“Holiday competition for loyal app users was unsurprisingly fierce this month,” said Micah Adler, CEO of Fiksu, in a statement. “New device users are a desirable demographic and marketers will fight for the attention and home screens of these new users, for a chance to gain their loyalty for the long-term. We expect to see this competition continue into January.”
The costs of acquiring new users for mobile apps reached an all-time high in December as well-heeled companies scrambled for mobile market share over the holidays, according to a report by mobile marketing firm Fiksu.
The Fiksu Index published today shows that the cost to acquire a loyal user (one who opens an app three times or more) was $4.23 in December, up 19 percent from November and up 101 percent from December 2014. The all-time record beat out the previous record of $4.14 in September.
Based on Fiksu's usage data, the iPad Air 2 and iPad Mini 3 together accounted for 3.7% of all iPad usage by the end of December 2014. This time around, the iPad Pro and iPad Mini 4 only reached 1.8% of total iPad usage by the end of December.
Nearly every analyst following Apple (NASDAQ:AAPL) expects that iPhone sales will decline on a year-over-year basis for the first time ever this quarter (Apple's fiscal Q2). Some bearish analysts even think that Apple could report an iPhone sales decline for Q1 (the holiday quarter) when it releases its earnings results tomorrow. These worries have weighed heavily on Apple stock lately.
By contrast, year-over-year sales declines for the iPad are old hat by now. Apple reported its first iPad sales drop in July 2013. It wasn't a token decline, either -- unit sales fell 14% and iPad revenue plummeted 27% year over year that quarter.
People are always buying new games, unlike other applications, noted Tom Cummings, director of account management at Fiksu.
Worldwide downloads of Android apps in 2015 were double those for iOS, but revenues from iOS apps were nearly twice those of Android, according to an App Annie report released this week.
First-time device owners in emerging markets drove the huge increase in Android downloads, researchers found.
Consumer Intelligence Research Partners (CIRP) surveys 500 US Apple buyers each quarter. It found that 67% of those surveyed bought a 6s model in the December quarter vs. 75% last year buying an iPhone 6. This is similar to what Fiksu has found for iPhone 6s vs. 6.
When Apple AAPL +0.00% introduced the iPhone 6s and 6s Plus it dropped the price of the iPhone 6 and 6 Plus by $100 which is the standard decrease when a new version is announced. While the iPhone 6s has a number of upgrades vs. the iPhone 6 it may be that a larger than normal number of buyers opted for the older version to get the lower price. This could translate to a lower average selling price (ASP) than what investors are expecting. (Note that I own Apple shares).
As for the near term, "We expect another year of tremendous growth and innovation from Alphabet," says Craig Palli, chief strategy officer of the mobile marketing technology company Fiksu.
Some investment puns pack true substance. So when Todd Antonelli calls Google and its related ventures "alpha-bets," he sums up what many investment experts see as the key to the tech giant's future.
As everyone knows, Google long ago evolved into more than just a ubiquitous search engine. But in breaking down the various parts of Alphabet (ticker: GOOG) – the name the company adopted in August – you can get a clear sense of just how much of a juggernaut it's become and where it's going to place its new high-tech wagers in 2016.
“If you are an app startup and you want to become a profitable company, you absolutely need to figure out the best ways to drive users that are also cost-efficient. If you cannot get a return on paid advertising, one of your alternatives is to engage with your community, find out who their influencers are, and build strong relationships with them,” says Fiksu’s Cummings.
Brands and agencies can no longer only focus on mobile Web, because apps are growing rapidly and in-app advertising offers marketers a better opportunity to target the right audience at the right time.
It’s universally acknowledged that there’s a disparity between the amount of time people spend on mobile and the actual ad dollars allocated to this medium. However, this gap will narrow as advertisers are becoming more adept at using mobile to reach their audience.
"First of all, ad blocking's impact on advertisers is a bit over hyped. Ad blocking mainly impacts mobile web and, therefore, a subset of 10 percent of the mobile ad market," said Fiksu's Craig Palli
We recently hosted a Q&A with members from Fiksu’s executive team who offered their predictions on mobile advertising for 2016. Included in the Q&A were Fiksu’s Tom Caputo, Chief Product Officer; Benjamin Hansz, VP of Client Management; Claire Oliverson, Director of Product Marketing; Craig Palli, CSO; Pat Eichmann, Senior Director of Sales West; and Tom Cummings, Client Accounts Director.
Spencer Scott, Chief Revenue Officer, Fiksu: Google and Facebook will continue to grow their dominant position in mobile advertising, while a handful of other key players, notably Yahoo and AOL/Verizon, seek to hone their offerings and begin winning market share.
Happy New Year! As we step into 2016, we’ve asked some of the industry’s best and brightest to share their predictions about where the next 12 months might take us…
Spencer Scott, chief revenue officer, Fiksu: The single biggest trend in mobile in 2015 was the growth of audience targeting. For brands trying to transition to a mobile-first world, figuring out how to reach the right audiences the way they’re used to on digital and offline is crucial.
As we say goodbye to this year, and begin to look ahead to the next, it’s a good time to revisit the stories and trends that have defined mobile marketing in 2015. Our editorial team have picked out their single biggest trend of the past 12 months. Plus, we reached out to members of the MLN, our board of experts from across the industry, to contribute their picks too.
"Brands should continue putting effective user acquisition at the forefront. Targeting and optimization is even more critical as marketers aim to reach more of the right, loyal users," said Fiksu's Micah Adler.
According to the latest from the Fiksu Indexes, November brought with it a tangible easing off with regard to mobile app advertising metrics..
Fiksu reportedly saw dips in both app download volume and install costs, two realities attributed to marketers preparing for the “largest mobile Christmas to date.”