App developers were given a revenue boost following the news from Apple that app store fees will be reduced by 50% for any developer earning up to $1m (USD) of annual revenue through the app store. This welcome drop to 15%, after a lifetime at 30%, was introduced through the launch of the App Store Small Business Program.
In a bid not to be outdone, Google announced that starting on 1 July, they will also reduce fees in Google Play to 15%. Except in Google’s case, all app developers will receive this reduction on the first $1m (USD) revenue earned through the Google Play store, no matter how much their total annual earnings.
What’s the best way for app marketers to invest this extra revenue for maximum growth?
Depending on your objectives there are several options to consider including product development, brand awareness and user acquisition (UA). If UA is your priority, the most effective way to increase your return on investment is achieved by acquiring users who pay in your app.
With around 95% of app users not making payments (Source: AppsFlyer) and advertising revenues from non-paying users facing a downward trend, app marketers need to focus their campaigns on acquiring high value users, going beyond filters based on demographics and characteristics to target based on purchase behavior.
Rather than targeting broadly and catching a few payers, app marketers are beginning to use purchase behavior targeting (PBT) to get their campaigns straight to payers in similar apps, increasing the payer conversion by over 2X.
How is this possible? Bango Audiences are built by analyzing purchase behavior from billions of dollars of in-app spending. App developers can access these tailored audiences to target their Facebook campaigns, so they are focussed to payers in a specific category or app/game titles.
That’s why the most efficient and effective way to maximize growth is through a Bango Audience of payers in similar apps. Find the perfect audience of payers to target with your next Facebook campaign at bango.ai, or we can even build an individually tailored Bango Audience just for you.