"The continuing surge in mobile app users is attracting bigger brands eager to use apps to create long-lasting, ongoing engagement, and their spending is pushing up costs," Micah Adler, chief executive of Fiksu, said.
As the number of mobile app downloads increases across the United States, the cost for app developers to gain loyal customers has risen to its highest rate in two years, according to a new study by Fiksu.
Fiksu also noted today that user acquisition costs in the U.S. reached their highest level since 2011, rising to $1.80 in July, up 20 percent from $1.50 in June, making the month the most expensive since December 2011.
Facebook’s mobile app advertising platform is partially responsible by driving up competition, while deep-pocketed buyers are increasing, forcing the littler guys to spend more to keep up. The big-name publishers are now dominating the tops of the app store charts, making it harder for newcomers to reach the top 250, potentially turning the app stores into winner-takes-all markets.
And Fiksu’s success suggests four lessons that any start-up CEO should make sure to follow.
What is smartness? There are different kinds for different human endeavors. A smart football quarterback has little in common with a smart genetics researcher.
And you hardly ever come across an individual who is both a smart professor and a super-accomplished entrepreneur. Given my, perhaps twisted, values I am incredibly impressed by an individual who can excel in both of these fields.
That’s just the thing that Finland-born but U.S-raised Micah Adler has accomplished. His latest company’s name is a testament to his smartness. It’s called Fiksu - it means smart in Finnish - and the Boston-based start-up makes “a tech platform for programmatic mobile app advertising.”
The spectrum problem is not completely insurmountable, though -- certainly not with massive amounts of ad dollars at stake. Operators will respond -- and in fact are already working feverishly -- in order to be able to have the capacity to offer their advertisers a "solid customer experience," Craig Palli, chief strategy officer at Fiksu, believes.
As an onslaught of mobile video ads threatens the digital advertising landscape, it's sobering enough to realize that more than a few brands are not fully prepared.
Even more concerning, however, is that our wireless infrastructure is not ready for it, either.
Certainly from a big-picture perspective, the acquisition is in line with Facebook's honed focus these days on all things mobile, Craig Palli, chief strategy officer at Fiksu, told the E-Commerce Times.
In general, Facebook is seeking to transform its platform to cater to a more active and mobile lifestyle, Palli explained, "and acquisitions like this one will accelerate that transformation.
"Facebook saw 41 percent of their revenue from mobile in Q2, and acquisitions like this will keep them moving down the path to majority mobile revenue," he said.
Groupon — enjoying a 118% pop this year – is proving the naysayers wrong. And it uses Boston-based Fiksu — “a tech platform for programmatic mobile app advertising” — to market its mobile apps.
Behind Fiksu – it means smart in Finnish – is Finland-born but U.S-raised Micah Adler, an entrepreneur the likes of whom I had never known until I spoke with him on August 8. That’s because he has achieved excellence both academically and entrepreneurially.
Fiksu CEO Micah Adler discusses the company's mobile media product with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)
Former Syncapse CEO Michael Scissons, Fiksu CEO Micah Adler and Furious Minds Founder Ashley Swartz discuss collaborative consumption with Pimm Fox on Bloomberg Television's "Taking Stock." (Source: Bloomberg)
Boston-based Fiksu, which offers technology for lowering the cost and effort involved with marketing mobile apps, said Tuesday it will be expanding its work on behalf of Groupon.
Fiksu has had Groupon as a customer for the past three years, primarily for marketing its mobile apps in North America.
Now, Fiksu says it has been chosen as the exclusive app marketing platform for Groupon's expansion outside of North America — particularly into Europe and Asia-Pacific.
However, "it's reasonable to assume that online video will play an increasingly larger role in mobile advertising," said Craig Palli, chief strategy officer at Fiksu.
Mobile marketers beware: A new ad format is poised to become very popular and very much in demand -- and there are questions whether the mobile ecosystem will be ready to handle it. That format is online ads. Of course, it is a channel that has been around for a while, and mobile sites have adapted to it.