App Marketing Costs All-Time High

Boston-based Fiksu has been analyzing trends in app marketing for the last four years, and in June of this year, the Cost Per Loyal User Index (CPLUI) — which measures how much money brands spend to acquire regular users of their iOS apps — peaked at $2.23. The Cost per Launch (CPL) Index and Cost per Install (CPI) for iOS both rose for the iOS platform. According to Fiksu, a regular user is someone who uses the app at least three times.

The numbers tend to be cyclical, with downloads typically increasing with anticipated product launches and during the holidays, and decreasing during the summer.Fiksu says the accelerated global adoption of Apple’s iPhone 6 sparked a wave of activity, driving 116 percent higher adoption than Apple’s last iPhone.

These organic users are frequently the most loyal, and with this marked reduction, the Cost Per Loyal User increased significantly in June, to $2.23. In addition, Apple briefly re-evaluated its policy for rewarding consumers who watch videos, causing advertisers to temporarily cutback on video advertising. The cost of a loyal user is increasing because mobile is such an incredible value compared to every other form of marketing