Published on Staff Pick

Google Ads: Stop Wasting Money on App Installs

Inside this article, you'll discover:

    • Discover why 'awareness' campaigns are burning your budget.
    • Use our interactive CPI calculator to set realistic targets.
    • Fix broken location targeting and reclaim wasted ad spend.

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  • Your app campaigns are probably failing because you're optimising for 'awareness' or 'reach'. You must optimise for installs from day one to tell Google what you actually want: users, not just eyeballs.
  • The single biggest reason you're burning cash is almost certainly broken location targeting. You are paying for clicks from countries that will never provide value, and I'll show you how to fix the common "location not specified" leak.
  • Simply targeting "United Kingdom" is lazy and ineffective. Real localisation goes deeper into cultural nuance, regional cost differences, and showing users you understand their specific market.
  • When growth stalls, the answer isn't just a bigger budget. It's about fighting creative fatigue with relentless testing and implementing a smart re-engagement strategy to bring back lapsed users for a fraction of the cost of new ones.
  • This guide includes a fully interactive Cost Per Install (CPI) calculator to help you set realistic budgets and performance targets before you spend a single penny on ads.

So, you’ve poured your heart, soul, and probably a decent amount of cash into building a brilliant app. You’ve set up a Google App Campaign, followed the on-screen instructions, and now you’re watching the dashboard, waiting for the downloads to pour in. But they aren’t. Or worse, you’re getting a trickle of installs from strange locations, and none of them seem to be sticking around. Sound familiar?

Let's be honest, the "best practice" guides often leave out the stuff that actually makes a difference. They're designed to get you spending money quickly, not necessarily effectively. I've seen inside hundreds of ad accounts, including running campaigns that drove over 45,000 signups for one app at under £2 a pop. The difference between burning through your budget and achieving that kind of scale isn't some secret trick; it's about avoiding a few common, costly mistakes that most developers make. We're going to walk through them, one by one, and fix them.

Why are my app campaigns failing before they even start?

Here's the first bit of brutally honest advice: stop running "Brand Awareness" or "Reach" campaigns for your app. I know, it sounds counterintuitive. You need people to be aware of your app to download it, right? Wrong. This is probably the most common and costly myth in paid advertising. When you select 'Reach' as your objective, you're giving Google's algorithm a very specific, and very unhelpful, instruction: "Find me the largest number of people for the lowest possible price."

The algorithm is incredibly good at its job. It will dutifully go out and find the users inside your targeting who are the least likely to click, least likely to engage, and absolutely, positively least likely to ever install your app or spend money in it. Why? Because those users aren't in demand. Their attention is cheap because no other advertiser wants it. You are literally paying the world's most powerful advertising machine to find you the worst possible audience for your product. It’s like going to a car auction and specifically asking for the one that won't start.

From the very first pound you spend, your campaign objective needs to be set to what you actually want: App Installs. This tells the algorithm to hunt for users who have a history of downloading apps like yours. It will cost more per impression, but you're paying for quality, not just empty views. The best form of brand awareness for a new app is a competitor's user switching to your product and loving it. That only happens through conversion. Awareness is a byproduct of a great product solving a real problem, not a prerequisite for making a sale. You have to stop wasting money on app installs that dont convert into active users.

What should I realistically expect to pay for an install?

This is the next question I always get, and the answer is always "it depends". It depends on your app's category, your target country, your creative quality, and your competition. Anyone who gives you a flat number without knowing these details is guessing. However, we can build a model to give you a realistic ballpark figure. This is far better than going in blind.

The cost per install (CPI) is basically a function of two main levers: how much you pay for a click (CPC) and how many of those clicks turn into an actual install (your conversion rate, or CVR). If your CPC is £1 and your store listing converts 50% of clicks into installs, your CPI is £2. Simple. But those numbers can vary wildly. A click in the US might cost £1.50, while a click in India might cost £0.10. A well-optimised app store page might convert at 65%, while a poor one might struggle to hit 20%.

To help you get a feel for this, I've built a simple calculator. Play around with the sliders to see how small changes in click cost and conversion rate can have a massive impact on your final Cost Per Install. This will help you set a sensible starting budget and know whether the results you're seeing are in the right territory.

🔢

App Install Cost (CPI) Forecaster

Estimated CPI
£4.00

Adjust the sliders to estimate your potential Cost Per Install (CPI). This helps in setting a realistic budget for your Google App Campaigns based on expected performance.

£0.80
20%
ℹ️ Estimates based on current input values. Actual performance will vary.
Use this calculator to understand the relationship between CPC, CVR, and your final Cost Per Install. Getting a handle on app install costs when planning a global rollout is the first step to budgeting correctly. Results are for illustrative purposes only. For a tailored analysis, please consider scheduling a free consultation.

The £10,000 Mistake: Is Your Location Targeting Broken?

Now we get to the heart of the matter, and the part that costs app developers a fortune. You see "No location specified" or "Unknown Region" in your reports, and you ignore it. This is a five-figure mistake waiting to happen. That 'unspecified' traffic isn't harmless; it's often low-quality traffic from countries you don't serve, full of bots, or users masking their location with VPNs. You are paying for every single one of those useless clicks.

The problem starts with Google's default settings. When you create a campaign and target, say, the United Kingdom, Google defaults to "Presence or interest: People in, regularly in, or who've shown interest in your targeted locations." That 'interest' part is a killer. It means Google can show your ad to someone in Pakistan who once read an article about London. That person is not your customer. They'll never use your UK-specific app, but you'll pay for their click.

The fix is simple but absolutly vital. You must go into your campaign settings, find the 'Locations' options, and change the targeting to "Presence: People in or regularly in your targeted locations." This one change can save you thousands. It tells Google you only want to reach people who are physically there.

The second part of the fix is to be aggressive with exclusions. Don't just target the UK; also create a list of countries to explicitly exclude. I usually recommend excluding the top 30 or so lowest-income countries as a starting point, as this is where a lot of bot traffic originates. If your app is only available in English, exclude countries where English isn't a primary language. Be ruthless. It's better to miss a few potential users than to waste 30% of your budget on junk traffic. This is a such a common problem, we created a whole guide around diagnosing and permanently fixing the 'location not specified' error in your reports.

⚙️

Google Ads Location Targeting Sanity Check

1. Select Target Countries

e.g., United Kingdom

2. Set to 'Presence Only'

(Not 'Presence or Interest')

3. Add Exclusions

Exclude low-income & irrelevant countries

4. Monitor Report

Check 'Geographic' report for 'Unspecified' traffic

This simple, four-step process is the foundation of effective location targeting. Getting this right is the most important fix you can make to your Google Ads account today.

How do I properly localise my ads for the UK market?

If you're targeting the UK, simply setting the location and changing "organize" to "organise" isn't enough. True localisation is about showing your potential users that you understand their specific context. It builds trust and significantly improves conversion rates. This means pricing must be in pounds (£), not dollars ($). It means using imagery that looks like the UK, not California. It means understanding cultural nuances in your ad copy.

For example, humour that works in the US might fall flat here. References to American sports or holidays will just confuse people. You need to speak their language, both literally and figuratively. Switching from generic stock photos to images featuring recognisable local landmarks can significantly increase click-through rates. It's a small change that signals to the user, "this app is for me".

Furthermore, the UK isn't a monolith. The cost to acquire a user in London is significantlly higher than in Manchester or Glasgow. If your app has a local component, or if you're on a tight budget, you might get better results by targeting specific cities or regions rather than the whole country at once. Start where you're most likely to win, establish a foothold, and then expand. We cover this in depth in our complete guide to localising Google App Ads for the UK. And if you have a very specific London focus, there are even more granular strategies you can use, which we've outlined in our guide to London localisation.

📊

Typical App CPI by UK City

Illustrative Cost Per Install variation

~1.8x

London vs. Glasgow

£3.50
London
£2.80
Manchester
£2.55
Birmingham
£2.20
Leeds
£1.95
Glasgow
Illustrative CPI data showing how acquisition costs can differ across major UK cities. Targeting less competitive areas can be a smart strategy for new apps.

What do I do when installs stop growing?

It's a common story. Your campaign starts strong, you get a good flow of installs at an acceptable CPI, but then after a few weeks, it just hits a wall. Your CPI starts to creep up, and the daily install volume flatlines. You throw more money at it, but nothing changes. This is called ad fatigue, and it happens to every campaign.

Your target audience has seen your ads too many times, and they've started to ignore them. The solution isn't just more budget; it's fresh creative. You need to be in a constant state of testing. For app campaigns, video is king. You should be testing different video lengths, different opening hooks, different calls to action. Test user-generated style content against polished animations. Test showcasing different features. You need to give the algorithm new assets to work with to find new pockets of users. I recomend having at least 3-5 different video ads and 5-10 image ads running in your asset group at any one time.

But acquisition is only half the battle. What about all the users who installed your app, used it once, and then forgot about it? These people are a goldmine. It is far cheaper to re-activate a dormant user than to acquire a brand new one. This is where re-engagement campaigns come in. You can set up a seperate campaign that specifically targets users who have your app installed but haven't opened it in, say, 30 days. You can then hit them with an ad reminding them of a new feature or offering them a special discount to come back. This is a critical part of scaling. Without a solid retention strategy, you're just pouring water into a leaky bucket. A successful app marketing strategy isn't just about getting downloads; it's about building an effective blueprint for app user retention.

Aren't all installs good installs? The myth of Display Network traffic

One of the "features" of Google App Campaigns is that they are a black box. You upload your assets, set your bid and budget, and Google automatically runs your ads across its properties: Search, the Play Store, YouTube, and the Google Display Network (GDN). While this is simple, it can also be a huge source of wasted spend.

The GDN is a network of millions of websites and apps that show Google ads. While it has massive reach, the quality of the traffic can be… questionable. Many of the installs you get from the GDN will be from accidental clicks (the ad banner was too close to a button in a game) or even fraudulent activity. These users install the app and then churn almost immediately. They are worthless to you, but you paid for them.

While you can't turn off the GDN entirely in an app campaign, you can monitor it. Dig into your 'Placements' report to see which specific apps and websites are sending you traffic. You will almost certainly find that a handful of low-quality mobile games or utility apps are responsible for a huge chunk of your clicks but zero of your valuable users. You should regularly go through this list and exclude these poor-performing placements. It's a bit of manual work, but this kind of account hygiene can drasticaly improve the overall quality of your installs and reduce your effective CPI for users that actually stick around. If you're running re-engagement campaigns, this becomes even more important. You can see some great results re-engaging app users with targeted campaigns, but only when the initial traffic quality is high.

Alright, that was a lot of information to process. It's easy to get lost in the weeds of campaign settings and optimisation tactics. To make it a bit more manageable, I’ve broken down the main problems and solutions into a simple framework.

This is the main advice I have for you:

Problem Common (Wrong) Approach Expert Solution
Getting Started Running "Brand Awareness" or "Reach" campaigns to get the name out there. Optimise for "App Installs" from day one. Tell the algorithm exactly what you want it to find: users who will actually download the app.
High Costs & Low Quality Using default location settings ("Presence or Interest") and ignoring "Unspecified" traffic in reports. Switch to "Presence only" targeting. Agressively exclude irrelevant and low-income countries to cut down on junk clicks and bot traffic.
Stalled Growth Increasing the budget on the same, fatigued ad creatives and wondering why performance doesn't improve. Fight ad fatigue with a constant pipeline of new ad creative (especially video). Launch re-engagement campaigns to bring back dormant users for a lower cost.
Poor User Retention Letting the campaign run on autopilot across all of Google's networks, assuming all installs are equal. Regularly review placement reports and exclude low-quality apps and websites from the Display Network that are generating junk installs and wasting your budget.

When is it time to get expert help?

You can definitly implement everything we've discussed today yourself. It will make a huge difference to your performance and stop you from burning through your budget unnecessarily. However, running successfull app campaigns isn't a "set it and forget it" activity. It requires constant monitoring, testing, and optimisation. The landscape changes, your competitors adapt, and what worked last month might not work next month.

The real value of working with an expert isn't just in the initial setup; it's in the ongoing management and the deep experience of knowing which levers to pull and when. It's about having someone who can interpret the data, spot trends you might miss, and consistently find new opportunities for growth.

If you're serious about scaling your app, have a budget to invest in advertising, but are struggling to get the results you need, it might be time to consider getting some help. If you'd like to have a chat about your specific situation, we offer a completely free, no-obligation strategy session. We can take a look at your app and your goals and give you some honest, actionable advice on how to move forward.

Lukas Holschuh
Lukas Holschuh

Founder, Growth & Advertising Consultant

Great campaigns fail without expertise. Lukas and his team provide the missing strategy, optimizing your entire advertising funnel—from ad creatives and copy to landing page design.

Backed by a proven track record across SaaS, eLearning, and eCommerce, they don't just run ads; they engineer systems that convert. A data-driven partnership focused on tangible revenue growth.

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