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What is User acquisition (UA)?

Definition, examples, and more

Definition

The combination of paid and organic strategies used to drive new installs. This includes channels like Facebook Ads, Apple Search Ads, referrals, influencer campaigns, and App Store Optimization (ASO). UA performance is typically measured by metrics like CAC, ROAS, and trial conversion rate.

How to Calculate

Blended CAC = Total Acquisition Spend / Total New Subscribers. Channel CAC = Channel Spend / Channel Subscribers. Organic % = Organic Installs / Total Installs x 100.

Example

A language app allocates $100K/month across channels: Apple Search Ads ($40K, $8 CPA), Facebook ($30K, $14 CPA), TikTok ($15K, $18 CPA), and influencer ($15K, $6 CPA). ASO drives 40,000 additional organic installs at $0 CPA. Blended CPA across all sources: $4.20.

Why User acquisition (UA) Matters

UA is the engine that feeds your subscription funnel — but spending without measurement is burning money. A dating app spent $80K/month on 6 channels. Attribution data revealed 2 channels drove 75% of subscribers while consuming only 40% of budget. Reallocating spend based on subscriber-level ROAS (not just installs) doubled subscriber growth without increasing budget.

Frequently Asked Questions

What is the best UA channel for subscription apps?

Apple Search Ads typically delivers the highest-quality subscribers (high intent, searching for apps). ASO is the best ROI (free installs). Facebook and TikTok provide scale but lower subscriber quality. The optimal mix depends on your category, budget, and LTV by channel. Test and measure relentlessly.

How much should I spend on UA?

Spend up to the point where marginal CAC equals marginal LTV. Practically: if your LTV/CAC ratio drops below 2:1 on a channel, you are overspending. Most growing subscription apps spend 30-50% of revenue on UA. Start small, measure ROAS, and scale channels that work.

How do I balance paid and organic UA?

Invest in ASO first (it improves paid conversion too). Build referral and sharing loops for compounding organic growth. Use paid UA to accelerate and fill gaps. The healthiest subscription apps get 40-60% of installs organically — reducing dependence on any single paid channel.

Category
Subscription App Terminology
Related Area
Mobile App Growth & Monetization

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