Mobile Games See a Significant Increase in Subscription Models
Subscription-based mobile games have experienced remarkable growth, with their share nearly tripling from 11% to 29% in just one year, according to a report by Liftoff and AppsFlyer called the State of App Marketing for Subscription Apps.
Based on data collected between January 2022 and April 2023, the report analyzed information from 6,000 subscription apps that acquired at least 3,000 new installs per month.
The Rise of Subscriptions in Mobile Games
The data shows that despite the current economic climate, consumer spending in subscription apps has increased by 35% on iOS and 22% on Android in 2023. These numbers are expected to continue to rise. An interesting finding is that conversion rates to subscription models are over 50% higher among iOS users compared to Android users, but both platforms have seen growth due to paywall optimization.
Scott Reyburn, Liftoff’s senior content marketing manager, said, “Despite the economic downturn, app marketers should feel assured by our latest findings – which show a rise in consumer spend and revenue growth per user, especially where subscriptions are concerned.”
While mobile games still account for a minority share of revenues generated by subscriptions, this is likely due to their smaller representation in the subscription market. Other app categories, such as health and fitness, entertainment, and utility, heavily rely on subscriptions for revenue. In the first half of 2023, mobile games generated $40.9 billion, compared to $26.6 billion from other app categories, according to data.ai.
Additionally, the report found that almost 50% of iOS users continue to consent to app tracking under the App Tracking Transparency (ATT) prompts. Users are more likely to consent if they are presented with a compelling reason and an improved experience.
“Marketers can gain confidence from the rise in consumer spend and should shift to a profitability mindset for the rest of 2023, expecting continued growth in revenue per user,” said Shani Rosenfelder, AppsFlyer’s director of content and market insights.
The full report, the 2023 State of App Marketing for Subscription Apps, provides further insights into user acquisition strategies and more.