App Marketing – Rising Costs for Customer Acquisition

It is obvious: the more apps are available for download in the stores, the higher the competition for customers installing the apps. Back in December 2011, Fisku reported a new all-time high for costs per download.
W3i has now updated this information again and analyzed its customer base to find that the average cost-per-install (or CPI) increased by 70% for mobile apps on Android and around 56% for iOS apps.

Here come the costs that can be expected in order to convert users to install the app:
cost per installation
One main reason for the explosion in cost might be that more and more big companies go into the app business and advertise with relatively large budgets to get downloading users. Small one-man-band developers often can’t keep up.

Mature app-market

For us, these are clear signals that the app market is maturing quite a bit. In our first projects back in 2012 the focus was primarily generating downloads to get into the rankings and lists and hence generate new downloads again from there. Today’s projects are much more ROI-driven and not only relate back to downloads as a single measure of success.

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