The major problem with app install ads boils down to one issue – PRICE. Facebook, Google and others are ecstatic about the financial success and performance of app install ads. But those revenues and popularity (for app developers) have quickly resulted in app install ads becoming too costly especially for independent developers with small marketing budgets.
The average cost of acquiring a loyal app user increased from $1.30 in 2012 to $1.62 in 2013, according to Fiksu.
Traffic and acquiring users continues to plague app developers, especially independent developers who are launching an app with no prior audience or email marketing list.
One example of using an existing traffic source was discussed at the APPNation NYC panel. Arkadium (creator of the game “Release the Ninja”) has an existing user base of 10 million monthly gamers playing their browser-based casual games on desktop. Arkadium has begun driving those users to download Arkadium’s mobile games.
With the price of app install ads continuing to rise, again independent developers are faced with a tough obstacle – acquiring new users at an affordable price.