Mobile App Marketing Costs Plunged in September, Find New Fiksu Indexes
App downloads increased by 33 percent in the weeks following the iPhone 5’s arrival, presenting a rich opportunity for mobile app marketers
Fiksu, Inc. (www.fiksu.com), developer of the award-winning Fiksu for Mobile Apps Marketing Platform that combines advanced media optimization technology with the world’s largest app media inventory, today reported that the cost to acquire a loyal app user dropped by 16 percent in September. The arrival of the much-anticipated iPhone 5 triggered app downloads to surge by 33 percent in the weeks following its Sept. 21 launch.
The Fiksu Cost per Loyal User Index was $1.13 in September, down 21 cents or 16 percent, from August’s $1.34. The last time the Cost per Loyal User Index came close to this was May 2011, when it was $1.10 as a result of Apple’s ban on incentive-based installs, followed by January 2012 when it fell to $1.14 after the holiday advertising frenzy.
The Fiksu App Store Competitive Index (which measures the average aggregate daily download volume of the top 200 free U.S. iPhone apps) netted out at 4.07 million daily downloads in September, a marginal uptick from 4.05 million in August. However, there was a clear distinction in download activity before and after the iPhone 5 hit shelves. Downloads decreased by three percent in the weeks prior to the new phone's arrival, but jumped 33 percent in the weeks following.
The resulting traffic was good news for many app marketers. For example, one Fiksu client experienced a 20 percent increase in organic downloads and 35 percent revenue gains during the post-launch period – and many others were able to take advantage of the traffic jump.
“A new device launch always presents an opportunity to cost-effectively acquire and engage new loyal users – and marketers are starting to anticipate this,” said Micah Adler, CEO, Fiksu. “As we observed, brands held off on advertising in the run-up to the iPhone 5 launch, then jumped into the fray as the phones hit stores and mailboxes. Despite the increase in advertising volume and CPCs, marketers who went after these new users were rewarded with a nice drop in overall costs for acquiring loyal users.”
For Fiksu's full analysis, visit http://www.fiksu.com/resources/fiksu-indexes#analysis.
Fiksu has accumulated more than 48.2 billion app actions including launches, registrations and in-app purchases, as well as real time bidding requests. This data is used to drive real time optimization of ad campaigns, to help app developers acquire large volumes of loyal users at very efficient costs.
The Fiksu Indexes measure monthly fluctuations in competition for rank in the Apple App Store and the cost to acquire loyal users, helping mobile app marketers benchmark their performance against industry averages. For the specific purpose of the Fiksu Indexes, a loyal user is defined as someone who opens an app three or more times.
Fiksu, Inc. helps leading brands optimize their iOS and Android mobile app marketing campaigns and secure large volumes of loyal users. The company’s flagship platform, Fiksu® for Mobile Apps spans the entire mobile ecosystem providing the most cost-effective, predictable and intelligent mobile advertising solution, slashing user acquisition costs and ensuring sustained user engagement. Additionally, Fiksu offers FreeMyAppsTM, an app discovery platform where users are rewarded. Based in Boston, Mass., Fiksu is venture-backed by Qualcomm Ventures and Charles River Ventures. More at www.fiksu.com, @Fiksu and on the Fiksu blog.
InkHouse (on behalf of Fiksu)
Director of Marketing