Retention vs. Acquisition: Striking the Right Balance

In a crowded app marketplace, getting users to download your app is only half the battle. Keeping them is where the real challenge begins.

According to AppsFlyer’s App Uninstall Report – 2025 Edition, more than 1 in 2 apps are uninstalled within just 30 days of download. That number held steady in 2024 at 46.1%, only slightly better than 2023’s 46.9%. 

The takeaway? 

User attention is fleeting, and app marketers must work harder (and smarter) to keep the users they acquire.

So how do you ensure your app doesn’t end up on the chopping block?

The answer is a strategic blend of both user acquisition and retention. While marketers have historically emphasized acquisition as the growth engine, the high cost of installs and the rising uninstall rate make it clear that without a strong retention strategy, acquisition spend is like pouring water into a leaky bucket.

Why Do Users Uninstall Apps?

Uninstalls are more than a vanity metric—they’re a flashing red light that something isn’t working. Here are a few core reasons:

• Misaligned expectations between ads and in-app experience
• Impulsive installs, especially in gaming
• Limited device storage
• Data privacy concerns
• Subpar onboarding
• Product friction or a confusing user flow

Uninstall rates vary widely by category. Dating and Gaming apps continue to lead with the highest uninstall rates, while verticals like Travel and News (especially those with subscription models) fare better. Organic users also tend to stick around longer, showing a 22% lower uninstall rate on average than non-organic users.

Crucially, most uninstalls happen on Day 1. This should serve as a reminder that first impressions aren’t just important, they’re everything.

Retention vs. Acquisition: Defined

Let’s break it down:

Acquisition

User acquisition (UA) refers to the strategies and campaigns that bring new users into your app. This includes paid campaigns, organic downloads, influencer promotions, and partnerships. UA is critical for scaling and expanding your user base, particularly in the early stages of growth or after launching new features or geos.

Benefits:

• Increases user volume
• Enables rapid scaling
• Drives visibility and category rankings
• Essential for testing new markets or products

Retention

Retention focuses on keeping existing users engaged and active. This includes in-app messaging, push notifications, email, retargeting, loyalty programs, and personalized offers. The goal is to reduce churn and increase lifetime value (LTV).

Benefits:

• Improves ROI of acquisition spend
• Boosts user lifetime value (LTV)
• Builds brand loyalty and trust
• Drives long-term monetization

The magic happens when these strategies are combined, optimized, and tailored to your product’s lifecycle and user behavior.

"The best way to drive results down the funnel is to get it right at the top. Sustainable growth happens when acquisition and retention are treated as complementary strategies rather than separate efforts. By continuously bringing in high quality users, engaging and retaining them within the app, and optimizing their lifetime value, you successfully scale your app growth. When you approach the funnel holistically, not in silos, and align all your teams, you fuel the next wave of users who convert into loyal advocates, creating a self-reinforcing cycle of growth."

– Barak Witkowski, Chief Product Officer, AppsFlyer

Use Cases: Matching Strategy to Product

Rather than treat acquisition and retention as competing priorities, the smartest marketers use them in combination—adjusting the balance based on product type, lifecycle stage, and audience behavior. Here are three examples that illustrate different blends of acquisition and retention.

1. Legacy Mobile Game: Focus on Retention

A classic mobile game with millions of historical downloads (think Words With Friends or Candy Crush) doesn’t need to reinvent the wheel. Instead of chasing new installs, these apps thrive by deepening engagement with their loyal base.

Strategy:

• Retarget lapsed users through rewarded ads or CTV
• Launch seasonal events or in-app challenges to drive re-engagement
• Use A/B testing to identify the most compelling incentives for return play

Why it works: For mature titles, retention campaigns offer high ROI because the infrastructure and user data are already in place. It’s more cost-effective to re-engage than to reacquire.

2. Health & Wellness App: Balanced Approach

A wellness app that tracks daily habits or sleep might need both steady acquisition and strong retention to stay competitive. If users don’t build a habit within the first week, they churn. But without new users entering the funnel, growth flatlines.

Strategy:

• Invest in paid UA with highly informative video ads
• Use onboarding journeys that build habit loops (e.g., streaks, reminders)
• Segment audiences for personalized retargeting based on activity level

Why it works: Habit-based apps benefit from acquisition that’s paired with immediate retention-focused flows to build long-term value. Over-indexing on one over the other results in either stagnant growth or unsustainable churn.

3. Fintech or Travel App: Prioritize High-Intent Acquisition

Apps in high-trust verticals like banking or travel require a more selective approach to user growth. Because uninstall rates are lower and privacy concerns are higher, it’s important to attract users with clear intent and serve them with relevant, contextual engagement strategies.

Strategy:

• Emphasize SEO, ASO, and branded campaigns to attract organic users
• Use contextual retargeting only when users drop off during high-intent flows (like flight booking)
• Highlight app value through strong app store pages and informative ad formats
  
  

Why it works: In verticals with higher user scrutiny and lower install volume, quality trumps quantity. Retargeting should be deployed strategically—supporting conversion moments without overwhelming the user journey.

Takeaways

• 46.1% of users uninstall apps within 30 days—mostly on Day 1
• The best growth strategies combine both acquisition and retention, tailored to product type
• Organic users are more likely to stick around, but retargeting can reactivate high-value lapsed users
• Games and habit-based apps benefit from retention-heavy strategies
• Vertical-specific approaches matter—Fintech and Travel must prioritize intent and trust
• Regularly evaluate your uninstall data and re-engagement funnels to strike the right balance

Final Thoughts: Don’t Choose—Balance

There’s no one-size-fits-all ratio of acquisition to retention. It depends on who your users are, what your product does, and where your app sits in its lifecycle. But what’s clear is this: the apps that survive are the ones that deliver value early and keep delivering it over time.

At YouAppi, we help brands craft smart, full-funnel strategies that blend CTV user acquisition with retention to drive long-term growth. Whether you're trying to win back churned users, reduce Day 1 drop-offs, or scale sustainably, you don't have to choose one over the other.

Let’s find your balance. Work with YouAppi →