{"id":230,"count":0,"description":"","link":"https:\/\/tenjin.com\/ja\/glossary\/in-app-purchases-iap\/","name":"In-App Purchases (IAP)","slug":"in-app-purchases-iap","taxonomy":"glossaries","parent":0,"meta":{"status":["1"],"order":["0"],"glossary_term_description":["
\r\n\r\nIn-app purchases (IAP)<\/b> are any fees paid by a user within a mobile app, beyond the initial cost of downloading it. They are one of the two primary monetization models in mobile, alongside in-app advertising (IAA), and are the foundation of revenue for a wide range of app types: from productivity tools and streaming services to fitness apps and beyond.<\/span>\r\n
Formula: <\/b>\r\n<\/b>\r\n<\/b>IAP Revenue Per DAU = Total IAP Revenue \u00f7 Number of Daily Active Users\r\n\r\n<\/span><\/pre>\r\n<\/div>\r\n
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What is an In-App Purchase?<\/b><\/h2>\r\nAn in-app purchase is a transaction that takes place inside an app. The user pays the developer directly for something whether it be a feature, a product, a subscription, or a consumable item and they do so without leaving the app.<\/span>\r\n\r\nIAP gives developers a way to offer their app at a low upfront cost, or for free, while still generating revenue from the users who find enough value to pay for more. It also creates a direct relationship between the value a user gets from the app and the revenue the developer earns from them.<\/span>\r\n
Types of In-App Purchases<\/b><\/h2>\r\nThere are three main IAP models, and most apps use one or a combination depending on what they are selling and how their users engage.<\/span>\r\n\r\nConsumable IAP<\/b>\u00a0<\/span>\r\n\r\nThe user pays for an item, uses it, and it is gone. To get more, they purchase again. This is common in apps where users regularly replenish resources or credits. The key characteristic is that the item depletes with use and does not persist on the account indefinitely.<\/span>\r\n\r\nNon-Consumable IAP<\/b>\u00a0<\/span>\r\n\r\nThe user pays once and retains access permanently. This applies to things like unlocking a premium feature, removing ads, or purchasing additional content that does not expire or deplete. Once purchased, a non-consumable IAP stays on the account and does not need to be bought again.<\/span>\r\n\r\nSubscriptions<\/b>\u00a0<\/span>\r\n\r\nThe user pays at regular intervals (weekly, monthly, or annually) for continued access to features, content, or services. Subscriptions renew automatically until the user cancels. Some apps also offer non-renewing subscriptions for a fixed period, which are typically tied to a specific season or limited-time offering.<\/span>\r\n\r\n\r\n\r\n\r\n\r\n\r\n
IAP Type<\/b><\/td>\r\nHow It Works<\/b><\/td>\r\nCommon Use Cases<\/b><\/td>\r\n<\/tr>\r\n
Consumable<\/b><\/td>\r\nUsed once and depleted<\/span><\/td>\r\nCredits, boosts, virtual currency<\/span><\/td>\r\n<\/tr>\r\n
Non-Consumable<\/b><\/td>\r\nPurchased once, kept permanently<\/span><\/td>\r\nPremium features, content unlocks, ad removal<\/span><\/td>\r\n<\/tr>\r\n
Subscription<\/b><\/td>\r\nRecurring charge for continued access<\/span><\/td>\r\nStreaming, productivity tools, fitness apps<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n
Key IAP Metrics<\/b><\/h2>\r\nTracking the right metrics helps you understand how your IAP model is performing and where there is room to improve.<\/span>\r\n
Lifetime Value (LTV)<\/strong><\/h4>\r\nLTV measures the total revenue a user generates over their time in the app. For IAP-heavy models, X-day LT, the cumulative IAP revenue generated by a cohort within a set number of days, is one of the most important indicators of monetization health.<\/span>\r\n
Average Revenue Per Paying User (ARPPU)<\/strong><\/h4>\r\nARPPU measures how much your paying users spend on average. It is distinct from ARPU because it focuses only on users who have made at least one purchase, giving you a clearer picture of spending behavior among your monetizing audience.<\/span>\r\n
IAP Revenue Per DAU<\/strong><\/h4>\r\nThis metric measures the average IAP revenue generated per daily active user, calculated as:<\/span>\r\n
IAP Revenue Per DAU = Total IAP Revenue \u00f7 Number of Daily Active Users\r\n\r\n<\/span><\/pre>\r\nIt connects your monetization performance directly to your active user base, giving you a daily read on how efficiently your IAP model is converting engagement into revenue.<\/span>\r\n
Daily Active Users (DAU)<\/strong><\/h4>\r\nDAU provides the denominator for many IAP metrics and is a key indicator of the audience size your monetization is working with on any given day.<\/span>\r\n
IAP and Hybrid Monetization<\/b><\/h2>\r\nMany apps today use both IAP and in-app advertising together in a hybrid monetization model. The two streams can complement each other well \u2014 IAA generates revenue from users who do not purchase, while IAP captures higher value from users who are willing to pay.<\/span>\r\n\r\nManaging a hybrid model effectively requires visibility into both revenue streams separately and in combination. Understanding how ad exposure affects purchase behavior, and how IAP users respond to advertising, is essential for finding the right balance between the two.<\/span>\r\n
How to Track IAP with Tenjin<\/b><\/h2>\r\nTenjin makes IAP tracking straightforward. You can measure IAP revenue by sending receipt data through the Tenjin SDK or via server-to-server (S2S) integration. The integration is simple to set up and gives you IAP revenue data directly in your Tenjin dashboard alongside your attribution and UA metrics.<\/span>\r\n\r\nTenjin also supports separate tracking of fraudulent purchases, so invalid transactions can be identified and excluded from your revenue reporting without polluting your real performance data.<\/span>\r\n\r\nWith IAP and attribution data in the same place, you can connect revenue performance back to the campaigns, channels, and creatives that acquired your paying users, giving you the full picture of what your UA spend is actually generating.<\/span>\r\n\r\n
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Related Terms<\/b><\/h2>\r\n