When it comes to mobile app development, there are numerous expenses to consider, and many of these expenses aren’t even related to app development. Nobody will know your app exists if you don’t allocate dollars to your marketing approach.

This article will teach you everything you need to know about mobile app marketing costs. We’ve got you covered whether you’re an app developer, white label reseller, launching an app as a business extension, or designing a brand new app from scratch.

How much does marketing an app cost?

This is the question most asked of our sales team, and the most difficult to answer. There are so many variables when it comes to app marketing that a one-size-fits all answer isn’t possible. The cost of marketing your app will largely depend on your budget, but also on factors like the type of app you have, who your target audience is, and what kind of marketing strategies you use.

With that said, we can give you a general idea of how much it costs to market an app. For a typical small to medium-sized business, expect to spend anywhere from $1000 to $10,000 per month on app marketing. Of course that’s just a rough estimate; your actual monthly spend may be more or less depending on the factors mentioned above.

One thing is certain though: more money doesn’t necessarily equal better results. You can actually get away with a low-cost mobile app marketing strategy, provided your techniques are effective.

At the end of the day, you need to concentrate on your cost per install (CPI). This important app marketing metric allows you to calculate how much each installation costs you. Here’s how it works:

CPI = Total ad spend/Total measured app installs

Tracking this KPI forces you to be smart with your marketing budget and allows you to determine whether specific campaigns are effective.

Why is it important to have a marketing budget?

You need to have a marketing budget for your app for many reasons. First and foremost, without a budget you have no way of calculating your CPI (as discussed above). Secondly, a marketing budget allows you to track your spending and ROI over time. By monitoring these metrics, you can make changes to your marketing strategy as needed and ensure that you’re getting the most bang for your buck.

It’s also important to have a marketing budget because it shows that you’re serious about promoting your app. Potential investors are more likely to take you seriously if they see that you’ve allocated funds towards marketing. Having a solid marketing budget also makes it more likely that you’ll be included in any lists or roundups of new apps, such as the App Store’s “New and Noteworthy” section.

Including your marketing budget in your overall app development budget is crucial. You shouldn’t treat marketing as an afterthought or an expense to be cut when things get tight. Marketing should be built into your budget from the very beginning.

Ways to market your mobile app

Now that we’ve discussed the importance of having a marketing budget, it’s time to learn how to create one. The first step is understanding what expenses you need to account for. Here are some common mobile app marketing costs:

App store optimization (ASO): ASO is the process of optimizing your app store listing to improve your app’s visibility and ranking. This can be done through keyword research, title optimization, and creating engaging app store screenshots and videos. ASO is a long-term marketing strategy, so it’s important to factor it into your budget from the beginning.

Read our blog about ASO

Paid user acquisition: Paid user acquisition is a form of advertising that lets you pay to have your app installed on users’ devices. This can be done through various channels, such as social media, search engines, or even directly through app stores. Paid user acquisition is one of the quickest ways to get your app in front of potential users, but it can also be one of the most expensive.

Public relations: Public relations (PR) is a great way to generate buzz for your app. But it can also be costly, especially if you hire a PR firm to handle your media relations. You can also do PR yourself, but it can be time-consuming and may not be as effective as working with a professional.

Content marketing: Content marketing is a great way to drive organic traffic to your app’s landing page. This involves creating blog posts, infographics, videos, or other types of content that will interest potential users and encourage them to check out your app. While content marketing takes time and effort, it is relatively inexpensive compared to other marketing strategies.

Discover 10 ways to grow your app with content marketing

Viral marketing: The concept of “going viral” can be a cost-effective way to draw attention to your app, but it can be very hard to predict and control. If you want to try viral marketing, make sure you have a solid plan in place and allocate a good portion of your budget to it.

Social media marketing: Social media is a powerful tool for mobile app marketing and allows you to target specific audiences. However, it can be time-consuming and requires a really solid social media strategy. If you choose to use paid social media advertising, it can also become costly.

Email marketing: Email marketing can be a great way to reach potential users who may not be active on social media. It can also be relatively inexpensive, especially if you have a large email list.

In-app advertising: In-app advertising allows you to place ads for your product in other apps and games. This can be a great way to reach potential users who are already using apps that target your key audience. In-app advertising is usually less expensive than other forms of paid user acquisition, but it can still add up.

As you can see, there are many different types of costs involved in mobile app marketing, and this is just a small sampling. When creating your budget, make sure to account for all potential expenses.

Creating a marketing budget for your mobile app

Now that you know what expenses to account for, you can start creating your mobile app marketing budget. Begin by estimating how much you want to spend on each of the above strategies. Then, consider your overall app development budget and make sure that your marketing budget is a reasonable percentage of that.

Our recommendation is to plan on spending 50% of development expenses on your initial launch marketing. So, if you spend $100k on development, plan for $50k in the first 12 months on marketing. This could make a huge difference in your probability of success. Too many entrepreneurs spend tens of thousands of dollars on their app but don’t budget anything for marketing, which becomes a huge barrier to getting further faster.

Once you have a rough idea of how much you want to spend, it’s time to start allocating funds to specific campaigns and activities. Begin by creating a list of all the tasks that need to be completed to execute each marketing strategy. For example, if you’re planning to do ASO, your list might include keyword research, title optimization, and creating app store assets. Make sure to include both one-time costs (such as design fees) and ongoing costs (such as monthly subscription fees).

Next, start assigning budget items to each task. Once again remember to include both fixed costs (such as design fees) and variable costs (such as pay-per-click advertising). This will give you a clear picture of how much each marketing activity will cost and help you stay within your budget.

Tying it all together

Now that you know how to create a mobile app marketing budget, it’s time to put your plan into action. Begin by allocating funds to the most important marketing activities and campaigns. Then, track your progress and adjust your budget accordingly. And finally, don’t forget to reevaluate your budget on a regular basis to make sure that your marketing efforts are still aligned with your overall business goals.

If you need help creating a mobile app marketing budget or executing your marketing plan, contact us today. Our team of experts can help you create a customized marketing strategy that fits your needs and budget.