Our November Fiksu Indexes marked the start of the 2013 holiday season rush, with app marketing costs and daily downloads beginning their upward climb. And, when combined with our device usage tracker, they hinted at what’s in store for a record-shattering December!
The Cost per Loyal User Index jumped 10 percent, or 16 cents, to $1.79 from October’s $1.63 – a 25 percent increase in costs year-over-year. This month’s increase follows suit with the increase seen in November 2012 following the iPhone 5 launch, although the swing isn’t nearly as drastic since costs in October 2013 didn’t drop to October 2012’s historic lows. The App Store Competitive Index also saw a slight increase of two percent to 5.7 million daily downloads from October’s 5.6 million – a 30 percent increase year-over-year.
This month’s Index data shows the vast opportunity that December will bring for app marketers and developers. Based on early Fiksu Labs data, we expect app store competition to soar through years’ end, reaching between 6.6 and 7.4 million daily downloads in December, as many consumers unwrap new devices and immediately begin loading them up with apps. Advertisers will be spending heavily to drive up app store rankings in preparation for the rush of user activity following the holidays, and will have to be willing to pay a premium to reach this surge of valuable users – we predict app marketing costs will reach the $1.80 mark.
Check back soon for our December numbers. And Happy New Year from the Fiksu team!