So long, farewell, good riddance. These are our parting words to the Cost Per Install (CPI) Index as, this month, we announce we have officially retired it. Why? Well, although it still has a role, CPI should no longer be the central metric to measure app marketing success. We don’t think advertisers should focus on it — so we’re not going to focus on it either. Marketers and advertisers are now dealing with a heavily saturated app market and realizing the lifetime value of a user is more important than just high app install volumes. They understand that using more…..
Last month, our indexes showed a massive opportunity: January 2016 was the first time in a year and a half that the cost to secure a loyal user decreased, falling 34 percent from December to $2.78. But in February, there was a reversal, as the price to acquire a loyal user went back up 26 percent to $3.50. The reality is that in an increasingly crowded mobile market, sustained app engagement is progressively more difficult. So January’s data represented a notable break for advertisers, particularly following the historically expensive holiday months. In the meantime, app download volumes decreased slightly during…..
This month’s app marketing costs, measured by our Cost Per Loyal User Index, broke the September’s record high of $4.14 – hitting $4.23 in December. That’s a 19 percent jump in costs from November, and a 101 percent increase in costs since last year at this time. App download volume also increased– as was expected during the holiday season – as users activated new devices and downloaded new apps. December downloads reached 8.5 million; a 16 percent rise since November. It was interesting to see the increase in costs outpace the increase in app downloads. This indicates that holiday app…..
App downloads and marketing costs fell slightly in November as the app marketing landscape settled slightly. Unprecedented volume and cost growth throughout the year created the environment for this month’s small month-over-month decline. Specifically, the App Store Competitive Index dropped to 7.3 million daily downloads, down eight percent from October. Meanwhile, the Cost Per Loyal User (CPLU) Index dropped 11 percent month-over-month, to $3.55. Loyalty costs maintained strong growth over 2014, however, with CPLU growing 125 percent since November 2014. We suspect this month may have seen less activity from marketers in anticipation of Christmas pushes. Alternatively, marketers could be…..
Our newly launched January Indexes revealed the aftermath of the 2013 holiday season, during which app marketers fought for the attention of the masses of eager new device owners. The new Cost per App Launch Index was just $0.16 on both Android and iOS. Converging for the first time since February 2013, this rare occurrence is likely a post-holiday “correction” following the big brand budgets spent around the holidays, especially on Android. Fiksu’s new Cost per Install (CPI) Index for Android dropped 29 percent to $1.27 in January from its December spike of $1.80. By comparison, the CPI Index for iOS…..