RSS feed Get our RSS feed

News by Topic

BizReport : Mobile Marketing : October 28, 2021

Expert: What Google's lowering of App Store fees portends

Last week came news that Google would lower service fees within its App Store. The move, which will impact publishers and app developers more than consumers could incentivize more apps with in-app purchases and subscriptions. We asked a mobile expert what the move could mean moving forward.

by Kristina Knight

First, some numbers. Most (98%) Google Play publishers fell under the $1 million annual consumer spend threshold. This represents about 90,000 unique publishers. Only about 4% saw an annual consumer spend between $100,000 and $500,000 and fewer than 1% saw an annual consumer spend of over $1 million.

"The impact on the industry could be vast," said Lexi Sydow, Head of Insights, App Annie. "This offers an incentive to publishers to incorporate in-app purchases and subscriptions as part of their monetization strategy."

Google Play would retain about 15% of the fees associated with he change. However, Sydow sees this as a minor fee because of the distribution offered by Google Play.

"The reduction in friction for the end user to subscribe through Google Play will likely pay off in the volumes of conversions to paying customers," said Sydow. "We've seen consumers paying for mobile subscriptions grow significantly over the last 18 months, as many consumers are turning to mobile as the best way to manage their lives and the services they value."

On a global scale, games represent most mobile consumer spending (68%), totaling about $45 billion (Google Play). In Apple's store games represent about 35% of consumer spending or $23 billion.

"Consumer spend across apps and games on the Google Play store grew to $12.1 billion (Q3 2021), up 16% YoY with non-gaming spend, largely in in-app subscriptions, up 45% YoY, an indication of in-app subscriptions going mainstream. The reduction in cut Google Play takes will stand to benefit the publishers amidst the growing demand for these payment options."

Image via Shutterstock

Tags: App Annie, app commerce, appvertising, Google, Google Play Store, in-app purchase trends, m:commerce, Mobile marketing

Subscribe to BizReport



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.