Facebook install ads galvanizing iOS app download growth, Fiksu says

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Daily downloads from Apple's (NASDAQ:AAPL) App Store increased 5 percent in May, in part driven by increasing marketer spending on Facebook (NASDAQ:FB) mobile app install ads, mobile user acquisition platform Fiksu reports.

The Fiksu App Store Competitive Index, which measures the average aggregate daily download volume of the top 200 free U.S. iPhone apps, reveals that App Store downloads averaged 5.9 million per day last month, up from 5.61 million per day in April. Fiksu notes that May 2013 App Store traffic increased 31 percent year-over-year, underlining both the continued growth of the mobile sector as well as some maturation in the overall quality of mobile apps and their ability to engage consumers.

Fiksu's App Store Competitive Index (May 2013)

Fiksu's App Store Competitive Index (May 2013)

Fiksu's Cost per Loyal User Index, which measures the cost of acquiring a loyal user for brands who proactively market their apps, decreased 11 percent to $1.33, down from $1.50 the previous month.

Fiksu's Cost per Loyal User Index (May 2013)

Fiksu's Cost per Loyal User Index (May 2013)

"Mobile app marketers have quickly realized the disruptive power of Facebook mobile app install ads, which have poured a new stream of effective and cost-efficient inventory into the market," Fiksu CEO Micah Adler said. "Savvy marketers have already taken advantage of Facebook's extensive capabilities for focusing on specific audiences, and as more brands follow suit, we can expect volume to continue to climb--along with costs, as competition heats up in the coming months."

The Facebook install ads, introduced last fall, target consumers based on the apps and games they already access on their smartphones. Developers select their intended audience demographic, budget and method of payment, and Facebook inserts ads for their apps directly into targeted users' mobile news feeds.

Fiksu also credits May's gains to Apple's decision to stop accepting new iOS apps and updates that access unique device identifiers [UDIDs] to collect personal data about consumers, a ban that went into effect on May 1. Developers must now leverage vendor or advertising identifiers introduced in Apple's iOS 6. "[Those moves] prompted many marketers who were waiting for the dust to settle on the new, standardized solution to resume regular marketing activities," Fiksu explains.

The Fiksu platform is designed to help brands more cost-effectively market their iOS and Android applications, leveraging predictive algorithms to optimize advertising campaigns in real time. The firm has accumulated more than 119 billion app actions like launches, registrations, in-app purchases and real-time bidding requests.

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