Fiksu: App downloads and marketing costs on the rise due to ‘app inflation’

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By Brandy Shaul Comment

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User acquisition and marketing company Fiksu has revealed the results of its latest indexes, which measure daily app downloads, cost per loyal users, cost per installs and more. May’s data shows competition for downloads on the rise in a phenomenon Fiksu has called “app inflation.”

For instance, May’s App Store Competitive Index, which measures the average daily downloads for the top 200 free iPhone apps in the US, saw a 24 percent increase to 6.6 million daily downloads, up from 5.34 million in April. That’s a 12 percent increase year-over-year.

Fiksu Indexes | Fiksu

Meanwhile, the Cost Per Loyal User Index tracks the cost of acquiring a single loyal user, where a ‘loyal user’ is defined as one who opens an app three times or more. That cost increased 17 percent to $1.78 in May, a 34 percent increase year-over-year.

While the Cost Per Loyal User increased in May, the Cost Per Launch declined across both iOS and Android. On Android, the figure fell 20 percent to $0.10, while the iOS number fell five percent, to $0.20. Fiksu attributes this to an increase in “super users,” who may open an app dozens of times in a single day. This brings down the cost per launch, as the app was opened by existing users, rather than those requiring additional marketing spend to acquire.

Fiksu Indexes | Fiksu-1

Finally, The Cost Per Install Index remained relatively steady, sitting at $1.31 for Android and $1.28 on iOS (a three percent increase month-over-month). The Cost Per Install index measures the cost per app install that’s directly attributed to advertising.

“While there have been ebbs and flows, it’s very clear that the cost of app marketing and the competition for downloads is on a constant upward trajectory: what we’re calling app inflation,” said Micah Adler, CEO of Fiksu. “The increased quality and growing popularity of apps continues to fuel ever-increasing demand, meaning marketers must continually hone their new strategies and spending in the quest to cost-efficiently acquire loyal and engaged users.”

More information on May’s data is available on Fiksu’s website.

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