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 February, the Android Index dropped 25 percent to $0.12 from January’s $0.16 –a 33 percent decrease year-over-year. The iOS Index saw a slight increase to $0.17, a four percent increase from January's $0.16.
The Cost per Install (CPI) Index measures the cost per app install directly attributed to advertising. In February, the cost for iOS slipped one percent, to $1.00, a four percent increase year-over-year; Android increased three percent to $1.31, a 24 percent increase year-over-year.
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 February, the Index increased six percent to 6.8 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 February, the Index dropped 12 percent, or 21 cents, to $1.59 from January’s $1.80.
Fiksu's Analysis: February 2014
February was a month for realignment for today’s app marketers – with no new devices launched or any major changes to the app stores, February was an opportunity for marketers and app developers to step back and refocus for the coming months.
The 12 percent decrease in Cost per Loyal User and minimal fluctuation in the other Indexes were indicative of marketers focusing efforts on improving their apps and refocusing marketing strategies in preparation for the next big push. In particular, we saw the Android Cost per Launch Index bounce back from its previous surges in December and January in the general app category. We can also surmise that the overall improvement in app quality also factored into this increased usage and loyalty.
Another reason for this February’s steady hold was an increase in the use of incentivized traffic – such as Fiksu’s FreeMyApps (FMA) – up by about 15 percent. Its success in generating volumes of loyal users without increasing CPIs was reflected in this month’s data. By adding targeting to FMA for improved user engagement, Fiksu clients saw a positive return with flat costs throughout the month.
Taking stock of the year so far: January was the month for marketers to go back to the drawing board, and in February marketers were honing these ideas. Be prepared for March and April when we see these new strategies put to work and their impact evident in the Indexes.
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 237 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.