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Cost per Loyal user
Posted by: Jeremy SaccoNovember 26, 2013
The month of October brought saw new users of iPhone 5s and 5c phones flooding into the market and eagerly downloading new apps, keeping volumes up. However, the increase in advertising activity as some marketers rushed to get in front of this new audience, coupled with consumers’ tendency to be particularly loyal to the first wave of apps they download on a new device, helped keep costs stable throughout the month.
In October, we watched the Cost per Loyal User Index decrease by three percent to $1.63 – representing a 54 percent increase in costs year-over-year. That increase may seem inflated due to October 2012 seeing a historic low in cost per loyal user. That month, on the heels of the iPhone 5’s availability, organic searches spiked as users took to the App Store searching for new apps to download on their new devices. This heighted period of natural discovery caused the cost to acquire and engage loyal users to plummet. In contrast, costs remained relatively steady post-iPhone 5s and 5c launch in 2013, likely in part due to advertisers' increasing understanding of the value of these new users -- and their resulting willingness to spend more to acquire them.
The App Store Competitive Index dipped two percent to 5.6 million daily downloads in October. Due to a massive spike in download volume occurring during this time period last year around the iPhone 5 launch, this is the first time in five months that Fiksu observed less than 20 percent year-over-year growth in download volumes. If you haven’t seen it, be sure to check out Fiksu’s “Analyzing 21 Months of Mobile App Discovery” study that gives a comprehensive look-back at app store competition and growth over the past two years.
We also observed some marketers holding back in October, limiting their spending while they planned for larger splash campaigns timed around the fast-approaching holiday season. We expect activity to ramp up considerably in the coming months as many large brands and games pour money into the ecosystem around the holiday peak -- and judging by the frantic activity in our client management team, it's already underway.
Posted by: Jeremy SaccoSeptember 12, 2013
August has been a pretty slow month for mobile app marketing in recent years, but this year went a different direction. Not only did our July indexes reach impressive heights, but Apple also introduced a new wrinkle to its ranking algorithm all while gearing up for its annual launch of new eye-catching gadgets. So much excitement, that we almost missed the coveted Index post!
The Fiksu Cost per Loyal User index reached a high of $1.80 in July – up from June’s $1.50. This is the highest the CPL has ever been since December 2011, when marketers spent heavily to drive up app store rankings before the traditional App Store freeze. Fiksu’s App Store Competitive Index also saw an uptick of four percent to 5.8 million daily downloads in July.
These fluctuations reflect several factors: Apple's recent incorporation of app ratings into its App Store Top Charts ranking algorithm, the growing number of brands leveraging Facebook's mobile app install ads, and increased mobile app activity during the dog days of summer.
With Apple’s ranking algorithm change, which appears to favor highly-rated apps and penalizing others, app marketers must now work even harder to generate positive ratings from engaged users, since user acquisition costs for apps without stellar ratings will now be more expensive. We also saw competition creeping up in July as advertisers began ramping up campaigns in the months leading up to the new iPhone launches. This was particularly evident with games publishers, as they vied for the attention of countless students who turned to playing games to fill their free time during the hot summer days.
Thanks to all who covered this month’s indexes, including: AdExchanger, App Developer Magazine, FierceMobileContent, Inc. Magazine, MediaPost, Mobile Entertainment, Mobile Marketing Magazine, Mobile Marketing Watch, Mobile World Live, PocketGamer, TechCrunch, The Next Web, and VentureBeat!
Posted by: Jeremy SaccoJuly 31, 2013
“Come on in, the water’s fine…”
As Facebook continues to rock the news world, our June Index data is also feeling the love from the social networking giant.
Brands are beginning to catch on to the power of Facebook’s mobile app installs ads to drive large volumes of quality users at incredibly low CPIs. The impact of this growing demand was most vividly evident in the 13 percent increase we witnessed in our Cost per Loyal User Index this month, up $.17 to $1.55.
What does this mean moving forward?
The reality is that as brands, large and small, ramp up their spending on Facebook, app marketing costs and competition will continue to heat up. This means the best time to participate in Facebook mobile install ads is now.
But if we take a step back and examine this month’s Indexes against June 2012, the year-over-year cost to acquire loyal users has increased by only four percent, indicating maturation in app marketing compared to a year ago as marketers’ abilities to leverage timing, targeting and optimization are in full effect. This also shows the consistent seasonality of app marketing costs, as the increase from May to June last year was just over 14 percent, almost exactly consistent with this year.
As for the App Store Competitive Index, the five percent drop signals the "summer doldrums" have set in as people tend to consume fewer new apps than during other times of the year.
Posted by: Jeremy SaccoJuly 1, 2013
Mobile marketers have quickly realized the reach of Facebook’s mobile app install ad units and their ability to cost-efficiently drive volumes of users — and the latest Fiksu Indexes certainly reflect this trend.
Our May App Store Competitive Index numbers came in as the second highest month in 2013 to-date at 5.9 million downloads, trailing January with the highest volume at 6.1 million (the result of the holiday effect). In fact, compared to May 2012, we can see that downloads have increased 31 percent year-over-year – a result of the Facebook effect as well as the continued movement of big brands into the mobile app space.
As for our Cost per Loyal User Index, the May Index decreased by 11 percent, or 17 cents, to $1.33, from April’s $1.50.
As predicted last month, the increase in traffic in May can also be attributed in-part to the end of UDID tracking capabilities by the Apple App store on May 1 as well as Apple's new IDFA. This change caused many marketers to wait for the dust to settle on the new, standardized solution to resume regular marketing activities. Now that the IDFA is the clear standard for iOS marketing attribution, app marketers have returned and are spending again.