Chart of the Week

Cost of loyal users and installs rises to second highest level ever

Cost of loyal users and installs rises to second highest level ever

The cost of app marketing is on the rise, with data collected by marketing outfit Fiksu showing that the cost of acquiring a loyal user has increased by 9 percent year-over-year since 2013 to $1.97.

The cost per install has also risen, shooting up by 44 percent on Android and 16 percent year-over-year on iOS.

Fiksu's July App Store competitive index also highlighted that downloads amongst the top 200 ranked iOS apps have increased by 2 percent from June to July 2014, rising from 6.1 million to 6.2 million.

Buying loyalty

According to Fiksu, the cost per loyal user has also risen significantly between 2012 and 2014, with said cost finally hitting an all time high last month of $2.23 per user, making June 2014 the most expensive month on record for user acquisition.

Early results from July's indexes also suggest that Twitter's mobile app promotion products, which were made fully available in July 2014, have the potential to be a major driver of app installs.

More significantly, Fiksu is also reporting that Twitter's app install ads are on track to perform better than Facebook's mobile app ads.

Fisku's cost per loyal user index

Fiksu CEO, Micah Adler, believes that marketers must sharpen their strategies in light of his firm's recent findings. 

“The July Fiksu Indexes reflected the typical slowdown of summer behavior but confirmed that underlying app marketing costs are still rising consistently year-over-year,” said Adler.

“However, marketers need to be sharpening their strategies in readiness for the next few months. In addition to powerful new channels like Twitter, a new iPhone and iOS always shake up the app marketing landscape.”

What do you call someone who has an unhealthy obsession with video games and Sean Bean? That'd be a 'Chris Kerr'. Chris is one of those deluded souls who actually believes that one day Sean Bean will survive a movie. Poor guy.

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Or lenchner
Marketers need to try not only new channels like Twitter, but also new methods in existing channels, such as virtual item promotion. They'll get better CTR and lower CPI (not always) if they'll not only promote their app, but also their app's virtual items.
jon jordan
I think the UA market is going through a big shake up. It's just too expensive for all but the deepest pockets now.