"With increased brand spending will come demands from advertisers for integrated, end-to-end solutions that make large-scale buying easy and provide detailed performance metrics. In addition, the agencies who control the bulk of large brand spending will want to make their advertising purchases in familiar ways, and that means buying audiences—not networks, publishers or clicks," said Craig Palli, Fiksu's chief strategy officer.
Yerday, we provided an in-depth look at how mobile could become the premiere advertising channel. But there's obviously plenty of work to be done. So we asked industry players: What is mobile's big challenge going forward? Here are the seven most-intriguing responses we gathered.
“As we’ve seen in past years, anticipation for new Apple devices always curtails mobile marketing spend and app installs as users and app marketers eagerly await the new smartphones,” said Micah Adler, CEO of Fiksu, in a statement.
User acquisition and marketing company Fiksu has released its indexes for the month of August 2014, which seemed to reflect a “wait and see” dynamic for app installs across both iOS and Android devices. In addition, Fiksu found the anticipation for the launch of the iPhone 6, iPhone 6 Plus and iOS 8 lowered app marketing costs, alongside the expected summer holiday slowdowns. This resulted in a Cost Per Loyal User of $1.86 on iOS, down six percent month-over-month, and two percent year-over-year.
Through the first few days of availability, there's a clear winner in terms of popularity -- and it's not the iPhone 6 Plus! Usage of the iPhone 6 has been five to seven times higher than that of the iPhone 6 Plus since the two new models went on sale, according to data collected by Fiksu.
Apple's newest iPhones went on sale on Sept. 19, and for the second year in a row the company introduced two new versions of the handset. Both phones have significantly larger screens than the 3.5-inch and 4-inch screens Apple previously used. The iPhone 6 screen measures 4.7 inches, while the iPhone 6 Plus is a full-fledged "phablet" with a 5.5-inch screen.
From both Fiksu’s and Mixpanel’s charts Apple’s iPhone 6 is still seeing much better sales and usage than the 6 Plus. This isn’t too surprising given the lead-times for the 6 have been better than the 6 Plus.
Every few days I have been tracking the lead-times for Apple AAPL -0.16%’s iPhone 6 and 6 Plus similar to what I did starting with the iPhone 4S. I do this via Apple’s websites, Verizon AT&T T +0.6% and Sprint and three Vodafone sites and have created a Google Doc to keep track of all my lead-time observations. Hopefully in a few days the countries that have been selling the iPhones for a week will see their lead-times shrink vs. the newer countries have theirs become longer.
“The July Fiksu Indexes reflected the typical slowdown of summer behavior but confirmed that underlying app marketing costs are still rising consistently year-over-year,” said Micah Adler, CEO of Fiksu.
The cost of getting a loyal mobile user fell 9 percent in July compared to the previous month, but that’s only a little bit of a breather for mobile app developers and publishers, according to a report by mobile marketing firm Fiksu.
The cost per loyal user, or one that opens an app three times, was $1.97 in July, down 9 percent from $2.23 in June. However, there’s not a lot to celebrate, as the costs were still at the second-highest monthly level in the four-year history of the Fiksu indices. And the July costs were up 9 percent from a year earlier.
According to Fiksu, the cost per loyal user has also risen significantly between 2012 and 2014, with said cost finally hitting an all time high last month of $2.23 per user, making June 2014 the most expensive month on record for user acquisition.
The cost of app marketing is on the rise, with data collected by marketing outfit Fiksu showing that the cost of acquiring a loyal user has increased by 9 percent year-over-year since 2013 to $1.97.
The cost per install has also risen, shooting up by 44 percent on Android and 16 percent year-over-year on iOS.
“The main challenge is the same as it is for any app: acquiring users,” said Tom Cummings, director of account management for U.S. apps at Fiksu. “In addition, though, they may have a challenge around setting expectations for what the app will provide.
Sneaker maker adidas has launched a mobile application that allows users to customize their next sneaker order with a photo taken on their mobile device.
The miZX Flux app is an extension of adidas’ longstanding efforts in customization through its mi adidas program, which allows consumers to order sneakers that are specially created for them with colors they choose. MiZX Flux is an example of an app developed especially for a specific campaign to generate buzz around a brand.
Apple doesn’t break out the sales of individual products within the iPad and iPhone lines, but according to mobile marketing firm Fiksu, the iPad Mini was the second most-used iPad as of April. More impressive than the sales is the fact that Cook has been able to keep Apple’s margins impressively high while adding new production costs.
When Steve Jobs stepped down as Apple’s CEO on August 24, 2011, the company’s future was anything but certain. The tech giant had become the most valuable company in the world just weeks before, thanks to a decade’s worth of wildly successful new products like the iPod, iPhone and iPad. The disruptive devices were credited almost exclusively to Jobs’ genius, and consumers as well as Wall Street analysts wondered whether Tim Cook, his soft-spoken successor, could guide Apple even higher.
Fast forward three years and Cook has proved his doubters wrong. This week, he got quite the anniversary gift when Apple’s stock reached an all-time high, largely because of strong recent earnings reports and anticipation of the iPhone 6, rumored to be announced this fall. Apple’s new share price high is a sign investors are buying into Cook’s vision for the companys’ future, which looks different from Jobs’s.
Craig Palli, Chief Strategy Officer, Fiksu: "The sky isn’t falling: the app economy is simply evolving and maturing. Mobile usage keeps hitting new peaks – with apps leading the way. ComScore’s recent US Mobile App Report reports that the majority of all digital media consumption—52%—is now in-app. When it comes to new device shipments, mobile devices are outpacing laptops and desktops by almost a factor of 7– 2 billion to 300 million."
What’s going on here? Has the app economy hit a ceiling? What can the industry do to stimulate growth? We asked the mobile community for their thoughts. Here’s what they said.
Marketing platform player Fiksu reached a total of $100 million in revenue since its creation in 2010, fuelled by rising demand for targeted, optimised mobile advertising.
The company has now gathered data from three billion app downloads and 3.5 trillion marketing events. It has profiles for almost 60 per cent of smartphones and tablets globally, equating to around 1.7 billion devices.
Fiksu’s programmatic mobile demand platform delivers the “world’s largest mobile media inventory and advanced optimisation” to more than 800 publishers, promoting more than 2,300 apps. Customers include Coca-Cola, Disney, Dunkin’ Donuts and Groupon.