MarketJS
  • MarketJS
  •   Contact  
  •   Case Studies  
  •   Blog  

Rising Cost Per Install In The App Economy

Jan 24, 2017
6 minute read

We've always predicted that the app economy will increasingly be more dynamic, more volatile. Last October, we asked a theoretical question: Would a brand spend $20,000 to acquire 10,000 users?

Let's see how this year fared. Data from Fiksu shows that the Cost Per Install (CPI) for apps has risen significantly on Android, while iOS rates remained volatile but slightly increasing.

Alt text

Figure 1- Cost Per Install of apps across iOS and Android

Notice from the chart above, that Android's Cost Per Install has doubled from $1.25 to $2.50. This could mean a few things:

There is an influx of Android users on the Internet, and they're consuming apps. Advertisers are bidding against each other, and willing to pay more to acquire users.

On the iOS front, we see some volatility, with a slight increase of the curve if we view the overall trend in the past year. This could mean a few things:

  • Competition for attention is flat on the iOS front, where advertisers bid against each other in a zero sum game.
  • Some advertisers are pouring really big budgets into advertising via iOS, resulting in huge swings in a bid to 'corner the market'. There are various reasonings behind this, one of them being that large companies such as Supercell are spending a lot more to identify the next batch of high spending users.

Let's take a look at a different chart. This time, it's the Cost Per Install chart driven by Facebook. This reflects highly targetted app advertising, due to Facebook's deep understanding of user behaviours.

Alt text

Figure 2 - Cost per install on Facebook, relative to other mediums

Note that because Facebook offers more targetted advertising, the rates are much higher. We see that CPIs driven by Facebook have roughly about doubled from July 2014 to July 2015. This means that advertisers are also in a bidding war to get access to highly targetted users via social networks.

Based on the two charts above, we can safely reword our original question, into "Would a brand spend $25,000 - $30,000 to acquire users"? The number has increased by 25-50%, depending on target audience.

What does this mean for brands and companies aiming to reach users? What should they do?

We can recommend a few things.

A) Cut production costs of making apps and games

Use dynamic technologies such as HTML5, to develop your apps and games. HTML5 is a build once, deploy everywhere concept which works really well. A lower production cost will justify a higher marketing budget. Instead of spending $30k to build a modest Android and iOS game, it's highly possible to spend less than $15k to get a cross-platform solution.

B) Find other channels of marketing besides the app economy

Instead of continuing to bid higher prices, find new distribution channels to reach users. Use creative ways such as partnering with other traffic providers to gain a strongly. Experiment with the various upcoming social networks to tap into their target audience. Use lean technology such as HTML5, that can easily ported to various forms with much lower cost.

C) Spend more intelligently on acquiring user installs

Brands should go beyond Cost Per Install as the primary metric. Use a deeper metric, such as Cost Per Loyal User. Even better, figure out what metric matters the most for the brand, and build links from CPIs all the way to that final metric. Experiment, analyze and monitor results of making different types of ad spends.

D) Be first at adopting new platforms

On a more macro level, smart people all around the world are developing new platforms to capture different types of audiences. Particularly platforms that cater to the younger audience of pre-millennials. Brands should cast a wider net to identify these platforms, reach out and start forging meaningly working relationships to get ahead. Think of what's coming after Vine and Youtube game channels.

If you're interested to have us develop a game for you, contact us. Our HTML5 technology let's us easily web based HTML5 games, as well as iOS and Android native games.

Marketing  Cost Per Install  Real World  HTML5 

About the blog

MarketJS is a company that leverages HTML5 to provide cross-platform solutions to clients. We have been serving clients since 2012.

Here's a summary of what we do:

  1. We operate a B2B marketplace for other companies and brands to license high quality games.
  2. We help companies reskin or rebrand existing games from our portfolio.
  3. We launch white label game portals for clients.
  4. We design and develop bespoke games for brands, which include advergames, lead generation games, newsgames, and social impact games
  5. We develop game solutions for taxis, airlines, hospitals, schools and more.
  6. We build playable ads for app and gaming companies

This blog is dedicated to HTML5, game development, product design, startups, and life in general.

If you're a large organization interested in using HTML5, we highly recommend reading our case studies.

How to reach us

Subscribe

Contact

Follow

Recent blog posts

5 Design Tips For Real Money HTML5 Games
4 Common Missed Opportunities in Reskinning Games for Brands and Agencies
Split Screen Chromecast HTML5 Games
Funny Faces: Spatial Memory Game for Kids
HTML5 Game for Cognitive Training
Classic Game of Tic Tac Toe with New Fun Features
4 in a Row: Two-Player HTML5 Game with a Chat System
Smart Soccer: Physics-based Game with a Smart AI
New 3D Game: Jumpee Land
Escape from Aztec: New and Exciting Endless Runner Game
Social Blackjack: Card Game with Friends
Wasteland Warriors: a real time multiplayer game
We built a Google Chromecast game
Rising Cost Per Install In The App Economy
New HTML5 Game: Monsters and Cake
New HTML5 Game: Street Fight
New HTML5 Game: Taxi Pickup
Merchandising done right
Superbowl Ad Recap : Clash of Clans
The Old Game Flow Design
New HTML5 Game: Guess The Celebrity
New HTML5 Game: Leave Me Alone
HTML5 Endless Runner: History and Design Thinking
New HTML5 Game: Snowball Office Fight
Thinking HTML5 with castle walls and moats
Thoughts on Supercell videos
New HTML5 Game: Hidden Objects Pirate Adventures
Would a brand spend $20,000 to acquire 10,000 users?
New HTML5 Game: Banana Jungle
New HTML5 Game: Snowball Fight
New HTML5 Game: Totem Volcano
New HTML5 Game: Shark Attack
Good old times with OpenRA
New HTML5 game: Pop Star Dentist 2
Indie Reality Check: Guidelines
New HTML5 game: Slots Beach
HTML5 Game Development Workshop
How we can all learn from Jay-Z
Product launch: Triumphs and Tribulations
3 AM days and ways to avoid them
When the errors keep coming, what do you do?
What a great producer does
Mini-Detachment Experiment 1: Stop reading tech news
New game: Monster Mash
Gmail is winning on mobile
Timely donation
Why software matters
Serendipity as a game mechanic
A blast from the past: Buenos Aires
Upcoming event worth attending
New game: Sector 49
Make meaning
New game: Vampire Dress Up
New game: Kitten Bounce
New game: Ships and Monsters
iOS7 Mobile Safari: Big Branding Opportunity
New game: Mouse and Cheese
New game: Whats My Brand?
New game: Royal Princess Dress Up
New game: Feed the Grandma
New game: Pop Star Dentist
Mobile first mentality
How to focus
On raising money
98 percent of everything is crap
Common Fallacy #1
Offline advertising done right
Blogging from the phone
Re-write
Avoid gatekeepers, and focus
Refresher - Mobile HTML5 browsers
A dataset that I enjoy
On the Paul Graham accent debacle

All tags (39)

Acquisition  Advertising  Artists  Artwork  Blackberry  Card  Casino  Causes  Christmas  Chromecast  Cost Per Install  Design  Entrepreneurship  Firefox  Focus  Games  HTML5  Hidden Object  Insane  Licensing  Life  Marketing  Merchandise  Multiplayer  NSFW  Opera  Pirates  Project Management  Real World  Self-Development  Server  Soccer  Strategy  Supermarket  Tizen  Travel  Venture Capital  Workshop  iOS7 
Company
  • About us
  • Jobs
  • Contact us
  • Terms of Service
  • Privacy
  • Blog
  • Case Studies
  • 12 Ways To Work With MarketJS
  • Testimonials
  • Free HTML5 Games
  • Press
  • Podcast
Services
  • Game Reskin Services
  • Marketing Games
  • Microsite Games
  • HTML5 Playable Ads
  • Messenger HTML5 Games
  • Custom Development
  • Lead Generation Games
  • Game Leaderboard System
  • Game Login System
  • Contactless Digital Signage Games
  • Digital Signage Games
  • Private Label Games
  • Telco & mobile operators
  • Airlines and IFE providers
  • Bespoke Games
  • Google Play Instant App
  • Game Feed API
  • Trade Show Games
  • Carnival Games
  • Exhibition Games
  • Corporate Event Games
Categories
  • Web Games
  • Mobile Games
  • Browser Games
  • Retro HTML5 Games
  • Classic HTML5 Games
  • HTML5 Mobile Games
  • Kids Games
  • Educational Games
  • Multiplayer Games
  • Puzzle Games
  • Branded Games
  • Mini HTML5 Games
  • Browser Games For Sale
  • Offline HTML5 Games
New solutions
  • Skill Based Games
  • NFT Game Development
  • Skill Based Game Development
  • Real Money Games
  • Skill Based Games Vendor
  • Skill Based Games Supplier
Other solutions
  • Android Games
  • iOS Games
  • iPhone Games
  • Android APK
  • iPad HTML5 Games
  • iPhone HTML5 Games
  • Android HTML5 Games
  • HTML5 Games
  • Mobile HTML Game
  • H5 Games
  • OEM Games
White Label Solutions
  • White Label Games
  • HTML5 Game Library
  • HTML5 Games Portal
  • Mobile Games Portal
  • Subscription Games Portal
  • SMS Games Portal
  • Games For Online Events, Virtual Conferences, Exhibitions and Webinars
More white label games
  • Spin The Wheel
  • Crack The Egg
  • Roll The Dice
  • Trivia
  • Board Games
  • Slots
  • Endless Runner
  • Grab and Win (Claw Machine)
  • Select a Picture and Win
  • Memory Match and Win
  • Scratch and Win
  • Gamification With Coupon Codes, Vouchers and QR Codes
Mobile Analytics
All content on this website, excluding any 3rd party logos is copyright MarketJS.com, 2011 - 2022