In the Media
Fiksu inclusion in landscape visual.
I’m posting this from the 2016 MarTech USA conference in San Francisco — a fitting venue to release the 2016 marketing technology landscape supergraphic. (Finally!)
You can click on the image above for a larger version — which you’ll obviously need in order to be able to see anything more than a colorful blur.
“As much as Apple will hype things up ... in the 6S, it wasn’t so radically different that the people who got the 6 last year have been compelled to upgrade,” said Jeremy Sacco, a director of content and communications at Fiksu.
Adoption of the 6S has been slower compared with previous models, according to data from mobile marketing firm Fiksu. New features like live photos (which capture video before and after a picture is taken), and 3D Touch (which senses how much pressure a user applies to the screen) weren’t enough to get many people to upgrade, analysts said.
Fiksu analyzed the type of iPhone used to access roughly 4,000 apps. In the first 175 days after its release, the 6S represented 12.4 percent of active devices using apps. The iPhone 6, in its first 175 days on the market, did better, representing 20.8 percent of active devices.
The cause for hope comes from recent Fiksu data. Fiksu, which specializes in helping brands build and run app acquisition and re-engagement campaigns, issues a monthly index that tracks the cost of generating app downloads and app loyalty, defined as a user that opens an app three times.
Apple's App Store may have created 1.9 million jobs, but it's unclear how many of those jobs pay a living wage. After all, VisionMobile's survey data has long revealed that most developers live below the app poverty line, making less than $500 per app per month. There are signs, however, that life is getting better for mobile app developers.
App Annie, for example, is forecasting that the App Store will generate $101 billion by 2020. More importantly, however, the cost for acquiring a loyal app user, and not simply someone who installs an app, is in decline. With roughly 30% of all mobile advertising currently focused on getting people to download apps, everyone benefits if those billions of dollars start to create real brand loyalty, and not simply app churn.
“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.