App Marketing Costs See Unprecedented Year-on-Year Growth

Tim Maytom

App-charts-illustration carouselThe cost of acquiring loyal users for app developers is continuing to grow at high rates, with April's cost per loyal user (CPLU) figure of $2.74 (£1.79) an 80 per cent increase on costs a year ago.

While the figure is the lowest figure so far this year, and represents an 11 per cent decrease from last month's high, it is still a significant jump from last year, when the price never rose above $2.25.

The figures, which come from the Fiksu Indexes, show that cost per install (CPI) also increased to $2.13 on iOS, a 54 per cent increase year-on-year, while Android CPI was at $2.08, a 59 per cent increase on last year.

"While April represented another expensive month for mobile, it's also an example of the heightened focus on strategic mobile spending by leading brands," said Micah Adler, CEO of Fiksu. "As evidenced by eMarketer data, mobile ad spending is increasing both in the US and globally. However, as advertisers employ higher-value targeting and more precise audience segmentation data, we can say with confidence that loyalty rates of app users will improve as well."