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Apple App Developer Marketing Costs Higher

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(Corrects user definition in second paragraph, downloads time frame in fourth paragraph.)

July 31 (Bloomberg) -- Getting noticed on Apple Inc.’s App Store has become more expensive for developers this year, while application downloads haven’t increased much, according to Fiksu Inc., a digital marketing company.

Developers who actively market their apps on the world’s largest mobile-software marketplace spent about $1.44 to attract each loyal user in June, an increase of 13 percent from a year earlier, Boston-based Fiksu said in a report today, Bloomberg.com reported on its Tech Blog. A loyal user opens an app three or more times, according to Fiksu.

Competition between app developers is heating up as the market matures and users have more choices among apps offering similar features. Costs peaked in December at $1.81 per user as developers tried to attract people who got an Apple device for the holidays.

The 200 most popular free iPhone apps were downloaded 4.63 million times per day, on average, last month, an increase of 2.7 percent from June of last year, Fiksu said.

Apple has paid $5 billion to developers selling their wares in the App Store and more than 30 billion apps have been downloaded since the digital store’s opening in 2008, Tim Cook, the company’s chief executive officer, said at a conference last month.

Most developers aren’t complaining. Apps for Apple and Google Inc. smartphone operating systems will generate $8.7 billion in revenue this year, up 60 percent from last year, according to a report today by Flurry Inc., a mobile-research company.

To contact the reporter on this story: Olga Kharif in Portland, Oregon, at okharif@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

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