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How Much Does App Marketing Cost?

Sep 02, 2022

By AppsHive Team

App Market Cost

Imagine a hotel so good, having luxurious facilities unlike other hotels in town. Yet, they don't market thinking people will come just because that hotel is so good. What a slip-up! Right? It will be the same shame if one makes an app of great use but decides not to market the product or burns all the investment in other processes. Don't you think so? App Marketing is not an option. You need to put the app in front of the human race to let it be used. For, we are far from the age of exploration, and very few people will explore your app by themselves. But how much does app marketing cost?

The loyal customer base is a tough task to nail. Ranking the app on top in Google Play Store and Apple App Store stands alongside it. In today’s cut-throat competition, right app marketing makes you a better contender to get hit on install buttons. For that, we first need to plan a marketing budget and that’s exactly what we will do in this blog post. Let’s get started!

Factors and Sectors That Affect Marketing Cost

Before jumping to a conclusion whether how much money you may need to perform promotional campaigns for your app, there are certain factors affecting the cost of app marketing. These factors will determine how smart your app marketing funnel will be.

The users are to see, click, go through details and install your app. All of these steps require a curated marketing plan, which happens when you understand the cost you will be paying for these steps. Some of them are non-financial steps but can directly affect your marketing plan. So keep an attentive eye and mind while reading.

Capital:

While the app development is in progress, you invest a large sum of money in the developers or an agency developing the app for you. Therefore, you need to assign or side-keep the amount you will need to make the app meet your audience.

  • B2B companies need to keep 2-5% of their revenue or capital for marketing.
  • B2C companies, on the other hand, need to keep 5-10% for marketing, which is higher as they deal with a direct and large audience.

Cost Per Click:

When a user or ad-receiver clicks on your app logo and lands on the window where they can download your app, you get charged some amount. This doesn’t necessarily mean that the viewer will download the app, but they sure came to your app page.

Suppose you have an app with other substitute apps or already crowned people’s choice. In that case, you will have to pay more CPC if more apps provide similar functionalities and run the ads for their app.

Audience Segmentation:

While you make an app after extensive research, you may understand how unique your idea is or isn’t. This especially matters more when you start your app marketing campaign.

It would be best if you recognized the availability of the audience for your app. What amount of the targeted population needs your app? A person listening to Spotify doesn’t necessarily need to be a musician. They can be dancers or mad music fans too. Getting the point? Research and determine how many and which people need your app and target them.

Reviewing the Campaign:

Data is the god. Upon everything you do, you need to review the campaign, as the data from the campaigns you run for different locations and audiences will give you a better idea of optimizing your listing.

Look at what Jessica Horvath says about reviewing the marketing plan consistently.

Quote of Jessica Horvath

Put aside a mobile app marketing budget, lay a plan and review. This cycle will help you put your research to good use. Eventually, generating larger ROIs by optimising the cost of mobile app marketing.

Agency/In-House team cost: You will either use an in-house team or hire an agency to do the widespread activities for you. These activities include designing creatives, videos, ads, copywriting, and more. Therefore, these agencies may give you a larger cost of mobile app advertising.

This surely will cost you more sometimes. But a quality team and marketing plan make you a fan favourite in the long run. More love from the audience = More Installs.

  • Cost Per Action: CPAs are a great parameter to determine and optimize your marketing plan. The lesser the CPA, the lesser money you will spend on ads. Let’s see what actions are included in the Cost Per Action.
  • Cost Per Install - Approx. $1.75 per install When a user installs your app through the medium shown to them, you will be charged around the given figure, which is an average for the companies running app marketing plans.

North America is supposed to lead the installation ad spending by investing $2.75 billion.

  • Cost Per Register - Every time a person registers by watching an ad from the platforms you are running an ad campaign, the cost of acquiring this registration is CPR.

The CPR average for app marketing per install is around $3.5.

Take a look at the image for a better understanding of ad spending on different Actions:

Chart for Ad Spending

Yes! (Bangs hands on the table.) Now you are through the factors that help you get a better idea of the global aspects of factors affecting the cost of marketing an app.

Platforms For Mobile App Promoting and Marketing

Your audience is present everywhere. At least a large number of the population is. You will benefit more when you opt to go smart and delegate marketing costs for an app over widespread platforms rather than berserk on one or two.

Types Of Platforms

Marketing an app on social media has become one of the most noticeable paths for marketing. App stores also have a promotional marketing plan where an app owner can plan a mobile app marketing budget. With the rise of influencer marketing due to TikTok, the number of influencers on various platforms has rocketed too.

You may be wondering, “Where can I promote my mobile app? Which platforms do I need to consider?” Well, here I am, ready with a list that will help you save yourself from serious neck issues you would incur while looking for them.

Top Mobile App Stores

There is a third app store keeping Google Play Store and Apple App Store on the side. Actually, there are more. Surprised? Yes! The android ecosystem allows users to download apps as files and install them as third-party apps. While iOS require a person to use jailbroken iPhones, iPads or Apple devices that run on iOS.

Let’s talk about the major app stores.

Play Store:

(70% audience) The primary app store from Google is installed on every android device. 3.3 million apps are available for download with paid or unpaid installations. As android allows third-party app installations, there are various stores where users can download and install these apps. On that later.

App Store:

(Over 1 Billion People) Apple’s own world of apps is vastly secure and contains over 2.2 million apps available for installation, either free or paid. Negligible third-party app stores are available for iOS devices since third-party app installation is only supported by jailbroken devices.

China App Market:

In China, there are three major app stores. MyApp from Tencent is number one, comprising 25% of the total Chinese mobile internet user population. 360 Mobile Assistant and Xiaomi App Market comprise 15% and 11%, respectively.

Other Android App Store:

There are several app stores. Let’s see them in a list for a brief understanding.

Aptoide:

1 million apps. 7 billion downloads to date and 300 million users around the world make Aptoide a major community of third-party marketplace.

Other app marketplaces are Amazon Appstore, ApkPure, ApkMirror, ApkUpdater, SlideMe and many more.

Cydia:

Jailbreak requiring iOS app store. Cydia shut down operation in 2018; now, only the apps from that timeline are available for download. Cydia doesn’t have a web address or an application on Apple App Store. One needs to install it via jailbreaking software.

Why Should You Choose AppsHive for Promoting Your Mobile App?

With a large collection of broad niche applications, AppsHive makes a better case for marketing your mobile app. You can register your app for free to start with it. The platform is unique in itself as you can list your app on listings based on location, profession and categories.

View of app categories that are listed and marketed on AppsHive.

Register Your App by Category, Location and Profession

How to Design Your Marketing Budget for Mobile App

Now you know the factors, sectors and platforms for marketing your mobile app. Let's design the marketing budget for the same. We will discuss the investment you need to make by briefly going through the steps. This will help us determine the mobile app marketing charges.

Gauging user actions by Marketing Funnel Assessment:

The user installing your app is a result of a chain of actions. Now, the installation is vulnerable if there's a lack of action initiation anywhere in the process. For example, a user is not interested in your app's niche or product group. What's the use of delivering the ad to that specific user group? It becomes necessary that you asses everything.

First, the audience needs to know that your application exists - Then, you need to understand that they are interested in your product or niche - Now, you need to check the audience's yearning for your app - Finally, the user installs or purchases your app from the store.

Carefully look for the triggers that affect viewers most to download your app.

Define Your Goal with a Keen Eye On Accounts:

Since you are making an app from scratch, your purse will get lighter daily. Hence, make sure the app gets the best at first. The audience will love an app that gives users the best experience. But also keep a keen eye on the budget for app marketing.

Check KPIs and identify the best channels for marketing:

The best channels need to be identified since you can't be egoistic, saying, "How can this channel not bring me results? I will put more money into it!" You know it will only ruin you. Instead, put money in the channels that give you affirming results. This way, you take safety measures and calculated risks.

Pre-Launch and Beta-Testing Functions

Let's look at the processes before you hit the switch of marketing to turn on.

Market Research ($5,000 - $15,000)

The largest pillar that strengthens your app is market research. The more research you do, the more data will help you accomplish perfection.

Some businesses overlook the importance of marketing research. This is why most apps fail even though they have unique and attractive features. But does the audience need them? If they do. How are they conveying that?

Beta App Users' Feedback (Up To $5,000)

Making the ideal for the users to use is possible only when you know how they feel while using your app and its features. It is advisable not to overlook this process.

The cost of this function depends on the size of the group you decide to have tested the app for you.

Designing Cost ($5,000 - $25,000)

You will have to design creatives for people to see and land on your installation page. In this process, you will need to make appealing and value-driven content for your audience to reach you as you have reached them.

Quality designs, videos and landing pages are important factors in landing installations since they help you plant "looks good, maybe good" in the audience's heart.

List your app for free

Really, How Much Does App Advertising Cost?

We have discussed several app advertising costs, Research - App Promotion - Design costs, and user action charges in the factors section. Moving ahead, let’s see which expenses are yet to be included.

App Store Optimization ($250)

ASO helps you put the keywords that users search in the content so that you come out on the top list when a search is initiated. Along with keywords, you see the app's description, title, icon, and user interface images.

Make sure you properly understand ASO Kpis & Metrics.

An expert freelancer or an agency would charge you $250 or more for doing ASO for your app. You can also get a $25 freelancer to do it for you. Which may eventually lead to as much a disaster as successful as you wanted it to be.

Influencer Marketing ($5K to $18k per month)

You get a micro-ambassador for your brand with influencer marketing. Nowadays, people follow influencers on various platforms. It gives you a notch over those who don’t do it.

Influencer Marketing

 

P.R. Team Cost For APP ($100 - $300 per hour)

Want your app to feature in successful publications? A press release? Or want to reach the audience personally and directly? The PR team does the work for you. Everything works, but does anything else works like a human touch? These app promotion charges are primarily important and investment gives better ROI.

Viral Marketing

If you have an app that will excite the general public and a large mass of the public, you would want to have it go viral. The history speaks for viral marketing. Prisma photo editor is one prime example.

With rise of TikTok and Instagram reels, viral marketing has become easier for businesses to access. Youtube has never gone off the list of viral marketing platforms.

Conclusion:

That’s All That Mobile App Marketing Costs

We can conclude that there’s no one marketing cost or strategy for an app. Businesses need to perform conduct analytics and research to determine the cost by listing out their activities.

You can promote your mobile app with us on AppsHive. We would love to help you get the smell of success you crave. P.S. It’s not a bad thing wanting to be successful.