Smartphone App Users’ Acquisition Cost Reached To Maximum In December 2011


Recently, Apple announced that it sold 37 million iPhones during the Q4 last year, and succeeded to grow the quarterly revenue of $46.3 billion. In last Christmas season, everyone was expecting to unwrap outstanding iPhone, and indeed someone truly said that it was “Apple’s Christmas”. The Christmas day was itself a big bonanza for Apple and Google, more than 6.8 million new iOS and Android devices were activated. The dollars spent—including mobile apps ads, marketing, apps activating, and more—and mobile traffic increased 100% over prior weeks of last years, made a very tough competition for mobile marketers. A research analysis firm—Fiksu—reported that cost per loyal user and Apps store competitiveness reached to the maximum level in December last year.

Fiksu tracked data from 11 billion mobile apps action—including apps launches, registration and in-app purchases. The analysis firm included the Apps Store Competitive Index—analyzes the average aggregate volume of the daily downloads of the top 200 ranked free iPhone apps in the US—and cost per loyal user Index in their study. The firm also stated that the loyal users were responsible for the sustain growth for mobile apps business in December last year.

The eagerness of new users to try out new mobile apps enforced the apps to being more expensive in December last year. The research firm stated that Apple Apps store reached to all time high in expensiveness in December last year. The rush for the promotion of mobile apps by mobile marketers during the Christmas season caused mobile advertising costs as well as apps downloads to the maximum level.

Fiksu measured the cost of attaining a loyal users—one who opens an apps at least three times.  In December, it was maximum, rose to $1.81 per users, up from $1.43 per users in November.

According to research analysis firm Apps stores competitive index conked to a maximum value, reached to 6.04 million apps daily downloads in December, up from 7% from November’s 5.65 million.

Chief Executive of Fiksu—Micah Adler—said, “The month of December is a strategically critical month for apps discovery. What we witnessed during the month was a land rush in which advertisers earnestly spent marketing dollars in order to achieve ranking before the traditional Apps Store freeze which then would generate substantial organic downloads through increased visibility.”

The study will be helpful for mobile users and marketers to understand the average aggregate volume of daily downloads total of the top ranked US apps over a month’s period. The guideline provides a competitive landscape to understand the impact of volume on the rank. The study of the firm might be helpful to improve mobile marketing in more precisely way by understanding the competitive landscape.

Source: Fiksu

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