As you’ve probably noticed, your Facebook feed is looking different again last few months. Gone are the viral cat videos and the incessantly repetitive “please please share the press release about the launch of our Moon office” posts.
It is now more costly than ever for developers and app marketers to acquire new quality users for their apps. On average, it now costs developers $1.79 to acquire a quality user, defined as a user that will open the app at least three times. That's up 30% from November 2012, so it's imperative that app marketers are taking an intelligent and efficient approach to advertising.
Users Cost More Than They Are Worth
Many within the industry are fixated on finding low CPI prices and building a large and wide encompassing user base, but that approach is rarely fruitful.
A prime example can be found within the gaming vertical. SuperData estimates that the cost per install was $2.73 for mobile games, compared to an average revenue per user (ARPU) of just $1.96. For the holiday season, SuperData estimated that the CPI would be more than double the ARPU.
Similar trends exist within other app verticals such as travel and commerce, where acquisition costs can be even higher than within the gaming vertical. Fueling the rising cost of user acquisition is the deep pool of competition. Both Apple’s iOS App Store and Android's Google Play Store now each have more than one million apps available.
The... Read more