TLDR;
- Your Meta app ad ROAS is low in the UK because you're likely optimising for cheap installs, not high-value users. Stop chasing low CPIs.
- The single most important number you need is your Customer Lifetime Value (LTV). If you don't know this, you're flying blind. I've included an LTV calculator below to help you figure it out.
- Switch from 'App Install' campaigns to 'App Event Optimisation' (AEO) and 'Value Optimisation' (VO) as soon as you have the data. This is how you tell Meta to find people who actually spend money.
- Generic UK-wide targeting is a recipe for burning cash. Get hyper-specific with your audiences, focusing on the *problems* your app solves, not just broad interests.
- I've also included a flowchart to help you choose the right campaign type and a detailed table with an actionable strategy to implement right away.
I see this all the time. You've built a brilliant app, you're running Meta ads in the UK, you're getting installs, but when you look at the numbers, the return on ad spend (ROAS) is just... rubbish. It feels like you're pouring money into a bucket with a massive hole in it. The problem usually isn't the app, and it isn't even Meta's platform. The problem is your strategy.
You're probably stuck in the trap of optimising for App Installs. Meta is brilliant at what it does. When you tell it to find you the cheapest installs, it will go out and find people who love downloading free apps and will *never* spend a penny. To fix your ROAS, you have to completly change your mindset. You need to stop buying installs and start investing in acquiring high-value users.
Why is My App's ROAS So Low in the UK?
First off, let's be honest about the market. The UK is one of the most competitive advertising spaces in the world. Everyone is fighting for the same eyeballs, which drives up costs. Users here are also savvy; they've seen every ad under the sun and have developed a very strong filter for nonsense. Generic ads that might work elsewhere get ignored here.
But the main culprit is almost always the campaign objective. When you choose 'Brand Awareness' or 'App Installs' as your goal, you are explicitly telling Meta's algorithm: "Go find me the largest number of people, for the absolute lowest price, who will perform this one action." The algorithm does exactly that. It finds the users who are not in demand because they don't engage, they dont click, and they certainly don't buy. You are paying Facebook to find the worst possible audience for your product's profitability.
True brand awareness isn't about impressions; it's a happy customer telling their friends about you. That only happens after a conversion. To get a better ROAS, you have to target users based on their potential value, not just the cost of an install. You need to align your ads with business outcomes, not vanity metrics like install volume.
How Do I Know What I Can Afford to Spend?
This is the question that separates the amateurs from the pros. You can't optimise for profitability if you don't know what a profitable user is worth to you. Forget your Cost Per Install (CPI) for a minute and focus on your Customer Lifetime Value (LTV). This number tells you the total profit you can expect to make from an average user over their entire time with your app.
The calculation is simpler than you'd think. You just need three numbers:
- Average Revenue Per User (ARPU): How much money you make from the average user each month.
- Gross Margin %: Your profit margin after accounting for costs directly related to providing the service (e.g., app store fees, server costs).
- Monthly Churn Rate %: The percentage of users you lose each month.
Once you have these, the maths is straightforward. Knowing your LTV is powerful. A common rule of thumb is to aim for a 3:1 LTV to Customer Acquisition Cost (CAC) ratio. So if your LTV is £90, you can confidently spend up to £30 to acquire a new user and know you'll be profitable in the long run. Suddenly, a £5 Cost Per Install doesn't seem so scary if it's bringing in a user who will eventually generate £90 in profit. This is the core of building a paid ads strategy that is actually profitable.
Here's a little calculator to help you work it out. Play around with the sliders to see how small changes in churn or revenue can massively impact your LTV.
What Campaign Structure Actually Works for ROAS?
Right, so you know your LTV. Now you need a campaign structure that actually finds users worth that much. This means moving beyond the basic 'App Install' campaign objective. You need to graduate to App Event Optimisation (AEO) and, eventually, Value Optimisation (VO). I've run campaigns for apps that have seen huge growth, like one that got over 45k signups at under £2 each, purely by focusing on the right campaign objectives and having a solid app marketing playbook.
Here’s the progression:
- Phase 1: App Install Campaigns (AIC). You start here. The goal is purely to get installs and gather data. You need volume before you can get clever. You run this until you have enough in-app event data (like purchases or subscriptions) to move on.
- Phase 2: App Event Optimisation (AEO). Once you have a decent number of specific actions happening in your app (e.g., 50-100 'subscribe' events per week), you can create an AEO campaign. You tell Meta to optimise for that specific event. Now, it's not just looking for installers; it's looking for people *likely to subscribe*. This is a massive step up in quality.
- Phase 3: Value Optimisation (VO). This is the top tier for ROAS. For this, you need to be passing purchase *values* back to Meta via the SDK. With VO, you're telling the algorithm: "Don't just find me people who buy, find me people who spend the most money." Meta's AI is incredible at this, and it's how you can really scale your spend while maintaining a healthy ROAS. We've seen clients go from a low ROAS to over 1000% using this method. This is the whole secret behind a good Meta app ads ROAS optimization strategy.
It can be confusing to know when to switch. Here's a simple flowchart to guide you.
Phase 1: Start Here
Campaign: App Installs (AIC)
Goal: Get data & volume.
(Need at least 1,000+ installs)
Phase 2: Level Up
Campaign: App Events (AEO)
Goal: Optimise for a key action (e.g., trial start).
(Need 50+ key events/week)
Phase 3: Max ROAS
Campaign: Value Optimisation (VO)
Goal: Optimise for purchase value.
(Need 10+ purchases with different values/week)
Who Should I Actually Be Targeting in the UK?
Your targeting is probably too broad. Targeting "United Kingdom" with an interest like "Technology" is like trying to catch a specific type of fish by throwing a giant net in the entire Atlantic. You'll catch a lot of rubbish and waste a fortune. For a market as expensive as the UK, you have to get specific. And I dont mean just demographics.
You need to define your customer by their *pain point* or their *passion*. What is the specific, urgent problem your app solves? Who feels that pain most acutely?
Let's say you have a language-learning app.
- Bad Targeting: People in the UK interested in "Travel". This is way too broad.
- Good Targeting: A layered audience of people in the UK who are interested in "Duolingo" AND are "Frequent International Travellers". Even better, target users interested in specific travel bloggers or publications that focus on immersive travel, like "Lonely Planet" or "Rick Steves".
You need to think like your customer. What podcasts do they listen to on the Tube? What niche Facebook groups are they in? What other apps do they already pay for? This is the intelligence that fuels profitable campaigns. It's how you build a powerful user acquisition strategy for the UK market specifically.
Once you have data, your best audiences will be lookalikes. But not just any lookalike. A lookalike of 'All App Installers' is low quality. You want a 1% lookalike audience in the UK based on your absolute best users: the ones who completed a trial, the ones who made a purchase, or ideally, a value-based audience of your highest-spending users. This focus on quality is powerful. I remember one campaign for a B2B software client where we achieved 4,622 registrations at just $2.38 each.
What Kind of Ads Get High-Spenders to Install?
Your ad creative needs to stop selling features and start selling a transformation. High-value users don't care that your app has 'AI-powered scheduling'; they care that it will finally end the stress of managing their family's chaotic calendar. You need to use the "Before-After-Bridge" framework.
- Before: Paint a picture of their current pain point. "Tired of your bank's clunky app and surprise overdraft fees?"
- After: Show them the dream state. "Imagine feeling totally in control of your finances, hitting savings goals effortlessly."
- Bridge: Position your app as the solution. "Our app is the bridge to financial clarity. Download for free and see for yourself."
Visually, ditch the slick, corporate-looking videos. User-Generated Content (UGC) style ads often perform much better because they feel authentic and relatable. A simple video of a real person (or someone who looks like a real person) talking to the camera about how your app solved their problem is incredibly powerful. I remember one campaign for a software client, a medical job matching platform, where we managed to reduce their cost per acquisition from a painful £100 down to just £7. Creative testing was a huge part of that success.
If you find that your Meta ads are not performing as they should, creative is almost always one of the first places to look. Don't be afraid to test raw, unpolished concepts. Often, they're the ones that connect best.
How Do I Actually Track if This is Working?
None of this works if your tracking is broken. For app campaigns, getting your measurement right is everything. You absolutely must have the Meta SDK installed correctly in your app. This is non-negotiable.
You need to be tracking not just installs, but all the key in-app events that lead to revenue: trial starts, subscriptions, in-app purchases, levels completed. Each of these is a signal you can use to optimise your campaigns. When you set up AEO or VO campaigns, Meta uses this data to find more people like the ones who are already converting.
Apple's App Tracking Transparency (ATT) framework has made things more complicated, but it's not a death sentence. You need to be using Meta's Aggregated Event Measurement and making sure your events are prioritised correctly. It's a bit technical, but getting your measurement and attribution model right is the foundation upon which all profitable app advertising is built. Without accurate data, you're just guessing.
Your Action Plan to Fix App ROAS in the UK
Alright, that was a lot of information. The key is to stop thinking like a typical advertiser and start thinking like a growth investor. You're not buying ads; you're buying customers. Your job is to ensure you're buying profitable ones.
This is the main advice I have for you:
| Area of Focus | Problem to Solve | Action to Take Immediately |
|---|---|---|
| Strategy & Metrics | You're optimising for cheap installs (low CPI), not profit (high ROAS). You don't know what a user is worth. | Use the LTV calculator above to determine your Customer Lifetime Value. Set a target Customer Acquisition Cost (CAC) at 1/3rd of your LTV. This is now your North Star metric. |
| Campaign Setup | Your 'App Install' campaigns are attracting low-quality users who will never spend money. | Review your weekly event volume. If you have 50+ key events (e.g., subscriptions), launch a new App Event Optimisation (AEO) campaign. If you have purchase value data, test a Value Optimisation (VO) campaign. |
| Audience Targeting | Your UK targeting is too broad and expensive, wasting budget on irrelevant users. | Create new ad sets targeting niche, layered interests specific to your user's pain points. Build 1% Lookalike audiences in the UK based on your *highest value* customers, not all users. |
| Ad Creative | Your ads talk about features, not benefits. They look too corporate and don't connect emotionally. | Write new ad copy using the Before-After-Bridge framework. Test at least one raw, UGC-style video ad showing a 'real' person solving their problem with your app. |
| Measurement | Your tracking isn't set up to feed the algorithm the data it needs for ROAS-focused optimisation. | Audit your Meta SDK implementation. Ensure all key events (trials, purchases) are firing correctly and that you are passing back value parameters for purchases. This is essential for VO. Check out our guide to setting up app install tracking correctly. |
Implementing all of this correctly takes time, expertise, and constant testing. The UK app market is particulerly unforgiving, and a small mistake in your campaign setup or targeting can easily waste thousands of pounds of your budget with nothing to show for it. It's a complex system, and navigating it successfully requires a deep understanding of both the platform and the market.
If you're serious about growing your app profitably but feel overwhelmed by the complexity, it might be worth getting an expert eye on your account. We offer a completely free, no-obligation strategy session where we'll go through your current campaigns and give you a frank, honest assessment of what's working, what's not, and where your biggest opportunities for growth are. Sometimes a fresh perspective is all it takes to unlock the next level of growth.