Subscription apps are one of the fastest-growing business models in the mobile ecosystem. From fitness and wellness platforms to entertainment and productivity tools, recurring revenue is a powerful engine for sustainable growth. But there’s a paradox: while downloads and sign-ups are rising, subscription app churn continues to erode gains.

According to RevenueCat’s State of Subscription Apps 2025 report, the number one cancellation driver isn’t cost. It’s “not enough usage” — cited in 32-47% of cancellations across app categories. Even more concerning: the first month sees the highest cancellation spike, with many apps losing 30% or more new subscribers before they’ve even completed a full billing cycle.

For subscription apps, this shows that driving growth goes beyond just acquisition. It requires proving value early, fueling habits, and reducing cancellations before they happen. This blog, created in collaboration with RevenueCat, explores how mobile retargeting for subscription apps and CTV advertising can proactively solve the usage gap, foster habit formation, and boost retention.

The Usage Gap: Why Users Cancel

Every marketer knows churn is inevitable. But the why behind cancellations matters. With real-time churn tracking and analytics, you can see exactly when and why cancellations occur — then intervene before it’s too late. 

RevenueCat’s analysis shows that users aren’t necessarily leaving because subscriptions are too expensive. Instead, they’re canceling because they don’t feel they’re getting enough value from the app in their day-to-day lives.

Top reasons for churn in subscription apps:

  • Not enough usage → 32-47% of churn depending on category.

  • Too expensive → A consistent second driver, but not the top issue.

  • Found a better app → Less common, but still a factor.

This data challenges a common assumption: that price is the main hurdle. In reality, most users are willing to pay, so long as they feel they’re using the product consistently and it has become part of their routine.

The danger zone is the first month. Across categories, the first 30 days are when subscription cancellations peak. This is when trial users decide whether the app is “worth it.” Without reinforcement, disengaged users quickly fall into the “not enough usage” bucket and cancel.

For subscription apps, this means the trial-to-paid transition is the single most critical retention window. Tools like RevenueCat Charts are one way to monitor and easily identify these early-risk cohorts — check your subscription retention, churn, and incomplete periods, then test lifecycle campaigns and push notifications that reduce Day 30 churn.

Why Retargeting is Essential from Day 1

If usage gaps are the leading cause of churn, then keeping users engaged from the moment they download is the solution. Mobile retargeting for subscription apps is the most effective way to do this.

Unlike broad acquisition campaigns, retargeting leverages behavioral signals to bring users back into the app with personalized, relevant prompts. The goal isn’t just to push subscriptions but to reinforce value and encourage habit formation.

Examples of Day 1 retargeting strategies:

  • Feature reminders: If a fitness app user hasn’t logged their first workout, retargeting ads can showcase specific classes or trainers to entice them back.

  • Onboarding nudges: Productivity apps can highlight features left unused in onboarding, prompting users to explore the full toolkit.

  • Trial-to-paid messaging: Subscription apps can re-engage trial users by emphasizing premium-only benefits before the trial expires.

Why Day 1 matters: if users don’t engage in the first session, their chances of churning skyrocket. Retargeting campaigns from the first week can make the difference between early cancellation and long-term retention.

The Role of CTV in Building Subscription Habits

Mobile ads can drive precision targeting, but subscription apps need more than just clicks. They need habit reinforcement. That’s where CTV advertising for subscription apps can help.

CTV offers unique advantages:

  • High completion rates: 94-96% for 15–30 second spots, ensuring messages are actually seen.

  • Household reach: Apps aren’t used in isolation; they’re often shared among family or household members. CTV ads can demonstrate value to everyone under one roof.

  • Habit-building reinforcement: By showing up on the biggest screen in the home, subscription apps can remind users to return at the exact moment they’re most receptive: during downtime.

For example, a meditation app can run CTV ads at night to remind viewers to wind down with a guided session. A language-learning app can highlight progress reminders during morning news hours. These subtle cues go a long way in overcoming the “not enough usage” barrier.

In short, CTV advertising is a powerful way to reduce subscription cancellations by making the app feel like part of everyday life.

Hybrid Retargeting Strategy: Mobile + CTV

The most effective approach isn’t mobile or CTV; it’s both. A hybrid retargeting strategy pairs the precision of mobile ads with the emotional resonance of big-screen storytelling.

How it works:

  • Mobile retargeting: Deliver feature-specific CTAs that nudge users back into the app with immediacy.

  • CTV retargeting: Reinforce app value with contextual, household-friendly ads that encourage shared usage and habitual engagement.

Lifecycle approach for subscription apps:

  • Day 1–30: Focus on onboarding, feature discovery, and habit formation. Pair mobile reminders with CTV ads that reinforce the lifestyle benefit of the app.

  • Day 30+: Identify churn-risk users (low engagement, approaching renewal) and re-engage with offers, testimonials, or “don’t lose your progress” messaging across both screens.

This hybrid approach turns retargeting from a last-ditch effort into a proactive strategy that builds long-term retention.

Key Takeaways for Subscription Apps

  • Churn is usage-driven: The leading reason users cancel subscriptions is “not enough usage,” rather than cost.

  • The first month is critical: Cancellation spikes early; retention strategies must kick in from Day 1.

  • Retargeting reduces churn: Personalized mobile ads close the usage gap and reinforce feature adoption.

  • CTV advertising builds habits: High attention and household reach make CTV a uniquely powerful retention channel.

  • Hybrid strategies win: Subscription apps that combine mobile retargeting with CTV advertising are better equipped to reduce churn, increase LTV, and maximize ROI.

Test Retargeting + CTV with YouAppi

Subscription apps can’t afford to lose users in the first 30 days. With the right combination of retargeting for subscription apps and CTV advertising, churn can be reduced and lifetime value unlocked. By partnering YouAppi’s retargeting with RevenueCat’s real-time Charts and subscriber segmentation, you can target disengaged trial users, upsell engaged ones, and optimize based on live subscription events.

👉 Ready to keep your subscribers engaged? Contact YouAppi to test cross-channel retention campaigns.

👉 Benchmark your app’s churn and retention with RevenueCat’s free App Health Score Calculator