How Much You Should Spend on App Marketing (2025)

Most app marketing budgets fail not because they're too small, but because they're untethered from any clear framework.

Teams either underspend and wonder why growth stalls, or overspend and burn cash without meaningful return.

The solution isn't to copy what competitors spend. It's to build a budget that aligns with your revenue model, acquisition economics, and growth stage.

Here's how to determine what you should actually spend on app marketing.

Understanding App Marketing Budget Benchmarks

Global app install ad spend is projected to reach $94.9 billion in 2025, up 13% from the prior year. This reflects continued investment despite economic headwinds, but it doesn't tell you what your specific app should spend.

The more useful benchmark is percentage of revenue.

Most app publishers allocate 25-40% of total revenue toward marketing, with variation driven by:

• Competition intensity: Crowded categories require higher spend to maintain visibility
• Business phase: Early-stage apps invest more aggressively to build market position
• Monetization model: Subscription apps can afford higher CAC than ad-supported apps
• Organic contribution: Strong word-of-mouth or viral mechanics reduce paid dependency

New launches typically allocate 20-40% of their total development budget to marketing activities, front-loading investment in the first 6-12 months.

Revenue-Based Budget Framework

The most sustainable approach ties marketing spend to revenue or runway, not arbitrary targets.

For revenue-generating apps:

Calculate your current monthly revenue, then allocate 25-40% to marketing. If you're generating $100K/month in revenue, your marketing budget should range from $25K to $40K per month.

Early-stage apps often start at the higher end (35-40%) to accelerate growth, then optimize down to 25-30% as organic channels mature.

For pre-revenue apps:

Base your budget on available runway and time to monetization. If you have $500K in funding and a 12-month timeline to revenue, your monthly burn determines how much you can allocate to marketing while maintaining 18-24 months of runway.

A common split is 40-50% of monthly burn going to marketing, with the remainder covering product, operations, and overhead.

Minimum Viable Marketing Spend

Below a certain threshold, marketing budgets don't fail—they just don't generate meaningful data.

For competitive app markets, minimum monthly marketing spend should range from $10,000 to $50,000 to achieve:

• Statistical significance: Enough volume to test and optimize campaigns
• Platform minimums: Most channels require $1,500-$3,000/month to gather actionable insights
• Multi-channel presence: Testing 2-3 channels simultaneously to identify winners

If your available budget is below $10K/month, you're often better off focusing on organic growth strategies (ASO, content, community) until you can fund a proper paid acquisition program.

Cost Per Acquisition Benchmarks

Marketing budgets ultimately translate to users acquired. Understanding what you'll pay per user helps set realistic expectations.

Current CPA benchmarks for 2025:

Metric	Cost Range
Basic Install (CPI)	$2.24 globally
Qualified User (full onboarding)	$10-$30
iOS CPI (global)	$3.60 average
iOS CPI (North America)	$5.00+
Android CPI (global)	$1.20 average
TikTok Ads CPI	$2.88
Facebook Ads CPI	$3.75
Instagram CPI	$3.50

Source: Business of Apps, BusinessDojo, industry benchmarks 2024-2025

These costs vary significantly by category, geography, and targeting sophistication. Gaming and finance apps typically see higher CPIs due to competition and user quality requirements.

Budget Allocation by Launch Phase

Your marketing spend should shift as your app matures.

Pre-launch (20-30% of total marketing budget):

• ASO foundation and keyword research
• Landing page and preview assets
• Beta user acquisition and testing
• Influencer and press outreach

Launch (40-50% of total marketing budget):

• Paid user acquisition across primary channels
• PR and launch coverage
• App store featuring campaigns
• Initial retention and re-engagement

Post-launch (20-30% of total marketing budget):

• Ongoing paid acquisition
• Retention and lifecycle marketing
• Content and community building
• Product iteration based on user feedback

This phased approach concentrates spend when it matters most—during the launch window when stores favor new apps and initial momentum determines long-term trajectory.

Performance vs. Brand Budget Split

Not all marketing dollars drive immediate installs. Some build awareness and trust that convert over time.

The recommended split between performance marketing and brand building:

• Performance marketing (60-70%): Paid UA, retargeting, ASO, conversion optimization
• Brand building (30-40%): Content marketing, influencer partnerships, PR, community

Performance marketing delivers measurable, short-term ROI. Brand building creates compounding value but requires patience and consistent investment.

Early-stage apps often skew heavier toward performance (70-80%) to prove unit economics, then gradually shift toward brand as they scale and seek differentiation.

Building Your Specific Budget

Here's a practical framework to calculate your app marketing budget:

Step 1: Determine your available capital

• If revenue-generating: 25-40% of monthly revenue
• If pre-revenue: 40-50% of monthly burn, preserving 18-24 months runway

Step 2: Validate against minimum thresholds

• Can you afford $10K-$50K/month for meaningful testing?
• If not, focus on organic until you can fund proper paid programs

Step 3: Calculate expected user volume

• Divide monthly budget by target CPA ($10-$30 per qualified user)
• Example: $30K budget ÷ $20 CPA = 1,500 users/month

Step 4: Model against revenue goals

• Does this user volume support your growth targets?
• Does your LTV support this CAC at a healthy 3:1 ratio?

Step 5: Allocate across phases and channels

• Split between performance (60-70%) and brand (30-40%)
• Distribute performance budget across 2-4 validated channels

When to Increase or Decrease Spend

Your marketing budget isn't static. It should respond to performance and market conditions.

Increase spend when:

• LTV:CAC ratio exceeds 3:1 and you're not capital-constrained
• Payback period is under 6 months and you have access to growth capital
• You're scaling a proven channel and incremental ROAS remains strong
• Market opportunity is expanding (seasonal demand, new geography, etc.)

Decrease spend when:

• LTV:CAC ratio falls below 2:1 and trends aren't improving
• Payback period exceeds 12 months without a clear path to profitability
• Channel performance degrades and optimization efforts aren't working
• Runway drops below 12 months and fundraising isn't imminent

Common Budget Mistakes to Avoid

Spreading too thin: Allocating $2K across five channels rarely works. Concentrate spend on 2-3 channels until you prove winners.

Ignoring experimentation: Reserve 10-15% of your budget for testing new channels, creatives, and audiences. Stagnant strategies decay over time.

Optimizing for installs instead of value: Cheap installs from poor-quality users destroy unit economics. Optimize for qualified users or early revenue signals.

Forgetting organic investment: Paid acquisition without strong ASO, product, and retention is pouring water into a leaky bucket.

Final Considerations

App marketing budgets are less about what the market spends and more about what your unit economics can sustain.

Start with clear acquisition cost targets based on your LTV. Work backward to determine how much you can spend per user while maintaining a healthy 3:1 ratio. Then build a budget that delivers that volume at that cost.

If your available capital doesn't support competitive CPA benchmarks, focus on organic strategies until your unit economics improve or you secure growth funding.

The best marketing budget is the one you can measure, optimize, and scale profitably.

FAQs

What percentage of revenue should I spend on app marketing?

Most app publishers allocate 25-40% of total revenue toward marketing, depending on competition and business phase. Early-stage apps often invest 30-35%, while established apps may reduce to 20-25% as organic growth accelerates.

What's the minimum viable monthly marketing budget for apps?

For meaningful visibility in competitive markets, minimum monthly marketing spend should range from $10,000 to $50,000. Below this threshold, you may struggle to gather statistically significant performance data or compete for user attention.

How much does it cost to acquire one app user?

Most apps spend between $10 and $30 per fully qualified user in 2025. Basic install costs range from $2.24 globally, with iOS CPI averaging $3.60 and Android CPI averaging $1.20. North American markets see higher costs, closer to $5 per install on iOS.

Should I spend the same amount every month?

No. Your budget should flex based on performance, seasonality, and business objectives. Increase spend when you're scaling proven channels with strong unit economics. Decrease when performance degrades or runway tightens.

How much should I spend on iOS vs. Android?

Allocate based on where your target users are and which platform delivers better economics. iOS typically has higher CPI but also higher LTV in many categories. Start by splitting budget proportionally to your target audience distribution, then optimize based on actual LTV:CAC performance.

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App marketing budgets work best when they're tied to measurable outcomes and sustainable unit economics. Build a framework that responds to data, not guesswork.