Mobile marketing costs decreased 10% in May
According to the latest Fisku Index, mobile marketing costs and volumes were in May 2015. Cost per loyal user (CPLU) dipped 10% to $2.47 during last month. The decline comes as a welcome relief for marketers who have faced rapidly increasing costs since November last year. At the same time, May 2015 represents a 39% rise year-on-year.
May CPLU was done 10%
Tracking the average daily downloads of the top 200 free iOS apps in its Fiksu App Store Competitive Index, app install volume also decreased by 17% to 6.7m in May. The drop in download volume can be attributed to various factors. The index does not measure downloads of apps that aren’t part of the top 200 in the App Store. In addition, Apple adjusted the games section of its App Store during May to shift to curated lists rather than those generated algorithmically.
App downloads were down 17% in May 2015
Cost per Install (CPI) dropped 31% since April 2015 to $1.46 on iOS. On Android, CPI continued to grow to $2.33, an increase of 12% from last month, and 93% growth year-on-year. Fiksu says that the differences between iOS and Android can be attributed to incentivised networks which are more effective on iOS but carry lower CPI rates.
Cost per Install decreased for iOS and increased for Android
The Cost Per Launch Index (CPL), that tracks costs to drive mobile app engagement, fell 31% on iOS and 14% on Android. Micah Adler, CEO of Fiksu, says:
“While we have seen seasonal slowdowns of app marketing during the summer months in prior years, May’s results also reflect brands implementing more precise audience segmentation. While Facebook has been a preferred tool to reach mobile audiences, rising CPIs in 2015 has caused some marketers to look for ways to reduce costs and focus their spend on the right groups of users. As we predicted last month, smarter spending across the ecosystem will, in due course, cause loyalty rates of app users to improve.”
The Index clearly shows that May presents a slight market correction. Despite overall CPLU having increased 39% the year over, marketers employ new tactics to build audiences on mobile, focusing on smarter targeting options as well as more advanced data. This leads to a more defined and narrowed audience pool, greater loyalty and ultimately smaller spending.