Growth is a tricky thing. If you spend too little, you stay invisible. If you spend too much without a plan, you are basically just burning cash for the sake of it. The real difference between an app that actually scales and one that just exists comes down to how you measure success. It isn’t about having a massive creative budget. It is about knowing exactly where every dollar is going.
Performance marketing is all about being accountable. Even though things like Apple’s App Tracking Transparency have made data a bit harder to read lately, you still have to know which numbers to watch.
Here are the KPIs that actually matter if you want your mobile brand to get ahead.
Why KPIs Matter in Performance Marketing
You cannot fix what you cannot see. In this world, your KPIs are the only things keeping you honest. They tell you if that big TikTok for Business campaign actually brought in customers or if you just paid for a bunch of accidental clicks from bots.
Essentially, these numbers do three things:
- They show you if your spending is efficient.
- They point out which ads or channels are actually working.
- They give you the data you need to predict if you can afford to grow even faster.
If you are not tracking these, you are just guessing.
Core Acquisition Metrics
Getting people to find your app is the first step. Everyone wants to go viral, but professional marketers care about what it costs to get a foot in the door.
1. Cost Per Install (CPI)
This is the most basic metric in the mobile world. You take your total ad spend and divide it by the number of installs. Prices change depending on what kind of app you have. A simple game might cost fifty cents per install, while a bank app might cost fifteen dollars. It is a good starting point, but it does not tell the whole story.
2. Customer Acquisition Cost (CAC)
People often mix this up with CPI, but they are very different. An install is just a download. A customer is someone who actually does something, like signing up for an account or buying a subscription. CAC tells you how much you really spent to get someone into your ecosystem. This is the number that determines if your business is actually going to survive.
3. Click-Through Rate (CTR) and Install Rate (IR)
These tell you if your creative work is doing its job. CTR shows if people like your ad enough to click it. IR shows if your App Store page is convincing enough to make them download. If people click the ad but do not download the app, you have a problem with your messaging.
Retention and Engagement Metrics
Getting someone to download your app is easy compared to getting them to keep it. Most apps lose the majority of their users in the first few days.
4. Day 1, Day 7, and Day 30 Retention
This is the percentage of people who come back after a certain amount of time.
- D1 Retention shows if your first impression was good.
- D30 Retention shows if your app has real value. If your Day 1 retention is lower than twenty-five percent, you should probably stop spending money on ads and go fix your app first. You can check current mobile retention benchmarks to see how you stack up.
5. Daily/Monthly Active Users (DAU/MAU)
This ratio tells you how “sticky” your app is. If your ratio is twenty percent, it means your average user opens the app about six days a month. If you want people to use your app every day, this is the number to watch.
6. Churn Rate
This is just the opposite of retention. It tells you how fast people are leaving. If you have a subscription app, you need to know exactly why people are quitting. Is it too expensive? Is it buggy? You have to find out.
Revenue and Profitability Metrics
At the end of the day, your business has to make money. Likes and views do not pay the bills.
7. Lifetime Value (LTV)
LTV is an estimate of how much money a user will bring in before they stop using your app forever. This is the most important number in your entire business. Your LTV has to be higher than your CAC. If it isn’t, you are losing money on every person you “win.”
8. Return on Ad Spend (ROAS)
This is simple math: how many dollars did you make for every dollar you spent on ads? Looking at your Day 7 ROAS gives you a quick idea if a campaign is working, while Day 180 ROAS tells you if you are actually making a profit in the long run. Google Ads Help offers a great breakdown of how to target for specific returns.
9. ARPU and ARPPU
Average Revenue Per User (ARPU) looks at everyone. Average Revenue Per Paying User (ARPPU) only looks at the people who actually spend money. Knowing the difference helps you figure out if you need more users or if you just need to make your current users spend more.
KPI Benchmarks for Mobile Apps
Every industry is different, but here are some general numbers that usually mean you are on the right track:
| Metric | Good Benchmark | Context |
|---|---|---|
| D1 Retention | 35% to 40% | High is better for games |
| D30 Retention | 10% to 15% | Standard for most apps |
| CPI (iOS) | $2.00 to $5.00 | Depends on the country |
| ROAS (D30) | 20% to 30% | Good early recovery |
| LTV:CAC Ratio | 3:1 | The target for scaling |
Questions to Answer
Which KPIs matter most?
If you only have time to look at three things, make them LTV, CAC, and Retention. If your users are worth more than it costs to get them, and they are actually staying around, you can afford to scale up.
Which metrics should be ignored?
Stay away from “vanity” metrics. A million downloads sounds great, but it means nothing if everyone deletes the app ten minutes later. The same goes for social media likes. They might feel good, but they rarely translate directly to revenue. Also, do not obsess over CPM. Cheap traffic is usually low-quality traffic. Focus on the results instead.
The Bottom Line
Performance marketing is not just about buying downloads anymore. It is about finding the right people at a price that makes sense for your business. If you focus on the relationship between what you spend (CAC) and what you earn (LTV), you will be able to grow without going broke.
Stop worrying about the total number of installs and start focusing on the value of the users you actually have.
