Meanwhile, Fiksu's latest index shows the Cost Per Loyal User (CPLU) for June increased about 30% over May's numbers to reach $3.21. The Cost Per Install (CPI), however, has fallen about 21% (May vs. June) to $1.15 on iOS and about 9% on Android to land at $2.12.
In today's mobile roundup, a trio of releases pointing to the continued growth of the mobile space, but that growth isn't all great - fraud is also growing quickly in the space.
“The ever-increasing volumes of apps are providing greater inventory for in-app advertising, however the challenge of precisely targeting loyal users remains, and brands are consequently spending more dollars to find loyal users,” Fiksu tells us.
While mobile app usage is growing, it should come as no surprise to marketers that so are the costs. According to the Fiksu Indexes published this week, “June’s cost per loyal user (CPLU) of $3.21 represents an increase of 30 percent since last month, and 44 percent year-over-year.
App downloads, deduced from the Fiksu App Store Competitive Index, increased a healthy 24 percent over May 2015. The index tracks the average aggregate daily downloads of the top 200 free iOS apps, reaching 8.3 million total downloads.
By Craig Palli, CSO, Fiksu
Citing concerns over viewability, Kellogg in June cut its spend on video ads running on major publishers such as Facebook and YouTube. It marked yet another instance of brands rejecting traditional online advertising methods over not knowing who – if anyone – is seeing their ads.
This move comes despite Google announcing a 91 percent viewability rate on YouTube video ads, a marked improvement in the 46 percent viewability rate on commercials run elsewhere. This claim does come with its share of detractors, though, as Google does not allow brands to use third-party viewability services to track and verify campaigns.
Research published this week by mobile marketing firm Fiksu, demonstrates that marketers are having to pay increasingly large amounts of money to have smartphone users download their wares to their device, and continue to remain engaged with them, with Facebook apparently the industry's main benefactor of this trend given its direct response (DR) ad units' success.
With Facebook reporting that mobile app advertising helped drive a record quarter for the social network last week, separate research reveals marketers willing to fork out an average of $3.21 to engage with “loyal” smartphone users, a cost that shot up 44 per cent in the last year.
While app use is soaring, people aren’t spreading their usage across apps, Fiksu states, with Nielsen finding that the average number of titles used per person has stalled in the last two years.
According to mobile marketing company Fiksu, June’s cost per loyal user (CPLU) of $3.21 represents a 30% lift on April, and 44% year on year. June’s spend goes hand-in-hand with a 24% surge in app downloads over the month compared with May.
In a data collected by mobile marketing firm Fiksu in the last quarter of 2014, it was revealed that the cost of acquiring mobile apps users increased 34 percent from 2013.
The average cost to develop and promote a mobile appin 2012 was a little over a few thousands to as much AU$200,000. Every year, due to mobile applications’ popularity and to the smartphone users’ continuously growing number across the globe, the figure keeps on changing and growing.
"There’s a paradigm in mobile that is similar to desktop, but you just have to tweak the metrics slightly to be more mobile-friendly. When you do that, things line up quite nicely," said Fiksu's CSO, Craig Palli
Marketers continue to grapple with questions and concerns about mobile measurement. Yet some of those concerns stem from misconceptions about mobile measurement capabilities and data availability. Craig Palli, chief strategy officer at mobile marketing technology provider Fiksu, spoke with eMarketer’s Cathy Boyle about where marketers are getting things wrong with mobile and why several common misconceptions about mobile advertising persist.
"Despite the decrease in CPIs, if your overall focus extends beyond just downloads it's important to note that the cost to acquire a loyal user remains on the rise," Fiksu noted. "Marketers continue to be willing to pay more for those right users that will pay off in the long run."
The cost per install (CPI) in mobile games continued to rise for both major operating systems in June, though iOS is climbing at a sharper rate.
According to the latest data from Fiksu, the CPI for an Android game was $1.59 last month, up 13 per cent over last year. For iOS, the increase was 17 per cent, but in absolute terms it remains the more effective platform in terms of costs, with an average CPI of $1.04.
“The apps that dropped have jumped significantly back up today,” noted Fiksu’s Chief Strategy Officer, Craig Palli on Wednesday, “but not all of them have returned to the ranks that they were at before the drop started on Friday,” he says. While he noted that the company is still investigating, as of now, it appears to be consistent with historical ranking protocol changes.
To keep the playing field level and fair for all app developers, Apple on occasion changes the way its App Store ranking algorithm works, the fallout of which can impact developers’ standings in the App Store charts, which ultimately can impact their visibility, downloads, and revenue. Around a week ago, it appears that Apple yet again tweaked the way its rankings worked, but this time around, the changes have only impacted a subset of iPad app developers in the U.S. App Store.
No one knows the specifics of how Apple’s App Store ranking algorithm works, but it’s generally understood to take into account factors like download volume, velocity, and possibly other metrics like ratings or engagement.
It is difficult to determine if Chinese mobile apps have a higher burn rate than their global peers. By one calculation, Didi Dache’s average cost of attracting a user was about RMB18 (US$2.92). That compares with Fiksu’s cost per loyal user index, which measures costs for all iOS app downloads, at US$2.47 in May.
Unlike the dot-com bubble at the turn of the millennium, the current explosion of mobile apps – and the astronomical amount of venture money poured into it – are actually bringing real tangible perks to Chinese consumers.
In the morning, users can book a private car via Didi Kuaidi‘s mobile app to go to the office while paying substantially less than a taxi using Didi Kuaidi’s generous discount offerings.