The ABCs of IAPs: Master the Fundamentals of IAP Offers with 3 Approaches

April 25, 2016

Diana Aquino

Publishers can affect drastic change in revenue by taking an active role in the virtual marketing that goes on in their apps. The most resourceful publishers have been able to win over their competitors by applying real-world marketing strategies like sales funnels and promotions in their virtual spaces.

Many of these strategies begin with a basic offer, where a user’s attention is intentionally directed towards an IAP. There are many ways to create attention to generate a sale. Here are a few of the most common IAP offers and how they work.

Basic IAP Offers

Anytime you draw your user’s attention to something you have for sale outside of your storefront, you’re presenting them with a basic IAP offer. Basic offers serve to keep your users informed as to what you have for sale and move users through the early stages of your virtual sales funnel. Basic IAP offers don’t require any additional setup in iTunes Connect or Google Play, because there are no discounts involved, and typically perform best during early stages of progression and user engagement. You’ll want to track the conversion on these offers, and recognize that these users saw immediate value in your app, and are great candidates for a re-engagement or upsell offer.


Discounting your IAPs is an excellent way to stimulate spending in your app, as long as you don’t overdo it. In order to take advantage of extra leisure time, successful publishers run their promotional sales over weekends, holidays, and special occasions. Note that some additional setup is required in iTunes Connect and Google Play in order to alter the prices for all users. For user-centric strategies that target specific segments, use a cloned entry of an existing IAP for the offer. That way, you’ll be able to put the IAP on sale for some users, while keeping it at regular price for others.


By bundling multiple purchases together and offering them at a discount, publishers offer greater value and encourage the right type of engagement at the right time. Bundles are most effective when they provide the user with everything they need to progress through content, ideally to the point where they are given another offer. The challenge with bundles is making sure to not cannibalize lifetime value for the sake of conversion. Monitor the average revenue generated by users who do convert on your bundles against that of users who purchase a bundle component individually. Based on your analysis, you may want to adjust in-app item quantities of the bundle components, or simply alter the price of the bundle itself to protect your long-term revenue.

Interested in using Upsight’s user-centric platform to help optimize your in-app marketing campaigns? Request a demo to learn how to effectively setup and show the right IAP offers, to the right users, at the right time.

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In: Product, Marketing

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