from subscriptions. In terms of subscription revenue, despite a very low share of payers, 36% of revenue comes from subscriptions to gaming applications that offer this pricing model. Non-gaming content subscriptions are well established and are usually the main, if not the only, source of revenue for non-gaming subscription applications.
  • Gaming applications received the highest ATT participation rate of 54 percent. Users in North America are 32% more likely to join gaming apps than non-gamers, but non-gaming apps are more likely to deviate, with up to 36% Eastern Europe and reaching 54 percent in Lat Am.

“While app retailers are attracted to adopting a subscription pricing model because it allows them to better forecast future revenue and enjoy a recurring revenue stream, it is in fact vital to understand that offering a model Subscription is a major commitment, ”said Shani Rosenfelder, Head of Content & Mobile Insights, AppsFlyer. “Subscription applications thrive when they provide continuous value and content and build personal relationships with their users. If an application fails to deliver on its promise of continuous value and content, the subscription model will not work.

“Subscription app marketing needs to focus on long-term retention, given how challenging it can be to acquire new subscribers,” said Dennis Mink, senior vice president of marketing, Liftoff. “It’s best to start by optimizing UA campaigns for sign-up and subscription events, followed by Android re-engagement campaigns, which can be incredibly effective.”

Leave a Comment

Your email address will not be published.