Even as the cost of acquiring a new app user grows, mobile app analytics firm Fiksu has noted major fluctuations between gaming apps and general apps, as well as iOS vs. Android apps.
According to Fiksu’s new Cost Per Install (CPI) Index, which measures the cost per app install attributed to advertising, the CPI Index for Android was between $1 and $1.30 on average for most of 2013 before jumping up to $1.80 in December. It then dropped 29% to $1.27 in January.
In comparison, iOS CPIs were generally between $0.85 and $1 all year, and increased just 13% in January to $1.01 from December’s $0.88.
“Today’s savvy app marketer is looking to achieve two things: – 1) cost-efficiently acquire new users and, 2) drive engagement and repeat app usage,” said Micah Adler, CEO of Fiksu.
In order to help app and game marketers reach their user acquisition goals, Fiksu has created two new indexes. These are designed to help app marketers analyse and benchmark mobile app advertising strategies, with an eye on engagement. The new Fiksu Cost per Install (CPI) index focuses on download costs, measuring the cost per app install directly attributed to advertising. The second new Fiksu index measures the Cost per App Launch. It focuses on engagement and ongoing value, tracking the cost of each repeat app launch over time.
Micah Adler, CEO of Fiksu, says: “By benchmarking the cost of both installs and app launches, our new Fiksu Indexes provide two distinct points of analysis, helping app marketers fine-tune their strategies and spending.”
US company Fiksu helps developers and publishers track the performance of their apps over time. Its metrics reveal what it costs to incentivise someone to download a product and then keep using it over time.
Now it's launched two new indexes to reflect industry-wide patterns. The new Fiksu Cost per Install (CPI) Index shows how much it costs in ad fees for a single install. Meanwhile the Fiksu Cost per App Launch Index focuses on ongoing value, tracking the cost of each repeat app launch over time.
Boston-based app marketing outfit Fiksu has released a pair of new indexes aimed at helping app marketers get a handle on rising CPI costs across iOS and Android.
Drawing on data from 2013, the indexes show a surprising uptick in Android CPI in Q3 with an overall spike of $1.80 - iOS CPI, meanwhile, remained stable at about a dollar.
Breaking down the CPI between non-game apps and games, however, yielded an interesting result - the primary driving force behind the Android CPI spike in Decemeber was non-game apps.
“Today’s savvy app marketer is looking to achieve two things: 1) to cost-efficiently acquire new users and, 2) to drive engagement and repeat app usage,” Micah Adler, CEO of Fiksu, said in a statement.
Fiksu is launching a couple of new mobile app marketing indices today that show how the costs of acquiring new users are rising.
These costs matter to developers and publishers because they show that, on average, the cost of getting new users often exceeds the revenue that comes from those users. That’s a recipe for disaster, and it means a lot of mobile app and game companies will go out of business, while only some will survive as hit makers.
Fiksu said its marketing was responsible for an average of $1 spent for every iOS user acquired, which was below the average cost per install in the mobile gaming industry.
QuizUp, the mobile trivia game, launched on Android today after becoming a fast hit on the iPhone last year. The Iceland-based Plain Vanilla Games also launched QuizUp on the iPad last month, and CEO Thor Fridriksson said that he has been bombarded with potential users asking for the Android version.
QuizUp reached one million users in eight days after its iPhone release in November—one of the fastest growing iPhone apps of all time—and now has more than 10 million users. Its popularity was mostly due to word of mouth, but the marketing team at Fiksu also helped to get the word out.
We'll hear from: Micah Adler, CEO of Fiksu, and Jon Auerbach, general partner with Charles River Ventures, about the story of Fiksu, one of the fastest-rising startups in the mobile landscape.
We are coming down the home stretch in preparation for Mobile Madness 2014: The Next Disruptors.
It’s all happening in two weeks—Wednesday, March 19—at Microsoft NERD in Cambridge, MA. We are getting pumped.
Acquiring a loyal user (defined as someone who opens an app at least three times) increased from an average of $1.30 in 2012 to $1.62 in 2013, according to mobile app analytics firm Fiksu.
What is the cost of acquiring a loyal app user? Based on the testimonial of various industry insiders, the price is rising so quickly ad revenue can’t keep up. As such, app developers are looking for new ways to profit, often by developing ad tech.
“The ecosystem is really new, and a lot of companies are still finding their way,” said Glenn Kiladis, vice president and chief games evangelist at mobile marketing firm Fiksu. “You have to be careful on privacy regulations and a lot of other things.”
Developers love stability. If you give them enough time and a platform that works, they’ll eventually come up with something brilliant like Naughty Dog’s The Last of Us, which was published in the seventh year after the launch of Sony’s PlayStation 3. It was a masterpiece, winning 10 awards including Game of the Year at the recent Dice Awards (the Oscars of gaming). And that was because the developers just had to worry about making their game, not the technology around it.
And this is just the beginning – if Twitter is to continue to follow in the footsteps of its Zuckerberg-led rival concerning mobile ads then the revenue potential could be huge - Fiksu reckons Twitter is set to dominate mobile advertising this year.
Twitter has reported that 184 million active users come from mobile, up 37 per cent compared to a year ago and accounting for 76 per cent of overall users.
Its mobile ad segment also made up for 75 per cent of all ad sales, working out at $165 million of the overall $200 million ad revenue.