Implementing In-App Purchases and Other Monetization Strategies in iOS Games Development Company

In-app purchases (IAPs) and other monetization strategies can be an important part of generating revenue for your iOS game development company. Here are some steps you can follow to implement IAPs and other monetization strategies in your iOS games:

What Are In-App Purchases?

In-app purchases (IAPs) are items or services that users can purchase within an app. These purchases can be one-time purchases or recurring subscriptions, and they can include things like additional levels or features for a iOS Game Development Company, digital content such as ebooks or music, or physical goods such as t-shirts or coffee mugs.

IAPs are often used to monetize free apps, as users can download the app for free and then purchase items or services within the app to unlock additional content or features. IAPs can also be used to monetize paid apps, where users can purchase additional items or services within the app after they have already paid to download it.

To implement IAPs in an app, developers must use the StoreKit framework and integrate it with the App Store. Developers must also design the IAPs themselves, including deciding on the items or services being offered and the prices.

IAP Metrics to Track

There are several metrics you can track to measure the effectiveness of your in-app purchases (IAPs):

• Conversion rate: This is the percentage of users who make a purchase. You can track this metric to see how successful you are at converting free users into paying customers.
• Average revenue per user (ARPU): This is the average amount of money a user spends on IAPs. You can track this metric to see how much revenue you are generating from each user.
• Average purchase value (APV): This is the average amount of money a user spends on a single IAP. You can track this metric to see how much users are willing to pay for individual items or services.
• Lifetime value (LTV): This is the total amount of money a user is expected to spend on IAPs over the course of their lifetime as a user of your app. You can track this metric to see how much revenue you can expect to generate from each user.
• Refund rate: This is the percentage of IAPs that are refunded. You can track this metric to see how satisfied users are with their purchases and to identify any issues with your IAPs.

Tracking these metrics can help you understand how well your IAPs are performing and identify areas for improvement.

IAP Statistics You Should Know

In-app purchases are particularly common among gaming apps in terms of quantity. They are typical in other app categories as well, though. Here are a few intriguing statistics.

By the end of 2022, it is anticipated that in-app transactions would generate $204 billion in revenue. This amount is expected to increase to $231 billion by 2023, $254 billion by 2024, $271 billion by 2025, and $285 billion by 2026, among other increases. (Statista)

Business of Applications reports that 50% of non-gaming apps and 79% of gaming apps presently monetise through in-app purchases.

It’s no secret that it might be challenging to convince a user to pay for a service in the freemium market. Particularly the first time. To put it in money, it costs an average of $35.42 to convince a mobile player to make their first in-game purchase (Liftoff).

4 Types of In-App Purchases

There is no one particular way to make an in-app purchase. To make the most of them, you should develop your own in-app purchase strategy in light of this.

You’ll find that the top-grossing mobile games employ a variety of concepts and strategies if you take a look at some of them. This is due to the fact that particular in-app purchase methods are more effective for particular iOS Game Development Company genres.

We can generally divide them into four categories:

1. Consumable

A consumable in-app purchase (IAP) is a type of IAP that is used up or consumed by the user and can be purchased again. Examples of consumable IAPs include virtual currency, extra lives in a game, or additional usage of a service.

Consumable IAPs are often used in free-to-play games or apps that offer a limited number of uses or features for free, with the option to purchase more. For example, a game might allow users to play for free, but require them to purchase extra lives or virtual currency to continue playing.

To implement consumable IAPs in an app, developers must use the StoreKit framework and integrate it with the App Store. Developers must also design the consumable IAPs themselves, including deciding on the items or services being offered and the prices.

2. Non-Consumable

A non-consumable in-app purchase (IAP) is a type of IAP that is not used up or consumed by the user and can be purchased only once. Examples of non-consumable IAPs include additional features or content that are permanently unlocked, such as new levels in a game or a subscription to a service.

Non-consumable IAPs are often used to offer additional value to users who are willing to pay for it. For example, a game might offer additional levels or features as non-consumable IAPs, allowing users to unlock them permanently and access them anytime they want.

To implement non-consumable IAPs in an app, developers must use the StoreKit framework and integrate it with the App Store. Developers must also design the non-consumable IAPs themselves, including deciding on the items or services being offered and the prices.

3. Auto-Renewable Subscriptions

Auto-renewable subscriptions are a type of in-app purchase that allow users to purchase access to digital content or services on a recurring basis. These subscriptions automatically renew at the end of each subscription period unless the user cancels them. They are often used for services such as news, magazines, and music or video streaming platforms. In the App Store and Google Play Store, developers can offer auto-renewable subscriptions with various durations, such as weekly, monthly, or yearly. Users can manage their subscriptions and cancel them at any time from their device’s account settings.

Also Read: Is Flutter Platform Still Relevant for Mobile App Development in 2023?

4. Non-Renewing Subscriptions

Non-renewing subscriptions are a type of in-app purchase that allow users to purchase access to digital content or services for a fixed duration. Unlike auto-renewable subscriptions, non-renewing subscriptions do not automatically renew at the end of the subscription period. Instead, they expire and the user must purchase a new subscription if they want to continue accessing the content or services. Non-renewing subscriptions are often used for one-time or time-limited access to content or services, such as a single issue of a magazine or a specific video course. In the App Store and Google Play Store, developers can offer non-renewing subscriptions with various durations, such as a day, a week, or a month. Users can manage their subscriptions and cancel them at any time from their device’s account settings.