- Products & Technology
- Case Studies
- Contact Us
- Get Started
Posted by: Viki ZabalaFebruary 29, 2012
Last month, our indexes showed the extreme marketing that took place during the Holiday frenzy as advertisers spent heavily to drive up their app store rankings and acquire an elevated volume of users. As it turns out, for app marketers who were budget-conscious in December, January paid big dividends as the post-holiday weeks provided excellent growth and value.
Hot off the presses, our newly released indexes for January show a dramatic drop in mobile app marketing costs in January—the lowest since July 2011—following the Christmas advertising rush. iOS app downloads in January reached an all-time high as all those new devices unwrapped during the holidays drove propelled app discovery and usage in the New Year.
Here’s a quick snapshot of our January findings:
- App Store Competitive Index tracks the aggregate volume of downloads per day achieved by the Top 200 ranked free iPhone apps in the U.S. In January, the Index peaked at 6.79 million daily downloads, up 12 percent from December’s 6.04 million, its previous high.
- Cost per Loyal User Index measures the cost of acquiring a loyal user for brands who proactively market their apps. For the purposes of the Index, loyal users are defined as people who open an app three times or more. This month, the cost per loyal user fell by 37 percent to $1.14, from a record high of $1.81 in December.
So, while many advertisers joined the rush to spend over the holiday season, January actually provided mobile app marketers one of the best opportunities to-date with volume at an all-time high and costs approaching an all-time low.
“We’ve observed many app brands invest heavily in the fourth quarter, seeking extreme growth during the holiday season, then reduce spending in January as they evaluate their marketing programs for the New Year and focus on version upgrades for their apps,” said Micah Adler, Fiksu CEO. “However, the latest indexes show that January is an excellent time for both growth and value—and budget savvy marketers should take full advantage of this time, instead of slowing down.”
Thanks to Kathleen De Vere of Inside Mobile Apps, Keith Andrew of PocketGamer.biz, Sarah Perez at TechCrunch, Allan Maurer at Tech Journal, Dan Rowinski at ReadWriteWeb, and Jon Russell at The Next Web for their reports on our latest Index data.
Posted by: Craig PalliJune 8, 2011
Much has been written in the past month about Apple’s ban on apps that use incentivized downloads to promote other apps. Whether you support Apple’s move or not, there remains one indisputable fact: for advertisers, incentivized networks have been a valuable and cost-effective means of securing app store visibility and downloads; and for app publishers it has been a complementary, high margin revenue stream.
So before the train leaves the station altogether, we say: “Incentive based downloads are still viable, so get 'em while you can!”
As of April 19, 2011, Apple stopped accepting new apps with offer walls that enable incentivized downloads. But there are preexisting apps that contain these mechanics; and inventory in these apps is still available for the time being. And for those mobile app brands that have not yet used incentivized networks, why not try them – right now, while you still can – to stimulate your downloads? What’s to lose? Carpe Diem!
But when incentive based downloads do dry up, what will this change mean to mobile app marketers?
Apple’s move signals an interest in creating more opportunities for visibility for many different types of apps. We think this turn of events could serve as a catalyst for change and opportunity for the whole app ecosystem. Here’s our take on a few ways this change may manifest itself:
- The lack of apps being buoyed by incentivized downloads will create a boost in visibility for apps previously not sourcing this traffic.
- App marketers will need to acquire fewer downloads through advertising to achieve a given rank.
- Those marketers who were reliant on incentive based networks will seek diversification through sources like real-time bidding platforms and cost-per-click networks. Although the cost per conversion may increase, a focus on properly measuring and managing loyal users will help to ensure a fairly constant ROI.
To quote Darwin: “It is not the strongest that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.” At Fiksu, change is part of the equation. We have always cast a wide net to ferret out opportunities from across the mobile ad ecosystem. We are closely monitoring and adapting to these changing dynamics so our clients continue to thrive, supported by our platform’s ability to optimize marketing spend by associating app usage data within the most effective ad channels – whichever ones they may be.