Take your subscription apps to the next level with Liftoff’s report in partnership with AppsFlyer & Vungle: The State of App Marketing for Subscription Apps. This report shows the install and revenue trends shaping the multi-billion-dollar subscription app economy.
Subscription apps succeed when they provide consistent value or content, and build personalized relationships with users. It’s important to understand that offering a subscription model is a serious commitment that creates greater expectations for users. If an app doesn’t deliver on its promise to provide consistent value and content, the subscription model won’t work.
Subscription-based monetization strategies are predictable, easy to test and improve.
Google Play subscription app revenue climbed by 78%, surpassing $2.5 billion.
Opposing trends in gaming and non-gaming apps
In-game app subscriptions give users enhanced status, exclusive content, in-game currency and no ads. 11% of apps that offer subscriptions are gaming apps, although their share in the overall app pie is much higher. Android paid app installs climb 33% in casual games.
Non-gaming apps show the reverse trend with a much higher share of subscriptions, especially among health & fitness, photography, and education apps.
Unlike non-gaming apps, only 36% of gaming app revenue comes from subscriptions.
Reduced store commission
Thanks to this, it’s easier for apps to predict future revenues and generate a constant stream of profits. But to be successful, you need to offer new content regularly because consumers have inflated expectations.
High-speed Internet and inexpensive smartphones
YoY increase in the number of iOS app installs of entertainment streaming apps. LATAM leaped 113%, followed by the India subcontinent at 47%. However, demand dropped 15%-17% in North America on both Android and iOS.
The average subscriber to a game app is extremely valuable
A game app’s revenue comes from a small fraction of the paying gamers, which increases the importance of each of them. That’s why games invest in creating conversions from «whales».
Users love seeing reduced prices regardless of product and service, so using introductory offers for first-time subscribers helps reduce churn rates and win-back strategies, as well as family plans to increase your users’ LTV.Marta Fogel, Performance Marketing Lead in Proton
Creative and organic advertising is the key to success
The advertising space today is extremely competitive. Testing creative variations are necessary to stand out and humanize the brand. This applies to Instagram Reels and TikTok. If the creatives for these social networks look like ads, they won’t work. Creating ads that are specific to these platforms increases CTR and other metrics.
Read the full report and interactive charts here