The Fiksu Blog

App Marketing Costs Soar in September

Fiksu CPLU 2012-2014

This month’s Fiksu Index showed app marketing costs hit an all-time high.  Following the launches of the iPhone 6 and 6 Plus and Apple iOS 8 release, the cost for marketers to acquire loyal users (CPLU) reached $2.25. CPLU increased 21 percent from August, and 34 percent since September 2013. Taking a peek at the increasing costs to acquire loyal users over a two-year time period (2012-2014), we see an upward sloping trend line – demonstrating that marketers continue to face an environment of increasing costs and competitive forces.

Adding to the flurry of activity this month was the influx of early adopters of the iPhone 6. Within the first 30 days of its release, adoption was 116% higher than that of the iPhone 5. This rapid adoption drove up competition for app marketers, with an enthusiastic group of users downloading and engaging with new apps from the App Store.

Shifting attention over to the Competitive Index, which measures the average aggregate daily download volume of the top 200 ranked iOS apps, the numbers show a rise of 4 percent in September to 5.5 million daily downloads. While this metric had a 4 percent decrease year-over-year, a contributing factor is likely the reduction of apps displayed in the Top Charts in the App Store – from 300 to 150. Now, some of the apps tracked in the Index are no longer scrollable in the top apps listings meaning they are not as readily discoverable by users.

For our full analysis of this month’s upward trajectory, visit http://www.fiksu.com/resources/fiksu-indexes#analysis. Thanks to all who covered the September index, including TechCrunch,VentureBeat, GoMo News, Inside Mobile Apps, MediaPost, IT Technews UK, Digital Marketing Magazine and TUAW.