In today's smartphone-driven world where there's an app for almost everything, standing out in the app store isn’t always easy. That's where user acquisition statistics come into play, helping businesses make informed decisions to boost their app's visibility and success.
Can you imagine life without your smartphone? These days, there seems to be an app for pretty much everything! Whether you're craving a snack or need to sort out your finances, all you need is your smartphone and an internet connection.
But here's the thing: with millions of apps floating around in the various app stores, it's tough for app developers to get noticed. That's where user acquisition statistics come into play. If you’re reading this, you already know that making data-driven decisions is smart for any business looking to make money.
So, in this blog, we're diving into the most up-to-date user acquisition statistics for 2024 to help you make smart business decisions. You’ll find all the important numbers, trends, and cool strategies to help your app stand out from the competition.
The state of the mobile app market
1. The mobile app market continues to boom, with millions of apps competing for attention. The global mobile app revenue reached $581.9 billion in 2020, projected to exceed $613 billion by 2025.
2. The growth of the app market comes as no surprise, as over half, or 54%, of the world's population—about 4.3 billion people—have smartphones.
3. Between 2016 and 2022, the number of app downloads continued to rise steadily from 140 to 255 billion. However, in 2023, global app downloads reached only 257 billion with just a one percent year-over-year increase.
4. In 2023, there was nearly $1.5 billion spent every day on app store purchases and mobile advertising. Of this, $362 billion was spent on mobile ads, marking an 8% increase compared to the previous year, driven by the popularity of short-form video and video-sharing apps.
Key user acquisition metrics
Cost Per Install (CPI):
5. The average global rate of CPI for Android apps is $0.53, while for iOS, the average CPI is higher at $1.24. The average global CPI is $2.24 when considering every region, platform, and device.
6. Looking at the average CPI of popular social media platforms, Facebook comes in at $2.66 and Instagram is at a whopping $7.43 (as of February 2024).
7. It’s also important to note that CPI varies depending on location and category. In the US, the average CPI is $5.11 while in LATAM the average is $0.30. Among different app categories, Fintech is emerging as the leader with the highest average CPI of $6.91, surpassing mobile gaming at $6.60 and followed closely by the shopping category with an average CPI of $5.00.
Conversion Rate (CR):
8. CR signifies the percentage of users who complete a desired action, such as making a purchase or signing up. On average, the global app conversion rate stands at 27.1%.
Customer Acquisition Costs (CAC):
9. Customer acquisition costs have gone up by 60% in the last five years, mainly due to factors like iOS 14.5, the end of third-party cookies, and stricter privacy laws. Also, with a quarter of digital ad spending going to social media, brands are facing higher costs because targeting precision has decreased.
Trends shaping user acquisition strategies
Video campaigns:
10. A 2022 survey of app developers worldwide found that around 70% of respondents boosted their budget for user acquisition campaigns.
11. Expanding reach to new locations and demographics was also a common strategy, with 58% of respondents doing so in their latest campaigns.
12. Additionally, many developers (56%) shifted their focus to using video formats for their campaigns.
Influencer marketing:
13. Collaborating with influencers can significantly boost app visibility and credibility. Research shows that influencer marketing campaigns generate $6.50 for every dollar spent.
App Store Optimization (ASO):
14. Optimizing app store listings with relevant keywords, captivating visuals, and compelling descriptions is crucial for improving app discoverability. Apps with higher ratings and positive reviews tend to rank higher in search results.
15. Reports indicate that 80% of customers steer clear of apps rated lower than 4.0 stars, while 90% of users take the time to review comments before deciding to install an app.
Data-driven decision-making:
16. Did you know that 40% of Gen Z prioritize social media platforms like TikTok and Instagram over searching on Google? You need to have a deep understanding of your target audience and their app usage habits in order to reach them where they most spend time.
Strategies for effective user acquisition:
Targeted advertising:
17. Leveraging data-driven insights to identify and target the right audience segments can lead to higher conversion rates and lower acquisition costs.
Retargeting campaigns:
18. Retargeting users who have shown interest in your app but haven't completed the desired action can yield promising results. Studies indicate that retargeted ads have a 70% higher conversion rate compared to regular display ads.
Search result ads:
19. The Apple App Store has an advertising option for search results ads, which enables app to “reach users the moment they’re searching for apps to download”. The officially reported average conversion rate for this channel is 60%, making it an excellent strategy for user acquisition.
Remember retention:
20. Acquisition is the first step, retention is what matters: The majority (70%) of mobile app users will stop using an app if it takes too long to load. Even a one-second delay in response can lead to a 7% drop in conversion rates. Additionally, nearly half of all apps are uninstalled within the first month of being downloaded.
Data-driven decisions to fuel app growth
Wrapping up our exploration of the top 20 mobile app user acquisition statistics, it's clear that making data-driven decisions is key to app growth. From the jaw-dropping growth of the app market to the nitty-gritty details of key metrics and trends, we've covered it all. It's pretty wild to think about how far we've come and how much potential there still is in this space!
So, whether you're a seasoned app developer or just dipping your toes into the mobile app market, keep these stats in mind as you navigate this dynamic industry. Remember, in the dynamic realm of mobile apps, the possibilities are endless—and with the right insights, success is just a download away!
