Understanding User Acquisition Metrics: CPI, CPA, LTV, and Beyond

Successful user acquisition requires deep understanding of key performance metrics. Let's break down what matters most.

Core Acquisition Metrics

Cost Per Install (CPI)

The amount you pay to acquire a single app install.

Formula: Total Ad Spend ÷ Total Installs

Benchmark: Varies by vertical

• Gaming: $1.50 - $4.00
• Finance: $3.00 - $8.00
• E-commerce: $2.00 - $5.00

Cost Per Action (CPA)

Cost to get a user to complete a specific action (registration, purchase, etc.)

Formula: Total Ad Spend ÷ Total Conversions

Lifetime Value (LTV)

Total revenue a user generates throughout their lifetime.

Formula: ARPU × Average Lifetime

Return on Ad Spend (ROAS)

Revenue generated per dollar spent on advertising.

Formula: Revenue ÷ Ad Spend

Target: 3:1 or higher for sustainable growth

Advanced Metrics

Retention Rate

Percentage of users who return after installation.

• Day 1 Retention: 35-40% (good)
• Day 7 Retention: 15-20% (good)
• Day 30 Retention: 8-12% (good)

Payback Period

Time required to recover acquisition costs.

Target: <90 days for most verticals

Incremental LTV

Additional value generated from acquired users vs. organic users.

Optimization Strategies

• Focus on LTV:CPA Ratio

- Aim for 3:1 or higher

- Track by cohort and channel

• Monitor Retention

- Optimize onboarding flow

- Engage users early and often

• Channel Performance

- Track metrics by source

- Double down on best performers

• Segment Analysis

- Break down by geography

- Analyze by user demographics

- Compare device types

Common Pitfalls

❌ Optimizing for installs alone

❌ Ignoring retention metrics

❌ Not tracking post-install events

❌ Failing to segment data

❌ Short-term thinking on LTV

Best Practices

✅ Set up proper attribution

✅ Track cohort performance

✅ Monitor retention rates

✅ Calculate true LTV

✅ A/B test creatives and audiences

Using Data to Drive Decisions

• Establish baseline metrics
• Set realistic goals
• Test and iterate
• Scale what works
• Cut underperforming channels

GemiAd provides comprehensive tracking and reporting to help you understand and optimize every metric that matters to your user acquisition success.