Intro

What do popular apps like Netflix, Tinder, and Spotify have in common? 

They’re all subscription-based apps, where users pay a recurring fee for access to the app.

Considering all three apps enjoy global popularity and earn millions in transactions, it’s clear subscription app marketing is taking center stage. Users eagerly take up subscriptions for apps that provide value, and if your app meets this criterion, building and growing subscription-based apps is a no-brainer.

However, implementing this monetization model alone isn’t enough. You need to be prepared for the unique challenges it brings, and apply relevant best practices for maximizing app revenue and driving customer retention.

To guide you through this app monetization approach, we’ll delve deeper into different subscription pricing models. This guide will also cover the benefits, challenges, and best practices to help you establish lasting user engagement.

Chapter 1

What are subscription-based apps?

Subscription-based apps charge users a recurring fee in exchange for access to exclusive content and premium features and services. The fee is often a monthly or yearly subscription, but can also be chargeable weekly or quarterly. 

When a subscription period ends, users can cancel or modify their subscriptions. But in some cases, the subscription may automatically renew.

Top subscription-based app categories

Here’s a quick look at the different types of apps that have found immense success with subscriptions:

Engaging digital content (The New Yorker, The Washington Post)

Subscription-based content apps offer exclusive, regularly updated content tailored to user interests. These apps provide diverse articles, news, features, and analysis, delivering a compelling value proposition. Extra perks such as offline reading, personalized recommendations, and access to archives further enhance the premium information experience.

Immersive gaming (Xbox Game Pass Ultimate, Apple Arcade)

Subscription-based gaming apps give subscribers several appealing benefits, including ad-free gameplay, exclusive in-game items, and early access to new features. Even casino game apps offer a variety of virtual slot machines, poker, and other casino games. Subscribers enjoy bonus credits, rewards, and special in-game features, creating an engaging and rewarding experience. 

Multiplayer features and social interactions also create a sense of community within the subscription ecosystem, keeping gamers engaged and excited.

Streaming and music entertainment (Netflix, Apple Music)

Digital entertainment apps offer users a seemingly never-ending collection of movies, TV shows, and music — all on-demand — making them perfect for in-app subscriptions. Exclusive content and original shows ensure these apps stand out, promising a stellar entertainment experience. Subscription perks, in this case, can include unlimited streaming, ad-free playback, offline downloads, and personalized recommendations. 

Matrimony and dating (Tinder Plus, OkCupid A-List)

Subscription-based dating apps offer premium features to enhance user experiences. Unlimited swipes, advanced search filters, and the ability to see who likes your profile increase the chances of finding compatible matches and fostering meaningful connections. Continuous improvements and new features provide a compelling value proposition beyond free alternatives.

Elevated social networking (LinkedIn Premium, Reddit Gold)

Social networking apps provide users with enhanced features and exclusive content to elevate the social networking experience. These additions often include advanced privacy controls, personalized feeds, and ad-free browsing — all designed to cater to users who desire a more customized and refined social networking experience.

Productivity and efficiency tools (Evernote, LastPass)

Subscription-based service apps provide solutions for digital storage, social scheduling, and productivity management. Subscribers rely on these apps to elevate their productivity, while the consistent updates, new features, and incorporation of user feedback keep them engaged and loyal to the app.

Chapter 2

Subscription-based app models are on the rise

Thanks to the revolution of the digital landscape, the future looks bright for subscription-based app models.

As technology continues to evolve and integrate into various aspects of our lives, the demand for convenient and value-packed experiences will also continue to grow. Embracing the subscription model enables businesses to unlock new revenue streams. In fact, the revenue of the top 100 subscription apps increased by nearly 41% in 2021 alone, reaching an impressive $18.3 billion.

At this point, you’re likely wondering: why this sudden surge? It’s because:

• Modern consumers seek hassle-free experiences that provide value at their fingertips. Subscription-based apps cater to this need by offering a bundle of services at an affordable price. Instead of purchasing individual products or services, users can access a comprehensive suite of offerings with a single subscription, simplifying their lives and saving valuable time.
• Subscription-based apps also offer companies a predictable revenue stream, empowering them to plan for the long term with confidence. This financial stability enables businesses to invest in innovation, enhancing the overall user experience and driving further growth.
• Subscription-based apps foster a sense of loyalty and engagement among users. Reports indicate a notable improvement in churn rates for Subscription Economy Index (SEI) companies, with a 14% drop in 2021. This is because subscribers feel a sense of ownership and financial commitment, making them more likely to remain loyal. This loyalty translates into recurring revenue for businesses, establishing a solid foundation for long-term success.

Today, subscribers actively seek valuable digital services, presenting a compelling opportunity for app marketers to capitalize on and ensure long-term growth. If done right, this app monetization model will help you cater to user demands, cultivate loyalty, and monetize your apps effectively.

5 top subscription pricing models you can use

Finding the right subscription model is admittedly a tricky task. Here are the most common pricing approaches to consider for your subscription-based app.

1 — Flat-rate subscription pricing 

This model offers a fixed price for all features and services provided by the app. Users are charged the same amount on a recurring basis, simplifying the billing process and offering a straightforward pricing structure. 

Trello, a popular project management app, offers a flat-rate pricing model at $12.50 per user per month, providing access to all features, unlimited boards, and team members.

2 — Tiered subscription pricing  

In the tiered model, apps offer different packages with varying features and price points to cater to diverse customer needs. This pricing strategy suits apps with a wide range of features and a diverse customer base. Going up a tier unlocks additional benefits and functionality, allowing users to choose the level that fits their requirements and budget. 

Graphic design platform Canva popularly uses this subscription approach, offering tiered pricing with plans ranging from free to premium — each unlocking additional features, team collaboration options, and advanced design elements.

3 — Usage-based subscription pricing  

The usage-based model ties the cost of the app directly to its usage level. Customers pay based on the amount they consume or use the app’s services. This model is suitable for apps where usage patterns vary widely among users. 

For instance, the cloud storage app Dropbox charges users based on the amount of storage they use, with different pricing tiers for various storage limits.

4 — Per-added subscription pricing  

In the per-added-module model, the app offers a core product with the option to add extra modules or functionalities for a fee. This gives users the flexibility to customize their experience by selecting the specific features they need. 

A great example of this model is Autodesk Revit, a popular BIM (Building Information Modeling) software. Users can subscribe to the base software, and then add specialized modules like structural engineering or MEP (Mechanical, Electrical, and Plumbing) design according to their specific requirements. This allows users to tailor their app usage to their unique needs and preferences.

5 — Per-user subscription pricing  

The per-user model charges customers based on the number of users accessing the app. Pricing scales with the number of users, making it suitable for apps that facilitate teamwork or collaboration. This approach ensures fair compensation when multiple individuals rely on the app’s services independently. 

The popular team communication and collaboration app, Slack, is a great example of per-user charging, with pricing tiers based on the number of active users within an organization.

Chapter 3

Subscription-based apps’ benefits vs challenges

Like (almost) everything in marketing, subscription-based apps come with some benefits and challenges for marketers. Let’s start by digging deeper into the pros of getting mobile app subscription right, and then look at some potential pitfalls. 

Benefits of subscription-based apps

• More reliable income: Unlike one-time purchases, subscriptions offer a consistent stream of income, allowing you to plan and allocate resources effectively. You can confidently invest in marketing efforts and develop new features without the constant fear of financial instability. What’s more, offering discounts for longer subscription periods further enhances income predictability and entices users to commit to extended plans.
• Seamless promotions: Subscription models provide a fantastic opportunity to promote your app’s popular features and exclusive content. With well-timed and enticing offers, you can encourage users to subscribe and unlock premium benefits. By highlighting the value they’ll gain, you can effectively market your app’s standout features and consumables, driving conversions and increasing revenue.
• Higher engagement and increased user loyalty: When people subscribe, they actively invest in enhancing their app experience, leading to increased loyalty. Add to this regular content updates and feature releases, and you have subscribers hooked and eager to explore new offerings. This strengthens brand loyalty, improves user retention, and increases the likelihood of referrals. And as your user base grows and becomes more engaged, your app’s lifetime value (LTV) improves, resulting in greater exposure and better rankings in app stores — plus, more resources to invest in developing new content and features to keep the engagement going.
• Higher ATT opt-in rate for gaming apps: For gaming app developers, there’s an extra advantage to adopting the subscription-based model: a higher opt-in rate for App Tracking Transparency (ATT). Subscription gaming apps experience a significantly higher rate of user opt-ins for tracking. This is great news for you as it means more users are willing to share their data, giving you valuable insights to personalize experiences and implement targeted strategies to enhance user satisfaction and drive app growth.
• Improved ranking on Apple’s App Store: Apple has incentivized subscription models on its App Store, offering a more favorable revenue split of 85:15, compared to the standard 70:30 split, to app developers who retain customers for longer periods. This means Apple is on your side, rewarding your efforts to retain customers and aligning their interests with yours. Leveraging this opportunity can lead to higher rankings for your app and increased visibility within the Apple ecosystem.

Challenges of subscription-based apps

• Providing regular content and updates: Users have high expectations, and failing to provide ongoing value can result in subscription cancellations. To maintain user engagement and loyalty, you have to consistently deliver new, high-quality content and updates. This way, paying users will be excited about your app and continue their subscriptions with enthusiasm.
• Onboarding and free trial period: Properly onboarding users and showcasing your app’s value convinces them to become paying subscribers. Finding the right trial period can be challenging, as users need enough time to experience the app’s benefits. Striking the right balance is key to demonstrating your app’s value and converting trial users into loyal subscribers.
• Prompt customer support: Subscribers expect dependable and prompt customer support for their investment in your app. And providing excellent support is the only way to meet this demand while enhancing user satisfaction and minimizing churn. Admittedly, building a strong support team comes with expenses, but it’s crucial for retaining engaged users. Plus, you can use the recurring subscription revenue to fund these support services.
• Potential backlash during transition: Switching from a one-time fee to a subscription model may lead to backlash from existing users. But with the right approach, you can navigate this change smoothly and ultimately encourage acceptance. This involves engaging with and actively listening to user concerns while highlighting the long-term benefits of the subscription model. 

Chapter 4

7 subscription-based best practices for app marketers

How do you ensure your subscription-based app is a roaring success? Here are a few tips: 

1 — Offer value-driven pricing

Offer different subscription tiers that cater to the diverse needs and budgets of your users. This way, they can choose the level of access and features that best suits them. Don’t forget to sweeten the deal by providing discounted rates for long-term subscribers: this not only boosts your revenue but also fosters customer loyalty.

Imagine you have a language-learning app with three subscription tiers: Basic, Premium, and Deluxe. The Basic tier provides access to core language lessons, while the Premium tier offers personalized study plans and interactive exercises. For users seeking the ultimate language-learning experience, the Deluxe tier provides unlimited access to all courses, live tutoring sessions, and exclusive content. By offering these three tiers, you cater to diverse user preferences, boosting revenue through higher-tier subscriptions and keeping users engaged.

2 — Provide a compelling free trial period

Engage potential subscribers by offering a free trial period that lets them experience the full value of your app. Give them temporary access to premium content and features, showcasing the app’s potential and benefits. 

Take Amazon Prime’s generous 30-day free trial, for example. During this trial, users can explore the app’s premium services, user experience, and streaming quality. Providing a sneak peek of these paid features can significantly boost the likelihood of users converting to paid subscriptions.

3 — Nurture engagement and reduce churn

Keep things fresh and exciting by regularly updating your app with new content, features, and improvements. Personalize the user experience with tailored recommendations and notifications that align with their preferences. And don’t forget about providing excellent customer support – address any issues promptly to demonstrate your commitment to subscriber satisfaction.

Subscription-based fitness apps frequently offer each subscriber custom exercise programs and send personalized workout reminders and progress reports. Some even allow users to connect, share achievements, and support one another, creating a sense of community that not only boosts user satisfaction but also encourages long-term subscriptions and reduces churn.

4 — Leverage upselling and cross-selling opportunities

Capitalize on your existing subscriber base to increase revenue by leveraging upselling and cross-selling strategies. Identify opportunities to upsell users to higher subscription tiers with additional features or exclusive content. For cross-selling, try promoting complementary products or services that align with your app’s offerings, creating additional revenue streams.

5 — Nail your onboarding experience

When introducing your app, focus on showcasing its value and engaging users before presenting the subscription option. For apps with a “pay to use” model, it’s important to highlight the app’s worth without pushing subscriptions too soon. For apps with a “pay to upgrade” model, guide users through core features during a free onboarding stage and provide a clear path past the paywall.

Once your users have a solid understanding of the app’s capabilities, educate them about the benefits of a paid subscription and the additional features it offers. Spotify’s approach of offering its premium plans for free in the first month is a masterstroke: it enables users to understand the app’s paid plan benefits before introducing the subscription offer, leading to higher conversion rates.

6 — Be scrupulously honest and transparent

Trust and a strong brand reputation are crucial to success in the world of subscription-based apps. Make cancellation processes clear and accessible, ensuring users can easily find links or buttons to cancel their subscriptions and don’t have to jump through hoops. By being transparent and respectful, and prioritizing user financial well-being, you establish trust and foster a positive user experience. When customers feel valued and appreciated for their commitment, they’re more likely to remain loyal subscribers.

7 — Measure and optimize your subscriptions

Thoughtful measurement analytics is critical for your app’s success. Keep a close watch on key metrics like conversion rates and acquisition costs to gauge the effectiveness of your subscription model. You can also conduct cohort analysis to gain insights into user behavior and fine-tune your free trial period based on how quickly users convert to subscriptions.

For instance, suppose you have a fitness app offering a seven-day free trial. After examining user data, you discover a significant number of users who complete the trial end up subscribing to your premium service. Armed with this knowledge, you can extend the free trial period to 10 days, providing users with more time to experience the app’s benefits — a move that’s likely to improve conversions and boost ROI.

Key takeaways

• Popular subscription-based apps like Netflix, Tinder, and Spotify charge users a recurring fee for exclusive content and features. Users can modify or cancel subscriptions, and some subscriptions renew automatically.
• Successful subscription-based apps span various categories, including digital content, gaming, streaming, dating, social networking, and productivity tools.
• The rise of subscription-based apps is driven by the demand for convenient, value-packed experiences. Subscriptions simplify users’ lives, offer comprehensive packages, and provide businesses with predictable revenue. This fosters user loyalty and recurring revenue and allows long-term planning and innovation.
• Common subscription pricing models include flat-rate, tiered, usage-based, per-added, and per-user. Each model has its advantages and suits different types of apps.
• Subscription-based apps offer reliable income, increased engagement and loyalty, seamless promotions, and benefits like higher ATT opt-in rates and improved rankings. Challenges include content updates, free trials, customer support, and potential backlash.
• To succeed with subscription-based apps, offer value-driven pricing, compelling free trials, personalized experiences, upselling opportunities, smooth onboarding, and transparent cancellation processes — and don’t forget to optimize the experience using key metrics.

Introduction

The gaming world never stands still, and as always, the drive for increased revenue and audience continue to be the key agents of change. And boosting revenue and audience pools is exactly why many mobile game studios are making a shift to offering their games on PC and console platforms as well. 

So what’s driving this change? Well, as in so many other areas, the pandemic has played a big part.  It’s common knowledge that gaming did well during COVID-19. According to Newzoo, the number of gamers jumped by 12% from 2020 to 2022, with PC and console each scoring over 15% player growth in the same period.

What’s more, privacy regulations and saturation of mobile users mean mobile game developers are on the lookout for new audiences and revenue streams. They’re at different stages of building games to serve the growing body of PC and console gamers. And while this wasn’t a major theme pre-Corona, there’s a noticeable shift to allowing play across platforms. 

If this shift piques your interest, read on, because in this guide, we’ll dig into how mobile gaming publishers are taking advantage of the PC and console opportunities. We’ll cover how they can turn PC and console into performance marketing channels by measuring cross-platform flows. And finally, we’ll share use cases that shine a spotlight on these flows. 

Chapter 1

Multi-platform in 2023? Game on

The gaming industry has been navigating through choppy waters since the pandemic hit in early 2020. Despite the difficulties brought on by COVID-19, or perhaps because of them, gaming surged just as much of the “outside world” shut down and people remained in lockdown. 

The surge was followed by a natural, organic correction as people, including gamers, emerged from their homes, with work, school, physical shopping, and live entertainment all eating into hours previously spent gaming.

But, thankfully, there’s a silver lining in these post-pandemic times. There are considerably more players now than in 2020 across all platforms (see Table 1) — with PC and console up by 16% and 17%, respectively — and engagement is higher, too. 

Platform	2020	2021	2022
PC	2.07 billion	2.23 billion	2.40 billion
Mobile	2.68 billion	2.91 billion	3.15 billion
Console	1.33 billion	1.44 billion	1.56 billion

Chapter 2

Why is the shift happening now?

The growth in numbers and in player diversity present mobile gaming publishers with opportunities to garner revenue from titles offered on PC and console. And there are other reasons that studios are looking beyond their mobile comfort zone: 

• Attractive console ARPU: ARPU (average revenue per user) is 67% higher on console compared to mobile, so it’s easy to see why mobile game studios are enthused about bringing their games to this platform. 
• Improved technology: Technological advances have made it simpler and more cost-effective for mobile gaming studios to build their games for other platforms.
• Privacy challenges: While Apple’s privacy regulations may be beneficial for users, they present a hurdle for gaming developers trying to create personalized and engaging gaming experiences. 
• Market saturation: The mobile gaming market is becoming increasingly saturated, with many new entrants and established players competing for a limited user base and revenue streams.
• Influencer streaming: Developers understand the power of influencers streaming games, and the quality of PC game streaming is higher than that of mobile games. The easier publishers make it for streamers to make quality videos of games, the more they will stream.
• Immersive gaming: From the gamer perspective, there’s increasing demand for high-quality games that are more immersive and engaging. 

Chapter 3

How does it work in practice?

Now that we know why gaming studios are expanding, let’s turn to the two primary ways of bringing mobile games to PC and console:

1. Per platform: A new version of the game developed “stand alone” for a specific platform, for example, a mobile game brought to Steam with multiplayer elements available only on Steam. 
2. Cross-platform: A game that can be played on any device on the same session or account, for example, Fortnite, Genshin Impact, or Summoners War Chronicles.

Prescient developers have delivered, and games originally available on mobile only — like Summoners War Chronicles, Genshin Impact, Fortnite, and Minecraft — have been developed for console and PC. Their success has generated additional interest in offering other mobile games for PC and console.

As for business models, at this point, mobile gaming companies are looking at bringing their mobile monetization models to PC and console; that is to say, providing free-to-play games that drive revenues from in-app purchases.

In short, we’re witnessing a growing swell of mobile gaming companies seeking to monetize their IP on PC and console.

Chapter 4

PC and console measurement: The promise and challenges

As mobile game studios are increasingly building games for PC and console, what’s on their marketing wish list? 

Accustomed to the measurement, attribution, and analytics provided by their MMPs (mobile measurement partners), marketers naturally want to measure the impact of ads for PC and console games appearing nearly anywhere on the planet. 

This means understanding complex flows such as:

1. A social media ad leading to the publisher’s web store, then to the platform (for example, Xbox or Playstation) store, and finally to a download of the game on the console.
2. A connected TV (CTV) ad which triggers a gamer to head to Steam where they purchase, download, and play the game. 

With so many “points of departure” (mobile apps, CTV, web, even out-of-home ads), there are multiple paths users can take before they ultimately purchase, play, and buy in-game. 

The takeaway here is obviously that to take advantage of the PC and console opportunity, there needs to be a way to measure PC and console campaigns. This is especially true for the free-to-play model, where performance marketing and ROAS measurement determine the success or failure of a game.

But alas, it’s not that simple. Without the right infrastructure, measurement is extremely challenging. Building an attribution solution for these various paths is no mean feat, and the challenge is exacerbated by the curveball thrown by Apple and Google limiting unique identifiers. And then there’s the perennial problem of siloed reporting and analytics. 

In short, the lack of a real-time marketing picture for PC and console campaigns has impeded mobile gaming studios’ grabbing the PC and console with both hands. 

Chapter 5

Measuring PC and console campaigns

Question: What do mobile brands building games for PC and console need in order to measure their campaigns? 

Answer: A measurement partner that allows them to turn PC and console into performance channels by offering the ability to:

1. Connect the dots across the various user flows, all the way to game download and in-game conversions.
2. Provide a real-time view of campaign performance.
3. Advertise nearly anywhere, direct users to the right platforms, and have conversions attributed to the right sources. 
4. Gain the same visibility on PC and console that they enjoy with mobile attribution, with all campaign metrics in one place.
5. Create games that can be played anywhere, allowing players to move seamlessly from one platform to another and to spend more time in the game.

A solution with these five attributes will allow gaming publishers to more fully cash in on the PC and console revenue opportunity. It can bring performance marketing to PC and console, enabling marketers to allocate ad spend to optimal marketing channels.

In line with its goal of helping brands measure pre- and post-conversion activity and events on any platform, AppsFlyer offers such a solution, empowering gaming brands to unlock untapped revenue streams. 

It’s based on three complementary layers:

1. Cross-platform conversion measurement: Gaming developers can attribute conversions or installs that take place on one platform to clicks and impressions taking place on a different platform. 
2. Post-conversion measurement: Post-conversion events such as in-game purchases are measured, providing insights into campaign success and enabling ad spend optimization.
3. All metrics in one place: Publishers can gain a complete picture of ad media budget distribution and performance across multiple platforms, devices, and channels.

Bottom line: Marketers of mobile games can now take advantage of new revenue streams by building games for PC and console platforms and by leveraging measurement technology offered by the right partners.

Chapter 6

Use cases

In this section, we share a number of cross-platform user flows to illustrate how you can begin to tap into the PC and console opportunity. Note that the use cases below represent a small sample of the many possibilities out there, and that the last step —PC or console — is interchangeable; that is, a flow ending with a PC can end with a console and vice versa.

Web-to-desktop

A great entry point for mobile marketers is to start with the familiar: web ads. After all, mobile marketers are well-versed in setting up, deploying, measuring, and optimizing web ads. In addition, they know how to take advantage of the high intent associated with users clicking on search and web ads. 

In the above example, a player clicks on a web ad and arrives at a landing page. From here, the user clicks on a link to the right PC store, downloads the game, and then plays it.

The impression and UTM are captured on the landing page, enabling the marketing to understand the gamer’s flow. Measurement of various flows allows the marketer to understand which campaign is performing best and to subsequently allocate budget accordingly.

CTV-to-console

The CTV opportunity has grown by leaps and bounds in recent years, as more viewers opt to stream content over the internet rather than watch linear TV. CTV ad spend in the US alone is expected to grow from $25 billion to $33 billion in the next two years. Not surprisingly, gaming brands such as Kabam, Playtika, and Mistplay have been at the forefront of advertising on CTV, which is emerging as a viable performance channel.

Below, a viewer sees a CTV ad for a console game. She then heads to the console store, downloads the game, and launches it. 

The ad impression is captured and matched with the download on the console. Any in-game purchases that may happen in the future are attributed to the CTV ad. 

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Mobile-to-desktop

Like web ads, mobile ads are a great way to quickly leverage the PC and console opportunity. Again, mobile marketers are right at home in this territory.

In the flow below, a gamer sees an ad for a game in their favorite social media app. The player heads to the PC store where he downloads and starts playing the game. 

By matching the ad impression to the download, the measurement solution is able to attribute the download to the original ad that the viewer saw.  

Out-of-home-to-desktop 

Gaming marketers can use out-of-home (OOH) advertising to convert captive audiences at bus stops, metro stations, subways, and train platforms into game customers. The QR code comeback has seen marketers worldwide jump on the technology, and QR codes have become commonplace on commutes, runs, and physical shopping experiences.

In the above use case, a player captures a QR code at a bus stop and is brought to a mobile landing page. The player clicks on the desired platform and gets to the store’s mobile website. She purchases the app and later heads to her PC to download and launch the game. The measurement platform records the QR code capture and matches it with the store purchase and launch on the PC.

Key takeaways

• A growing number of mobile gaming brands are expanding their offering to PC and console, developing existing games or launching new ones to be played across platforms. 
• The main impetus for the shift is new audiences and revenue streams.
• Additional reasons for the new trend include privacy restrictions, a saturated mobile gaming market, and high console ARPU.
• Measuring the dozens of flows that ultimately bring players to PC and console is challenging, but it is possible with the right partner. These flows include taking users from a web page, CTV screen, mobile app, or out-of-home ad to download and play the game on their chosen device.
• Gaining the ability to measure PC and console campaigns is key to turning these platforms into performance marketing channels.