Word-of-mouth influence is particularly important given recent research from Fiksu indicating that the cost to acquire a mobile app user through advertising rose to a new high of $3.09.
Word-of-mouth is a key driver of smartphone application discovery and a leading reason why users download apps, details Google [pdf] in a study conducted with Ipsos MediaCT. But downloads don’t necessarily equate to usage, as 1 in 4 installed smartphone apps are never used, according to the research.
Craig Palli, chief strategy officer at Fiksu, told sister publication MarketingTech about the importance of brands getting in there now, as the majority of smartwatch owners will either be early adopters or high value customers.
Juniper Research forecasts that wearable advertising spend will reach $68.7 million (£46.5m) in 2018, a huge leap from $1.5m (£1.02m) by the end of this year – and the growth of the Apple Watch will fuel this step up.
It’s a concept which has had marketers licking their lips in anticipation for months – another screen on which to display ads and sell dollars.
“Working with Fiksu has given us a clearer vision of our mobile user acquisition strategy and what we need to improve on,” said Clement Letzelter, Mobile Marketing Manager at Le Figaro.
As the longest running and largest newspaper in France, Le Figaro has no problem with brand recognition. But as consumer habits have shifted, first to the desktop, and now to mobile, the longstanding newspaper has had to follow suit, launching a mobile app to deliver the news to their customers whenever and wherever they need it.
The rising cost of user acquisition is well documented; Fiksu's January 2015 Cost per Install (CPI) Index for iOS increased 9 percent to $1.28 - a 7 percent jump year-on-year, while Android's CPI rose from $1.41 to $1.53 - a 9 percent increase over December and up 23 percent since last January.
Few of us will have missed the stories talking about the huge spend on ads for mobile games shown during the 2015 Super Bowl.
To summarise what the fuss is all about, three developers - Supercell, Machine Zone and UCool - spent around $15 million to reach the 112 million US viewers at a cool cost of $4.5 million per 30-second slot.
By Craig Palli, Chief Strategy Officer at Fiksu
It should come as a shock to no one: viewership of regularly scheduled television programming is floundering. Even Nielsen admits as much: in a 2014 year-end roundup, they reported that “consumers’ time and attention around media is in flux.” For mobile marketers who understand these changes in media consumption, opportunity knocks.
Nielsen’s report pointed to digital video, including native digital, TV-produced, and subscription-based video on demand, as contributors to the change. But what the drumbeat of prognostications declaring traditional television dead fails to recognize is that televised live events are stronger than ever. The most-watched television program in history, this year’s Super Bowl, brought in an estimated 114.4 million viewers. Award show viewership is on the upswing, recovering from years of steady decline. And the 2015 March Madness tournament ratings are at a 25-year high.
“Marketers are becoming familiar with the ebbs and flows of seasonal behavior and the February Indexes reflect the revisiting of priorities and planning for Q2 spending,” said Micah Adler, the CEO of Fiksu.
These days, even the down months are technically up.
The Fiksu App Store Competitive Index tracks the average daily download volume of the top 200 free iOS apps, and it shows a whopping 9.7 million daily downloads for February, which is 6 percent down from January. Still, that download volume is up 43 percent over last year’s. And Fiksu’s Cost Per Loyal User index, which measures the cost of acquiring a user who opens an app three times, is also down from the previous month, dipped 3 percent from January to $2.80. But that’s still quite a bit more than this time last year — 76 percent more.
"Even though Google is promising they will have one- or two-day turnarounds and expediting [things], we see a seven- to 10 turnaround for iOS and one to two on Android," said Tom Cummings, client account director at Fiksu. "If I was a developer, I'd kind of be on the lookout for that."
There has always been something very "Steve Jobs" about the Apple App Store submission process, where developers must sometimes feel as though their work is being put before a highly particular tastemaker. In the same sense, the comparative lack of such scrutiny on Google Play also made sense--after all, Androids have no business judging app quality, right?
Fiksu was also able to achieve success for American Well on a variety of other channels by leveraging its programmatic reach. In addition to Facebook, American Well was able to effectively build its user base via Twitter and video networks.
Telehealth company American Well, which launched a mobile application 18 months ago, leveraged data on social channels such as Facebook to drive registrations and conversions as mobile health picks up steam.
American Well, whose app connects people with doctors over secure video, used Fiksu’s app-promotion systems to drive high-value registrations and conversions at lower costs through an optimized campaign on social channels, most notably on Facebook. The results come as major pharmacy brands such as Walgreens dive into the growing mobile health space and the public grows more comfortable with sharing critical health information across the healthcare field.
"They are better positioned than ever to sell digital ads" and compete with Google, says Craig Palli, chief strategy officer at Fiksu, a mobile-marketing company that works with Facebook.
Facebook hurtles into its F8 developers conference on Wednesday with momentum befitting a company at the peak of its powers.
Shares (FB) are soaring into record territory on investor confidence in the 11-year-old company's advertising business. Analysts predict Facebook's revenue will rise 37% this year, to $17.1 billion. Their 12-month price target: $91.57.
Apple's new iPhones sold at an astounding pace during the first few months that they were available. By late December -- around the end of Apple's Q1 -- the iPhone 6 and iPhone 6 Plus together accounted for approximately 20% of all iPhone usage, according to Fiksu.
Last fall, Apple's (NASDAQ: AAPL ) iPhone 6 and iPhone 6 Plus took the tech world by storm, boosting iPhone sales into the stratosphere. In the first weekend that the iPhone 6 and iPhone 6 Plus were on sale, Apple sold more than 10 million of them -- despite not selling any in mainland China, one of Apple's biggest markets.
The iPhone 6 Plus has boosted the iPhone's average selling price. Photo: Apple Then, in the first full quarter of sales, running from late September to late December, Apple sold a stunning 74.5 million iPhones -- up 46% year over year. The average selling price also increased by 8% compared to the December quarter of 2013, despite some currency headwinds, indicating that many customers opted for more expensive models.