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RESEARCH, ANALYSIS & TRENDS

Subscription app marketers need to

focus on long-term retention

Around three months ago, AppsFlyer, in • Gaming app installs drop 18% post-ATT from
partnership with Liftoff, released the State of App August 2021 to March 2022, but non-gaming
Marketing for Subscription Apps, an in-depth iOS app installs surge 25% since November
report containing key insights that detail 2021. Although gaming apps are the well-known
consumer trends and help marketers understand leaders in mobile advertising thanks to their data
how subscription apps are navigating the age of savviness, the post- Apple’s App Tracking
digital privacy. A total of six billion installs of Transparency (ATT) iOS data reality has proven
apps had been analyzed between January 2021 challenging because of their reliance on user-level
to March 2022. data. Gaming apps that offer subscriptions
experienced a sharp 18% decline in iOS installs,
As subscription-based apps grow year-over-year (YoY), with Android dropping 8%. Non-gaming apps,
reflecting the change in consumer behavior, apps in however, saw a 13% YoY increase in total installs
multiple categories have begun to adopt the during January 2022.
subscription model. While gaming apps represent
almost 11% of all subscription apps, it’s non-gaming • Demand for entertainment streaming apps
apps (health & fitness, photography, and surged 13% YoY in the number of iOS app
entertainment) that make up the lion’s share of apps installs, except in North America. Apple’s market
that offer a subscription. penetration in new and emerging markets played a
role in this growth, with installs increasing 113% in
The growth is also positive for app developers.
Subscription-based monetization strategies are LATAM and 47% in the Indian subcontinent.
predictable, easily tested, and therefore have the However, North America deviated from the trend
potential to be more profitable. Additionally, with installs dropping 15% on Android and 17% on
subscription apps in app stores receive a higher iOS, possibly indicating that users have too many
revenue share from subscription fees compared to non- choices and are facing a highly fragmented set of
subscription apps, with developers receiving 70% of services, some of which may be dropped during an
subscription revenue, which rises to 85% after a year. economic downturn.
• Remarketing conversion for entertainment
Global trends from the report include:
10 September 2022: Mobile Marketing