App marketers are getting smarter at targeting

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According to the latest July Fiksu Index, the cost to acquire loyal users fell in July, whilst the cost per install index (CPI) rose, hinting at a more focused approach towards audience targeting. As marketers are spending more cash on campaigns in order to get their messages in front of audiences, they’ve become smarter at targeting to achieve the best ROI.

The latest report shows that cost per loyal user (CPLU) decreased 7% to $2.98, representing a 51% increase year-over-year. CPI rose 24% on iOS and 29% on Android, pointing toward more narrow targeting.

Marketers are willing to spend more in order to reach the right users

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Source: fiksu.com

Based on the top 200 free iOS apps, app downloads dropped 10% to 7.5m daily downloads during the same time. Fiksu attributes the slump to common summer slowdowns.

App downloads dropped 10%

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Source: fiksu.com

Micah Adler, CEO of Fiksu, says:

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“July’s results reveal the most important metric that marketers should be focusing on: the cost to acquire a loyal user. This month is indicative of what it looks like when marketers spend smarter. We can see month over month that marketers are still getting accustomed to this shift in audience targeting; but they are beginning to realize the power of putting the right messages in front of the right people at the right time.”

The report also notes that the upcoming iPhone and iOS9 announcements will be a competitive period for marketers, as they prepare to target users who are making space on existing devices or changing to new devices.