The hectic weeks around the Christmas holiday brought on a boost in app downloads and marketing costs, according to Fiksu. The user acquisition and marketing company today reported that the cost per loyal user jumped 21 percent, with a loyal user being defined as a user who will open an app at least three times.
The 21 percent increase in user acquisition costs moved the price from $1.38 per loyal user in the Boston-based company’s November Index data to $1.67, a $0.29 increase. Compared to Fiksu’s holiday 2011 data, user acquisition cost was at $1.81 per user, 8.4 percent higher than holiday 2012’s $1.67.
The company also reported that mobile app downloads rose from 4.57 million in November 2012 to 5.32 million in December 2012, an increase of 16 percent month-over-month. Fiksu cited consumers receiving new tablets and smartphones for Christmas as one of the reasons for the spike in downloads. Competition, which is always fierce during the holidays, wasn’t as fierce from November to December in 2012, with 2011 figures possibly looking more inflated from bot install tactics.
According to Fiksu CEO Micah Adler, mobile app marketers applied a more conservative, sophisticated strategy to their Q4 2012 campaigns after what they learned from holiday 2011.
“As a result, marketing dollars were spread to the long tail of apps outside the top 200, and the peaks in volume and cost per loyal user, while still significant, weren’t as extreme as they were in 2011,” he says in a statement.