- Products & Technology
- Case Studies
- Contact Us
- Get Started
Posted by: Jeremy SaccoJanuary 30, 2014
The App Store was buzzing during the holidays and Fiksu’s December Index data not only reflected the frenzy of excited users with new devices, but also showed the maturation of mobile app marketers.
The December Fiksu App Store Competitive Index jumped by 12 percent to 6.4 million daily downloads over November’s 5.7 million – a 20 percent increase year-over-year, compared to December 2012. In December, new iPhone owners flooded the App Store around the holiday season downloading the essential apps for their new gadgets (as seen on our device usage tracker).
The Fiksu Cost per Loyal User Index saw a slight dip in December, down four cents to $1.75 from November’s $1.79 – this represents a five percent increase in costs year-over-year. Contrary to previous years when mobile app marketing costs peaked in December, two factors caused the current decline.
First, holiday-enthused app users on new devices are more likely to become loyal users, as the first wave of apps they download are most often the apps they care about most. (The early bird catches the worm, perhaps?).
Second, this decline shows us that app marketers are getting smarter and spending their marketing budgets more wisely. Rather than trying to go “all in” during what has previously been the most expensive time of the year, they spread their marketing budgets across the entire season, engaging with users from Cyber Monday all the way through Christmas Day and on into the New Year. Also, smart marketers are increasingly focusing their ad spend on traffic sources that return the best long term value for their money. Furthermore, taking advantage of new technologies like programmatic real-time media buying further helped them drive down costs and benefit from the increase in App Store traffic.
These numbers are an indication that the mobile market and today’s app marketing strategies are starting to evolve in a more linear fashion, evening out the peaks and troughs we’ve been used to seeing around the holidays.
“We’re reaching a maturation point in the app market as marketers get ever-smarter about how they use their marketing budgets,” said Micah Adler, CEO and founder, Fiksu. “Acquiring users is not the be-all-end-all for today’s savvy marketer. Reengaging with users over time and solidifying user loyalty is the ultimate goal, and this month’s indexes indicate the early adoption of this strategy.”
More analysis of the indexes can be found here.
To date, Fiksu has accumulated more than 207 billion app actions including launches, registrations, and in-app purchases, as well as massive amounts of data from real-time bidding requests and mobile advertising networks. Additionally, our team has also driven more than 2 billion app downloads for its customers.
Posted by: Viki ZabalaDecember 31, 2012
Following the momentous iPhone 5 launch, which prompted a period of cost-efficient marketing and heightened organic searches, we observed a dramatic U-turn in November as holiday season spending accelerated and mobile app marketing costs jumped.
For November, the Fiksu Cost per Loyal User Index increased 30 percent, or 32 cents, to $1.38, compared to October’s $1.06. This marked a sharp change in our Index’s trajectory, which steadily declined during the preceding four months, hitting a low for the year during October when the iPhone 5 launch drove increased organic searches and more cost-efficient marketing spends. November’s spike brought marketing costs remarkably close to last year’s level in November 2011, mirroring the impact of the iPhone 4S launch followed by the holiday rush.
Fiksu's November App Store Competitive Index decreased to 4.57 million daily downloads in November, down 15.4 percent from October’s 5.4 million, which had been a seven-month high, driven by enthusiastic new iPhone 5 owners.
Unlike last year, when incentivized networks were still a larger part of the mobile app marketing mix, marketers faced the reality of needing to pay more to get more during the competitive 2012 pre-holiday season. This year, updated App Store rules didn't allow app developers to have offer walls in their apps that incentivized users to install them in exchange for free in-app purchases. Therefore, that consumer acquisition source was impacted. Though incentivized networks still exist, inventory has decreased, so costs have increased as app developers pay a premium for available inventory.
Also, many app marketers target the holiday season to launch or update their apps – and to offset a decline in organic searches in November, marketers had to increase their spending to get their new apps in front of highly engaged, loyal users. Additionally, confusion surrounding Apple’s App Store freeze may have prompted some marketers to spend more money earlier instead of relying on the freeze. This would have been a good decision in most cases, as the freeze turned out to be less than 24 hours this year.
If the 2011 holiday season foreshadows what’s to come, we can expect marketing costs to continue climbing through December as advertisers spend heavily to drive up app store rankings in preparation for the rush of user activity and app discovery at Christmas time. In fact, early reports from Flurry indicate that app downloads reached 328 million on Christmas Day alone – a record high for single day, reports TechCrunch.