Performance Marketing for Apps in 2025: What Actually Works

The mobile app market is more competitive than ever. In 2023, consumer spending on apps hit $171 billion, up 3% year-over-year, while total app economy value—including store spend and mobile ads—approached $533 billion.¹ As we navigate 2025, growth teams must pivot from broad acquisition pushes to precision tactics that drive sustained value.

With the average user spending over 5.4 hours per day on their smartphone—and mobile devices accounting for 72% of global internet traffic²—every marketing dollar must deliver measurable ROI. Below, we analyze real-world experiments from leading app marketers and outline the strategies that are moving the needle.

The Mobile App Market at a Glance in 2025

Market Size & Consumer Behavior

• $362 billion invested in mobile ads during 2023—a year-over-year rise of 8%.¹
• Users now spend a record 5.1 trillion hours in apps annually, a 6% increase from 2022.¹
• Social apps claimed 3 trillion of those hours, up 12% year-over-year.

Shifts in Ad Spend

• Paid remarketing conversions are growing 22% year-over-year versus just 2% growth in paid installs.³
• The global mobile advertising market is projected to quadruple—from $263 billion in 2025 to over $1 trillion by 2032.¹

Case Studies: Real App Growth Experiments

Here are three examples where smart performance tactics fueled both scale and profitability.

Case Study 1: ASO-First Launch to Fund Paid Campaigns

An indie gaming studio released its title in March 2023 with zero ad budget. Leveraging effective ASO, it identified high-volume, low-competition keywords and optimized metadata across App Store and Google Play. Within two weeks, organic downloads generated enough revenue to fund a cohort-based paid media test on Meta.

Key takeaway: A strong organic presence accelerates breakeven. Prioritize store listing optimization before ramping up paid channels.

Case Study 2: Journey-Shaping for Live Video Engagement

CBS Sports teamed with Admiral to design dynamic in-app messaging around marquee events like NFL playoffs and March Madness. By analyzing real-time viewership patterns, the team:

• Adjusted push notifications based on live engagement metrics
• Delivered personalized content recommendations
• Re-engaged dormant viewers with countdown reminders

Result: A 25% lift in live video minutes watched and a 15% boost in subscription conversions⁴.

Case Study 3: TikTok Shop’s Mobile-First Video Blitz

TikTok Shop needed rapid creative iteration to serve mobile-first shoppers. Over nine days, the in-house team produced 40+ vertical videos optimized for 15- to 30-second attention spans. Key elements included dynamic product overlays and instant checkout CTAs.

• 400% jump in creative output
• 1 million+ organic views in five days

This experiment underscores the power of mobile-first content when engaging on high-velocity platforms.

What’s Actually Working in App Performance Marketing

Remarketing Over New-User Acquisition

Shifting budget from broad user acquisition to remarketing pays dividends. Across shopping, finance, and travel apps:

• Shopping apps saw a 29% increase in remarketing conversions versus flat paid install growth.
• Finance apps recorded a 22% jump in remarketing versus 9% in paid UA.
• Travel apps achieved 19% growth in remarketing compared to 8% for new installs.

On iOS, where privacy constraints heighten measurement challenges, Aggregated Event Measurement (AEM) on Meta has unlocked a 61% surge in shopping remarketing and a 117% spike in finance remarketing³. Focus on remarketing strategies that re-engage lapsed users and maximize Lifetime Value.

Category-Specific Growth Levers

Not all app genres grow equally. In 2025, top performers include:

• Generative AI apps: +200% year-over-year
• Lifestyle apps: +68% year-over-year
• Casual games: +14% year-over-year

Conversely, hypercasual games (-4%) and casino apps (-15%) are contracting. Drill into category dynamics before allocating budget.

Commerce Media Innovations

Shoppable video is the new frontier. Leading platforms embed payment rails and AI recommendations directly in feeds, turning passive scrolling into instant purchases. Key innovations include:

• In-platform checkout flows
• AI-driven product discovery modules
• Influencer-led live-stream shopping events

Brands must architect media plans that blend entertainment and commerce to shorten the path to purchase.

Privacy-First Strategies in a Post-IDFA World

As privacy regulations tighten, first-party data is king. High-performing teams deploy:

• Loyalty programs and in-app surveys for explicit consent
• Privacy-enhancing APIs that enable segmentation without sacrificing user trust
• Consent management platforms to centralize preferences

Those investing in privacy-centric marketing strategies are seeing higher opt-in rates and stronger user loyalty.

Omnichannel Experiences

True growth requires bridging digital and physical touchpoints. In 2025, best-in-class apps offer:

• In-store pickup and scan-to-pay features
• Augmented reality try-on modules
• AI-driven inventory sync across online and retail

Delivering seamless omnichannel journeys deepens engagement and drives repeat purchases.

Key Metrics for Performance Marketing

Metric	Why It Matters	Benchmark
Lifetime Value (LTV)	Total revenue generated per user over time	Depends on category; outpaces CAC as a decision metric
Retention Rate	Percentage of users active at Day 7, Day 30, etc.	Day 30 retention of 15–25% is strong
Engagement Depth	Frequency and intensity of feature usage	Average of 30 apps used per month per user
Remarketing Conversion Rate	Effectiveness of reactivating existing users	Up 22% year-over-year

Conclusion: Building a Sustainable App Marketing Strategy for 2025

Performance marketing in 2025 demands a balanced, data-driven approach:

1. Begin with a strong ASO foundation for cost-effective organic growth
2. Target paid acquisition at high-value cohorts, not just volume
3. Prioritize remarketing to unlock full LTV potential
4. Adopt privacy-first methods that respect user consent and build trust
5. Invest in mobile-first creative that cuts through on small screens

The most successful app marketers will be those who iterate rapidly, leverage first-party insights, and deliver seamless experiences across every channel. By focusing on the proven tactics above, growth teams can drive sustainable ROI in an ever-evolving landscape.

For ongoing research and best practices, visit the Admiral Media’s blog.