What Is the CAC for Mobile Games?
- Fátima Castro Franco
- Jul 28
- 3 min read
Updated: Jul 29
Customer Acquisition Cost (CAC) in mobile games refers to the average amount a developer or publisher spends to acquire a new player. It includes all marketing and advertising expenses required to drive a single user to install and engage with a game.
Understanding and optimizing CAC is essential for any mobile game business model. When CAC is lower than the player’s lifetime value (LTV), the game is profitable. When it’s higher, the business loses money on every acquired user.
How to Calculate CAC in Mobile Gaming
CAC is calculated by dividing the total user acquisition cost by the number of new users acquired within a specific time period.
Formula:
CAC = Total UA Spend ÷ Number of New Players Acquired
For example, if a studio spends $50,000 on ads in one month and gains 10,000 new users, the CAC is $5.00.
Why CAC Matters for Mobile Game Developers
CAC is one of the most important metrics for any mobile game publisher because it directly affects profitability and scalability. It helps you understand:
Whether your marketing spend is sustainable
How much you can afford to pay for a user
Which campaigns or channels deliver the best results
When and where to optimize your funnel
Knowing your CAC allows you to make smarter budget and growth decisions.
What Influences CAC in Mobile Games
Several factors impact customer acquisition cost:
1. Platform
iOS users tend to be more expensive to acquire than Android users due to competition and stronger monetization potential.
2. Region
User acquisition in North America and Western Europe usually costs more than in South America, Southeast Asia, or Eastern Europe.
3. Game Genre
Casual and hyper-casual games generally have lower CAC because of broader appeal and cheaper traffic. Midcore or hardcore games typically see higher CAC due to niche targeting and higher production values.
4. Advertising Channel
Some ad networks offer cheaper CPI but lower-quality users. Others have higher CAC but better retention and monetization. Balancing cost and quality is key.
5. Privacy Regulations
Apple's ATT (App Tracking Transparency) and similar changes have made it harder to target users efficiently, often increasing CAC, especially on iOS.
What’s a Good CAC in Mobile Gaming?
There’s no single benchmark, as CAC varies by genre, platform, and target market. However, average CPIs (which are part of CAC) in 2023–2024 looked like:
iOS: $4.50–$5.50
Android: $1.50–$3.00
LATAM: Below $1.00 in many cases
EMEA: $3.00–$5.00 depending on country
Simulation and puzzle games: often below $1.00
Ultimately, CAC is only “good” if it’s lower than the player’s lifetime value (LTV). That ratio (LTV > CAC) is the key to profitability.
How to Reduce CAC for Mobile Games
Here are some proven ways developers and publishers lower their CAC:
Use creative testing to find the most effective ads
Improve onboarding and conversion rates
Target markets with lower ad competition
Optimize app store listings to boost organic installs
Use AI-driven UA platforms to improve campaign efficiency
Shift to first-party data strategies to reduce reliance on expensive targeting
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