Mobile App Marketing Costs Reach Highest Peak Since 2011, Find New Fiksu Indexes
App Store Competition Rises During Dog Days of Summer
Fiksu, Inc. (www.fiksu.com), developer of the award-winning Fiksu Mobile App Marketing Platform, today published its latest Fiksu Indexes, which indicate the cost to acquire loyal users increased dramatically in July, while the volume of mobile app downloads inched upward. The July Index fluctuations reflect several factors: Apple's recent incorporation of app ratings into its App Store Top Charts ranking algorithm, the burgeoning number of brands leveraging Facebook's mobile app install ads, and increased mobile app activity during the dog days of summer.
The Fiksu Cost per Loyal User Index increased by 20 percent in July, or 30 cents, to $1.80 from June's $1.50, representing the most expensive month since December 2011. This month's sharp increase is attributable to two trends: the surge of brands using Facebook's mobile app advertising platform, which is driving up costs and competition, and Apple's change to the App Store rankings, which by helping the best-rated apps move up the charts likely caused mid-ranked and lower-rated apps to spend more to try to regain their position.
The Fiksu App Store Competitive Index (which measures the average aggregate daily download volume of the top 200 free U.S. iPhone apps) saw an uptick of four percent to 5.8 million daily downloads in July from June's 5.6 million. Though the Index recorded a small month-over-month change, this represents a 33 percent year-over-year increase from July 2012 - as app store competition continues to grow exponentially. Competition crept upward as many mobile marketers vied for the attention of consumers on vacation, outside of their normal routines, who increasingly turned to apps for entertainment, assistance or information.
"There's a major sea change underway, now that Apple's ranking algorithm appears to favor highly-rated apps and penalize others. App marketers must now work even harder to generate positive ratings from engaged users, since user acquisition costs for apps without stellar ratings will now be more expensive." said Micah Adler, Fiksu CEO. "With a new iPhone just a few weeks away and the holiday season coming up, delivering quality app experiences has never been more critical for app marketers seeking to climb rank and meet monetization goals."
The Fiksu Indexes measure monthly fluctuations in competition for rank in the Apple App Store and the cost to acquire loyal users1, helping mobile app marketers benchmark their performance against industry trends.
For Fiksu's full analysis, visit http://www.fiksu.com/resources/fiksu-indexes#analysis.
Fiksu has accumulated more than 140 billion app actions including launches, registrations, and in-app purchases, as well as massive amounts of data from real-time bidding requests and mobile advertising networks. 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. Additionally, the company has driven more than 1 billion app downloads for its customers.
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® Mobile App Marketing Platform, 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 FreeMyApps®, 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.
1. For the specific purpose of the Fiksu Indexes, a loyal user is defined as someone who opens an app three or more times.