Season 4, Episode 8: Click-to-cancel, web-to-app, and all things subscription apps (with Thomas Petit)
Oct 22, 2024
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Thomas Petit, a leading voice in mobile marketing and an expert on subscription apps, shares his insights on the evolving landscape of web-to-app transitions. He discusses how the FTC's 'click-to-cancel' rule could reshape subscription dynamics and the differences in web acquisition strategies between gaming and non-gaming apps. Petit highlights the challenges posed by Apple's App Tracking Transparency and the necessity for marketers to innovate amid stringent app store regulations. Tune in for a deep dive into the future of app subscriptions!
Web acquisition strategies have gained traction among subscription apps as traditional user acquisition methods face challenges post-App Tracking Transparency.
The implementation of FTC's click-to-cancel rule is expected to enhance user experience and promote transparency in subscription services.
Variations in web acquisition adoption among app categories highlight different challenges, with health and fitness apps leading while utilities lag behind.
Deep dives
Introduction to Incrementality Measurement
Incrementality measurement presents a different approach to understanding marketing effectiveness than traditional methods. This measurement focuses on the impact of marketing activities without relying on user-level data or complex planned experiments. The platform is named Incremental and is reported to have been embraced by leading mobile marketers. It aims to provide clearer insights that can enhance strategic marketing decision-making.
Current State of Web Acquisition for Subscription Apps
Web acquisition strategies have become widely adopted among subscription apps, although not uniformly across all app categories. Apps in sectors like health and fitness have seen a higher utilization rate for web flows, while other areas such as utilities lag behind. This variation in adoption reflects the different challenges and dynamics present in each category. The growing recognition of successful case studies has encouraged many app developers to experiment with web acquisition methods.
Impact of ATT on Web Acquisition Growth
The introduction of Apple's App Tracking Transparency (ATT) has significantly accelerated the adoption of web acquisition strategies. Post-ATT, many subscription apps faced challenges with user acquisition through traditional methods, leading them to explore alternatives. As advertisers experienced declining profitability on platforms like Facebook, they sought new ways to engage potential users, particularly through web flows. This shift has prompted widespread experimentation and adoption of web to app strategies in the subscription market.
Challenges of Web Acquisition for Subscription Apps
Despite the benefits, web acquisition strategies come with several challenges for subscription apps. One key issue is the need for marketing teams to understand both web and app landscapes, complicating the execution of integrated campaigns. Additionally, managing payment and subscription logistics outside of app stores introduces complexities related to taxes, customer support, and potential fraud. Smaller apps often struggle with resource allocation, dividing their focus between web and app strategies can dilute effectiveness.
FTC Regulations and Future of Subscription Apps
Recent rules proposed by the FTC regarding subscription cancelation processes are set to influence how subscription apps operate. A click-to-cancel mechanism aims to improve user experience and reduce deceptive practices, though its impact may be minimal for many legitimate subscription services already adhering to ethical practices. While some developers express concern, others believe these regulations will ultimately benefit the market by promoting greater transparency. Moving forward, companies will need to balance compliance with maintaining user engagement and retention.
In this episode of the Mobile Dev Memo podcast, I speak with Thomas Petit, a well known voice in the mobile ecosystem and a veteran of the podcast. In the episode, we discuss all things related to subscriptions for mobile apps, including:
The current state of web acquisition for subscription apps;
The timeline over which web acquisition gained traction for subscription apps;
The downsides of web acquisition for subscription apps;
How web acquisition differs from app acquisition;
How gaming apps and subscription apps pursue web acquisition differently;
The measurement benefits of web acquisition;
How and whether the FTC's recent "click-to-cancel" rule will change the dynamics of web acquisition for subscription apps;
Whether Apple or Google will crack down on web-based acquisition for subscription apps.
Thanks to the sponsors of this week’s episode of the Mobile Dev Memo podcast:
INCRMNTAL. True attribution measures incrementality, always on.
Moloco. Moloco is a trusted and transparent advertising platform powered by machine learning. Moloco can drive the best outcomes for mobile app advertising through Moloco Ads as experienced by marquee brands such as Bumble, Draftkings, and Playrix. For retailers and streaming enterprises, Moloco also provides a best-in-class advertising platform powered by machine learning to build and manage their own ad businesses. Learn more at www.moloco.com/podcast.
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