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Customize: Americans spend $ 20.78 a month on app subscriptions



Mobile measurement company Adjust launched a subscription tracking service and found that people in the United States spend an average of $ 20.78 per month on app subscriptions.

Subscriptions to apps and games have exploded during the pandemic, and many businesses are benefiting from increased consumer willingness to subscribe to apps. More than a third of the people in the country use their smartphones every day to stream video and TV services.

Berlin-based Adjust offers its subscription tracking service as subscription services move well beyond Netflix to Disney +, health and fitness, investment and other services. During the pandemic, companies like Disney are pivoting heavily into streaming and subscriptions due to changes in online behavior.

“Subscriptions are one of the key strategies that many of our customers are adopting,”

; said Adjust Vice President Katie Hutcherson Madding in an interview with VentureBeat. “The big transition to subscriptions started in 2018. Subscriptions accounted for about 21% of revenue last year, or $ 4.6 billion in 2019. With COVID-19, we’re seeing growth accelerate even further. “

With its new subscription data service, Adjust is doing some pivots of its own as the measurement business won’t be so easy on iOS after Apple restricted access to user-level data for mobile ad targeting. Adjust provides key mobile attribution metrics in performance advertising that advertisers can use to know whether a particular ad induced a user to buy something in an app or game. To do this, it needs enough tracking information to establish the connection.

Since Apple is discontinuing its IDFA (Identifier for Advertisers), this measurement becomes very difficult, if not impossible, on iOS. And yes, Adjust is considering what it can do about this fundamental hurdle for its business. Adjust will continue to provide other services such as Android mobile ad assignment and fraud protection, as well as the new subscription service and “probabilistic” reports on user activity, said Hutcherson Madding.

Regardless of what happens to IDFA, the subscription service will tell developers a lot of things they didn’t already know, said Hutcherson Madding. Previously, developers may not have had access to a complete view of subscriptions and attribution data in one place. Hutcherson Madding said that important parts of the conversion funnel could be missing or a developer could be working on multiple platforms to understand how subscribers are discovering or interacting with their game or app.

With the new solution from Adjust, developers can now track all subscription events and income in one dashboard. This gives them visibility into all of their subscriber data so they can take action and increase the return on investment (ROI) on subscriptions, increase customer loyalty, and reduce engagement churn.

Above: Adjust found that young people are more likely to subscribe to apps than older people.

Image credit: Customize

Adjust’s subscription tracking product also promises to help marketers develop accurate lifetime value (LTV) models that increase ROI. Previously, marketers had no access to vital subscription data, which affected their understanding of the user funnel or the number of people moving through the channel, Hutcherson Madding said.

She also noted that based on initial research by the company, service subscribers may be more willing to share their identification information than other users.

“We have worked with a variety of different customers on a global scale to optimize what we call a pre-prompt. We really focus on our user experience expertise and give our customers design tips to optimize this, ”said Hutcherson Madding. “So we found an opt-in of over 70% for certain customers.”

That’s far better than the 20% opt-in many users have come to expect when Apple’s IDFA change takes effect. By combining subscription measurement with attribution data, Adjust can tell customers which marketing channels are driving the longest running and most valuable subscriptions. Marketers should then be able to invest much more accurately in user acquisition and run engagement campaigns that build loyalty and prevent churn.

“We’ll be able to get subscription-level data, which companies that provide subscription tracking on their own can do,” said Hutcherson Madding. “The real competitive advantage is that we can link this data to specific Facebook advertising campaigns that have made this user subscribe.”

Apptopia estimates that app-based subscriptions generated over $ 200 million in August 2020 alone, and many adults in the U.S. plan to keep their subscriptions after the pandemic ends.

Survey results

Above: With Adjust, you can keep track of how subscribers behave on their app trips.

Image credit: Customize

Adjust also published the results of a survey of US consumers that examined the intensification of subscription and streaming consumption on mobile devices. The study shows that 46.9% used smartphones to stream video / TV services during the pandemic and are increasingly doing so with subscription-based apps.

More than a quarter of Millennials (born between 1981 and 1996) and Generation Z (born between 1996 and 2015) said they no longer pay for other services to buy subscriptions to mobile app services (e.g. fitness Subscribing to apps) going to the gym). This corresponds to 17.9% of the total consumers.

And those aged 25-34 spend the most on subscription apps – $ 25.85 per month – while those over 55 spend the least at $ 13.97 per month. Streaming apps were the most popular subscription-based app downloaded (30.7%), followed by games (9%) and news (4%).

Younger consumers are leading the way in mobile streaming. Gen Z and Millennials are more likely to pay for streaming and on-demand entertainment services than any other generation. Roughly 57% of Millennials and Gen Z said they used their smartphones more often for streaming video / TV services and for social distancing.

Above: Adjust’s survey of subscribers for apps.

Image credit: Customize

Consumers who subscribe to streaming and on-demand entertainment spend an average of $ 33.58 per month on these services, with Netflix, Amazon Prime, Hulu, Disney + and YouTube TV listed as the top five streaming services among respondents.

Adjust provides complete visibility into subscription events without prompting marketers to work across dashboards or perform complicated integrations. The rollout is part of the company’s broader mission to make marketing easier, smarter, and more secure for the 40,000 apps that use the Adjust platform.

The survey was conducted by Censuswide on behalf of Adjust using a nationally representative sample of 1,003 TV / streaming customers aged 16 to 60 between September 23 and 29, 2020.


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