“With increasingly fierce competition in the app stores, even well-funded apps such as Redbeacon that have the backing of large brands like Home Depot face the enormous challenge of being discovered by consumers and sustaining that user engagement,” said Chris Shuptrine, senior director of client development at Fiksu, Boston.
Home Depot’s Redbeacon is supporting its mission of matching homeowners with service providers via a comprehensive strategy to get the brand’s mobile application into as many hands as possible.
The home repair giant acquired Redbeacon in the beginning of 2012 and since then has brought a bigger mobile focus to the service, launching an Android app late last year and integrating mobile payments earlier this year. As Redbeacon looks to expand mobile as a profitable channel for user acquisition, supporting its app is playing a key role.
Micah Adler, CEO at Fiksu, said: "Now really is the best time to invest in Facebook campaigns while costs remain comparatively low - and before competition starts to heat up."
The Fiksu cost per loyal user index increased by 13 per cent in June this year, from 17 cents to $1.50 - largely caused by the recent demand from apps wanting to take on Facebook's mobile app advertising platform.
The cost of gaining new iPhone app users via mobile ads linking customers to a download is rising, new research from mobile marketing platform provider Fiksu Inc. finds.
The cost of using such ads to gain a loyal iPhone app customer—one who opens an app at least three times in total— rose by 12.8% in June, it says. Advertisers paid $1.50 on average for such app users customers last month, up from $1.33 in May.
Mobile application marketing costs increased 5 percent in June 2013, a surge attributed to the growing number of brands leveraging Facebook's (NASDAQ:FB) mobile app install ads platform, mobile user acquisition platform Fiksu reports.
Fiksu's Cost per Loyal User Index, which measures the cost of acquiring a loyal user for brands who proactively market their apps, increased to $1.50 in June, up 17 cents from May's $1.33. Fiksu credited the Index fluctuations to Facebook install ads, citing growing marketer interest as well as improving performance. The ads, introduced last fall, target consumers based on the apps and games they already access on their smartphones: Developers select their intended audience demographic, budget and method of payment, and Facebook inserts ads for their apps directly into targeted users' mobile news feeds.
According to the Fiksu data the cost to convert a loyal user increased by 13% (June 2013) to reach $1.50; much of that increase they note is because of the new apps set up to allow more brands to advertise to Facebook users from mobile apps.
US consumers continue switching to mobile at very high conversion rates. That fast migration is also pushing more advertisers into the space, but some may be ill prepared for the different ways they must now engage - and the cost to acquire those users.
Mobile app advertising outfit Fiksu told Fast Company mobile app install ads have helped it lower its costs for acquiring new users by 15 percent to 60 percent.
Facebook Chief Operating Officer Sheryl Sandberg said during the social network’s second-quarter earnings call last week that revenue from mobile application install ads continued to grow, and Product Manager Deborah Liu elaborated on that in an interview with Fast Company.
Fiksu, a company that helps automate mobile app advertising campaigns, tells Fast Company that Facebook app install ads have been so efficient that they cut its costs for acquiring a new user by 15% to 60% compared to other ad options.
In October, Facebook began leveraging the enormous popularity of its mobile apps to advertise other apps. The mobile ads for apps, which run in users' news feeds and direct them to app install pages appropriate for their devices, help mobile developers distinguish their products from the nearly 2 million apps in the Apple and Google Play app stores and help Facebook ramp up mobile revenue, which at the time of their launch was non-existent. According to the latest numbers, the setup is working out swimmingly for the social network and its advertisers.
Growing demand for Facebook’s mobile app install ads helped push up average app marketing costs for developers in June by 13% per user, according to the latest monthly data from mobile app marketing firm Fiksu.
Fiksu attributed the rise in costs to the popularity of app install ads as a vehicle for promoting apps to the social network’s 800 million app users. Facebook executives last week indicated that revenue from the ad format was still a small part of overall ad sales but growing rapidly. In May, the company has said the ad unit had driven 25 million app downloads and that 40% of the top-grossing Android and iPhone apps had advertised on Facebook.
It’s been about a month since the app marketing gurus at Fiksu first reported their findings on the legitimacy of all those ads we’ve grown accustomed to in the Facebook app.
As our own Carter Dotson noted, there was an increase of 14.6 million downloads of the top 200 free apps per day throughout the month of May. That’s a lot of downloads, and it was pretty much all because of those Facebook ads. Now the numbers for June are in, and it doesn’t look like the trend is going away. If anything it seems to be building momentum.
Successfully marketing your app requires much more than strategic media buying, compelling creative units, and catchy social media tactics. High performance mobile app marketers have a laser-like focus on targeting, acquiring and retaining loyal users—those who take a specific desired action, such as an in-app purchase.
With more than half of the adult U.S. population using smartphones and 900,000 apps in the Apple App Store, it's no wonder that mobile app publishers and other brands are hopping on the mobile advertising bandwagon to get their brands out in front of the skyrocketing number of mobile users.
Originally posted on Direct Marketing News, written by Craig Palli, chief strategy officer of Fiksu.