Fiksu: Despite iPhone 5 launch, September user acquisition costs fall to lowest point since May 2011

Developers may finally be seeing some relief from the summer’s high user acquisition prices reports Boston-based user acquisition and marketing company Fiksu. According to the company’s latest figures, the cost to acquire a loyal iOS user — defined as someone who will open an app at least three times — fell by 16 percent in September, hitting the lowest price seen since Apple’s offer wall crackdown.

While many had predicted the iPhone 5 launch would follow the precedent set by the 4S, which saw user acquisition costs hit $1.47, the price actually fell by 21 cents, hitting an average of $1.13 for the month.

The last time the Fiksu reported numbers this low was in May 2011, when Apple’s ban on offer walls dropped user acquisition costs to $1.10 per loyal user. User acquisition costs took a similar dive in January 2012, falling to $1.14 after the holiday advertising frenzy subsided.

According to Fisku CEO Micah Adler, app marketers did a much better job planning their iPhone 5 launch advertising campaigns than they did for the 4S, a move that allowed them to pick up new users more cheaply than anticipated.

“Brands held off on advertising in the run-up to the iPhone 5 launch, then jumped into the fray as the phones hit stores and mailboxes,” he said. “Despite the increase in advertising volume and CPCs, marketers who went after these new users were rewarded with a nice drop in overall costs for acquiring loyal users.”

On the download front, Fiksu found that the volume of free app downloads per day hit 4.07 million during September — a slight increase over August’s 4.05 million. That said, the company reported a clear delineation in download activity before and after the launch of the iPhone 5. Downloads for the month were actually down three percent before the iPhone 5 began arriving in consumer’s hands on on Sept. 21, but jumped by 33 percent after launch. One Fiksu clients reported a 20 percent increase in organic downloads and 35 percent revenue gains during the post-launch period.

Overall, Fiksu’s report seems to indicate that mobile marketers have gotten much better at planning for significant events like the launch of the iPhone 5. While download volumes and user acquisition costs are likely to rise in October, overall the costs should be lower year-over-year.

Inside Social Apps

Mediabistro Event

Facebook Joins Inside Social Apps Event

In the past few weeks, we’ve added industry insiders from Facebook, Chartboost, Tango, Tilting Point, PlayHaven, Paltalk, and more to the speaking roster of Inside Social Apps, June 6-7 in San Francisco. You’ll learn strategies for success with experts like Deb Liu, Product Manager at Facebook. Register now and save $200. 

Leave a Reply

3 Responses to “Fiksu: Despite iPhone 5 launch, September user acquisition costs fall to lowest point since May 2011”

  1. Tapjoy announces retention improvement product Tapjoy Reconnect says:

    [...] many app developers know, user retention is a serious challenge. As Fisku recently reported, for the month of September, the average cost to acquire a loyal iOS user — defined as someone [...]

  2. This week’s headlines from across Inside Network says:

    [...] Fiksu: Despite iPhone 5 launch, September user acquisition costs fall to lowest point since May 2011 [...]

  3. Fiksu: iPhone 5 release spiked iOS downloads by 33% in October says:

    [...] the company saw only a marginal increase in overall download volume during September, Fiksu recorded an upswing in free downloads that began [...]

interested in advertising with inside mobile apps?

Social Media Jobs
of the Day

Ruby Web Engineer

CrowdFlower
San Francisco, CA

Social Media Community Manager

Trent & Company, Inc. Marketing Communications
New York, NY

Social Media Specialist

Norma Kamali Inc.
New York, NY

Featured Company

Join leading companies like this one and recruit from the nation's top media job seekers on the Mediabistro Job Board. Every job post comes with our satisfaction guarantee. Learn More
 

Our Sponsors

Also from Inside Network:   AppData - Facebook & iOS Application Stats   PageData - Engagement Data on Facebook Pages   Facebook Marketing Bible   Inside Network Research
WebMediaBrands
Mediabistro | SemanticWeb | Inside Network
Jobs | Education | Research | Events | News
Advertise | Terms of Use | Privacy Policy
Copyright 2012 WebMediaBrands Inc. All rights reserved.