App marketing trends: Rising ad budgets & KPI targets

Liftoff and AppsFlyer have released their 2025 App Marketer Survey report, which studies how app marketing professionals are adapting to industry changes and technological innovation, highlighting ad spend budgets, performance trends, and resource allocation.

The report, which includes data from Sensor Tower, reviews the responses of over 700 mobile marketing professionals from diverse regions and app verticals. It investigates professionals working within a wide range of monthly ad budgets from USD $50,000 to beyond USD $1,000,000.

The survey results show a 54% increase in the pursuit of more aggressive KPI targets among app marketing professionals. To meet these goals, many marketers are capitalising on new advertising channels, network partnerships, and larger budgets.

Non-gaming apps have seen strong growth in both downloads and revenue. In 2024, downloads of non-gaming apps increased by 12%, while consumer spending saw a USD $13.7 billion increase over the previous year, reaching USD $69.2 billion. Entertainment apps, in particular, experienced the highest revenue growth, with an additional USD $4.4 billion year-on-year. In contrast, gaming apps showed a slight 1% decline in revenue from in-app purchases.

A majority of mobile marketers (54%) are facing more challenging KPI targets than they did a year ago; notably, North American and Latin American marketers are setting more aggressive targets (61%). Yet, about 90% of the respondents are close to or achieving these targets, with 50% prioritising return on ad spend (ROAS) as their main KPI.

Seeking to reach their objectives, marketers have notably forged new partnerships, with 56% reporting new collaborations in the past year—an increase of over 14% from the previous year. This is linked to meeting demanding KPIs, with 74% pursuing new partnerships to enhance ROAS/ROI. Additionally, more than half of the respondents are investing in organic social and influencer marketing as alternative channels.

Optimism persists among marketers for the coming year, with 80% expecting 2025 to either improve upon or match the performance of 2024. This confidence coincides with an increase in resources, as almost half report larger budgets for 2025, including 15% seeing a significant budget increase.

The report also touches upon Apple's AdAttributionKit, which appears to be regenerating interest in re-engagement campaigns on iOS platforms. Although only 31% of respondents are currently running iOS re-engagement campaigns, 48% expressed a desire to begin using them, and 67% are at least somewhat familiar with AdAttributionKit.

Conversely, app marketers continue to face challenges with SKAN, with mixed opinions on its effect on user acquisition: 32% saw no impact at all, 30% felt it negatively affected results, and only 24% noticed positive improvements. However, generative AI is well regarded, with 54% of participants acknowledging its benefits for creative production and optimization.

Joey Fulcher, SVP, Global Demand Sales at Liftoff, stated: "According to marketer responses, KPIs are becoming more aggressive year-over-year, and across the board, UA performance is keeping up despite a competitive environment. 90% of those surveyed say that they are close to or reaching their KPIs. This speaks to the speed and depth of innovation in ad tech. As ML models evolve, they can accommodate more customised requirements. The latest ML models can more effectively target audiences that are likely to engage with the unique features of different apps. This leads to more conversions and improves retention. As ad budgets grow in 2025 and marketers evaluate where to allocate their spend, they should look for partners with a customised approach and robust technology offerings capable of delivering top performance."

Shani Rosenfelder, Director of Global Content Strategy and Market Insights at AppsFlyer, remarked: "App marketers are approaching 2025 with a sense of measured optimism. With 80% expecting stable or improved performance, the focus is on refining strategies that balance growth with efficiency. As budgets expand, marketers continue reassessing how they allocate resources, exploring a mix of acquisition and retention efforts to drive long-term value. AI and advanced data-driven insights are becoming more central to campaign decision-making, helping teams navigate an increasingly complex landscape. At the same time, challenges persist. More than half of marketers report working with more aggressive KPIs, reflecting the pressure to maintain profitability while scaling. Moving forward, success will depend on thoughtful investments in cutting-edge measurement and optimization, creative effectiveness, and cross-team collaboration to ensure marketing efforts remain both impactful and sustainable. The State of App Marketing Survey provides valuable insights into these trends, helping marketers benchmark their strategies and navigate an increasingly complex landscape."