Paid channel budgets
Daily spend
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Installs/day
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Blended CAC
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Blended LTV
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LTV : CAC ratio
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Cumulative profit
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social install search install influencer install
How it works

Each channel converts its daily budget into installs at that channel's cost-per-install (CPI) — but CPI is not fixed. Like a real ad auction, the effective CPI inflates as you spend more on a channel (you're bidding against more competitors for the same limited inventory). Every install carries a lifetime value (LTV): the revenue that user is expected to generate over their life in the app. Profitability isn't about installs, it's about whether blended LTV clears blended CAC by a healthy margin.

effective CPI(channel) = base CPI × (1 + spend / saturation)

installs(channel) = spend / effective CPI(channel)
blended CAC  = total spend / total installs
blended LTV  = Σ(installs × channel LTV) / total installs
LTV:CAC      = blended LTV / blended CAC   (industry rule of thumb: healthy ≥ 3)
daily profit = Σ(installs × channel LTV) − total spend
  • Social — cheapest CPI, lowest LTV (browsing intent, low commitment). Saturates fast.
  • Search — mid CPI, highest LTV (users already searching for what your app does). Best ratio if not over-spent.
  • Influencer — most expensive CPI, mid LTV. Slowest to saturate — a release valve when the others are maxed out.
  • This is the paid-acquisition side of app growth: allocating a fixed budget across channels for the best return. It's a different mechanic from organic App Store Optimization, where nothing is spent and the lever is search-ranking and listing conversion, not budget.