The App Store was buzzing during the holidays and Fiksu’s December Index data not only reflected the frenzy of excited users with new devices, but also showed the maturation of mobile app marketers.
The December Fiksu App Store Competitive Index jumped by 12 percent to 6.4 million daily downloads over November’s 5.7 million – a 20 percent increase year-over-year, compared to December 2012. In December, new iPhone owners flooded the App Store around the holiday season downloading the essential apps for their new gadgets (as seen on ourdevice usage tracker).
The Fiksu Cost per Loyal User Index saw a slight dip in December, down four cents to $1.75 from November’s $1.79 – this represents a five percent increase in costs year-over-year. Contrary to previous years when mobile app marketing costs peaked in December, two factors caused the current decline.
First, holiday-enthused app users on new devices are more likely to become loyal users, as the first wave of apps they download are most often the apps they care about most. (The early bird catches the worm, perhaps?).
Second, this decline shows us that app marketers are getting smarter and spending their marketing budgets more wisely. Rather than trying to go “all in” during what has previously been the most expensive time of the year, they spread their marketing budgets across the entire season, engaging with users from Cyber Monday all the way through Christmas Day and on into the New Year. Also, smart marketers are increasingly focusing their ad spend on traffic sources that return the best long term value for their money. Furthermore, taking advantage of new technologies like programmatic real-time media buying further helped them drive down costs and benefit from the increase in App Store traffic.
These numbers are an indication that the mobile market and today’s app marketing strategies are starting to evolve in a more linear fashion, evening out the peaks and troughs we’ve been used to seeing around the holidays.
“We’re reaching a maturation point in the app market as marketers get ever-smarter about how they use their marketing budgets,” said Micah Adler, CEO and founder, Fiksu. “Acquiring users is not the be-all-end-all for today’s savvy marketer. Reengaging with users over time and solidifying user loyalty is the ultimate goal, and this month’s indexes indicate the early adoption of this strategy.”
More analysis of the indexes can be found here.
To date, Fiksu has accumulated more than 207 billion app actions including launches, registrations, and in-app purchases, as well as massive amounts of data from real-time bidding requests and mobile advertising networks. Additionally, our team has also driven more than 2 billion app downloads for its customers.