You can’t be Siri-ous! Apple’s in-app purchase prices rose 40 PERCENT in the year ‘because of app tracking privacy’… because only Google Play costs rose 9%
- New data shows that Apple’s in-app purchase prices jumped 40 percent in one year
- App intelligence company Apptopia believes the increase is due to the tech giant’s App Tracking Transparency (ATT) feature
- The privacy protocol introduced in February 2021 features popups on apps that ask users if they want to be tracked.
- Apple’s ATT has impacted revenue for some companies including Meta, which reported its first drop in revenue earlier this year.
New data reveals that the average price of in-app purchases on the Apple App Store has risen 40 percent since last year.
An analysis by app intelligence firm Apptopia also found that in-app purchases from Google Play rose by only 9% in the same time frame.
Although inflation has hit Americans hard across the board over the past year, Apptopia notes that the price increases came largely before the onset of inflation.
The company instead believes the higher costs have something to do with Apple’s push for App Tracking Transparency (ATT) – which was introduced in February 2021.
New data from Apptopia reveals that the average price of in-app purchases on the Apple App Store has increased by 40 percent since last year
The company instead believes the higher costs have something to do with Apple’s push for App Tracking Transparency (ATT) – which was introduced in February 2021 and can be seen above.
Single in-app purchases, like the new skin in Tennis Clash, increased much more than in-app purchases for monthly or annual purchases like access to Headspace for a full year (above) – Apptopia found
Apple CEO Tim Cook said, “A lot of people are just tracking [without our consent]People are either not aware of it, or they are not aware of its spread.”
You’ll notice that the uptick in iOS comes before inflation hits hard in 2022, suggesting that publishers may already be reacting to an increase in effective cost-per-install (eCPI) due to Apple’s (ATT) policies that make user acquisition more expensive, Apptopia explained in A blog post about the new data.
Privacy Protocols for In-App Purchases (IAPs) – introduced by Apple CEO Tim Cook as part of iOS14 – require users to agree to being “tracked” for every app they download.
Since this tracking is a huge part of how apps like Facebook earn from targeted ads, Meta revenue reported its first decline in July.
When Cook was asked about the new feature in an interview early last year, he told GQ that as the app ecosystem evolved, “what has happened is kind of tracking without our consent.”
He said he “doesn’t mind” being tracked by consent, but says “a lot of people are just tracking [without our consent]People are either not aware of it, or they are not aware of its spread.
At the time, Meta CEO Mark Zuckerberg said the new update would move people away from Facebook Messenger and WhatsApp, which it also owns, and toward Apple’s iMessage, which is built into all of its products. He described the move as “self-serving” and said it would harm not only Facebook but small businesses.
Apptopia noticed that prices went up significantly more on the App Store than on Google Play, so the data company wanted to determine if all in-app purchases were equally affected.
Singles purchases for individual purchases, like the new skin in Tennis Clash, increased much more than in-app purchases for monthly or annual purchases like access to Headspace for an entire year — Apptopia found.
“Average pricing for IAPs increased 36% year over year in July, while annual + monthly in-app purchases increased only 19%,” the company wrote.
App publishers are trying to deliver value and connect customers for longer periods of time in order to lower acquisition costs, according to Apptopia.
When Apple released its third-quarter earnings in late July, it reported $19.6 billion in services revenue, which represented a 12% year-over-year increase for the tech giant. This number is also down from the 27% growth rate it recorded during the same time period last year.
The Cupertino, California-based company’s category of services — which includes the App Store, Apple TV +, Apple Music, cloud services and more — has reached 860 million paying subscribers on Apple’s platform.
“The record level of performance for our services portfolio during the June quarter reflects the strength of our ecosystem on many fronts,” Apple Chief Financial Officer Luca Maestri said on the company’s earnings call.