Not all app categories can boast the same degree of user retention on day 30. While news apps were reported in the third quarter of 2024 to have a retention rate of almost 10 percent, social media apps presented less than two percent retention rate after 30 days from install. Entertainment apps presented a three percent installation rate, while a shopping apps had a retention rate of around four percent one month after installation.
Before retention: user acquisition
Gaining new users is fundamental for the healthy growth of a mobile application, and app developers have an array of tools that can be used to expand their audience. As of the second quarter of 2022, CPI, or cost per install, was the most used pricing model for user acquisition campaigns according to app developers worldwide. The cost of acquiring one new install in North America was of 5.28 U.S. dollars, but driving in-app purchases in the region was more pricey, with a cost of roughly 75 U.S. dollars per user.
The future of in-app advertising
In recent years, subscriptions and in-app purchases have become more popular app monetization practices, with users finally willing to pay for app premium functionalities and services. In 2020, video ads were reportedly the most expensive type of ads to drive conversions on both iOS and Android apps, while banner ads had a cost per action (CPA) of 36.77 U.S. dollars on iOS, and 10.28 U.S. dollars on Android.