The average in-app purchase price on the Apple App Store has risen over the year (as of July 2022) by a whopping 40%. For comparison, over the same period of time on Google Play, this indicator increased by 9%. Inflation in the US soared, hitting a 40-year high of 9.1% in June. App analytics firm Apptopia believes this is largely due to changes to Apple’s privacy policy, Apple App Tracking Transparency (ATT).
Apple introduced ATT in February 2021 and implemented the innovations with the release of the iOS 14.5 update. ATT is an independent privacy framework that requires apps on iOS to ask users for permission to track information and share their data. And many users have decided that they don’t want to share data with marketers for targeted advertising. This made user acquisition more expensive for publishers.
Interestingly, the price increase for in-app purchases precedes the surge in inflation in 2022. This confirms Apptopia’s theory that developers are indeed responding to increases in actual cost per install (eCPI).
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The biggest driver of this gain is one-time in-app purchases, which grew by 36% compared to a 19% gain for monthly and yearly in-app purchases. Apptopia explains that publishers are “trying to provide buyers with longer-term value in order to reduce acquisition costs.”
Changes in privacy rules have had major implications for the tech giants. For example, in July of this year, Meta reported its first quarterly drop in revenue. At the same time, the innovations bolstered Apple’s own advertising business. According to Appsumer, Apple’s ad acceptance rate is up almost four points year-over-year to 94.8%, while Meta’s acceptance rate is down to 82.8%.
Source: techspot
