Fiksu: Mobile app marketing costs climb to highest peak since 2011

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Application marketing costs increased 20 percent in July 2013, reaching their highest point since the end of 2011, mobile user acquisition platform Fiksu reports.

Fiksu's Cost per Loyal User Index, which measures the cost of acquiring a loyal user for brands that proactively market their apps, increased to $1.80 last month, up 30 cents from June and falling just one penny short of matching Dec. 2011's high of $1.81. Fiksu credited the surge to the growing number of brands leveraging Facebook's (NASDAQ:FB) mobile app install ads, which target consumers based on the apps and games they already access on their smartphones, as well as Apple's (NASDAQ:AAPLrecent efforts to factor iOS user ratings into its App Store Top Charts rankings.

"There's a major sea change underway, now that Apple's ranking algorithm appears to favor highly-rated apps and penalize others," said Fiksu CEO Micah Adler. "App marketers must now work even harder to generate positive ratings from engaged users, since user acquisition costs for apps without stellar ratings will now be more expensive. With a new iPhone just a few weeks away and the holiday season coming up, delivering quality app experiences has never been more critical for app marketers seeking to climb rank and meet monetization goals."

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 App Store downloads averaged 5.8 million per day in July, up from 5.6 million the previous month and a year-over-year increase of 33 percent. Installs increased as consumers went on summer vacation and turned to mobile apps for entertainment, assistance and information.

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

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