The User Acquisition for Mobile Games: Cost Strategies Unveiled

The mobile gaming industry has seen remarkable growth, with users increasingly gravitating toward immersive and engaging experiences on smartphones and tablets. However, amidst this growth, one critical factor that often determines the success or failure of a mobile game is the cost of acquiring new users.

Navigating the complex landscape of user acquisition cost (UAC) requires a strategic approach and a deep understanding of the many factors that influence it.

Unpacking the Concept of User Acquisition Cost

User acquisition cost (UAC), also known as customer acquisition cost (CAC), refers to the total amount a developer or publisher spends to attract and onboard a new user. It is calculated by dividing the total user acquisition spend by the number of users acquired during that period.

Understanding and optimizing UAC is essential. A well-executed acquisition strategy can improve profit margins and support sustainable growth. A poorly managed approach, on the other hand, can drain resources and limit a game's potential.

Factors Influencing User Acquisition Costs

1. Operating System: iOS vs. Android

One major variable is the operating system. Historically, acquiring users on iOS has been more expensive than on Android, largely due to Android's wider global reach—especially in Latin America, Europe, and Asia.

Recent data shows that this gap is narrowing. In 2022, the average cost per install (CPI) was:

• iOS: $5.11

• Android: $4.61

This convergence reflects changes in privacy regulations, such as Apple’s App Tracking Transparency (ATT) framework and the decline of third-party cookies

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2. Geographical Regions and Markets

UA costs differ widely across regions due to differences in income, affordability, and market maturity.

In 2022:

• United States: CPI held steady at $5.11

• EMEA (Europe, Middle East, Africa): Rose to $4.96

• Brazil (LATAM): Accounted for over 50% of app install spend, with a CPI of $0.75

These differences highlight the importance of regional strategy in UA planning.

3. Game Genre and App Vertical

Genres and verticals significantly influence UAC. Casual games, shopping apps, and fintech apps all show different acquisition behaviors and cost structures.

Average CPIs:

• Casual games: ~$1

• Simulation games: $0.59 (lowest)

• iOS vs. Android for games: $2.23 vs. $0.63

• Shopping apps (North America): $4.74

• Shopping apps (LATAM): $1.42

• Fintech apps (global): $2.33

• Fintech apps (LATAM): $1.60 (with lower registration rates: 18.3%)

Understanding vertical performance allows for better budget allocation and audience targeting.

4. Social Media and Advertising Channels

Ad platform choice also impacts UAC. Platforms like Facebook and Instagram have evolved in response to privacy regulations, which has affected their CPI trends.

• Facebook Ads:

  • CPI dropped from ~$4 (2019) to $1.62 (2022) due to IDFA deprecation

• Instagram Ads:

  • CPI dipped in 2020 but recovered to $2.33 by 2022

These shifts emphasize the need to test multiple channels and adapt quickly to platform changes.

Strategies for Optimizing User Acquisition Costs

1. Partner with UA Companies and Agencies

Working with specialized user acquisition partners offers access to performance data, campaign testing, and budget optimization expertise. These partners can guide strategy and execution to reduce UAC over time.

Platforms like Gamelight offer self-serve dashboards and AI-driven tools to launch campaigns quickly and target efficiently—without creative production requirements.

2. Improve Conversion Rates and Personalization

Boosting conversion at each funnel stage helps lower acquisition costs. Tactics include:

• A/B testing

• Streamlined onboarding

• Personalized messaging

• Retargeting drop-off users

Improving the user journey drives more installs per dollar spent.

3. Embrace New Marketing Approaches

Innovative strategies like Purchase Behavior Targeting (PBT) shift focus from “who users are” to “what they buy.” Tools like this enable more efficient targeting in a privacy-conscious environment.

4. Leverage Data and Analytics

Strong UA strategies rely on data. Use analytics to:

• Monitor campaign performance

• Identify cost-effective channels

• Optimize retention and LTV

• Make informed allocation decisions

This reduces waste and maximizes ROI.

5. Invest in Retention and Engagement

Acquiring users is only half the equation. Long-term engagement boosts lifetime value (LTV), improving the ROI of each acquired user. Key tactics include:

• Gamification

• Community features

• Regular content updates

High retention helps justify higher CPIs and supports sustainable scaling.

Conclusion

Managing user acquisition cost is essential for mobile game growth. By understanding the key drivers of UAC, using the right platforms, leveraging data, and focusing on long-term value, developers can reduce costs while improving performance.

As the market evolves, flexibility and innovation will be critical. A strategic, data-driven approach will help teams stay competitive and unlock scalable growth opportunities.

Are you prepared to transform your game's outreach?

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