“This report validates what we have been seeing in the 50,000 campaigns we’ve run for our clients, showing Facebook has the hands-down advantage when it comes to the monetary potential of mobile app user acquisition," said Micah Adler, president, CEO and founder, Fiksu.
A new Fiksu Labs Report has compared the performance of media sources for mobile app user acquisition. The report focuses on the ROI of Facebook’s mobile app ads, traditional banner ads, and video ads, and their effectiveness in delivering long term value for app publishers.
The report found that, when benchmarked against banner ads, Facebook provides the best ROI from the standpoint of driving monetization.
Glenn Kiladis, vice president of new market and media solutions at mobile marketing firm Fiksu, said that by optimizing your ads, you can bring down the cost per install (or the advertising cost that it takes to get a user to install an app) from $20 down to $5 through programmatic methods. That ensures that your advertising costs don’t outrun the revenues you get from those users.
It feels like mobile gaming is changing so fast that we could use quarterly or maybe daily updates on the state of the industry. That’s why it was good to hang out at the Mobile Gaming USA event in San Francisco earlier this week, getting downloads from some of the industry’s top minds.
Fiksu CEO Micah Adler said:“If we compare the 20 per cent year-over-year increase in Cost per Install in iOS to the 7 per cent year-over-year increase in Cost per Loyal User Index, we can see that marketers are getting smarter about leveraging the right ad formats, ad creatives and targeting tools to reach the right users."
App store competitiveness is heating up as a record 7.1 million daily downloads were notched up in March – up 41 per cent year on year, according to Fiksu’s latest Index.
Although the Index only reveals iOS traffic, eMarketer has predicted that Android and iOS are neck and neck in terms of growth rates for 2014, therefore experts have predicted “similar parallels” in terms of downloads.
“The March indexes tell us that while the market is only getting bigger each month, it has also grown volumes in terms of maturity,” says Micah Adler, CEO of Fiksu.
The number of downloads on the iOS App Store hit a record of 7.1 million daily downloads in March, up 41 percent from a year ago, according to mobile app marketer Fiksu.
The Fiksu data also shows that the cost of launching new apps on iOS dropped 10 percent from February to 17 cents, while Android dropped 5 percent to 10 cents.
Fiksu says that in addition to apps themselves becoming more compelling, programmatic solutions, better targeting and ad formats — app install and video ads along with mobile-specific ads — have helped keep marketing costs manageable even as activity has increased.
In March, click-through rates on ads for mobile adds on iOS devices reached new heights, increasing fivefold from the previous year. CTRs on Android were nearly three times higher than a year ago, reports mobile app marketer Fiksu in its latest pulse of the app market.
All those clicks are driving record downloads. While the report doesn’t capture Android downloads, a new high of 7.1 million iOS apps were downloaded daily in March, up 41 percent from a year ago.
“With the addition of programmatic and optimization technologies, marketers have the tools to market their apps better and can do so without breaking the bank,” stated Micah Adler, CEO of Fiksu.
According to mobile app marketing platform Fiksu, programmatic is helping app marketers get their word out “without breaking the bank.” Fiksu has released its latest “Fiksu Indexes” with data from March 2014.
Programmatic ad buying is not the overarching theme of the report, but it plays a key role.
“As we’ve seen with major players like Facebook, Twitter and Yahoo! getting in the game, the industry has certainly come a long way in the last year, and what was once a challenge for app marketers is now an industry standard,” said Fiksu CEO Micah Adler.
The most popular iPhone apps hit a record 7.1m daily downloads in the US during March, according to Fiksu‘s App Store Competitive Index, which measures the top 200 free apps on Apple’s store. This represents an increase of 41 per cent year-on-year.
It’s worth reiterating that this figure represents only iPhone downloads. Fiksu expects Android downloads will be nearly identical, as eMarketer has predicted growth rates around the 18 per cent mark for each OS.
In our view, there are three essential components to achieve large-scale success with mobile app install ads: data, targeting capabilities, and programmatic access through APIs
In the past six weeks, three of the most visible companies in the digital world have made similar announcements: Google, Twitter, and Yahoo have disclosed plans for dedicated advertising products for app marketers.
Why the sudden rush of activity? Simple: the incredible success of Facebook’s mobile app install ads can’t be ignored. App-specific advertising products are the future of mobile app advertising – here’s why.
“This is big business,” said Craig Palli, chief strategy officer at the mobile app marketing company Fiksu. “Our company is spending many millions a month on mobile app install ads for clients. Some game companies are spending $10,000 a day on marketing. And we’re not just talking indy studios.”
It turns out that mobile advertising is one big game.
Well, of a sort. When it comes to the rush to advertise on mobile devices, it’s not exactly car, beer and packaged goods brands leading the charge. Rather, game developers are using advertising to drive thousands of users to download their games, mobile ad experts say. That trend is a major reason why Facebook's mobile ad business has skyrocketed from zero a few years ago to 59 percent of its ad revenue in first quarter, as reported on Wednesday.
"If you are of the mindset that Apple did have a formal policy of rejecting any use case other than the publisher-centric use case, then yes it would seem like a reversal," Palli said. "But for most of us, the advertising identifier is a tool put in place by Apple for both publisher and advertiser use cases. And Apple is trying to improve the communication of this."
Apple has given its tacit approval for the use of its Identifier for Advertising (IDFA) to attribute app installs and post-install actions. The development, welcomed by app marketers and their ad partners, comes two months after Apple spread fear in the app ecosystem by rejecting some apps that didn't adhere to a narrow ad serving use case.
New language in the iTunes Connect portal for developers spells out three scenarios for the acceptable use of IDFA. Those scenarios are (a) Using IDFA to serve advertisements within an app, (b) using IDFA to attribute installs to a previously served ad, and (c) using IDFA to attribute a post-install action such as X number of launches, a subscription, or an in-app purchase.