Economics: ads versus paid in an AI era

On the podcast: why app economy disruption won't happen as fast as everyone seems to think, how AI is just as useful for defending against copycats as creating them, and why the real barrier to app success is still distribution, not code. 

This conversation is shorter than usual and will be featured in RevenueCat’s State of Subscription Apps report. Each episode in this series will explore one crucial topic and share actionable insights from top subscription app operators.

Top Takeaways:

📲Distribution is the moat, not code
As AI lowers the barrier to building apps, it raises the barrier to getting discovered. More software competing for attention means user acquisition becomes harder and more expensive, not easier.

🛡️Use AI to defend against copycats, not just to build faster
Use AI to scan the app store daily for copycat apps, monitor rising competitors, and track their ads. Build automated defense processes that keep you ahead of clones.

📊App economy disruption won't happen as fast as everyone thinks
No-code tools, game engines like Unity, and now vibe coding have all promised to democratize app building. None eliminated the real barriers: distribution, product intuition, and the compounding advantage of iterating on user feedback over years.

About Eric Seufert:

🚀 Founder of Mobile Dev Memo, a mobile advertising and freemium monetization trade blog.

👋 LinkedIn

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• David Barnard - @drbarnard
• Jacob Eiting - @jeiting
• RevenueCat - @RevenueCat
• SubClub - @SubClubHQ

Episode Highlights:
[0:00] Introduction to Eric Seufert, Founder of Mobile Dev Memo
[1:00] Why disruption in the app economy is taking longer than expected
[2:00] The real barrier to app success: Distribution over code
[3:15] How AI is reshaping app development and marketing
[4:30] Eric’s thoughts on why AI won’t eliminate the need for great apps
[5:45] Standing out in a saturated app market: How to break through
[7:00] The role of customer feedback in driving growth
[8:15] Why vibe coding isn’t sustainable for scalable app development
[9:30] Using AI defensively against copycats in the app economy
[10:45] The importance of scalable user acquisition strategies
[12:00] The long-term impact of AI on app monetization
[13:15] Balancing revenue and user experience in app monetization
[14:30] Why building a successful app requires technical expertise and distribution
[15:45] The evolving app economy and AI’s future role in scaling
[17:00] Closing thoughts on staying competitive in an ever-changing market