Commentary

Is It Getting Cheaper To Drive App Installs?

Is it getting cheaper to drive app installs across iOS and Android devices?

Yes -- at least according to fresh findings from Fiksu DSP.

Last October, the CPM on iOS was $6.74, while CPM on Android sat at $4.16, according to the mobile marketing firm. By January, CPM on iOS had fallen to $4.03, while the Android CPM had dropped to $2.49.

With the cost of media going down, apps across both Android and iOS are therefore having an easier time driving new installs, Fiksu finds.

The firm also finds that the cost to acquire mobile consumers who actually make purchases in on the rise.

Last December, cost per purchasing user (CPP) on iOS dropped by 23%, but, by January, CPP rates rebounded by 21%  -- returning them to the approximate costs experienced during the autumn of 2016.

Year-over-year, however, it was slightly more expensive to earn a purchasing user in January of 2017.

CPP on Android dropped considerably in the last month of 2016, but only rose by 4% in January.

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Meanwhile, Android’s year-over-year increase in CPP mimicked iOS -- rising 11%.

During the month of January it was less expensive to acquire a purchasing user on Android than on iOS -- a long-standing trend that had briefly flipped leading up the 2016 holiday season -- according to Fiksu.

“The rise in CPP across the board indicates that while apps are driving installs, there’s an ongoing struggle to find the right loyal users who will make a purchase or take another high-value action,” Tom Cummings, vice president of new market development at Fiksu DSP, notes in a new report.

“This could be a result of poor targeting methodology on the part of brands,” Cummings suggests.

By its own count, the data from Fiksu tracks around 38 trillion marketing “events,” including impressions, clicks, downloads, registrations, purchases and other loyal user events across 4.1 billion devices.

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