The cost of app marketing has reached an all time high as the industry experiences exponential growth.
According to a leading app marketing company, the cost per loyal user index (CPLUI) has peaked at $2.23.
The CPLUI measures how much money brands spend to attract users to use their app regularly. A regular app users is someone who uses the app at least three times.
Currently, the more people who download an app, the lower the marketing cost however apps that are trying to get their name out there can have a hard time if finances are tight.
With the current CPLUI over $2, this marks a 49 percent increase from the same time last year.
While it is believed that the CPLUI will drop in the coming months, it wont be long before it peaks again.
“The cost of a loyal user is increasing because mobile is such an incredible value compared to every other form of marketing,” states CSO of Fiksu, Craig Palli.
Joe Lszio, director of the Interactive Advertising Bureau’s Mobile Marketing Center of Excellence also added that “it’s getting harder and harder to stand out from the crowd. Even if you are a major brand with a loyal following, it can be a challenge to convince users to add your app to their already crowded phone screens.”
While apps continue to be powerful branding tools, they are also extremely lucrative and mobile ad revenue is projected to be worth $92 billion by 2018.