Smartphone application developers are finding that it is increasingly expensive to advertise their products.
A new report has been issued by Fisksu, the mobile marketing firm, which has revealed that inflation is continuing to cause a large amount of grief for app developers who are finding the cost of advertising their applications is only becoming more expensive as time goes by.
This rise in the price of each new download is becoming problematic for many app developers.
The Fiksu mobile marketing report showed that when compared to the cost of advertising an app in April, the price rose by 17 percent in May 2014. Moreover, it also showed that when compared to the same month in 2013, there was an increase by 34 percent in that cost. This figure was measured based on an analysis of the Cost per Loyal User Index from Fiksu. That index provides a measurement of the cost of the acquisition of mobile users who download an app and then open it a minimum of three separate times on an iOS based device.
This new mobile marketing insight means that there will likely be vicious competition over the summer months.
The Fiksu App Store Competitive Index, which is a measurement of the daily aggregate download volume from among the 200 mobile apps within the top ranks, showed that there was a 24 percent growth in May, bringing the total to 6.6 million. This was compared to the 5.34 million figure that was tallied in April. This was being interpreted as a positive indicator, as it suggests that while there has been a notable increase in the amount of spending on marketing, that extra money was indeed having an impact and was drawing a larger number of device users.
According to the Fiksu report “With the increase in volume this month, app marketers will need to find more creative ways to find and acquire loyal users.” It added that “Granular targeting options and optimized app marketing efforts continue to improve, helping advertisers break through the noise.” Fiksu CEO, Micah Adler, explained that despite the fact that the cost of mobile marketing for apps does increase and decrease from one month to the next, the competition experienced in the downloads race “is on a constant upward trajectory: what we’re calling app inflation.”