While warmer weather is on the rise, so are app downloads and marketing costs in May – setting the stage for a competitive summer. App inflation has become the new normal for brands and app marketers, as the cost for acquiring loyal users climbs again.
The App Store Competitive Index for May, which measures the aggregate daily download volume among the top 200 ranked apps, grew by 24 percent to 6.6 million, compared to April’s 5.34 million. Meanwhile Fiksu’s Cost per Loyal User Index rose 17 percent to $1.78 in May and 34 percent year-over-year.
Looking at May as one data point over the past three years, a rising Cost per Loyal User trendline clearly emerges over the month-to-month fluctuations. Overall, the data underscores the continuing challenges app marketers face to cost-efficiently acquire loyal and engaged users.
Other key results from the Fiksu Indexes this month show a decline in the Cost per Launch (CPL), with Android CPL falling 20 percent to $0.10, and iOS CPL decreasing five percent, to $0.20. “Super users” may be to blame for the decrease; as these users launch an app dozens of times in a day and add to total launches without adding to user acquisition spending, and keeping CPL down. The Cost Per Install (CPI) Index remained steady, at $1.31 for Android and a three percent increase for iOS to $1.28.
With the increase in volume and costs this month, app marketers will need to utilize more creative ways to find and acquire loyal users. The good news – granular targeting options and optimized app marketing efforts continue to improve, helping advertisers break through the noise.
More of the May analysis can be found here.