The Cost per Loyal User Index measures the cost of acquiring a loyal user for brands who actively market their apps. For the purposes of the Index, loyal users are defined as people who open an app three times or more. The CPLU Index declined 22 percent since March and 8 percent year-over-year, falling to $2.51 in April.
The App Store Competitive Index tracks the aggregate volume of downloads per day achieved by the top 200 ranked free iPhone apps in the U.S. Downloads decreased by 1 percent since March, falling to 7.5 million daily downloads. Year-over-year, the volume was down by 7 percent.
Fiksu’s Analysis: April 2016
Much like March, April showed a spring decline of the ‘app frenzy’ that characterized the holiday season and flowed into the start of 2016. On the volume side, downloads fell 1 percent from March, declining to just 7.5 million daily downloads in April, representing a 7 percent decline since last year. Typically a decline in downloads reduces ad inventory and drives costs upwards. However, that was not the case with costs in April – indicating that other factors are at play. Namely, advertisers are using smart targeting when it comes to their audiences and employing those targeting strategies with more efficiency.
The cost to acquire a loyal user fell to $2.51 – down 22 percent since March and 8 percent year-over-year. This decline in costs is pretty typical of CPLU during the spring time frame, mirroring dips in costs from years past during the months of April and May. Taken with the decline in app downloads, it’s evident that many advertisers — at least those tracked in the Fiksu Index results — are showing the right ads to the right people and are achieving user loyalty as a result.
The reality is that mobile is now a top marketing channel for marketers and advertisers. With mobile ad spending expected to more than double from 2016 to 2021 and with 85 percent of every incremental online ad dollar in Q1 2016 destined for Facebook or Google, ad dollars will continue be focused on these channels because they work. However, marketers should explore other platforms beyond the typical media giants as well.
What’s ahead for marketers? Smarter and more granular audience targeting will be the best tool to round up valuable, loyal users at scale. Acquiring and successfully engaging users across multiple channels by diversifying spend will make app installs more costly initially, but ultimately drive down costs and benefit overall ROI in the long run.
For our full analysis of this month’s Index data, visit http://www.fiksu.com/resources/fiksu-indexes#analysis. For the breakdown on what happened last month, check out the March Index.
How can the Fiksu Indexes help you?
Mobile marketing shouldn’t require guesswork. Our award-winning Fiksu platform injects predictability into your campaigns, removing complexity and guesswork and shifting the focus to where it belongs: performance.
We’ve accumulated more than 26.1 trillion marketing events including impressions analyzed, clicks, downloads, registrations, purchases and other loyal user events tracked across 3.4 billion devices– and use this data to help you better understand the fluctuating dynamics of the complex app marketing landscape through our monthly Fiksu Indexes.
Your app is competing for users with millions of others. The best way to improve your mobile marketing is to more precisely understand the competitive landscape you’re pouring your budget into. The Fiksu Indexes reveal how industry dynamics – such as iOS upgrades, device launches, advertiser demand, ad network/publisher inventory, and seasonal activity – impact your business goals. Armed with this insight, you can adapt and plan with more agility.