Fiksu today published its latest Fiksu Indexes, which indicate the cost to acquire loyal users increased dramatically this summer – particularly in the month of July.
In the process, the volume of mobile app downloads also inched upward.
The July Index fluctuations reflect several factors, Fiksu reports.
First, Apple’s recent incorporation of app ratings into its App Store Top Charts ranking algorithm managed to shake things up, followed by the burgeoning number of brands leveraging Facebook’s mobile app install ads, and – finally – increased mobile app activity during the dog days of summer.
The Fiksu Cost per Loyal User Index increased by 20 percent in July, or 30 cents, to $1.80 from June’s $1.50, representing the most expensive month since December 2011.
This month’s sharp increase is attributable to two trends: the surge of brands using Facebook’s mobile app advertising platform, which is driving up costs and competition, and Apple’s change to the App Store rankings, which by helping the best-rated apps move up the charts likely caused mid-ranked and lower-rated apps to spend more to try to regain their position.
“There’s a major sea change underway, now that Apple’s ranking algorithm appears to favor highly-rated apps and penalize others. App marketers must now work even harder to generate positive ratings from engaged users, since user acquisition costs for apps without stellar ratings will now be more expensive,” says Micah Adler, Fiksu CEO. “With a new iPhone just a few weeks away and the holiday season coming up, delivering quality app experiences has never been more critical for app marketers seeking to climb rank and meet monetization goals.”
