UA isn’t just about driving installs. The real question is: are those users worth it?
That’s where three core metrics come in: ROAS, LTV, and retention rate. Together, they reveal not just how many users you acquire, but how valuable they are, how long they stay, and whether your campaigns are truly sustainable.
This new installment of Gamelight’s Growth Guides will break down these fundamentals and show why they should guide every UA decision you make.
"Retention is the new benchmark, surpassing mere user acquisition in mobile games. Understanding core value metrics like LTV and retention rate drives smarter UA strategies focused on long-term engagement rather than just user volume. The smartest publishers I see today build UA, monetization, and live ops together. That balance drives not only installs, but lasting player loyalty."
As Ahmad Shaquib,
COO at GamingonPhone, puts it:
At Gamelight, we rely on these metrics every day to optimize campaigns and match apps with high-quality users. Whether you’re new to growth marketing or looking to strengthen your strategy, these are three numbers you should always keep in mind.
WHAT IS ROAS?
Return on Ad Spend (ROAS) is a meaningful metric that shows how much revenue you’re making for every dollar (or euro, etc.) you spend on ads.
How to calculate ROAS
ROAS = Revenue from a campaign ÷ Cost of that campaign
For example:
If you spend $1,000 on ads and earn $2,500 from the users who came from that campaign, your ROAS would be 2.5, or 250%.
Why it matters
ROAS can show if your campaigns are actually profitable. Having a ROAS over 1 (or 100%) means you’re making more than you’re spending; however, the number in itself is not the only relevant aspect, as timing is also important.
ROAS should be checked over different time periods (such as Day 1, Day 7 and Day 30)
ROAS can change depending on the channel, campaign and even ad creative used
ROAS alone won’t tell you how valuable or loyal your users are; for that, you need to look at LTV and retention
Robert Kramer, Executive Vice President Global Partnerships at Appnomix, highlights how LTV is evolving in today’s app economy:
“Lifetime value now extends beyond in-app purchases and ads. Leading mobile marketers are boosting LTV by integrating e-commerce outside the app, turning apps into gateways that drive customer actions across multiple touchpoints and deepen engagement.”
WHAT IS LTV?
Lifetime Value (LTV) indicates the total amount of revenue a user is bringing to your app over time, from the day they install it until they stop using it.
How to estimate LTV
There are different ways to calculate LTV, depending on how your app makes money.
For apps that monetize through in-app purchases or subscriptions:
For apps that monetize through ads:
Average revenue /
user
How long
they stay
active
Average revenue /
user
How long
they stay
active
No matter the approach you use, you will need good data. The more accurate your retention and monetization tracking is, the better your LTV estimates will be.
Why it matters
If you know your users’ LTV, you can figure out how much you can afford to spend on acquiring them. For example, if you know a user will most likely bring in 10$, you can spend less than that in their acquisition while still being profitable.
LTV can also help you when planning your budget, deciding which traffic sources you will invest in, and understanding how your app is performing beyond just downloads or installs.
Tips for improving LTV
Ensure users engage early, within the first few sessions
Innovate and experiment with offers, rewards or content that encourage longer sessions
Enhance monetization (for example, through better ad placements or smarter IAP offers)
WHAT IS RETENTION RATE?
Retention rate is an important metric that measures how many users come back to your app after they install it. As it happens with ROAS, it’s usually tracked over time, so you will see it like Day 1, Day 7, or Day 30 retention rate.
Why it matters
Retention helps you understand if users find your app useful or worth returning to. If you see users only opening the app on Day 1, that means they’re unlikely to make purchases or view ads, and this indicates lower revenue and also lower LTV.
"Let’s be blunt: acquisition is just renting users. Retention is what builds a business. It’s the single most critical metric because it’s the ultimate multiplier for your LTV. Pouring budget into acquisition while your app leaks users is the fastest way to burn cash. ROAS might look fine on Day 3, but it’s meaningless if 95% churn by Day 7.
The factors that influence retention aren’t a mystery; they’re just hard to do well. You need to stay relevant by solving problems, entertaining users in the app, and keeping the conversation going. The fastest way to lose a user is to give them the silent treatment after install. You have to guide them, react to their behavior, and predict what they’ll need next. But this is just the beginning.
To retain users beyond Day 1 or Day 7, you need to give them a second, third, and tenth reason to return. It’s never about sending tons of messages — it’s about using the right channels. Personalized journeys, smart segmentation, and contextual messaging are there for you to turn an app into part of someone’s routine."
As Max Konev, CEO of Pushwoosh, explains:
Apps with strong retention usually have loyal users and, as a consequence, more consistent revenue. Even small improvements in retention can make a big difference in profitability.
SUSTAINABLE UA GROWTH
As Max Konev, CEO of Pushwoosh, further highlights:
"ROAS is a snapshot; LTV is a movie; retention is the director. Without retention, your movie ends after the first scene, and any ROAS you celebrated turns out to be misleading.
With strong retention, you can afford a higher CAC because payback is guaranteed over a longer arc. That’s when growth becomes capital-efficient. The healthiest apps don’t chase immediate ROAS spikes but engineer long-term monetization through smart retention mechanics. This creates a self-reinforcing loop: higher retention → higher LTV → greater budget flexibility → sustainable growth.
In practice, this means aligning marketing, product, and data teams around user lifetime impact, not campaign vanity metrics."
HOW ROAS, LTV AND RETENTION WORK TOGETHER
When users stay longer (retention), they generate more value (LTV)
When LTV increases, you can spend more confidently on acquisition
When your revenue is bigger than your spend, ROAS improves
ROAS, LTV, and retention are all connected. When one improves, the others usually do too:
Turning these insights into action is what separates sustainable growth from short-term wins. The real challenge for UA teams is connecting these metrics and using them as a single framework for smarter, data-led scaling.
CONCLUSION
​"ROAS, LTV, and retention are the foundation of any sustainable UA strategy: they’re the pulse of your app’s health. At Gamelight, we align all three in every campaign to understand what truly drives profitability. Once you see how these metrics connect, scaling efficiently becomes a matter of structure, not luck."
Günay Azer, Co-Founder at Gamelight, explains:
ROAS, LTV, and retention are not standalone metrics; they reinforce each other. Strong retention increases LTV, higher LTV supports healthier ROAS, and ROAS confirms whether your spend is paying back.
When you evaluate campaigns through this lens, you move past surface-level results and gain a clearer view of long-term profitability.
For UA teams, the goal is to acquire users who generate lasting value. Keeping these three metrics at the center of your strategy ensures every dollar invested works harder over time.
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