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.
App engagement company Fiksu has struck a deal to market Groupon’s mobile applications around the world.
Fiksu will be the exclusive app marketing platform for the deals company, to accelerate its expansion into local markets in Europe, the Middle East and Africa. The pair have previously been successful in acquiring millions of North American app users: around 45 per cent of Groupon’s transactions in North America now take place on mobile.
"This partnership is the natural evolution of our ongoing relationship with Fiksu,” said Andreas Lieber, head of international mobile at Groupon. “With more than 7m app downloads in Q1, 2013, and a mobile presence in 42 countries, mobile continues to be a key driver of our business. Fiksu has been an important part of our success in North America, and we look forward to working with them to extend our mobile user acquisition efforts worldwide.”
Groupon has named Fiksu as its exclusive app marketing platform for EMEA and APAC. The two companies have been partnered in North America for three years, which Fiksu says has been driven an increasing volume of users to register and make purchases with Groupon.
Micah Adler, CEO at Fiksu, said: "We are proud to be part of the success of Groupon's efforts to grow its mobile base. Groupon's focus is on mobile customers that love and use the brand, as demonstrated by 45 per cent of their North American transactions already taking place on mobile."
The exclusive partnership between mobile app platform, Fiksu and Groupon plans to push the discount service's app into EMEA (Europe, Middle East and Africa) and APAC (Asia Pacific, American Coalition).
The three year relationship has already seen Groupon pull in millions of North American app users, driving increasing numbers of users who register and make purchases by optimising mobile ad presence.
“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.