iPhone 6 Launches Cause App Marketing Costs to Soar

The recent releases of both the iPhone 6 and iPhone 6 Plus along with the new Apple iOS 8 operating system have led to a huge increase in demand for expert and reliable mobile app marketing services for everything from retaining current users to gathering new downloads.

According to a recent report released by Fiksu, a highly regarded mobile app technology provider, these costs are now at their highest point in history.  Retaining a loyal user, one that regularly opens the app at least three times or more, is costing more and more with every new Apple launch.

In September of 2014 alone, the costs associated with mobile app marketing rose from $1.86 to $2.25 per unit, some 21%.  For the entire fiscal year, this figure has increased some 34%, and we haven’t even entered into the busiest marketing season of all, the year-end holidays.    This is usually the most expensive time of year, since many existing app user are often getting new smartphones and tablets as Christmas or holiday gifts.

When this happens, consumers head to the App Stores in huge numbers, downloading their current favorite games and apps along with a bunch of the newer, trending options.  But Apple launched their new iPhone 6 and 6 Plus well before the holiday rush, sending these millions of customers to the stores earlier than expected and sending marketing costs into the stratosphere much earlier than originally anticipated.

According to the Fiksu report, the  first 30 days of the iPhone 6 launch was 116% more successful than the previous iPhone 5 version.  And new converts to the iPhone 6 were equally as anxious to get the most popular mobile apps just like the die-hard enthusiasts of the previous release.  The competition in the mobile app world is now more cut-throat than ever before.

Fiksu also found that the Cost-per-Launch Index which tracks the costs associated with repeat launches of individual apps, rose regarding the iOS 8 operating system to $0.29, a 36% increase in the single month of September 2014 and a 48% increase for the fiscal year.  Simultaneously, the Cost-per-Install Index which calculates the costs associated with app installations through advertising methods also rose to $1.23, up 6% for the month and 41% for the year.

Some other interesting statistics came to light from the Fiksu report, too.  App marketing costs may be rising so dramatically due to the larger amount of free space required to download and install the new iOS 8 operating system on existing devices.  This meant that users were typically deleting their mobile games and apps in order to make room, sending them back to the App Stores once again which only helped to add to the highly competitive nature of the already busy app marketing environment.  App developers were witnessing huge numbers of existing users simply disappearing almost overnight.  This forced them to boost their marketing efforts in customer retention.

And the Top 200 Free iPhone Apps List is changing as a result of all this confusion as well.  Downloads are up by 4% in August 2014 but actually decreased by 4% for the total fiscal year.  This is likely due to the freeing of space to install the new iOS 8 system as well as Apple’s recent move to reduce the number of apps in the Top Charts from 300 mobile apps down to 150.  This likely had a major effect on the index since many of the previously popular apps are no longer included in the top listings.

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