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Costs Continue to Increase, Even for App Marketing

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The cost of all of our everyday purchases seems to be continuously going up, the cost of app marketing is no exception. In a recent report by ClickZ, app marketing costs are at an all-time high right now.

Fiksu, an app marketing technology company based out of Boston, has been researching and analyzing the trends in app marketing for the last few years and within the last couple of months, the Cost Per Loyal User Index (CPLUI) hit a whopping $2.23. According to Fiksu, the CPLUI measures how much money brands spend in order to acquire regular users of their iOS apps. A regular user is someone who uses the app three times or more.

The analyzed data that Fiksu has discovered proves that there is a dense correlation between the cost of marketing and the App Store Competitive Index. This index tracks the aggregate volume of downloads for the 200 most popular free iPhone apps, according to the report. This simply demonstrates that the more people that download the app to their mobile devices or any other devices, the higher the app’s rank will be in the App Store. In turn, this gives the particular app more visibility and increases the amount of downloads. The more downloads the app gets, the lower the marketing costs become - it is a technology domino effect.

Typically the numbers tend to be on the same cycle each year with increased downloads during the holidays and decreased downloads during the summer - this summer, particularly, has diverted away from the norm. The number of downloads in June (6.1 million) versus the number of downloads in May (6.6 million) show that the number of downloads were lower than usual. In terms of CPLUI, June pronounced the first time that index was higher than $2, which is a 25% increase from May and a 49% increase from last year.

This brings me to the Cost Per Install Index (CPII), which is also regularly increasing. The CPII measures the cost per app install that is directly credited to advertising, according to the ClickZ article. Apple’s CPII dropped from $1.11 in May to $0.98 in June - this is still a 21% increase from the $0.85 from last year.

Apple’s App Store has about 1.2 million apps available for download and is visited approximately 300 million times each week! Therefore, it is getting much more difficult for a fish (app) to get noticed while swimming in a sea amongst 1.2 million competing fish (apps). All I mean by this is that most apps are simply very small fish in an extremely large pond - it will be interesting to see what happens to these numbers in the near future.

~Abby Cin PR Writer

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