3 Key Forces Drive an Increase in App Downloads and Mobile Marketing Costs in April

Following a steady couple of months, April saw competition – and costs - heating up for mobile app marketers. The Fiksu Cost per Loyal User Index reached $1.50, an increase of 10 percent, or 14 cents over March’s $1.36, while the App Store Competitive Index rose 11 percent, to 5.61 million daily downloads from 5.02 million in March.

After analyzing the data, it was clear to us that three distinct forces contributed to these dynamics in April:

  • First, the relentless industry investment in mobile by brands large and small that kept competition high throughout the month.
  • Second, the industry’s smooth transition from Apple’s UDID to its new Advertising Identifier (IDFA) actually kept traffic stable when it could have caused some disruption.
  • And third, the increasing traction of Facebook mobile app install ads, which may have provided developers with a greater pool of efficient inventory and likely buffered the industry against even greater rises in costs.

Interestingly, the end of UDID and the transition to Apple's new IDFA prompted many high-visibility, valuable app publishers, such as Pandora, to enter the marketplace, bumping up available premium inventory for advertisers. These kinds of publishers previously didn’t offer attributable ad inventory due to concerns about earlier identifiers, but the advertising-friendly IDFA has changed their minds. We’ll continue to watch this trend and report back in our May Indexes.

Thanks to the journalists and publications for covering our April Indexes: Adotas, BGR, Fierce Mobile Content, MediaPost, Mobile Marketing Watch, PocketGamer, VentureBeat.

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