App data management company Apptopia reported that the average price of in-app purchases on the App Store in the US has increased by 40% since 2021. In contrast, the average price of in-app purchases on the Google Store Play has increased. only 9%.
How can app tracking transparency be responsible for this change
A graphical representation of the increase in the average price of in-app purchases in the App Store shows that the price increase in iOS apps preceded inflation this year. On the other hand, Apple’s ATT policies have made it more expensive for developers and publishers to earn users, and they may have responded to this change by increasing their effective cost per install ( eCPI).
eCPI determines the cost incurred by app developers/publishers to get new users to install their mobile apps. Furthermore, data from another mobile data measurement company, Adjust, also shows that an increase in eCPI is related to an increase in the price of in-app purchases.
As mentioned above, the average price of in-app purchases in the App Store has increased significantly compared to the Google Play Store. However, the report claims that all in-app purchases are not affected equally.
One-time in-app purchases have increased more than monthly or yearly purchases. By comparison, the average price of one-time in-app purchases on iOS has increased 36% year over year. Meanwhile, the annual/monthly in-app purchase price has increased by 19%. To reduce conversion costs, publishers are trying to keep customers on their apps for a longer period of time.