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Holiday App Rush Increased App Downloads and Costs

Fiksu, Inc. released their latest report today on the mobile app economy, and found all time highs for marketing costs as well as iOS downloads in December. They attribute this data to advertising bidding wars to lock in top rankings before the App Store froze during the 3 day holiday.

“For so many app brands, December is a strategically critical month for app discovery,” said Micah Adler, Fiksu’s CEO. “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 App Store freeze which then would generate substantial organic downloads through increased visibility.”

In other words, the higher the rank before the freeze, the better the visibility during the days when many folks are looking to put apps on their new iPhones, iPod touches, and iPads.

The chart above shows that cost in marketing per loyal user – someone who opens an app more than three times – peaked in December at $1.81 per. The chart below shows a similar high in December with 6.04 million daily downloads of the top 200 free US iPhone apps.

What we can glean from this data is that there is a circular activity loop here, in that mobile advertisers spent heavily, which in turn drove their exposure and rank on the App Store, which, in theory, will drive sales and/or in-app purchases (along with in-app advertising) during the freeze and beyond, thus giving them more money to spend on advertising. For more in-depth analysis from Fiksu themselves, see their indexes page. Data for their indexes come from over 11 billion moviel app actions (launches, tegistrations, in-app purchases) and more than 200 million downloads recorded by apps marketed with the Fiksu platform.

Fiksu, Inc. is a mobile app user acquisition platform that purports to intelligently raise an apps visibility in an over crowded and multi-marketplace market. It is based in Boston, Massachusetts, and was founded in 2008. For more details about the company, see their website.

Rob LeFebvre
Connect with Rob LeFebvre // email // twitter

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