Fiksu Index finds that spending on Android advertising continues to climb

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Advertising spend on Android is climbing, according to the latest September 2016 Fiksu Index.

Meanwhile, Apple’s iOS continues to be a competitive mobile advertising platform, with advertisers willing to fork out more cash. Month on month, cost per thousand impressions (CPM) for iOS was up 23% compared to 1% on Android.

CPM Index Sept 2015 – Sept 2016

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Source: fiksu.com

The Fiksu CPM Index is being measured across a wide variety of exchanges and advertising formats. Micah Adler, CEO and Founder, Fisku, explains:

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“It’s clear looking at these metrics that among advertisers, Android is no longer an afterthought. Marketers know what to expect from iOS, including what they’ll earn and what they have to pay per user, so costs have settled into a more stable range. Now, monetisation levels on Android are proving that it can be as effective as iOS in terms of bottom line dollars, which is sending a signal to developers, publishers, and marketers that they should be putting more effort and money into their Android apps.”

The Cost per purchaser Index (CPP) measures just how much ad spend it takes to capture a user that takes a valuable action within an app, such as making an transaction or sharing the app across social media.

The CPP Index increased 1% for iOS, but dropped 14% on Android month over month.

Overall, the Index points to a maturation in the market. Whilst Android hasn’t reached the same level of saturation as iOS just yet, more marketers are willing to monetize their apps across the Android platform.

CPP Index Sept 2015 – Sept 2016

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Source: fiksu.com

Compared to the previous year, CPP on iOS was up 76% while CPM had only climbed 8%. Fiksu says that this discrepancy of an increase in CPP, but a stagnant CPM points towards it becoming harder for marketers to capture new purchasers by advertising. However, that’s hardly surprising giving the maturing of the market space.

On Android, CPP has increased 59% from 2015, but CPM has grown even more rapidly at 112%. This points towards a slower increase in costs to capture quality users and indicates that app users on Android are easier to win.

Tom Cummings, VP of new market development, Fiksu, adds:

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“From last year to now, it’s evident that both operating systems are experiencing changes that are largely a function of maturity. This gives us some insight into what the future might hold as well: While cost spikes are still expected during the holiday seasons and around other launches, overall costs for inventory and per active user are expected to remain far more stable on iOS than in the Android market.”