Fiksu, the app marketing tech company, has just published its latest Fiksu Indexes. The data points to opposing market forces that resulted in minimal movement last month in app marketing costs and app downloads.
The Indexes measure monthly shifts in competition for rank in the Apple App Store as well as the cost to acquire loyal users.
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.
The “seasonal lull” witnessed in recent weeks suggests that a massive rebound lies ahead for the holidays.
“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, Fiksu’s CEO. “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,” Adler says, “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.”