What is User Acquisition (UA)?
The process of gaining new users for an app through various marketing channels and strategies to grow the user base.
User Acquisition (UA) is the process of gaining new users for a mobile app through various paid and organic marketing channels. UA involves identifying target audiences, creating compelling ad creatives, selecting optimal channels, and optimizing campaigns to acquire users efficiently. It's a crucial component of app growth strategy focused on expanding the user base.
Why It Matters
UA is essential for app growth and business sustainability. Without continuous user acquisition, apps face natural churn and declining user bases. Effective UA strategies help apps reach target audiences, scale user growth, and achieve business objectives. UA also enables apps to compete effectively in crowded app stores and build market presence.
How to Calculate
Key UA metrics include: Cost Per Install (CPI) = Ad Spend ÷ Installs, Install Rate = Installs ÷ Clicks × 100%, Payback Period = Customer Acquisition Cost ÷ Average Revenue Per User, and LTV:CAC Ratio = Lifetime Value ÷ Customer Acquisition Cost.
Industry Benchmarks
| Category | Average | Good Performance |
|---|---|---|
| Casual Gaming | $0.50 - $2.00 CPI | Under $1.00 CPI |
| Social Apps | $1.00 - $3.00 CPI | Under $1.50 CPI |
| E-commerce Apps | $2.00 - $5.00 CPI | Under $3.00 CPI |
| Subscription Apps | $3.00 - $10.00 CPI | Under $5.00 CPI |
Best Practices
Define clear target audience personas and user quality metrics. Test multiple ad creatives and formats to find top performers. Use attribution tools to track campaign effectiveness across channels. Implement deep linking for better user experience. Focus on LTV:CAC ratio optimization rather than just lowest CPI. Diversify across multiple channels to reduce dependency.
Examples
A fitness app runs UA campaigns across Facebook, Google, and TikTok, discovering that TikTok users have highest 30-day retention despite higher CPI. A gaming app uses playable ads for UA, achieving 40% better install rates compared to static creatives.
Notes
UA channels include paid social (Facebook, Instagram, TikTok), search (Google, Apple Search Ads), ad networks, influencer marketing, and organic optimization. iOS 14.5+ privacy changes have significantly impacted UA measurement and optimization. Creative fatigue requires constant testing and refresh of ad materials.