August was a ‘lazy’ month for vacationers, app users, and for app marketers, demonstrated by lowered app install activity on both iOS and Android and lower marketing spends. The Cost Per Loyal User (CPLU) Index, which measures the cost of acquiring a loyal user for brands who actively market their apps, came in at $1.86, representing a 6 percent decrease from last month’s index.
Users were less active with apps in August, but marketers were also spending less. Both Android and iOS Cost Per Install (CPI) dropped – down 31 percent month-over-month and 26 percent year-over-year on Android, and on iOS down 5 percent from July, but up 40 percent year-over-year. Attributed to summer holiday slowdowns, along with anticipation for Apple’s new iPhone 6 and iPhone 6 Plus devices and iOS 8, a decrease followed app marketing costs overall.
The Cost Per Launch Index, which tracks engagement and life-time value of mobile users, continued to climb on iOS, up $.23 for a 23 percent increase month-over-month and 49 percent year-over-year. However, Android’s CPL dropped to $.09, down 23 percent month-over-month and 21 percent year-over-year. This shows the net effect of the reduction in marketing activity was most visible on Android, and also presents marketers with great timing for capitalizing on lower costs.
The App Store Competitive Index, which measures aggregate daily download volume among the top 200 ranked apps, dropped 15 percent from July’s 6.2M to 5.3M in August; again showing the clear impact of the pre- iOS 8 holding pattern. The reason for that holding pattern is shown pretty clearly in this video, as we watch iOS 8 make its impact on the world:
While August may had its slowdowns, September – as shown in the video – had plenty of reason for activity. The months ahead are sure to bring significant rebounds as marketers ramp up their spend to re-engage with and target users with new devices, and then again as we approach the holiday season.
More of the August analysis can be found here: http://www.fiksu.com/resources/fiksu-indexes.
Thanks for all who covered this month’s index numbers, including Brandy Shaul at Inside Mobile Apps.