Other results from the Fisku Indexes show a decline in the Cost per Launch (CPL), with Android CPL falling 20 percent to $0.10, and iOS CPL decreasing five percent, to $0.20.
Consumers need for apps shows little sign of abating, mirroring publishers desire to reach and convert new app users.
This increase in marketing costs are demonstrated in Fisku’s App Store Competitive Index for May, which measures the aggregate daily download volume among the top 200 ranked apps. The report shows that download volume grew by 24 percent to 6.6 million, compared to April's 5.34 million. Meanwhile Fiksu's Cost per Loyal User Index rose 17 percent to $1.78 in May and 34 percent year-over-year.
“The increased quality and growing popularity of apps continues to fuel ever-increasing demand, meaning marketers must continually hone their new strategies and spending in the quest to cost-efficiently acquire loyal and engaged users,"said Micah Adler, CEO of Fiksu.
User acquisition and marketing company Fiksu has revealed the results of its latest indexes, which measure daily app downloads, cost per loyal users, cost per installs and more. May’s data shows competition for downloads on the rise in a phenomenon Fiksu has called “app inflation.”
For instance, May’s App Store Competitive Index, which measures the average daily downloads for the top 200 free iPhone apps in the US, saw a 24 percent increase to 6.6 million daily downloads, up from 5.34 million in April. That’s a 12 percent increase year-over-year.
“While there have been ebbs and flows, it’s very clear that the cost of app marketing and the competition for downloads is on a constant upward trajectory: what we’re calling app inflation,” said Micah Adler, CEO of Fiksu.
App inflation is the new 'normal' for brands and app marketers, a trend illustrated by the latest Indexes released today by Fiksu, Inc.. The App Store Competitive Index for May, which measures the aggregate daily download volume among the top 200 ranked apps, grew by 24 percent to 6.6 million, compared to April’s 5.34 million.
With the increase in volume this month, app marketers will need to find more creative ways to find and acquire loyal users. Granular targeting options and optimized app marketing efforts continue to improve, helping advertisers break through the noise.
“With the increase in volume this month, app marketers will need to find more creative ways to find and acquire loyal users,” Fiksu said. “Granular targeting options and optimized app marketing efforts continue to improve, helping advertisers break through the noise.”
Inflation is no fun. Especially when costs are rising more than what you can charge for something. That’s the problem facing app developers, based on the latest report by mobile marketing firm Fiksu.
During May, marketing costs rose 17 percent from April and 34 percent from a year ago, as measured in Fiksu’s Cost per Loyal User Index, which measures the cost of acquiring mobile users who open an app at least three times on iOS. That sets the stage for a competitive summer.
With natural App Store discoverability a major issue for developers, the price for marketing apps continues to increase. As more firms bid for limited marketing options they drive the price up. Fiksu's estimate of cost per app install has been steadily rising since 9/13 from $.83 to its current $1.24.
At this year's WWDC in June, Tim Cook announced the App Store has reached over 1.2 million apps. While this diverse and competitive app ecosystem has proven incredibly successful for the top-performing 200-300 apps, being discovered is a daunting and increasingly expensive proposition for the hundreds of thousands of other apps. Many app developers think the fault lies with the App Store, whose heavy bias towards surfacing and keeping 'top performing' apps in the spotlight reinforces this disparity. Currently, just 1/10th of 1 percent of apps control the entire App Store market, leaving the rest of the 1.2 million apps virtually unknown.
According to data from Fiksu, it currently costs app marketers $1.24 to get users to download and install an application on iOS, and $1.31 on Android. Those numbers don’t directly correlate to Amazon’s Appstore, but they give you the general idea of the costs involved in this industry.
When Microsoft needed to convince developers to build mobile apps for its Windows Phone 8 platform, it took a familiar path: it offered them money to do so. Amazon, however, is going a different route – at least, for now. Instead of outright paying developers to update their apps to work with its newly launched smartphone, the Fire Phone, Amazon is offering up to $15,000 in “Amazon Coins” which developers can give away to their users.
The idea here is that in today’s crowded app marketplace, acquiring new users and keeping current users engaged can be very expensive.
"If the Amazon phone is compelling enough and priced attractively enough to start building up a significant user base, you’ll quickly see developers including Amazon versions of their apps right behind iOS and Google Play versions," said Craig Palli, CSO of Fiksu.
Amazon yesterday became the first ecommerce player to introduce its own smartphone: Fire.
What sets fire apart from other such devices are two new breakthrough technologies: Dynamic Perspective and Firefly. Dynamic Perspective uses a new sensor system to respond to the way the user holds, views, and moves the device, enabling experiences not possible on other smartphones. Firefly quickly recognizes things in the real world – web and email addresses, phone numbers, QR and bar codes, movies, music, and millions of products — and let’s the user take action in seconds with the press of a button.
While Amazon’s store is only about a fifth of the size of its counterparts, “there’s a pretty good base for them to work with,” said Craig Palli, chief strategy officer for mobile app marketing platform Fiksu.
Amazon preluded its “big reveal” Wednesday (Fire phone) with a word to app developers: “We’re where you want to be.”
The company also struck a deal Wednesday with BlackBerry to offer the Amazon Appstore as a lifeline to BlackBerry’s fledgling of an apps ecosystem.
Amazon’s Appstore sits somewhere in the 240,000 app range, coming close to tripling its app and game count from a year ago. The e-commerce giant cited traction in the developer community, noting “improved reach, greater monetization, and oftentimes, higher revenue" for its app makers, said Mike George, VP of Amazon Appstore and games. The company revealed no dollar amounts.
"As the largest digital retailer in the world, they have access to an incredible volume of consumers, and with 240K apps in their app store already, there's a pretty good base for them to work from. While that's only a fifth of the size of Apple and Google's app stores, sheer volume of apps isn't the most important indicator of success," said Craig Palli, CSO at Fiksu.
With rumors rampant that Amazon will launch a smartphone on Wednesday, the ecommerce giant is touting that its AppStore offerings have tripled per annum, but Amazon faces an uphill battle attracting developers and displacing competitive devices.
“For any app, Facebook should be part of your app marketing mix - it gives you great control and the ability to reach very specific audiences,” said Jim Thomas, product marketing manager, Fiksu, Boston.
Golfshot, a GPS-based course management, scoring and golf instruction application, leveraged Facebook to support a new freemium business model, resulting in more than one million downloads.
App developer Shotzoom had seen success with several golf-focused paid apps, but the introduction of its free-to-download Golfshot app for iOS and Android presented a new challenge, and it needed to develop a profitable mobile marketing strategy for thenew business model.