What’s Happening: Mobile Marketing Costs

We’re not the only ones that have spent our time highlighting the difficulties in acquiring new users and retaining users; an influx of reports in Q1 analyzed the lifespan of mobile users, and now that research is being reflected in business decisions.

Mobile marketing firm Fiksu reports that app marketing costs rose in April as app developers invested more money into acquiring new users on mobile devices. This rising cost of user acquisition places a burden on free-to-play games as marketing costs outstrip revenues.

However, digging into the numbers reveals that although the general trend is up, mobile app costs are variable and bounce up and down freely.


Meanwhile, the app store competitive index, which measures download volumes among the top 200 apps, dropped 25 percent to 5.34 million from 7.1 million in the U.S. in March.

Although small- and medium-sized developers increased spending on marketing over March, the surge in big brand spending dropped off after the first quater. Fiksu’s cost per loyal user (where a loyal user is one that opens an app at least three times) rose 5 percent to $1.52 in April, while the cost per launch increased 30 percent to 13 cents for Android and 20 percent to 21 cents for iOS.

During this same time frame, app store competitiveness, which measures download volumes among the top 200 apps, dropped 25 percent. However, this drop is not reflective of the broader app landscape: cost per install (CPI) rose 21 percent for Android and 28 percent for iOS. This means that rather than being concentrated in the top apps, download volumes are being spread out among a wider set of applications, broadening the competitive landscape.


You can read more about Fiksu’s report at VentureBeat.

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