How much should you spend on mobile app marketing?

Our business plan for a mobile app will help you build a profitable project

To make informed decisions, understanding the allocation of your app's marketing budget is key. Below is a breakdown of factors you must consider.

Question	Explanation	Best Practices
Typical percentage of revenue allocated to marketing	App publishers typically spend between 25% and 40% of their overall revenue on marketing, especially in competitive markets.	Higher percentages are common for newer or competitive apps. Budget allocation should consider market entry strategies.
Customer acquisition cost (CAC)	Paid ads cost approximately $1,100 per customer, while influencer partnerships are more cost-effective, offering a $5.78 return per $1 spent. Organic methods like SEO tend to lower CAC.	Use a mix of paid ads, influencers, and organic channels to optimize your marketing budget.
Cost per install (CPI)	For iOS, CPI averages $3.60 globally, with costs higher in North America and lower in EMEA. Android CPIs are typically about $1.20 worldwide.	Tailor your spending based on platform and region to optimize your CPI.
Pre-launch vs Post-launch budget allocation	Pre-launch should represent 15%-25% of the marketing budget, focusing on awareness and influencer partnerships. Post-launch should take up the remaining 75%-85% for user acquisition and optimization.	Make pre-launch campaigns impactful but keep most resources for post-launch efforts to maximize long-term growth.
Minimum viable monthly spend	For meaningful visibility in competitive app markets, budgets should start at $10,000 to $50,000 monthly, potentially exceeding $100,000 for ultra-competitive regions.	Begin with a flexible spend based on your target region and app category.
LTV and sustainable budgeting	LTV (Lifetime Value) is typically calculated as ARPU (Average Revenue per User) × Avg. Customer Lifespan – CAC. Your budget should keep CAC below one-third of LTV.	Calculate LTV carefully to ensure sustainable growth and avoid overspending on user acquisition.
Retention and re-engagement focus	Allocate 20%-30% of your marketing budget towards retention campaigns such as push notifications, loyalty programs, and remarketing efforts.	Focus on retaining users as you scale, ensuring a sustainable user base.

What percentage of overall revenue should app publishers allocate to marketing?

App publishers typically allocate 25%-40% of their overall revenue toward marketing, depending on competition and business phase.

Competitive markets or new apps tend to allocate a higher percentage to ensure visibility and growth.

In established markets, you may find that the percentage leans more towards the lower end, but this is highly dependent on your goals and competition.

How does customer acquisition cost (CAC) differ across channels?

The expected CAC varies significantly between paid ads, influencer partnerships, and organic channels.

Paid ads tend to cost about $1,100 per customer, influencer partnerships offer an impressive ROI with up to $5.78 returned per dollar spent, and organic methods like SEO and content marketing average about $647 per customer.

Each method offers distinct advantages and should be used in combination for optimal results.

What benchmarks exist for cost per install (CPI) in the target market?

CPI benchmarks differ by market and platform.

On iOS, global CPI averages $3.60, with North American markets seeing costs closer to $5. In contrast, Android CPI is lower, averaging about $1.20 worldwide, with emerging markets seeing even lower costs.

Adjust your CPI expectations based on your platform, region, and app's competitiveness.

How much budget should be set aside for pre-launch vs post-launch marketing?

Pre-launch marketing should account for 15%-25% of your total marketing budget.

Focus this budget on building awareness, growing email lists, and securing early influencer partnerships. After launch, allocate 75%-85% of the budget toward user acquisition and optimizing your campaigns.

This ensures you have the visibility and user base to scale successfully post-launch.

What is the minimum viable monthly marketing spend?

The minimum viable monthly marketing spend should range from $10,000 to $50,000 for meaningful visibility in a competitive app market.

In highly competitive niches, such as in the U.S. or Western Europe, you may need to budget more, with some apps spending upwards of $100,000 a month to break through the noise.

Ensure that your budget aligns with your target market’s expectations and competitive landscape.

How can the lifetime value (LTV) of a user be calculated to determine a sustainable marketing budget?

LTV is calculated using the formula: LTV = ARPU × Avg. Customer Lifespan – CAC.

Ensuring that your marketing budget is sustainable involves keeping the CAC well below LTV—aiming for a CAC that is less than one-third of LTV is a typical target.

By understanding LTV, you can avoid over-spending on user acquisition while ensuring a profitable business model.

What percentage of the budget should be reserved for retention and re-engagement campaigns?

Allocate 20%-30% of your marketing budget to retention and re-engagement campaigns.

As your app matures, you should shift more resources to keeping users engaged through tactics like push notifications and in-app messaging.

Focusing on retention helps ensure your user base remains loyal and increases their lifetime value.

How do advertising costs differ between iOS and Android?

iOS generally incurs higher advertising costs than Android.

On average, iOS advertising is 2-3 times more expensive than Android. Depending on your target market, you should adjust your budget accordingly—Android is cheaper but iOS offers higher ARPU.

Balance your spend based on the specific needs of your app and region.

What is the recommended split between performance marketing and brand-building activities?

The recommended split between performance marketing and brand-building activities is around 60%-70% for performance marketing and 30%-40% for brand building.

In the early stages, it’s crucial to focus heavily on performance marketing to drive growth, but as your app matures, invest more in brand-building activities like influencer marketing and content creation.

This balance will help ensure long-term growth and a sustainable user base.

How should marketing spend be scaled over the first 12 months?

Marketing spend should be front-loaded during the first 3-4 months after launch, focusing heavily on user acquisition.

As your app gains downloads and active users, gradually shift the budget toward retention and organic growth strategies.

Review your performance regularly to adjust spending and ensure optimal return on investment.

What tools should be used to evaluate marketing ROI?

Tools like AppsFlyer, Adjust, and Mixpanel are crucial for tracking ROI and understanding which campaigns are delivering the best results.

Using these tools will allow you to track key metrics like LTV, CAC, and user engagement to optimize your marketing efforts.

Regular evaluation is essential to ensure that your marketing spend is yielding a positive return.

How should seasonal variations, app store trends, and platform policy changes be factored into annual marketing budget planning?

Seasonal trends, app store feature slots, and platform policy changes should all be accounted for when planning your annual marketing budget.

Allocating extra budget during peak seasons like the holidays, or when your app is featured in an app store, can help maximize exposure.

Remaining flexible and monitoring trends will ensure that your marketing strategy adapts to changes in the market.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.

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