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 to $2.98 in July, a 7 percent decrease month-over-month and 51 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 fell 10 percent in July to 7.5 million daily downloads. This volume represents an increase of 51 percent over 2014.
The Cost per Install (CPI) Index measures the cost per app install directly attributed to advertising. In July, CPI for iOS increased to $1.43 - up 24 percent since last month and 16 percent year-over-year. Android's CPI increased from $2.12 to $2.73, a 29 percent increase month-over-month, and a 115 percent increase over last year.
Fiksu's Analysis: July 2015
July is indicative of what it looks like when marketers spend smarter. The Cost Per Loyal User Index (CPLU) dropped as the Cost Per Install Index (CPI) rose, suggesting more focused audience targeting was in play throughout the month. In today's competitive marketplace, marketers are willing to absorb higher costs upfront to target the right audiences. July's results verify this targeting tactic by leading brands is ultimately proving more effective in acquiring valuable long-term users.
The cost per loyal user (CPLU) of $2.98 represents a decrease of 7 percent since last month, and a 51 percent increase year-over-year. On iOS, CPI increased to $1.43, a rise of 24 percent since June and an increase of 16 percent since last year. On Android, CPI rose to $2.73, up 29 percent since last month and a substantial 115 percent year-over-year.
Typical summer slowdowns have decreased supply, which is another contributing factor to the rise in CPI. This is evidenced by the App Store Competive Index which decreased 10 percent over last month to 7.5 million daily downloads.
Amidst a transition period, with the iOS 9 launch and new iPhones expected in the first few weeks of September, marketers should be thinking about re-engaging their existing users. Preparation for the likely influx of in-app inventory will help ensure your app is not removed or replaced. Above all, over the next few months, marketers should continue to focus on putting the right messages in front of the right people at the right time.
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 June Index.
How can the Fiksu Indexes help you?
Mobile marketing shouldn't require guesswork. Our award-winning Fiksu Mobile Audience Platform combines a massive, proprietary dataset with powerful segmentation tools to create, refresh, and reach precise audiences across the customer journey.
We've accumulated more than 13.8 trillion marketing events including impressions analyzed, clicks, downloads, registrations, purchases and other loyal user events tracked across 2.6 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.