Developing a mobile app tends to be an expensive process, prohibitively so for some. Not only does it require initial investment; it can be difficult to make money from apps in the longer term – particularly for those without a big brand behind them.

One cost often overlooked is that of attracting loyal users. Whilst apps are unprecedentedly popular at the moment, simply releasing an app to a store doesn’t guarantee anyone will even see it, let alone download it.

Last month, the cost of acquiring new loyal mobile app users rose to its highest level since 2011, according to data collected by mobile app marketer Fiksu.
The average cost of acquiring a loyal user rose to $1.80 in July, up a massive 20% from June. Fiksu believes the hike in costs in due down to two trends: the rise in brands using Facebook’s mobile app advertising platform, which is driving up costs and competition, and Apple’s change to App Store rankings. The changes help the best-rated apps move up the charts, but force mid- and low-rated app makers to spend more money to improve their position.

“There’s a major sea change underway now that Apple’s ranking algorithm appears to favor highly-rated apps and penalize others. App marketers must now work even harder to generate positive ratings from engaged users since user acquisition costs for apps without stellar ratings will now be more expensive,” said Micah Adler, Fiksu’s chief executive. “With a new iPhone just a few weeks away and the holiday season coming up, delivering quality app experiences has never been more critical for app marketers seeking to climb rank and meet monetization goals.”

The huge numbers of free-to-use apps available mean developers often have to make a calculated bet on how much to spend on promotion. In most cases there is only a finite amount of money that can be made per user, spend more on marketing than they get in return and money is rapidly lost. It turns app development into a huge gamble for those who don’t already have the capital to take a risk.

The numbers mean that it’s becoming harder for anyone other than big business to create and release apps. And with so many hurdles and potential issues it becomes more than a one-person task.

Of course, the root reason for the increase in user acquisition costs is down to the huge increase in the popularity of apps. There’s now approximately 60,000 apps per app store and whilst some of them will go unseen many will reap the rewards of a buoyant app market.