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CPA hits all-time high
Fiksu’s Cost Per Loyal User Index, a measure of how much it costs to acquire a customer who will open a mobile app three times or more, rose to an all-time high last December at $1.81. This is still lower than the CPA reported by developers for other platforms such as Facebook; Rick Thomson of Playdom said last October that it cost between $2 and $3 to acquire a customer, while at the Social Games Summit last November Kixeye reported a cost per acquisition of $4. These figures are available on our CPA page and are updated regularly.
Mobile Beat points out that the high cost of customer acquisition last December will have been partly caused by the rush to reach a top position in the app charts before Apple’s rankings freeze between 25th and 28th. Those top in the charts by 25th would benefit the most from the 6.8 million iPhones and Android devices activated on Christmas day alone. This momentary hike nevertheless came during an upward trend in CPA, as virality has become less attainable and competition has increased. To forecast what rising CPA means for your games business, use the online games spreadsheet.
To learn about how CPA is calculated and get updates on the latest CPA benchmarks as they come in, do check the CPA, CAC and Customer Acquisition Cost page regularly.