iOS cost per install to exceed $7 over holidays

The cost of acquiring new users for mobile games is growing faster than the market itself, according to research firm Superdata. The company this week told developers on its blog to brace themselves for a “mobile user acquisition bloodbath” this holiday season, as the already increasing cost of new users escalates sharply during the year-end festivities. For 2013, Superdata projects the US mobile game market to increase 25 percent to $3 billion. However, while average revenue per users have been more or less flat since the beginning of the year, the cost per install (CPI) in October was 41 percent than in January, and Superdata projects that December’s CPI on iOS will be more than double what it cost in January, somewhere in the $7 to $8 range. The company also did some quick math to illustrate how difficult it is to turn a profit when users cost that much to pick up.

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