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08-29-2013, 11:49 AM #1
Fiksu Finds Uptick in App Marketing Costs
On Thursday, Fiksu published its latest Fiksu Indexes, a helpful round-up of critical data showing, among other things, the cost to acquire loyal users.
So far, that aforementioned cost has increased this summer, especially during the month of July. Correspondingly, the volume of mobile app downloads also spiked.
All told, the July Index fluctuations reflect several factors.
Not surprisingly, Apple’s recent incorporation of app ratings into its App Store Top Charts ranking algorithm had an impact. Also changing business as usual is the rapidly expanding number of brands leveraging Facebook’s mobile app install ads. Lastly, increased mobile app activity during the dog days of summer also weighed on the findings.
Bottom line: 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.
To review more of Fiksu's newest findings, click here.