SOURCE: Fiksu

Fiksu

November 26, 2013 09:00 ET

Conflicting Market Forces Cause Mobile App Marketing Costs and Competition to Hold Steady in October

Fiksu Indexes Record Seasonal Lull, Suggesting Large Holiday Rush to Follow

BOSTON, MA--(Marketwired - Nov 26, 2013) - Fiksu, Inc. (www.fiksu.com), developer of award-winning app marketing technologies, today published its latest Fiksu Indexes which reflect opposing market forces that resulted in minimal movement in app marketing costs and app downloads in October 2013.

The Fiksu Cost per Loyal User Index decreased by three percent in October, or five cents, to $1.63 from September's $1.68. Although this three percent month-over-month decrease is fairly insignificant, this represents a 54 percent increase in costs year-over-year. In October 2012, on the heels of the iPhone 5's availability, organic searches soared as users explored the App Store searching for new apps to download on their new devices. This heighted period of natural discovery caused the cost to acquire and engage loyal users to plummet. In contrast, costs remained relatively steady post-iPhone 5s and 5c launch in 2013.

The Fiksu App Store Competitive Index (which measures the average aggregate daily download volume of the top 200 free U.S. iPhone apps) saw a slight dip of two percent to 5.6 million daily downloads in October from September's 5.7 million. Due to a massive spike in download volume occurring during this time period last year around the iPhone 5 launch, this is the first time in five months that Fiksu observed less than 20 percent year-over-year growth in download volumes. Fiksu's "Analyzing 21 Months of Mobile App Discovery," study is a comprehensive look-back at app store competition and growth over the past two years.

"During the month of October, we observed record numbers of consumers purchasing new iPhone 5s and 5c phones and eagerly downloading new apps onto these devices -- keeping download volumes up," said Micah Adler, CEO and founder, Fiksu. "However, the increase in advertising activity as some marketers rushed to get in front of this new audience, coupled with consumers' propensity to be particularly loyal to the first wave of apps they download on a new device, helped keep costs stable throughout the month. Additionally, some marketers chose to hold back in October, preferring to limit spending while they planned for larger splash campaigns timed around the fast-approaching holiday season." 

The Fiksu Indexes measure monthly fluctuations in competition for rank in the Apple App Store and the cost to acquire loyal users, helping mobile app marketers benchmark their performance against industry trends.

For Fiksu's full analysis, visit http://www.fiksu.com/resources/fiksu-indexes#analysis.

Fiksu has accumulated more than 178 billion app actions including launches, registrations, and in-app purchases, as well as massive amounts of data from real-time bidding requests and mobile advertising networks. This data is used to drive real-time optimization of ad campaigns, to help app developers acquire large volumes of loyal users at very efficient costs. Additionally, the company has driven more than 1.8 billion app downloads for its customers.

About Fiksu
Fiksu is the leading provider of mobile app marketing products that help app and game marketers reach their user acquisition goals. The company's patent-pending Programmatic Mobile Demand Platform applies intelligent technology to proprietary big data to master ALL the challenges of mobile advertising -- including tracking, optimization, media buying and integration. This cohesive approach spans the entire mobile ecosystem and ultimately delivers the best marketing performance. Additionally, Fiksu offers FreeMyApps®, the world's largest app discovery platform where users are rewarded. Based in Boston, Mass., Fiksu is venture-backed by Qualcomm Ventures and Charles River Ventures. More at www.fiksu.com, @Fiksu, and on the Fiksu blog.