In April, Apple rolled out the App Tracking Transparency (ATT) policy to all App Store developers and publishers. This policy requires all apps submitted to the App Store to have this feature, which compels app developers to be more honest about the customer data they gather and share with third parties. However, according to a new analysis, Apple's ATT is to blame for the rise in the average price of in-app purchases on the App Store.
According to Apptopia, an app data management business, the average price of in-app purchases on the App Store in the United States has climbed by 40% since 2021. On the contrary, the average price of in-app purchases on Google Play has only increased by 9%.
How App Tracking Transparency may be to blame for this shift
According to the graphical representation of the increase in the average price of in-app purchases in the App Store, the price increase in iOS applications occurred prior to this year's inflation. Apple's ATT restrictions, on the other hand, have made it more expensive for developers and publishers to recruit customers, and they may have reacted to this move by increasing the effective cost per install (eCPI).
The cost suffered by an app developer/publisher to obtain a new user to install their mobile app is determined by eCPI. Furthermore, data from another mobile data monitoring business, Adjust, shows that the growth in eCPI is tied to rising in-app purchase costs.
Additional information
AsAs previously stated, the average price of in-app purchases on the App Store has risen dramatically in comparison to the Google Play Store. However, according to the study, not all in-app purchases have been equally impacted.
One-time in-app purchases have grown far more than those that must be done on a monthly or yearly basis. In comparison, the average price of one-time in-app purchases in iOS has risen by 36% year on year. In the meantime, the cost of annual/monthly in-app purchases has risen by 19%. Publishers are attempting to keep clients on their applications for longer periods of time in order to cut acquisition expenses.
