The world of app marketing is rapidly evolving, and user acquisition (UA) continues to be a critical driver of business growth. In 2025, mobile advertisers are shifting their focus away from simply driving large install numbers toward prioritizing profitability, sustainability, and efficiency. The goal isn't just to acquire users—it's about attracting users who provide long-term value.
To build a winning UA strategy, marketers must focus on Key Performance Indicators (KPIs) that go beyond vanity metrics and deliver actionable insights into campaign effectiveness. These KPIs help brands optimize their strategies, ensuring that each marketing dollar generates high-value users and sustainable revenue.
Are you truly maximizing the value of your UA campaigns? Do you clearly understand which KPIs are essential for your app’s long-term success?
In this article, we'll explore five essential KPIs that will define user acquisition success in 2025—and why focusing on these metrics is crucial for marketers who aim to stay ahead of the curve.
1. Return on Ad Spend (ROAS): The Profitability Benchmark
2. Retention Rate: The Key to Sustainable Growth
3. Customer Lifetime Value (LTV): The Ultimate Measure of UA Success
4. Cost Per Install (CPI): Efficiency Still Matters
5. Cost Per Action (CPA): Measuring True Acquisition Efficiency
User acquisition is no longer just about bringing users into the funnel—it’s about bringing in the right users at the right cost. ROAS (Return on Ad Spend) has become the go-to metric for measuring profitability in User acquisition campaigns. Marketers are shifting their focus from Cost Per Install (CPI) to ROAS, as it provides a clearer picture of how advertising investments translate into actual revenue. This evolution is particularly significant in the mobile gaming industry, where fierce competition and rising user acquisition costs make achieving a high ROAS crucial. For mobile games, focusing on ROAS is not just beneficial—it has become essential for long-term profitability and growth.
In 2025, short-term performance metrics are no longer sufficient. Companies are now analyzing ROAS across multiple timeframes—Day 1, Day 7, and Day 30—to track how user engagement and monetization evolve over time. The key is shifting from pure acquisition to long-term revenue optimization, ensuring that campaigns attract high-quality users who generate sustained value.
The optimal ROAS time frame depends on the app's monetization strategy. App developers have a clear understanding of when to expect revenue from new users, whether through in-app purchases, subscriptions, or ad revenue. This insight allows them to fine-tune campaigns to maximize customer lifetime value (LTV) instead of just focusing on install volume.
How to leverage ROAS for success:
Prioritizing high-LTV audiences instead of simply chasing low-CPI installs ensures sustainable revenue. To maximize ROAS, predictive modeling plays a crucial role in identifying users most likely to convert. Additionally, continuous testing and refinement of ad creatives help improve post-install engagement, leading to better retention and monetization.
A strong retention rate is what separates truly successful User acquisition campaigns from those that just look good on paper. Acquiring users is only the first step—keeping them engaged is what determines an app’s long-term success. In 2025, advertisers are focusing more on user behavior post-install, ensuring that their acquisition efforts result in users who actively engage with their app.
With rising competition in the mobile landscape, users have more choices than ever. If an app doesn’t deliver immediate value, users will churn within days. Retention Rate (D1, D7, D30) has become an essential KPI for understanding whether a User acquisition campaign is bringing in users who stay and spend.
How to improve retention:
The onboarding experience is a critical touchpoint that determines whether users continue engaging with the app. A well-structured, engaging onboarding process fosters an immediate connection and improves retention. Personalized messaging and push notifications help re-engage inactive users, while loyalty programs and in-app rewards create long-term user commitment.
Marketers today understand that not all users are equal—some bring significantly more value to an app than others. This is why LTV (Lifetime Value) has become a critical User acquisition metric, helping businesses identify the true profitability of their acquisition strategies.
Instead of focusing solely on install volume, brands are now aligning ad spend with expected user value. A well-optimized strategy prioritizes users who will generate revenue over an extended period, making LTV one of the most important indicators of campaign success.
How to maximize LTV:
To maximize Lifetime Value (LTV), brands must focus on user retention and long-term engagement. A frictionless onboarding experience ensures new users quickly understand the app’s value, increasing early retention rates. Personalized messaging and push notifications help keep users engaged, while loyalty programs and in-app rewards incentivize repeat interactions. Regularly updating content, optimizing pricing strategies, and leveraging data-driven insights also contribute to higher user lifetime value.
LTV vs. ARPU: What’s the Difference?
While both metrics measure revenue, LTV (Customer Lifetime Value) calculates the total revenue a user generates over their entire engagement with the app. ARPU (Average Revenue Per User), on the other hand, measures the average revenue per user over a specific period (e.g., daily, monthly). LTV helps predict long-term profitability, while ARPU provides a real-time snapshot of current user revenue trends.
While profitability is the new priority, CPI (Cost Per Install) plays a fundamental role in evaluating User acquisition efficiency. Marketers must ensure they are acquiring users at a cost that aligns with their expected LTV.
However, the way CPI is analyzed in 2025 is different. It’s no longer just about finding the lowest possible CPI—it’s about balancing cost efficiency with user quality. A low CPI with low retention is meaningless, just as a high CPI with strong LTV can be a winning strategy.
How to optimize CPI while maintaining user quality:
Lowering CPI while maintaining user quality requires a strategic approach that goes beyond just cost-cutting. Precision targeting ensures campaigns attract high-intent users, reducing wasted ad spend and increasing long-term engagement. AI-powered campaign optimization enhances ad creatives and refines audience segmentation, improving conversion rates while keeping acquisition costs efficient. Leveraging diverse acquisition channels—such as programmatic advertising, influencer collaborations, and referral programs—creates a balanced, cost-effective strategy that drives both quality and scale.
Cost Per Action (CPA) is a key metric in user acquisition that goes beyond simple installs, measuring the cost of users completing valuable post-install actions. Unlike Cost Per Install (CPI), CPA focuses on deeper engagement—whether a user registers, makes a purchase, subscribes, or engages with in-app features. In 2025, advertisers are prioritizing CPA-based models to ensure they’re not just acquiring users but driving meaningful conversions that contribute to revenue.
With increasing competition and rising acquisition costs, marketers must optimize their campaigns to lower CPA while maintaining high user quality. A poorly optimized User acquisition strategy might bring installs at a low cost but fail to generate valuable post-install events, leading to wasted ad spend.
How to optimize CPA:
Optimizing CPA begins with targeting high-intent users through advanced audience segmentation and behavioral analytics, ensuring that ads reach users most likely to engage. Leveraging AI-driven bidding strategies helps allocate budgets efficiently, minimizing wasted spend while maximizing conversion potential. Refining ad creatives is another crucial step, as compelling and relevant visuals enhance engagement and improve conversion rates at every stage of the funnel. Additionally, utilizing event-based optimization allows advertisers to fine-tune campaigns based on post-install behavior, focusing on actions that contribute to higher lifetime value (LTV). By adopting a CPA-driven approach, marketers can ensure that every dollar spent results in tangible user engagement, ultimately boosting app profitability and driving long-term success.
Conclusion
Winning in user acquisition in 2025 means embracing profitability, sustainability, and efficiency. To stay ahead, marketers must shift their focus from mere user volume toward meaningful long-term value. By concentrating on crucial KPIs—ROAS, Retention Rate, LTV, CPI, and CVR—you can refine your UA strategies, effectively allocate your budget, and attract users who consistently contribute to revenue.
Key Takeaways:
- Prioritize Profitability Over Volume: In 2025, user acquisition should emphasize quality and long-term value over sheer install numbers.
- ROAS is Essential for Success: Return on Ad Spend provides direct insights into profitability, guiding smart campaign investments toward high-value users.
- Retention Determines Long-Term Success: Strong retention (Day 1, 7, and 30) indicates sustainable user engagement and recurring revenue.
- Lifetime Value (LTV) Shapes Strategic Decisions: Tracking LTV helps marketers focus on acquiring profitable users and maximizing overall revenue through personalized experiences.
- Balance CPI with User Quality: Optimizing acquisition costs requires precision targeting, AI-driven insights, and diversified UA channels to acquire quality users at sustainable costs.
- Optimize CPA for Maximum ROI: Targeting high-intent users, improving creatives, and leveraging AI-driven bidding strategies help lower CPA while increasing user engagement and profitability.
At Mapendo, we provide AI-driven user acquisition solutions that empower mobile apps to scale efficiently while maximizing profitability. Our fully managed DSP automates campaign optimization, ensuring higher post-install engagement, increased revenue, and reduced acquisition costs. Whether your goal is to improve ROAS, increase LTV, or enhance retention, our advanced technology delivers measurable, sustainable results with a performance-driven approach.
