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 rose to an all-time high of $4.04 in August, representing a 36 percent increase month-over-month and 117 percent rise 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 increased by 8 percent since last month to 8.1 million daily downloads. This is a 53 percent increase since last August.
The Cost per Install (CPI) Index measures the cost per app install directly attributed to advertising. CPI for iOS dropped to $1.32 since last month, but increased 26 percent since August last year. On Android, CPI decreased to $1.91, dropping 30 percent in August but increasing by 103 percent from last year.
Fiksu's Analysis: August 2015
The competitive app marketing environment reached a significant milestone in August, as the Cost Per Loyal User Index (CPLU) surpassed $4 for the first time. Significant year-over-year growth to the App Store Competitive Index and the Cost Per Install Index (CPI) points to the ever-increasing share of budget that advertisers are allocating to mobile. With a rise in both spending and demand, it is imperative for marketers be spending smart and getting in front of the right audiences.
In August, the Cost Per Loyal User Index (CPLU) increased to $4.04, a 36 percent rise month-over-month and 117 percent since last August. The Cost Per Install Index (CPI) on iOS dipped to $1.32, but represented an increase of 26 percent since last year. On Android, CPI decreased to $1.91, dropping 30 percent since last month but increasing by a whopping 103 percent year-over-year. Competition has ramped up for fall campaigns, while advertisers struggle to get attention from app users, as evidenced by the increase in CPLU contrasted with the decreases in CPI.
With the release of iOS 9 and the new iPhones, we expect continued dominance of apps and growing opportunities to show advertisements to users. Though the industry is abuzz with concerns surrounding ad blocking, for the most part, this won’t have much impact on mobile marketers since ad blocking is applicable solely to mobile web traffic. However, as ad blocking apps rise to the top of the App Store charts, it’s clear the popularity of the concept amongst users is rising.
Read more about marketing strategies for iOS 9 in the eBook, “iOS 9 and the Latest Apple Devices: What Marketers Need to Know for Successful User Acquisition.” Or watch for updates on the adoption of iOS 9 with our iOS launch tracker.
For our full analysis of this month’s Index data, visit http://www.fiksu.com/resources/fiksu-indexes#analysis. For the breakdown on what happened last month, check out the July Index.
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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.