Season 3, Episode 18: The future of alternative app stores and payments (with Archie Stonehill)
Jun 18, 2024
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Archie Stonehill, Head of Product at Stash and former investor at Makers Fund, discusses the history and future of alternative mobile app stores, the shadow IAP economy, advantages of web shops, and overcoming conversion friction for users. They also explore the potential impact of legislative changes on the mobile industry, the emergence of alternative app marketplaces in the EU, and strategies for improving consumer experience in the evolving app distribution landscape.
The evolution of alternative app stores presents unique challenges and opportunities for developers.
Web shops enable a 'shadow IAP economy' on mobile, offering new avenues for monetization.
Developers must leverage direct-to-consumer strategies to establish brand loyalty and personalized user connections.
Deep dives
Incremental: The Future of Ad Measurement
Incremental offers an always-on incrementality measurement system that provides true value measurement across various channels and platforms, regardless of the tech stack compatibility. This platform has gained popularity among major advertisers in the mobile sector, offering a unique way to measure ad performance accurately.
Archie Stonehill's Transition from VC to Operator
Archie Stonehill shares his transition from a gaming VC role to becoming Head of Product at Stash, focusing on direct consumer experiences and payment monetization. He reflects on the shift in mindset from a consultant or VC, where demonstrating intelligence is key, to being an operator, where product success and user engagement determine achievements.
Alternative Mobile App Stores and Digital Market Dynamics
The mobile app industry is undergoing a transformative phase with the emergence of alternative app markets and changes in the digital market landscape. Legislative actions in Europe and the UK have opened up discussions around digital market regulations, contrasting with America's more judicial approach. Innovations in web shops, first-party launches, and direct consumer connections are reshaping the mobile ecosystem landscape.
The Rise of Direct-to-Consumer (DTC) Strategies
Direct-to-Consumer (DTC) strategies, such as web shops and first-party launches, are becoming critical for mobile developers to establish personalized connections with users. By leveraging user engagement and direct connections through web platforms, developers aim to enhance brand loyalty and offer unique player experiences. DTC interactions provide insight into player preferences, allowing for tailored monetization strategies and deeper player engagement.
Mobile App Distribution Evolution and DTC Empowerment
The mobile app distribution landscape is evolving towards more open and direct-to-consumer (DTC) models, challenging the conventional app store paradigms. By embracing DTC approaches, developers can establish stronger brand identity, foster trust with users, and enable personalized gaming experiences. Through web-based strategies, developers can unlock innovative monetization avenues, create engaging player interactions, and navigate regulatory changes for a more vibrant mobile industry future.
My guest on this episode of the Mobile Dev Memo podcast is Archie Stonehill, the Head of Product at Stash, a D2C and web shop enablement tool for mobile game developers. Prior to Stash, Archie was an investor at Makers Fund, a venture capital fund investing in the gaming ecosystem.
In this episode, among other topics, Archie and I discuss:
The history of alternative mobile app stores, starting most prominently with Epic's Project Liberty and progressing through those lawsuits, as well as Google's settlement with states' attorneys general;
The current state of affairs with respect to alternative app stores and alternative in-app payments;
The size of the "shadow IAP economy" on mobile, enabled by web shops;
How much traction do you think alternative app marketplaces will see in the EU under the auspices of the DMA, including the four that are live now: AltStore Pal, the Aptoide games store, Mobivention, and SetApp Mobile;
The key advantages of web shops over platform storefronts;
How developers can overcome the conversion friction inherent in moving users to alternative storefronts.
Thanks to the sponsors of this week’s episode of the Mobile Dev Memo podcast: