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.
“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.
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.
New research released today from mobile app marketer Fiksu examines the impact that download volume has on search results in the iTunes App Store.
Today, the App Store has over a million applications available, which means, more than ever, app discovery is being fueled by search as opposed to lists and top charts. Developers now need to know not only how to increase their App Store ranking, but also their search result position, so that their apps are returned first when users type in a query referencing a particular keyword or phrase.
Search results are generally understood to be calculated by three key metrics: the company name, an app’s title, and the 100-character meta-keywords provided within iTunes Connect by the app’s publisher. But Fiksu says it found that download volume, as measured by Category rankings, appears to also have a strong impact on search results ranking.
“We can combine our optimization capabilities with the rich audience data from Facebook to provide mobile app marketers with an extremely efficient use of their media budgets across a massive new audience, while providing people who use Facebook with more relevant ads tailored to their interests,” said Micah Adler, CEO and founder, Fiksu, Boston, MA.
SimplePrints, a mobile photo album creation application, grew its overall business 70 percent within the first five months using Facebook's mobile app install ads.
Facebook app install ads have gained steam as a strategy for getting users to discover new apps. The challenge for SimplePrints was maintaining momentum post-holiday season, when there are not as many spikes in downloads.
“With Fiksu, we’re now able to scale as needed and improve Facebook results faster and more effectively, all while keeping our ad costs consistent. Our confidence in Fiksu allows us to reallocate time spent on marketing to focus more on building our business.”
App marketing technology company Fiksu is touting its success with SimplePrints, an app that allows users to turn their photos into printed photo books. Using Fiksu’s technology, along with Facebook’s mobile app install ads, SimplePrints saw an increase in business of 70 percent in its first five months.
The company acquired a large number of high quality users during the holiday season. By working with Fiksu, SimplePrint’s download volume nearly doubled, with its CPI reducing by 20 percent. Even with its increase in downloads, its costs remained with target ranges.
Craig Palli, chief strategy office at Boston-based mobile marketing company Fiksu, said the apps were an inevitable progression in the industry. "So much of our lives have become open and public," he said." It's the first sign of a trend that people want to break from that."
“Where it is today compared to ad:tech 2013, there has been a significant shift — the needle is finally moving, and my guess is if we have this same conversation in 2015, we fully expect that programmatic may take over a majority of our clients’ spend,” Mr. Galvin said.
As more marketing spend and ad tech technology moves towards programmatic, the growth in mobile is significant, but ad buying still requires a human media buying component to deliver personalized, relevant ads.
The increase in programmatic and real-time bidding was one of the main topics discussed at the ad:tech San Francisco 2014 conference last week, primarily with the launch of AOL’s new One programmatic cross-screen platform. At the same time, marketers may not be completely ready to hand over the reigns to an automated system to handle all of their media spend.