Back in September, when we talked about the upcoming holiday season, we reminded app marketers to spread their budget throughout November and into February. Over the years, ourcost per loyal user index has shown that costs stay high from November into January, rather than showing a strong differentiation between December and surrounding months as might be expected. This year’s December numbers bear that out, as cost per loyal user stayed relatively steady even as download volume shot up.
In 2011, January was a bargain period – but marketers caught on to the fact that January brings loads of impressions and less competition, and last year acquisition costs in January were very similar to those in December. Both months are among the highest all year as app marketers capitalize on the holiday season and the flood of new devices.
But as app marketers increasingly spread budget to January, that value time has now moved to February. Last year, the cost to acquire a loyal user in January was only 10 cents lower than December. But February had a much steeper drop, going down 28 cents, despite having volume similar to December. With heightened user activity and app discovery continuing long beyond the holiday season, February is a bargain time for reaching peak volumes of users at a lower cost.
One reason for this is that a phone that was given at Christmas time is still new to the user in February: they’re still searching for new apps to get the most out of their device. There’s also a drop off in spending, as many app marketers who budget big for the holiday season wrap up their campaigns in January.
As the mobile marketplace continues to mature, marketers are spreading budgets throughout the holiday season rather than focusing solely on one-month holiday volume. We expect the cost per loyal user to drop again in February, making it a bargain time for value-minded app marketers, so take advantage. To add to this bargain month, Fiksu is offering a promotion! This month only, run a campaign on FreeMyApps, the world’s largest app discovery network powered by Fiksu and get 2500 bonus installs. Embrace this time and get started now!