App marketing revenues jumped 80% since 2016

Revenues from app marketing increased 80% since 2016, according to new research by app and mobile measurement company AppsFlyer. At the same time, app developers are dealing with increasing challenges such as user loyalty, retention times and app profitability.

Indeed, the app monetisation landscape has turned into a bit of an obstacle course where developers are faced with having to focus on purchase revenues, subscriptions, in-app purchases and advertising.

Certain app categories are more reliant on in-app purchases than others. For example, gaming apps rely on in-app purchases and advertising to generate revenue. However, a mere 4% of gamers make in-app purchases.

Meanwhile, AppsFlyer found that the average iOS device owner spent 70% more on shopping apps than Android device owners.

When it comes to shopping apps, organic users are proving particularly valuable as they tend to spend $21 during just three months compared to $7.1 for non-organic users. This does not imply that Android users aren’t active shoppers. Indeed, active shoppers on Android are around 10% – just as on iOS.

The report also noted that the UK has the best metrics for in-app shopping with a $9.50 average 90-day revenue per user. The country also has the highest share of paying user and consumers tend to make over three purchases in three months. The US closely follows at $9.23.

In order to boost loyalty on shopping apps, AppsFlyer recommends that app developers engage users to make their first purchase. This can help boost multiple purchases down the line.