CPM Index: November 2016
Month over month, the CPM Index was down 11% on iOS and down 14% on Android.
Cost per Purchaser Index: November 2016
Month over month, the CPP Index was up 1% on iOS and up 19% on Android.
Fiksu’s Analysis: November 2016
We have to admit being surprised at this month’s results: CPMs dropping in November is a significant departure from previous years. We traditionally see November show the beginnings of a surge in holiday spending on mobile, but this year we didn’t see the lift we were expecting, as media costs declined 11% on iOS and 14% on Android.
One key reason for that is on iOS, the launch of the iPhone 7 in October drove a ton of anticipatory spending (as we reported in last month’s Indexes) that wasn’t sustained in light of relatively slow iPhone 7 sales. Without as big a new device market as expected, spending on IOS wasn’t as competitive as it could have been, allowing that CPM drop.
The ongoing story of the maturation of the Android marketplace took another turn in the cost per purchaser (CPP) index, which measures the relative cost of acquiring a new user who makes a purchase in an app. For only the second time, the Android CPP was higher than iOS, with a 16% bump from October. The combination of falling media prices and rising CPP suggests that the challenge for advertisers is capturing the right users and generating loyalty, which is borne out by the results of our recent consumer survey. That survey revealed that 87 percent of smartphone users use fewer than 10 apps per day, making it extremely for new apps to crack into that core group and generate valuable behavior like purchases.
We’ll see next month if this was a temporary lull, or if marketers really decided to pull back on mobile this year. Our guess is that the December results will show a return to the typical holiday spending surge, although perhaps not quite to the same levels as previous years.
How can the Fiksu DSP Indexes help you?
Because mobile marketing shouldn’t require guesswork, these new indexes continue Fiksu’s long-standing commitment to helping mobile advertisers understand trends in the marketplace. We’ve accumulated more than 38 trillion marketing events including impressions analyzed, clicks, downloads, registrations, purchases and other loyal user events tracked across 4.1 billion devices– and use this data to help you better understand the fluctuating dynamics of the complex app marketing landscape through our monthly Fiksu DSP 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 DSP 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.