Fiksu, Inc. is out with a new edition of The Fiksu Indexes.
The big news? It contains strong evidence of a Q2 spring lull, as the cost to acquire a loyal user fell to $2.51, down 22 percent since March, 2016 and 8 percent from open year ago.
“April and May’s results have typically fallen below those of preceding months,” the Fiksu crew tells MAW. “Characteristic spring decline, combined with the steady slowdown of the app frenzy that accompanied the early ‘wild west’ days of app marketing, meant marketers who were focused on the right audiences were able to keep costs down.”
In addition, volume fell 7 percent since last year, to 7.5M daily downloads, according to the Fiksu App Store Competitive Index. This report tracks the average aggregate daily downloads for the top 200 free iOS apps.
The reason is most likely the growth of better user targeting.
“Since this decline in downloads would have reduced ad inventories and put upwards pressure on costs, this month’s results are indicative that other dynamics were at play,” according to the respected firm. “A key contributor: advertisers getting smarter and shifting to audience-focused targeting.”
Micah Adler, the CEO of Fiksu, thinks targeting has definitely impacted recent Index results.
“An increasing number of ad technology providers are making it easier to get good targeting data, reach the right people and test different creatives — ultimately resulting in advertisers showing ads to the right people and obtaining better user loyalty,” Adler said.
The recommended strategy going forward?
”While this may not be representative across the entire industry yet, it has certainly impacted our index results. We encourage all brands to treat mobile as more than just a side show, as they will see the investment pay back considerable dividends,” Adler added.
One very interesting related development, according to Jim Payne, CEO and Founder of MoPub, is that many advertisers are now “staying away from Facebook, (especially) marketers who really understand what long-term user acquisition is all about.”
“This point is spot on,” according to Tom Cummings, client accounts director at Fiksu. “Marketers have a love/hate relationship with Facebook: they net excellent results, but are increasingly dependent on the platform as a single source for their ad spend and are seeing margins shrink. In response, advertisers are working to expand the process of acquiring and successfully engaging users across multiple channels, and this is a strategy that will ultimately pay off for them.”
To see Fiksu’s full April analysis, go here.