GTM Sauce

Sub Club by RevenueCat · 2024-05-20

Insider Tips for Building Better, More Profitable Android Apps — Sarah Karam, Google

Recorded at Google I/O 2024. Sarah Karam (Google Play app partnerships) covers Play announcements (Engage SDK, Pix/UPI and installment payments, student plans, keyword-targeted custom store listings) and Play-wide patterns: hybrid subscription + IAP apps do well even in the US, most purchasers buy only after a year, tipping is growing fast, and apps with a second product-market fit get more engagement. Host David Barnard shares a paywall test in his weather app: showing the monthly price lifted paid subs 20% but lost money, so he reverted.

Play the episode

5 tactics

A weather app · B2C · host's own app

20% more paid subscribers, but monthly churn meant less revenue; switched back

The paywall shows a single price with a button to see all plans. A/B test via RevenueCat: default shown plan $4/month vs $40/year. Tracked the cohorts beyond conversion to projected LTV before deciding.

Mixedpaywallpricing
Sub Club by RevenueCat · 2024-05-20

RunPee · B2C · movie bathroom-break timing app

Founder says revenue is higher than ever, with surprisingly large tips; no numbers

Moved the app fully to tipping. The ask is framed as 'help us create this content' for users who love the app.

Workedpricing
Sub Club by RevenueCat · 2024-05-20

Practitioner pattern · Sarah Karam (Works at Google Play; recommends Play features such as Engage SDK, custom store listings, installment payments and Play Academy)

Play says hybrid apps, often from Asia, do very well even in the US; no numbers

Don't copy an iOS subscription-only strategy to Android, where many users are on $200 phones (the US is one of the largest mid/entry-level Android markets). Start small: test prices and tiers, weekly subscriptions (successful in some regions but rarely used by US developers), prepaid plans, and a 7-day starter pack; a music or audio app might sell a few podcasts as a consumable, then fold what sells into the premium plan. Add a virtual currency or consumables only at a more mature stage. Korean and Japanese webtoon/web-novel apps moved from subscriptions to hybrid subscriptions + virtual currency and sell extra IP to high-value users; dating apps give subscribers access to certain consumables.

Workedpricingupsell-expansion
Sub Club by RevenueCat · 2024-05-20

Practitioner pattern · Sarah Karam (Works at Google Play; recommends Play features such as Engage SDK, custom store listings, installment payments and Play Academy)

Play sees tipping growing fast beyond live streaming; no numbers

Offer tipping through a coin economy or as IAPs at various price points. Strongest in live streaming and social/creator apps; now spreading to other categories, e.g. Chinese short-drama apps with game-like IAP. Google raised the Play price limit to about $999.99 because some users want to tip creators large amounts.

Workedpricing
Sub Club by RevenueCat · 2024-05-20

Practitioner pattern · Sarah Karam (Works at Google Play; recommends Play features such as Engage SDK, custom store listings, installment payments and Play Academy)

Apps with a second fit: ~3x minutes per daily user, ~2x DAU/MAU (Play data)

Define the app by the user problem, not the format ('meditation app', 'live streaming app'). Add natural extensions that solve the same problem another way or for another trigger, e.g. Calm adding sleep stories to meditation, and offer the content in several forms (audio only, video, transcript). Keep the core proposition and onboarding clear.

Workedfeature-developmentretention
Sub Club by RevenueCat · 2024-05-20

Numbers mentioned

WhoMetricValueContextWhen
host's weather appconversion rate+20%
approximate
Increase in paid subscribers when the paywall showed the $4/month price by default instead of $40/year37:30
host's weather apppriceUSD 4/monthMonthly plan37:30
host's weather apppriceUSD 40/yearAnnual plan, the default shown on the paywall37:30
Google Playusers2,500M users
approximate
Active Android/Google Play users worldwide20:24
Google Playpaying users200M subscribers
approximate
Subscribers across all apps on Google Play ('over 200 million')15:26
Google Playcount300 payment methods
approximate
Local payment options on Google Play billing; also 190 markets and 165 carrier billing options14:40
Google PlaypriceUSD 999.99
approximate
New maximum in-app price on Google Play, raised because of demand for large tips46:21
aggregateAndroid users' installed appscount50–80 appsper user
approximate
Apps installed per phone, typically above 50 and above 80 in many markets; many go unused9:40
aggregateGoogle Play app purchasers (subscriptions and IAP)time to milestone12 months
approximate
The majority of purchasers wait over a year after install before their first purchase; varies by vertical40:47
aggregateGoogle Play apps with a solid secondary product-market fit vs apps withoutengagement rate3 x
approximate
Minutes per daily active user ('almost triple'), from a Google Play white paper48:19
aggregateGoogle Play apps with a solid secondary product-market fit vs apps withoutretention2 x
approximate
DAU/MAU ratio ('almost double'), from a Google Play white paper48:19