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 dropped three percent since last month, falling to $4.01 in October and representing an 86 percent increase 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 to 7.9 million daily downloads in October, up 23 percent since last month and up one percent since last year.
The Cost per Install (CPI) Index measures the cost per app install directly attributed to advertising. For iOS, CPI increased to $1.72, a 12 percent rise since last month and 18 percent increase year-over-year. On Android, CPI fell to $2.42, dropping 10 percent since September but up 110 percent since last year.
Fiksu’s Analysis: October 2015
App download volumes increased significantly this month – up 23 percent to 7.9 million downloads – without a corresponding surge in prices, according to the October indexes. The growing popularity and adoption of Apple’s new iPhone 6S likely resulted in the app download increase as users began adding their ‘vital apps’ – apps that they have a higher propensity to keep and use – on their newer iPhone models. In turn, user loyalty balanced higher media costs and kept CPLU down.
The holidays tend to be a busy time for app marketing, and we’ll likely see another surge of app downloads on new devices this Thanksgiving. In fact, according to comScore’s 2015 U.S. Mobile App Report nearly 20 percent of millennials discover new apps through friends and family which may mean holiday downtime will fuel increased app discovery. According to the study, users also rely heavily on search, rank and top lists to find new apps. Given this finding, the holiday time period represents a crucial time of year for marketers to acquire loyal users.
Meanwhile, the Cost Per Install (CPI) Index increased 12 percent in October to $1.72 on iOS, a jump of 18 percent since October 2014. In the lead up to the holidays, advertising costs are generally higher but are balanced by the corresponding increase in in-app advertising inventory (which comes with increased app usage). Additionally, while Android CPI dropped 10 percent since last month, it has maintained a high CPI – increasing 110 percent over last year. This indicates that Android monetizes well for some advertisers.
Advertisers should plan to incorporate both remarketing (the use of data from non-mobile channels to get customers to engage with mobile apps) and retargeting (serving app ads to users who are already using the app) techniques into their mobile acquisition campaigns. Smart user targeting and creative marketing will not only attract new users during the holiday shopping season, but can also turn hard to reach, one-time purchasers into long-term customers.
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 16.9 trillion marketing events including impressions analyzed, clicks, downloads, registrations, purchases and other loyal user events tracked across 2.8 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.