Fiksu: App marketing costs climb as brands embrace Facebook install ads

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Mobile application marketing costs increased 5 percent in June 2013, a surge attributed to the growing number of brands leveraging Facebook's (NASDAQ:FB) mobile app install ads platform, mobile user acquisition platform Fiksu reports.

Fiksu's Cost per Loyal User Index, which measures the cost of acquiring a loyal user for brands who proactively market their apps, increased to $1.50 in June, up 17 cents from May's $1.33. Fiksu credited the Index fluctuations to Facebook install ads, citing growing marketer interest as well as improving performance. The 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.

"It's no wonder that brands are starting to ramp up their spending on Facebook mobile app install ads as they are driving large volumes of qualified users at extremely cost-effective rates," said Fiksu CEO Micah Adler. "Now really is the best time to invest in Facebook campaigns while costs remain comparatively low--and before competition starts to heat up."

The Fiksu App Store Competitive Index, which measures the average aggregate daily download volume of the top 200 free U.S. iPhone applications, reveals that Apple's (NASDAQ:AAPL) App Store downloads averaged 5.6 million per day in June, down 5 percent from 5.9 million in May. Fiksu blamed the decline on annual summer doldrums, but notes that June 2013 App Store downloads still recorded a 22 percent year-over-year increase, underlining the ongoing growth of the iOS ecosystem.

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 131 billion app actions like launches, registrations, in-app purchases and real-time bidding requests.

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