App downloads and marketing costs fell slightly in November as the app marketing landscape settled slightly. Unprecedented volume and cost growth throughout the year created the environment for this month’s small month-over-month decline. Specifically, the App Store Competitive Index dropped to 7.3 million daily downloads, down eight percent from October. Meanwhile, the Cost Per Loyal User (CPLU) Index dropped 11 percent month-over-month, to $3.55. Loyalty costs maintained strong growth over 2014, however, with CPLU growing 125 percent since November 2014.
We suspect this month may have seen less activity from marketers in anticipation of Christmas pushes. Alternatively, marketers could be opting out to avoid holiday spend premiums. On the volume side, unexpected changes in Apple’s App Store throughout the month – including search changes, the new Shopping category, and Apple ranking their own apps – could have impacted the overall download volume metrics.
The Cost Per Install (CPI) Index, which measures direct advertising costs, fell since October on both iOS and Android, down 10 and 6 percent, respectively. Like CPLU, the CPI metrics showed strong growth since last year – up 40 percent on iOS and 101 percent on Android – representing the fourth consecutive month that Android CPI was more than double last year’s figures.
Moving forward, as the holiday season revs up, marketers can certainly expect a disruption of November’s quiet app marketing landscape as December takes over and costs surge. That’s why it’s critical that marketers spend intelligently, and continue to focus on acquiring new, loyal users during the holidays – particularly when so many people are unwrapping new devices and downloading new apps for the first time.
To read more about the data, along with our full analysis and recommendations, check out the results here: http://www.fiksu.com/resources/fiksu-indexes#analysis.
Happy holidays, and thanks to all who covered the November Index, including Mobile Marketing Magazine.