Cost-per-engagement for mobile app advertising is ten limes less than paid search marketing, a recent study from Fiksu revealed.
The study, entitled “Brand building on mobile devices: measuring the value of consumer engagement,” analysed over 2.4 billion app marketing data points from campaigns run by brands on the Fiksu platform, and compared those numbers with traditional advertising data, looking specifically at cost-effectiveness and engagement.
At Fiksu, we’re seeing it firsthand. Our use of the Facebook mobile app install unit has grown over 500 percent in recent months, now accounting for a 7 figure monthly spend.
The story of the year is Facebook’s transformation from a social media company to, as described by Mark Zuckerberg, a mobile company. The speed of the transformation is frankly amazing, and is indicative of the increasingly central role of mobile and mobile apps in everyday life.
Facebook mobile application downloads led the cost of acquiring a loyal game player to drop from $1.50 in April to $1.33 in May, according to Fiksu.
At this point mobile app ads cost as little as one-tenth that of desktop keyword click. "Brands are waking up to the fact that mobile apps provide an incredible and very cost-effective canvas for marketing. But using CPM and CPC as sole measures of ROI eclipses the powerful engagement that mobile apps bring and which brand marketers seek," Fiksu Vice President Craig Palli says.
“Mobile app marketers have quickly realised the disruptive power of Facebook mobile app install ads, which have poured a new stream of effective and cost-efficient inventory into the market,” said Micah Adler, Fiksu’s CEO.
Adler continued, “Savvy marketers have already taken advantage of Facebook’s extensive capabilities for focusing on specific audiences, and as more brands follow suit, we can expect volume to continue to climb – along with costs, as competition heats up in the coming months.”
According to Fiksu, downloads of free iPhone apps grew by 31% in May compared to the same month in 2012. This is nothing to sniff at, but it clearly signals the maturation of the iOS app market in the United States.
The daily download level of 5.9 million in May still sits below January’s pace of 6.1 million daily downloads. This stands in stark contrast with Google Play’s torrid download volume growth in Asia in the first half of 2013. Interestingly, Fiksu also reports that the iOS app user acquisition cost is now actually dropping as Facebook’s mobile app install ads exert downward pressure on marketing campaign pricing.
Monday's WebInno featured a stacked presenter list, headlined by Crashlytics' Wayne Chang and Fiksu's Micah Adler, and like every quarter, BostInno was there.
As you can see in the video below, WebInno has grown tremendously over the years from a handful of folks at a bar to likely the Boston startup scene's most popular regular event. VC and WebInno founder David Beisel spoke with us a bit about how the event has grown, and with it the entire Boston tech scene.
"Mobile app marketers have quickly realized the disruptive power of Facebook mobile app install ads, which have poured a new stream of effective and cost-efficient inventory into the market," Fiksu CEO Micah Adler said.
The Fiksu App Store Competitive Index, which measures the average aggregate daily download volume of the top 200 free U.S. iPhone apps, reveals that App Store downloads averaged 5.9 million per day last month, up from 5.61 million per day in April. Fiksu notes that May 2013 App Store traffic increased 31 percent year-over-year, underlining both the continued growth of the mobile sector as well as some maturation in the overall quality of mobile apps and their ability to engage consumers.
The average cost to acquire a loyal player in May dropped to just $1.33. That’s down 11 percent from $1.50 in April, according to a report marketing-platform company Fiksu.
“Mobile app marketers have quickly realized the disruptive power of Facebook mobile app install ads, which have poured a new stream of effective and cost-efficient inventory into the market,” Fiksu chief executive Micah Adler said. “Savvy marketers have already taken advantage of Facebook’s extensive capabilities for focusing on specific audiences, and as more brands follow suit, we can expect volume to continue to climb – along with costs, as competition heats up in the coming months.”
Fiksu has just published the findings of a new study showing that the cost per engagement of mobile app advertising is ten times lower than paid search marketing.
It’s the latest compelling evidence of how mobile advertising is pulling ahead of traditional forms of advertising in terms of both effectiveness and affordability.
To produce the “Brand building on mobile devices: measuring the value of consumer engagement” report, Fiksu analyzed more than 2.4 billion app marketing data points from the campaigns of global app brands running promotions through the Fiksu Platform, and compared their cost-effectiveness and reach to traditional advertising channels.
Micah Adler, Fiksu’s founder and also a professor at UMass/Amherst, spoke next, and discussed B2C mobile app development and the art of acquiring users.
After explaining the difficulties of creating an app, shipping it to the app store, and effectively marketing it, Adler explained how Fiksu optimizes the entire process with its easy to use mobile marketing platform. Instead of working with multiple different mobile marketing products, "When you are working with Fiksu, you can integrate with a single SDK," Adler said of Fiksu's appeal.