Major Reason For Apple’s In-App Purchase Price Hike Is Its ATT Policy, Proves New Report

A new report is shedding light on the sudden price hike of Apple’s in-app purchases.

Compared to previous stats, we’re talking about price hikes that include a massive 40% surge across iOS. And this is a remarkable increase from 2021.

But every cause has an effect and in this case, Apple’s own app tracking transparency is to blame. The new policy is making it so much more costly to reach the target audience involved.

A new report has gone on to share the same data and it’s great to see how the usual blame isn’t put on inflation. This news comes to us thanks to Apptopia.

They shed light on the new price hike and how it was seen way before inflation caused massive destruction around the globe in 2022. For example, this is why we saw costs on the Google Play Store rise by almost 9% YoY throughout July.

Similarly, the report has outlined how this hike may be due to the publishers putting out their say on how they’ve been forced to deal with a rise per install, ever since Apple’s ATT policy came into play. Remember, it’s just been so much harder and costlier to get users on board, thanks to Apple.

On the other hand, the report spoke about how costs have dramatically increased across the App Store versus the Google Play Store. And that’s the main reason why researchers thought it was time to really determine if all the in-app purchases were being affected in the same manner or not.

And it turned out that it’s not the case. Only single in-app purchases rose by a huge amount as compared to IAPs taking place on a monthly or yearly basis.

Similarly, there was much talk about how the average pricing for IAPs on a single purchase grew by 36% in the month of July but those taking place on a monthly or yearly basis had only increased by 19%.

So publishers definitely want a share of the income that they’re losing out on. They want their customers to be hooked for a long time while lowering acquisition costs.

But we find it awfully interesting to note how the tech giant’s App Tracking Transparency policy is taking a toll on both developers as well other firms.

Just a while back, we noted how Meta put out a quarterly report and they claimed a massive drop in revenue along the way. And then in July, we saw the firm go into detail about how a number of American firms were facing so many challenges and there were concerns about the economy falling into recession.

But analysts hailing from the Wall Street Journal mentioned how TikTok’s competition and the current changes sought out by Apple were the actual concern for the firm in the future.

Meanwhile, another shocking report came out in April, which stated how the revenue belonging to big tech firms could fall by nearly $16 billion, thanks to Apple’s ATT policy.

The ATT has forced apps to request permission from different users before they can go about tracking them via apps or web pages. The perfect example is when you open up your Facebook app and it asks for permission to track you for the sake of ads. You can either decline or allow and most people prefer the former as compared to the latter for obvious reasons.

For now, we’re not sure if costs linked to in-app purchases will rise on iOS or not, but developers need to think outside the box if they wish to grow.
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