“Well-implemented targeting typically also lends itself to compelling retargeting,” said Craig Palli, vice president of business development at Fiksu Inc., Boston.
As marketers increasingly look to tie together their email and mobile channels, Twitter’s new retargeting tool that was launched last week will likely shift big amounts of direct response advertising into mobile.
New data out from Fiksu may have more brands looking to the mobile space to engage and interact with consumers. According to their new report, mobile is returning more on the ad investment, especially in terms of engagement and cost-effectiveness.
Fiksu's report finds that the cost per engagement of a mobile app ad is up to 10 times lower than paid search. Researchers also found that mobile CPMs are the second lowest, behind social network advertising, and that mobile display CPCs are about 90% lower than for desktop CPCs.
Users of the Facebook mobile app may have noticed that the app now features more ads prompting users to download certain apps.
However, these little blips could be actually having a significant impact on the way that marketers try to sell apps to iOS users, according to a company called Fiksu that tracks app downloads and performance in the context of marketing.
As the mobile app marketing landscape evolves at lightning speed, I’m reminded how important it is for marketers to constantly assess new ways to identify and reach their most loyal customers.
I recently took the time to analyze the performance of a few early Facebook mobile app install ad campaigns to assess how they worked and the early ROI. Here’s what I discovered.
Written by Craig Palli of Fiksu, originally posted on MediaPost.
At Fiksu, we’re seeing it firsthand. Our use of the Facebook mobile app install unit has grown over 500 percent in recent months, now accounting for a 7 figure monthly spend.
The story of the year is Facebook’s transformation from a social media company to, as described by Mark Zuckerberg, a mobile company. The speed of the transformation is frankly amazing, and is indicative of the increasingly central role of mobile and mobile apps in everyday life.
Cost-per-engagement for mobile app advertising is ten limes less than paid search marketing, a recent study from Fiksu revealed.
The study, entitled “Brand building on mobile devices: measuring the value of consumer engagement,” analysed over 2.4 billion app marketing data points from campaigns run by brands on the Fiksu platform, and compared those numbers with traditional advertising data, looking specifically at cost-effectiveness and engagement.
According to Fiksu, downloads of free iPhone apps grew by 31% in May compared to the same month in 2012. This is nothing to sniff at, but it clearly signals the maturation of the iOS app market in the United States.
The daily download level of 5.9 million in May still sits below January’s pace of 6.1 million daily downloads. This stands in stark contrast with Google Play’s torrid download volume growth in Asia in the first half of 2013. Interestingly, Fiksu also reports that the iOS app user acquisition cost is now actually dropping as Facebook’s mobile app install ads exert downward pressure on marketing campaign pricing.
Facebook mobile application downloads led the cost of acquiring a loyal game player to drop from $1.50 in April to $1.33 in May, according to Fiksu.
At this point mobile app ads cost as little as one-tenth that of desktop keyword click. "Brands are waking up to the fact that mobile apps provide an incredible and very cost-effective canvas for marketing. But using CPM and CPC as sole measures of ROI eclipses the powerful engagement that mobile apps bring and which brand marketers seek," Fiksu Vice President Craig Palli says.
“Mobile app marketers have quickly realised the disruptive power of Facebook mobile app install ads, which have poured a new stream of effective and cost-efficient inventory into the market,” said Micah Adler, Fiksu’s CEO.
Adler continued, “Savvy marketers have already taken advantage of Facebook’s extensive capabilities for focusing on specific audiences, and as more brands follow suit, we can expect volume to continue to climb – along with costs, as competition heats up in the coming months.”
The average cost to acquire a loyal player in May dropped to just $1.33. That’s down 11 percent from $1.50 in April, according to a report marketing-platform company Fiksu.
“Mobile app marketers have quickly realized the disruptive power of Facebook mobile app install ads, which have poured a new stream of effective and cost-efficient inventory into the market,” Fiksu chief executive Micah Adler said. “Savvy marketers have already taken advantage of Facebook’s extensive capabilities for focusing on specific audiences, and as more brands follow suit, we can expect volume to continue to climb – along with costs, as competition heats up in the coming months.”