Technology

In-app purchase prices reach new high on record consumer spending


The Photo & Video and Health & Fitness categories contributed the most to the increase in IAPs. Food & Drink apps have also seen a surge in IAPs.

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The price of in-app purchases (IAP) has reached a new high as consumers spent a record amount on mobile apps in 2020, according to data intelligence firm, Sensor Tower. It estimates the median IAP price among top non-game apps on Apple’s App Store in the United States has grown 50% to $5.99 in 2020, from $3.99 three years ago.

The Photo & Video and Health & Fitness categories contributed the most to the increase in IAPs. Food & Drink apps have also seen a surge in IAPs.

“This increase in price may correspond with a growing consumer comfort with paying for premium content, particularly in a year when many users were turning to mobile devices for entertainment, work, and education,” Sensor Tower noted.

In an earlier report the firm estimated global consumer spending in mobile apps to reach a record $111 billion in 2020, climbing 30% from 2019.

Sensor Tower believes that the increase in IAPs for Photo & Video category apps may correspond with a rise of user interest in video-centric social media platforms such as TikTok, which had a record-breaking year.

Forced by COVID lockdowns, consumers have been seeking recipes, guided workouts, and more on online platforms rather than going out to restaurants and gyms.

Also Read | Are 2021’s New Year gym memberships going online?

Sensor Tower believes that developers may have capitalised on this leading to the increase of IAP in these categories.

The median subscription price for gaming apps also increased about 17% to $6.99 in 2020 from $5.99 in 2019.

The data intelligence firm had studied the top 20,000 most downloaded apps in the U.S. App Store between 2017 to 2020 for this analysis.

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