App marketing costs have reached an all-time high, according to user acquisition and marketing company Fiksu. Results from its newest indexes show the cost per loyal user hitting more than $2 in June 2014, at $2.23. That’s an increase of 25 percent since May, and a 49 percent increase year-over-year. Fiksu defines a loyal user as one who opens an app at least three times.
While the Cost Per Loyal User index broke records, the company’s Cost Per Install figures dropped to $0.98 for iOS apps, a 23 percent decrease from May. Meanwhiile, June’s App Store Competitive Index, which tracks the average daily downloads for the top 200 free iPhone apps in the US, dropped from 6.6 million downloads in May to 6.1 million in June.
Fiksu attributes this drop in downloads, and the increase in loyal user cost, to the popularity of non-mobile activities, including watching the World Cup. With users engaging in other activities away from their phones, apps are discovered by fewer users and apps simply grow less. As a result, the cost for those loyal users heavily increased.
“The June Fiksu Indexes reflected what we would consider a perfect storm of summer activity including the distraction of the World Cup, and untimely changes to video-based installs,” said Micah Adler, CEO of Fiksu. “The combination of these factors had a direct impact on how consumers discovered apps. As a result, while we observed a decrease in overall media costs, we also observed a decrease in loyal usage during the month of June, thus driving up the Cost Per Loyal User.”
Fiksu’s complete June analysis can be found on the company’s website.