Fiksu Indexes for December 2015
The Cost per Loyal User Index measures the cost of acquiring a loyal user for brands who actively market their apps. For the purposes of the Index, loyal users are defined as people who open an app three times or more. The CPLU Index increased 19 percent since last month, jumping to $4.23 in December. That’s an increase of 101 percent year-over-year.
The App Store Competitive Index tracks the aggregate volume of downloads per day achieved by the top 200 ranked free iPhone apps in the U.S. The Index rose 16 percent in December, reaching 8.5 million daily downloads, down 7 percent year-over-year.
The Cost per Install (CPI) Index measures the cost per app install directly attributed to advertising. On iOS, CPI fell 5 percent to $1.46, representing a 25 percent increase year-over-year. On Android, CPI rose to $3.34, a 52 percent increase since November and 144 percent rise since last year.
Fiksu’s Analysis: November 2015
driving app download volume up 16 percent since November. Holiday activity also spurred an increase in loyalty costs and install costs. The App Store Competitive Index, which tracks the aggregate volume of downloads per day of the top 200 ranked iPhone apps, reached a total of 8.5 million daily downloads.
As new devices were activated and more apps were downloaded, the volume numbers during the holiday week – tracking 13 percent higher downloads than the week prior – serves as evidence that the gift-giving time is vital one to get in front of smartphone users.
On the cost front, marketers were battling with budgets to capture users’ attention and loyalty. The cost to acquire a loyal user, measured by the Cost Per Loyal User Index, hit an all-time high this month of $4.23 – a rise of 19 percent month-over-month and 101 percent since last year.
Meanwhile, the Cost Per Install Index (CPI) recorded a significant discrepancy between iOS and Android. Android rose 52 percent since November and 144 percent year-over-year to $3.34, marking the fifth consecutive month where Android CPI more than doubled last year’s figures, while iOS declined slightly this month to $1.46. The fact that brands and marketers are willing to spend $3+ on Android users is evidence that Android is monetizing well. However, the relatively lower costs on iOS can be largely credited “incent” – the ability in Apple’s App Store to drive inexpensive installs through incentivized channels. This strategy, one which Google Play does not provide app marketers, is a factor in keeping costs down while improving app rank.
With the kick off of 2016, marketers should start turning their attention to targeting loyal users on wearables and connected devices, both of which will ultimately impact the app ecosystem. As for this month, expect a continued increase in download volume, as Fiksu data has shown double-digit growth in January for the past three out of four years.
For the breakdown on what happened last month, check out the November Index.
How can the Fiksu Indexes help you?
Mobile marketing shouldn’t require guesswork. Our award-winning Fiksu platform injects predictability into your campaigns, removing complexity and guesswork and shifting the focus to where it belongs: performance.
We’ve accumulated more than 19.6 trillion marketing events including impressions analyzed, clicks, downloads, registrations, purchases and other loyal user events tracked across 3 billion devices– and use this data to help you better understand the fluctuating dynamics of the complex app marketing landscape through our monthly Fiksu Indexes.
Your app is competing for users with millions of others. The best way to improve your mobile marketing is to more precisely understand the competitive landscape you’re pouring your budget into. The Fiksu Indexes reveal how industry dynamics – such as iOS upgrades, device launches, advertiser demand, ad network/publisher inventory, and seasonal activity – impact your business goals. Armed with this insight, you can adapt and plan with more agility.