The Fiksu Blog

The mobile mindset: marketing costs see unprecedented growth

Fiksu Cost Per Launch Index April 2015

As the proverb goes, “April showers bring May flowers,” and the same may be true for marketers in April. While this past month represented another expensive one for mobile, particularly on a year-over-year viewpoint, it also may prove to be very fruitful. As leading brands heightened their focus on strategic mobile spending and higher-value targeting, loyalty rates of app users (and the cost to acquire a loyal user) has improved slightly.

Perhaps as a reaction to the generally higher costs, advertisers are spending smarter and have clearly shifted into a “mobile mindset.” A few highlights from the supporting metrics of the index:

  • The Cost Per Install Index (CPI), which measures the cost per app install directly attributed to advertising, increased to $2.13 on iOS, a rise of 39 percent since March and 54 percent since April of last year. Android CPI increased to $2.08, up 20 percent month-over-month and 59 percent year-over-year.
  • The Cost Per Launch Index (CPL), which tracks the cost to drive mobile app engagement, increased to $0.41 on iOS, up 34 percent month-over-month and 75 percent year-over-year. Android CPL increased to $0.34, a 44 percent rise over last month and a 169 percent increase year-over-year.
  • The Fiksu App Store Competitive Index, which tracks the average aggregate daily download volume of the top 200 free iOS apps, held steady in April at 8.1M daily downloads, but continued its upward trajectory year-over-year, coming in at 52 percent over 2014.

In the coming months, what should marketers and advertisers expect? First, a strategic focus should be placed on employing higher-value advertising sources, such as Facebook and video ads, which cost more on a per-install basis but lead to higher-quality results. Second, marketers should look to retargeting as a way to retain users and convert them into loyal users.

Similar to planting a garden, with some foresight and attention, mobile marketers can count on bountiful results this summer. Thanks to Mobile Marketing Magazine, AdExchanger, Go-Mash Mobile, and Games Industry.Biz for covering the indexes this month.