Following the iPhone 5 launch in September, October was a month of opportunity for mobile app marketers.
The Fiksu Cost per Loyal User Index was $1.06, down seven cents or 6 percent, from September’s $1.13. Significant increases in organic searches and app discovery – driven by the arrival of the iPhone 5 and users’ natural enthusiasm for downloading apps on new devices – pushed costs down and created a huge opportunity for mobile app marketers to very cost-efficiently acquire loyal users in October.
Meanwhile, the Fiksu App Store Competitive Index soared to 5.40 million daily downloads in October, a 33 percent increase from September. The Index painted a similar picture following the availability of the iPhone 4S in October 2011, when traffic also surged by a proportional 29 percent, and continues the surge we saw developing at the end of September.
Organic searches soared during the month, as users eagerly explored the App Store, enthusiastically searching for new apps to download on their new iPhones. So while cost for conversions were equal or higher during this time, the heighted period of organic, natural discovery drove down the cost to acquire and engage loyal users. Many savvy marketers wisely chose to ride this “organic wave,” improving user acquisition rates without substantially increasing their spending.
From the iPhone 5 launch, we noticed consumers appeared to be less frantic about updating their devices immediately, many choosing instead to wait several weeks to make the upgrade. Similarly, some seem to be taking more time to select and download new apps, instead of downloading many, all at once. This shift may lead to an even steadier, more sustained opportunity for mobile app marketers in the weeks – even months – following a major device launch.
With the 2012 holiday season underway, early data from Black Friday and Cyber Monday suggests that mobile commerce will have a giant impact on holiday sales – and that mobile apps will have a successful season overall. We’ll see how that plays out in our November Indexes.
A big thank you to all the publications for covering our October Indexes: AppNewser, BizReport, FierceMobileContent, Inside Mobile Apps, MediaPost, Mobile Entertainment, Mobile Marketing Magazine, Mobile Marketing Watch, PocketGamer, TechCrunch, Telecom Lead, TUAW, VatorNews and VentureBeat.