The subscription-based app industry has demonstrated remarkable resilience in the face of global recession fears and inflationary pressures in 2023 so far. Despite challenges posed by privacy changes and declines in acquisition spending and NOI (non-organic installs), subscription apps have achieved substantial growth in overall consumer spending, underscoring the sustainability of their monetization strategies.
Subscription-based iOS apps experienced a noteworthy 35% rise in consumer spending during 2023, while their Android counterparts observed an increase of 24%. Additionally, the conversion rates from app installs to subscriptions saw a significant YoY increase of 20% on Android and 15% on iOS.
Ad spending for Android subscription apps plummeted by 41%, and iOS spending dropped by 30% during the economic downturn. Marketers had to readjust their focus from growth-oriented spending to strategies prioritizing profitability and efficiency.
Marketers have pivoted from acquiring new subscribers to cultivating relationships with existing users. Consequently, owned media re-engagements surged by 48% in 2023. In contrast, paid remarketing saw a 6% YoY drop, while non-organic installs faced a more significant decline of nearly 20%. Amid the shift away from non-organic installs, paid remarketing strategies remained robust.
Almost half of iOS users who encountered the ATT prompt within subscription apps consented to tracking. Utility apps, in particular, enjoyed the highest consent rate at 59%. On iOS, gauging the effectiveness of subscription app marketing has proven challenging due to the limitations of SKAdNetwork (SKAN). The standard one-to-two-day post-install window falls short, and conversions to paid subscriptions often occur seven days or more after installation.
As the industry witnesses substantial growth and adaptation, app developers can find solace in the stability and predictability of subscription-based monetization strategies. “2023 State of App Marketing for Subscription Apps” report highlights how testing and optimization can be streamlined, leading to greater profitability for app developers and reveals a promising outlook for the subscription-based app industry despite the challenges faced throughout the year.
