GREE and DeNA raise the average cost of installation in the American market

Due to the marketing policy of the big players, the cost of loyal users in the market is growing rapidly, at the same time the number of downloads is experiencing a seasonal decline. This is described in detail in a new report by Fiksu. 

In July, the cost of attracting loyal users, according to the Boston–based company Fiksu, increased by 7%, compared with June figures, and amounted to $ 1.54. For comparison, in July last year it was less than $1.20. It turns out that the cost of a loyal user – the one who launched applications at least three times, – it has risen by an impressive 28.3% over the year.

In Fiksu, this growth is attributed to the increasingly aggressive marketing policy of large labels in the mobile market. Including such monsters of the gaming market as GREE and DeNA.

As it became known to the Inside Mobile Apps portal, both companies have long intended to pay more than the average market price for installations, thereby raising the cost of attraction to a new level. GREE, for example, stated that it was ready to pay $3.5 for the installation of the Chartboost cross-advertising platform. DeNA’s advertising and marketing expenses, in turn, amounted to $68.6 million in the first quarter of 2012 alone. 

At the same time, the total number of downloads, compared to June, fell by 5.6%. According to Fiksu, the number of daily installations of applications from the American top 200 decreased from 4.63 to 4.37 million. Most likely, this is a seasonal decline, since last year in July there was also a drop. However, if we compare the result of this July with the result of the past, the number of downloads in the first one is still higher, however, slightly – by 120 thousand.