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