Google and Samsung smartphone owners are now spending as much in-app as iPhone owners (GOOGL)

US Avg Revenue per DAU

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Apple may be losing its grip as the most valuable app platform. US consumers with Google Pixel and Samsung Galaxy S8 smartphones are spending as much in-app as iPhone users, according to Android Authority.

On average, Galaxy and Pixel device owners generated between $0.21 to $0.54 in in-app revenue in June 2017, meanwhile the highest average revenue per daily active user generated by iPhone users was $0.36 during the month. This is a significant shift in app user spending: In 2016, iOS users spent two-and-a-half times more than Android users on average. 

While the drivers of this trend are unclear, here are a few possible motives catalyzing the shift:

  • Time spent in-app is growing, which could be increasing in-app spending and ad revenue. Users in both mature and emerging markets are spending an increasing amount of time in-app; in South Korea, Mexico, Brazil, Japan, and India, the top 20% of smartphone users spent more than four hours in-app each day.
  • The larger smartphone screens on Android devices are more appealing to consumers. Across all three devices, the larger screens pulled in more revenue than the smaller versions. However, Samsung’s S8 plus — with a 6.2-inch screen — raked in an average $0.20 more each day from its users than the Pixel XL and iPhone 7 plus, which each have a 5.5-inch screen.
  • Changes to Google Play. Google has been cleaning up the Play store by eliminating apps that violate its User Data policy to improve app visibility, return more relevant search results, and make Google Play more transparent. This could help Google boost in-app revenue from the Play store.

With a combined market share of roughly 97% globally, the iOS App Store and the Google Play store are by far the largest and most important channels through which app publishers can bring their offerings to market. Although Google has a much wider reach than Apple in terms of global market share, on average Apple’s users historically spend far more in-app. As the Google Play store begins to generate more and more in-app revenue, it may cue more publishers and developers to create content geared toward the Android platform. This could position the Play Store to eventually become the primary platform for growth and revenue expansion.

Laurie Beaver, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on app monetization that:

  • Provides key factors driving the expected growth of global app revenue
  • Evaluates the top app monetization strategies
  • Looks at emerging trends to help developers navigate the app ecosystem
  • Explains the challenges that developers face to compete in the app market
  • And much more

To get the full report, subscribe to an All-Access pass to BI Intelligence and gain immediate access to this report and more than 250 other expertly researched reports. As an added bonus, you'll also gain access to all future reports and daily newsletters to ensure you stay ahead of the curve and benefit personally and professionally. » Learn More Now

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Google and Samsung smartphone owners are now spending as much in-app as iPhone owners (GOOGL) Google and Samsung smartphone owners are now spending as much in-app as iPhone owners (GOOGL) Reviewed by mimisabreena on Tuesday, July 25, 2017 Rating: 5

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