What is the user acquisition cost for a mobile app?

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How much should a mobile app allocate to its marketing budget specifically for acquiring new users?

Mobile apps typically allocate between 30% and 50% of their total marketing budget specifically to paid user acquisition efforts.

The current industry standard shows that 30.6% of marketing budgets go to paid media for user acquisition, making it the single largest category for app marketers in 2025. Growth-focused apps and those in competitive verticals often push this allocation higher, with some dedicating between 40% and 50% of their marketing spend to paid acquisition channels.

Apps in aggressive scaling phases may allocate up to 90% of their marketing budget to paid user acquisition, though this level is unsustainable long-term. The remaining budget typically supports organic activities including content marketing, search engine optimization, app store optimization, and social media engagement.

Your allocation should depend on your app's maturity stage, competitive landscape, and available capital. Early-stage apps often weight heavier toward paid channels to build initial traction, while mature apps with established brand recognition can maintain growth with lower paid acquisition percentages.

You'll find detailed market insights in our mobile app business plan, updated every quarter.

What percentage of the marketing budget should go to paid channels like ads, influencer partnerships, and sponsorships?

Most mobile apps dedicate between 30% and 50% of their marketing budget to paid channels including advertising, influencer partnerships, and sponsorships.

This range represents the majority approach across the industry, though the exact percentage varies based on business model and growth objectives. Apps focused on rapid user acquisition often allocate 40-50% or more to paid channels, while those with strong organic traction may operate comfortably at the lower end of this range.

The distribution within paid channels also matters significantly. Traditional paid advertising on platforms like Facebook, Instagram, Google, and TikTok typically consumes the largest portion of paid spend. Influencer partnerships and sponsorships represent smaller but growing allocations, particularly for consumer-facing apps targeting specific demographics.

Some mobile apps operate at the extremes, with paid channel allocation ranging from as low as 10% for established apps with strong word-of-mouth growth to as high as 90% for apps in hyper-competitive markets or launch phases. The key is ensuring your paid spend delivers a return that supports sustainable growth.

What is the average cost per install across all paid acquisition channels for a mobile app?

The average cost per install (CPI) across all paid channels ranges from $1.50 to $5.00 for mobile apps in 2025.

This range varies significantly by platform, with Google Ads averaging $2.65 to $3.50 per install, Facebook and Instagram costing around $3.75 or higher, and TikTok averaging approximately $2.88 per install. Geographic targeting also impacts CPI substantially, with developed markets like the United States, Canada, and Western Europe commanding higher costs than emerging markets.

Vertical or app category creates additional variation in CPI. Gaming apps, finance apps, and subscription services often face higher CPIs due to intense competition, while utility apps or niche category apps may achieve lower costs. Seasonal factors and competitive dynamics can cause CPI to fluctuate by 20-40% throughout the year.

Your actual CPI will depend on creative quality, targeting precision, and bidding strategy. Apps with compelling ad creative and well-defined target audiences consistently achieve CPIs at the lower end of the range, while those with broad targeting or weak creative see costs inflate toward the higher end.

What does it cost to acquire a user who registers or creates an account after installing the mobile app?

The cost per registration or account creation after install typically ranges from $3.00 to $7.00 for mobile apps.

This metric runs 1.5x to 2.5x higher than the base cost per install because not all users who download an app complete the registration process. The conversion rate from install to registration varies by app category, onboarding flow complexity, and the perceived value of creating an account.

Finance and gaming apps often see registration costs at the higher end of this range, sometimes exceeding $7.00, due to more involved sign-up processes and higher scrutiny from users. Social apps, productivity tools, and content platforms typically achieve registration costs toward the lower end when they minimize friction in the onboarding experience.

Optimizing your registration flow directly impacts this cost. Each additional field or step in your registration process reduces conversion rates, which increases your effective cost per registration even when your CPI remains constant.

How much does it cost to acquire an active user who engages with the mobile app beyond the initial download?

Mobile apps spend an average of $5.00 to $12.00 to acquire each active user who engages beyond the initial download.

This cost is significantly higher than basic CPI because it accounts for users who not only install the app but also complete meaningful actions demonstrating genuine engagement. The definition of "active" varies by app—it might mean completing a tutorial, making a first purchase, using a core feature, or returning for a second session.

Apps in saturated or highly competitive markets face costs at the upper end of this range or higher, sometimes exceeding $15.00 per active user. The cost inflates in proportion to how strict you define "active"—requiring three sessions costs more than requiring one session, simply because fewer users reach the higher engagement threshold.

Your onboarding experience and initial user experience directly determine this metric. Apps with compelling first-time experiences and clear value propositions convert installs to active users more efficiently, reducing the effective cost per active user even when CPI remains constant.

This is one of the strategies explained in our mobile app business plan.

What are the typical conversion rates from ad impressions to installs, and how do they differ by channel?

Conversion rates from ad impressions to installs vary by platform and app category, with overall averages ranging from 3% to 5%.

The App Store sees average conversion rates of 3-4% across most categories, though this can range from as low as 1% for board games to as high as 40-70% for specialty or high-value apps with extremely targeted audiences.

What percentage of installs convert to paying or revenue-generating users for a mobile app?

Mobile apps see conversion rates from installs to paying users ranging from 1% to 5%, depending on monetization model and paywall strategy.

Subscription apps and premium apps with hard paywalls achieve conversion rates of 2-5% in North America, with some reaching 10% when the paywall is immediate and the value proposition is compelling. These higher conversion rates reflect stricter monetization approaches that require payment early in the user journey.

Freemium apps, which offer substantial free functionality before requesting payment, typically see lower conversion rates of 1-3%. The trade-off is that freemium models attract larger user bases and may achieve higher absolute revenue despite lower conversion percentages.

Your conversion rate depends heavily on value demonstration before monetization. Apps that clearly showcase premium features and benefits convert more users to paying status than those that fail to differentiate free from paid experiences effectively.

What portion of new mobile app users comes from organic channels versus paid campaigns?

Organic channels account for approximately 53% of new mobile app users, while paid channels account for 47% across the industry.

This split varies significantly based on app maturity and category. Large, established apps with strong brand recognition can achieve 70% or more organic users, benefiting from word-of-mouth, app store search, and earned media coverage.

Early-stage apps or those in aggressive scaling phases often see the inverse ratio, with 60-70% of users coming from paid channels. Apps in competitive categories like gaming, dating, or food delivery typically maintain higher paid acquisition percentages throughout their lifecycle.

The organic-to-paid ratio serves as a health indicator for your mobile app business. A growing organic percentage over time suggests your app is building brand equity, delivering value that users recommend to others, and optimizing app store presence effectively.

It's a key part of what we outline in the mobile app business plan.

What is the blended user acquisition cost when combining both paid and organic sources for a mobile app?

The blended user acquisition cost, which combines both paid and organic sources, averages $2.50 to $7.00 per new registered user for mobile apps.

This metric provides a complete picture of acquisition efficiency by accounting for all marketing spend divided by total new users, regardless of source. Apps with strong organic growth see blended costs at the lower end of this range, while those heavily dependent on paid channels trend toward the higher end.

Calculating blended CAC requires dividing total marketing spend (including salaries, tools, content creation, and paid advertising) by total new users acquired in a given period. This approach captures the full cost of building an audience, not just direct advertising spend.

Your blended CAC should decrease over time as organic channels strengthen and your app benefits from network effects, brand recognition, and improved app store rankings. A rising blended CAC often signals market saturation, increased competition, or declining product-market fit.

How long does it take for a mobile app to recover acquisition costs through user revenue?

The average payback period for mobile apps to recover acquisition costs through user revenue is 2 to 7 months for subscription-based apps.

Best-in-class mobile apps achieve payback in under 90 days, demonstrating efficient monetization and strong product-market fit. These apps typically combine reasonable acquisition costs with high early engagement and clear monetization paths that convert users quickly.

Payback period varies significantly by business model. Subscription apps with monthly billing see faster payback than annual subscription apps, though the latter may achieve higher lifetime value. Transaction-based apps in categories like e-commerce or food delivery may see even faster payback if transaction frequency is high.

Your target payback period should align with your capital position and growth objectives. Apps with significant venture funding can tolerate longer payback periods to maximize growth, while bootstrapped apps need faster payback to maintain sustainable operations.

What is the lifetime value of a mobile app user, and how does it compare to acquisition cost?

The median lifetime value (LTV) for subscription app users is $29.99 in the United States, though this varies widely by category and app quality.

Top-quartile mobile apps achieve LTV values much higher than the median, sometimes reaching 3x or more. These apps benefit from higher retention rates, more frequent monetization, and stronger product engagement that keeps users subscribed or transacting over extended periods.

The LTV to CAC ratio benchmark sits at 3:1 or better for sustainable mobile app businesses, though many apps in competitive or mature categories operate at 2:1. A ratio below 2:1 indicates acquisition costs are too high relative to monetization, requiring either cost reduction or revenue optimization.

How are platform policy changes, competitive pressures, and market trends impacting user acquisition costs for mobile apps?

User acquisition costs are rising in 2025 due to increased competition, higher costs on major advertising platforms, and privacy-related targeting limitations.

Platform policy changes, particularly privacy regulations and tracking restrictions implemented by Apple and Google, have reduced targeting precision for mobile app advertisers. This forces apps to cast wider nets with less efficient targeting, directly increasing cost per install and cost per acquisition across all channels.

The major advertising platforms—Alphabet (Google), Meta (Facebook/Instagram), TikTok, and Amazon—now control the majority of digital advertising spend. This consolidation has created pricing power that drives inflation in paid user acquisition channels, with annual CPI increases of 10-20% becoming common in competitive categories.

Mobile apps are responding to these pressures by shifting budget allocation toward organic growth initiatives, retention optimization, and cross-channel strategies. Apps that diversify beyond paid social and search advertising to include content marketing, app store optimization, referral programs, and partnerships achieve more stable acquisition economics.

The competitive landscape intensifies annually as more apps enter the market and existing apps increase their acquisition budgets. Categories like gaming, finance, and social networking face particularly steep increases in acquisition costs due to oversaturation and high-value user profiles that attract aggressive bidding.

Get expert guidance and actionable steps inside our mobile app business plan.

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.