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Benchmarking app store competitiveness & the cost of mobile app marketing
The Cost per App Launch Index tracks the cost of each repeat app launch over time, which focuses on engagement and life-time value of mobile users. In January, the cost for both iOS and Android converged at $0.16 – a two percent decrease in Android, and 10 percent decrease in iOS.
The Cost per Install (CPI) Index measures the cost per app install directly attributed to advertising.In January, the Android Index dropped 29 percent to $1.27 from December's $1.80. The iOS Index remained relatively stable compared to the entire year at $1.01 – a 13 percent increase from December's $0.88.
The 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 held steady at 6.4 million daily downloads.
The 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. In January, the Index rose three percent, or five cents, to $1.80 from December’s $1.75.
Fiksu’s Analysis: January 2014
Today’s savvy app marketers are looking to achieve two major goals: 1) cost-efficiently acquire new users and, 2) drive engagement and repeat app usage. By benchmarking the cost of both installs and app launches, our new Indexes hope to provide app marketers with two distinct points of analysis to help fine-tune their strategies and spending. Read our detailed report about the news Indexes and what they reveal about 2013 into 2014.
This month’s January Index analysis revealed the aftermath of the 2013 holiday season, with iOS and Android app marketing costs converging, after 10 months of a considerable price gap between the two, and an indication of a maturing app market for iOS.
The new Cost per App Launch Index was just $0.16 on both Android and iOS. This is the first time app engagement costs on both platforms have converged since February 2013, followed by months of fluctuation with iOS costs consistently higher than Android. This rare occurrence is likely a post-holiday “correction” following the big brand budgets spent around the holidays, especially on Android.
Fiksu’s January CPI Index for Android dropped 29 percent to $1.27 from its December spike of $1.80. By comparison, the CPI Index for iOS for January increased 13 percent to $1.01 from December’s $0.88, following several months of stability. This is reflective of a more mature app market in iOS over Android and also reveals the impact of traffic sources. On iOS, incentivized networks generally provide a low-cost, high-value marketing tool to quickly drive additional installs and boost App Store visibility during a busy holiday season. On Android, however, install volumes have less immediate value and dramatic impact on visibility in the Google Play app store. Hence, Android marketers focused their spending over the holidays on relatively more expensive sources of installs and then re-adjusted back to more cost-effective incentivized networks in January.
Our existing Indexes continue: in January, the Fiksu Cost per Loyal User Index increased three percent to $1.80 – a 15 percent increase year-over-year. Fiksu’s App Store Competitive Index held steady at 6.4 million downloads per day – a six percent increase year-over-year.
How can the Fiksu Indexes help you?
Mobile marketing shouldn’t require guesswork. Our award-winning Fiksu Mobile App Marketing Platform injects predictability into your campaigns, removing complexity and guesswork and shifting the focus to where it belongs: performance.
We’ve accumulated more than 218 billion mobile app actions to-date – including launches, registrations, and in-app purchases, as well as real-time bidding requests – and use this data to help you better understand the fluctuating dynamics of the complex app marketing landscape through our monthly Fiksu Indexes.
Your app is competing for users with more than a million others. The best way to improve your mobile marketing is to more precisely understand the competitive landscape you’re pouring your budget into. The Fiksu Indexes reveal how industry dynamics – such as iOS upgrades, device launches, advertiser demand, ad network/publisher inventory, and seasonal activity – impact your business goals. Armed with this insight, you can adapt and plan with more agility.