Why free trials don’t make sense anymore (and what user acquisition tactic to try instead)

Free trials have long been a staple for user acquisition in subscription apps, serving as a proxy event to convert users into paying subscribers. However, the landscape has shifted due to AI's impact on costs and competition, leading to shorter trial periods that prioritize immediate revenue. Data suggests that longer trials convert better, yet many apps opt for shorter trials to manage costs and ensure quicker payback periods. This evolution is driven by the need for higher average revenue per user due to AI-induced expenses, pushing developers towards hard paywalls and direct subscriptions, which generate more upfront revenue than freemium models. As web-to-app campaigns gain traction, offering flexibility and control over purchase intent, the traditional free trial is being replaced by more sophisticated paid trials and trial qualifiers, which provide better signals for ad networks. These strategies involve a nuanced approach, integrating engagement metrics and optimizing conversion signals, ultimately aiming to enhance ad delivery efficiency and maximize user acquisition return on investment.