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Mobile World Live
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: Viki ZabalaNovember 5, 2012
History has shown us the arrival of a new mobile device generates remarkable opportunities for app marketers to cost-effectively acquire and engage new users, as download volumes surge, costs to acquire loyal users plummet, and user-interest levels peak. So it was no surprise the much-anticipated arrival of the iPhone 5 in September prompted some interesting dynamics in the Fiksu Indexes. While the App Store Competitive Index didn’t depict a huge month-over-month change in download volumes, in reality there was a whirlwind of activity taking place beneath the surface.
Specifically, by examining the data from before the iPhone 5’s arrival and afterward, we identified a clear distinction in app download activity. In the weeks prior to the phone's launch, downloads decreased by 3 percent, but in the weeks after, downloads swelled by a substantial 33 percent.
Meanwhile, the Fiksu Cost per Loyal User Index for September was among the lowest on record at $1.13, down 21 cents or 16 percent from August’s $1.34. The last time the Cost per Loyal User Index came close to this was May 2011, when it was $1.10, as a result of Apple’s ban on incentive-based installs, followed by January 2012 when it fell to $1.14 after the holiday advertising craze.
What does this all mean? Opportunity with a capital O! For app marketers, the iPhone 5 launch in September delivered a prime chance to cost-effectively acquire large volumes of loyal users. In fact, one of our clients even experienced a 20 percent increase in organic downloads and 35 percent revenue gains during the iPhone 5’s post-launch period. Many other clients were able to take advantage of the traffic jump.
As the iPad Mini hits shelves, we may see a continuation of this wave. However, we expect September’s bargain period of rich marketing opportunities will likely be unmatched until the post-holiday frenzy in January 2013.
A big thank you to all the publications that covered our September Indexes, including AppNewser, FierceMobileContent, Inside Mobile Apps, Marketing Vox, MediaPost, Mobile Marketing Watch and Mobile World Live.