Would a brand spend $20,000 to acquire 10,000 users? Before you answer that question, spend 5 minutes reading this:
The lead indicator of how costly it is to launch an app is, how much it costs to acquire a user. Fortunately, for the App Economy, the metrics are clearly defined, and the Cost Per Install (CPI) metric is one of the best lead indicators.
I was doing some research on CPIs of native apps today. Here's what I found:
Based on the 3 simple data points, here's what we can deduce:
This makes a lot of sense. Apple's user experience and level of curation trumps Google Play's. A better experience would mean better conversion from non-paying to paying users.
How does this affect brands who wish to launch new products to consumers? For one, expect their marketing budgets to increase, to compete with the 40% increase year over year.
But wait ....
If you're a brand and you said "That's too expensive!", then keep reading....
Brands and marketers are attempting new ways to engage the end user. Within our company, we're seeing an uptick of requests by brands to launch full HTML5 web experiences via the mobile and desktop web browsers. We believe it's most cost effective method to engage consumers.
Here's a typical scenario, of how brands compare native app to HTML5:
With this new info, let's rework our question to the following:
If you're a big brand, this is not an issue. Big brands would splash north of 100,000 USD for native apps, to cover for any possible scenarios (longer development time, more marketing muscle, etc).
What about the rest of us? Let's look at greener pastures:
Advantages of HTML5:
The advantages of HTML5 far outweights native apps, both on cost and engagement basis. With end consumers having 3-second attention span these days, instantaneous play is crucial. Also, with HTML5, its easy to build additional mechanisms to collect user information for follow-up marketing. With the app stores, Apple and Google own all your user's data.
The end! Thanks for reading.
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