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Mobile marketing costs drop as app downloads soar

February 29th, 2012

Fiksu INc., a firm selling a mobile app acquisition platform, says it saw a dramatic drop in mobile app marketing costs in January – the lowest sinceJuly 2011 – following the Christmas advertising rush. iOS app downloads in January reached an all-time high as the proliferation of new devices unwrapped during the holidays drove increased app discovery and usage in the New Year.

The Fiksu Cost per Loyal User Index fell by 59 percent in January to $1.14, from a record high of $1.81 in December.

mobile devicesThe Fiksu App Store Competitive Index (which measures the average aggregate daily download volume of the top 200 free U.S. iPhone apps) peaked at 6.79 million daily downloads, up 12 percent from December’s 6.04 million, its previous high.

The Fiksu Indexes reveal that, while many advertisers joined the rush to spend over the holiday season to drive up app store rankings and acquire an elevated volume of users, January provided one of the best opportunities for mobile app marketers to-date, as volume reached an all-time high and costs approached an all-time low.

“We’ve observed many app brands invest heavily in the fourth quarter, seeking extreme growth during the holiday season, then reduce spending in January as they evaluate their marketing programs for the New Year and focus on version upgrades for their apps,” said Micah Adler, Fiksu CEO.

Fiksu Indexes measure monthly fluctuations in competition for rank in the app stores, and the cost to acquire loyal users(1),helping mobile app marketers benchmark their performance against industry averages.

For Fiksu’s full analysis, visit http://www.fiksu.com/resources/fiksu-indexes#analysis.

Data for the Fiksu Indexes was sourced from more than 13.9 billion mobile app actions – such as app launches, registrations and in-app purchases – and more than 217.4 million downloads recorded by apps marketed via the Fiksu for Mobile Apps user acquisition platform.

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