Average mobile game app acquisition costs are down as engagement rates increase

Acquisition costs across mobile game marketing are decreasing according to new data from mobile user acquisition company Liftoff.

As the latest Mobile Gaming Apps Report shows, average costs to acquire installs for gaming apps were 8% lower compared to the previous year ($4.07). Costs to acquire registering users was 23% lower than the previous year ($8.94). Meanwhile, the cost to acquire users who made an in-app-purchase dropped significantly from $50.69 to $28.05. Engagement rates increased 67% over the previous year.

Based on the analysis of 47 billion mobile ad impressions and 15 million app installs between June 2017 and May 2018, the report also found that post-install conversion rates went up.

Although iOS gamers who register are more expensive ($11.08) to acquire compared to Android gamers ($6.37), their in-app purchase conversion rate was almost double that of Android gamers at 21%.

Interestingly, women continue to drive install-to-in-app purchase rates being 79% higher than their male counterparts. The finding shows that game app marketers may wish to focus on targeting women more effectively.

According to the report’s regional breakdown, North America has a higher cost-per-install at $4.66 compared to EMEA ($2.63) and APAC ($2.62) signalling the region’s growing competition.

However, install-to-in-app-purchase rates in EMEA almost quadrupled year-on-year highlighting the region’s continued growth.

At the same time, the cost to acquire users who make in-app purchases in APAC rose 41% in APAC.

The report further notes that post-holiday season had the greatest opportunity for gaming app marketers as costs to acquire users who made in-app purchases dropped to $18.13 during January following the holidays.