Mobile Game User Acquisition: The Ultimate Guide to Key Terms and Tactics

User acquisition (UA) is the lifeblood of mobile game success. To help you navigate this complex field, we’re expanding our glossary with double the terminology, covering everything from ad networks to retention metrics. Whether you’re a developer, marketer, or enthusiast, mastering these terms will empower your growth strategy.

Expanded User Acquisition Glossary

Here are over 40 essential terms you need to know:

1. User Acquisition (UA): The process of attracting new players to your game.
2. Lifetime Value (LTV): The predicted revenue a user will generate throughout their time in your game.
3. Revenue Per Download (RPD): The average revenue generated per game install.
4. In-App Purchase (IAP): Transactions made within the game using real money.
5. In-App Advertising (IAA): Revenue from ads shown inside the game.
6. Cost Per Action/Acquisition (CPA): The cost to acquire a user who completes a specific action (e.g., installs or purchases).
7. Conversion Rate (CR): The percentage of users who complete a desired action.
8. Average Revenue Per Daily Active User (ARPDAU): Daily revenue per active user.
9. Return on Investment (ROI): The profitability of your marketing spend.
10. Cohort Analysis: Tracking groups of users who started at the same time to analyze retention and monetization.
11. Identifier for Advertisers (IDFA): Apple’s device identifier for ad tracking.
12. Google Advertising ID (GAID): Android’s equivalent to IDFA.
13. Click-Through Rate (CTR): The percentage of users who click on an ad.
14. Install Rate (IR): The percentage of users who install the game after clicking an ad.
15. Day 1 Retention (D1R): The percentage of users who return to the game one day after installing.
16. Day 7 Retention (D7R): The percentage of users who return seven days after installing.
17. Day 30 Retention (D30R): The percentage of users who return thirty days after installing.
18. Churn Rate: The percentage of users who stop playing your game within a given period.
19. Engagement Rate: The frequency and depth of user interaction with your game.
20. App Store Optimization (ASO): Optimizing your game’s store listing to increase visibility and downloads.
21. Creative Testing: A/B testing different ad creatives to find the most effective ones.
22. Bid Strategy: How much you’re willing to pay for each install or action in ad auctions.
23. Attribution: The process of identifying which marketing channel or campaign led to a user’s install.
24. Lookalike Audiences: Targeting users similar to your best existing players.
25. Organic Users: Players who install your game without paid marketing.
26. Paid Users: Players acquired through paid marketing campaigns.
27. Monetization Strategy: How your game generates revenue (IAP, IAA, subscriptions, etc.).
28. Key Performance Indicator (KPI): Metrics used to measure the success of your UA campaigns.
29. Funnel Analysis: Examining the steps users take from first seeing an ad to in-game actions.
30. UA Manager: The professional responsible for running and optimizing user acquisition campaigns.
31. ARPU (Average Revenue Per User): Average revenue per user over a period.
32. Purchase Frequency: How often users make purchases.
33. Gross Margin: Revenue minus cost of goods sold, as a percentage.
34. CAC (Customer Acquisition Cost): Cost to acquire a new user.
35. Social LTV: LTV adjusted for virality, including K-factor.
36. K-factor: Virality index, measuring user referrals.
37. Session Length: Average duration of a gameplay session.
38. Frequency of Play: Number of times a user launches the game.
39. Payback Period: Time to recover user acquisition costs.
40. ROAS (Return on Ad Spend): Revenue generated per dollar spent on ads.
41. IPM (Installs Per Mille): Installs per thousand ad impressions.

LTV Calculations: Methods and Insights

Calculating Lifetime Value (LTV) is fundamental for mobile game profitability, but several approaches are available depending on the data available and the level of precision required. The simplest method is to divide total revenue by the number of registered users, providing a quick but rough estimate of average LTV per player. However, this approach doesn’t account for users who haven’t spent money yet, so it’s best for early-stage or broad analysis.

A more refined approach leverages Average Revenue Per User (ARPU) and user lifespan. The formula LTV = ARPU × Average Customer Lifespan is widely used, where ARPU is calculated by dividing total revenue by active users over a period, and lifespan is determined by retention or churn data. An alternative formula is LTV = ARPU / Churn Rate, which is useful if you have reliable churn metrics. For games with robust daily data, another popular method is LTV = ARPDAU × Lifetime, where ARPDAU (Average Revenue Per Daily Active User) is multiplied by the average number of days a user remains active.

Granular models go even deeper, factoring in average purchase value, purchase frequency, gross margin, and customer acquisition cost (CAC): LTV = (Average Purchase Value × Gross Margin × Purchase Frequency × Customer Lifespan) − CAC. This formula provides a more nuanced view, directly incorporating profitability and acquisition costs.

Social LTV is an advanced metric that also considers a game’s virality, calculated as Social LTV = LTV × (1 + K-factor), where the K-factor measures how many new users each existing user brings in, this is especially relevant for games with strong referral or social sharing mechanics.

Ultimately, the chosen method should align with your game’s business model, data maturity, and strategic goals. Each approach offers different insights, from quick benchmarks to detailed profit analysis.

Why These Metrics and Terms Matter

• LTV, ROI, and RPD are your north stars for profitability.
• Retention rates (D1R, D7R, D30R) tell you how sticky your game is.
• Churn and engagement rates reveal where you might be losing users.
• ASO and creative testing help you maximize both paid and organic growth.
• Attribution and lookalike audiences ensure you’re targeting the right users efficiently.

Tips for Effective User Acquisition

• Target high-LTV users using lookalike audiences and smart bid strategies.
• Optimize your creatives with regular A/B testing.
• Focus on retention by improving onboarding and in-game events.
• Combine paid and organic strategies for maximum reach.
• Analyze your funnels to identify drop-off points and opportunities for improvement.

Real-World Impact

Games like Clash Royale and Candy Crush Saga use these strategies to dominate the charts. By mastering UA terminology and tactics, you too can drive sustainable growth.

Let’s Build a Stronger Community

We want to hear from you!

Which UA terms or strategies have made the most significant impact on your game? Are there any metrics or tactics you’d like us to investigate? Share your thoughts and questions below—let’s grow together!