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There is a fierce battle for the attention of highly distracted smartphone users. Mobile users have an average of 80 apps installed, but they actively engage with just 9 different apps daily. Retention rates are dropping yearly, as reflected in Appsflyer’s App Retention Benchmarks.
In other studies on retention:
- On average, apps lose 77% of their daily active users (DAUs) within just three days of installation
- Retention rates drop from 25.3% on Day 1 to a mere 5.7% by Day 30
- With a Month 3+ churn rate of 68%, keeping users engaged is crucial.
- Apps that successfully engage users at least once a week are much more likely to build long-term loyalty
This is where mobile app retargeting ads come into play as a powerful strategy for marketers.
Existing customers are more likely to engage and buy more than new users. They are more likely to respond positively to the messaging that captured them in the first place.
However, re-engagement often gets neglected. It may also get decoupled from DSP-based user acquisition and growth tactics. To lure wandering users back, apps use tried-and-true methods such as push notifications, emails, and social messaging.
Mobile app retargeting ads with a DSP are designed to gel with your existing user acquisition efforts and complement tried-and-true re-engagement methods. These ads are served to users within mobile apps based on their previous interactions or behaviors with your app. They gently nudge them back into the conversion journey. With the right approach, you can cut through the noise, captivate your audience, and, ultimately, drive sustained engagement and loyalty.
What are mobile app retargeting ads?
Retargeting is like having a digital homing beacon for potential customers who’ve shown interest in your product or app but might have wandered off, especially before making a purchase. It serves personalized ads to re-engage users by analyzing their interactions with your app. It’s the ultimate reminder, gently nudging them back into your sales funnel and, hopefully, converting them into loyal customers.
Retargeting vs. Remarketing vs. Re-engagement
Think of mobile app retargeting ads as the precision tool in your marketing toolkit, honing in on specific individuals who’ve engaged with your brand but may not have completed a purchase.
Remarketing is a similar term that everyone compares with retargeting. It casts a wider net, targeting existing customers. This wider net may include emails, loyalty programs, or social media ads that aim to cross-sell or upsell.
While both strategies aim to reignite interest, retargeting’s tailored approach often yields higher conversion rates. Imagine you’re playing your favorite mobile game, and suddenly, an ad shows up showcasing the exact item you were eyeing on an e-commerce app you have.
It’s seamlessly reintroducing you to what you almost bought. That’s the power of in-app retargeting — delivering timely, relevant content that brings users back into the fold.
Both remarketing and retargeting are part of the broader idea of re-engagement, aiming to reconnect with users. While retargeting is the sniper, targeting specific individuals with personalized ads, remarketing is the fisherman, casting a broad net through various channels.
Re-engagement encompasses both, plus other strategies like push notifications and in-app messages, to revive user interest and drive action.
Retargeting (RT) vs. User Acquisition (UA)
In the grand strategy game of mobile marketing, user acquisition and retargeting are two different battle tactics. User acquisition is your frontal assault – conquering new territories and expanding your empire. It’s exciting and necessary, but it can burn through your resources quickly.
Retargeting is more like fortifying and developing the lands you already rule. It’s a smarter, more efficient way to boost your app’s power. Using advanced AI army generals like Aarki’s Deep Neural Networks, retargeting identifies the most valuable citizens in your digital kingdom. It keeps them engaged with personalized quests and rewards. This precision strategy not only brings inactive users back into the fold but also turns them into loyal, high-value players in your app’s ecosystem.
By balancing these two tactics – the expansive reach of user acquisition and the targeted precision of retargeting – you create a powerful synergy, growing your empire while maximizing the value of every user. Despite the synergy, there remains a challenge in deciding which approach to prioritize. Delve into the debate: Retargeting vs. User Acquisition: Which Strategy Suits Your Next Campaign?
The retargeting ad multiverse: strategies across mobile app dimensions
One truth remains constant across all app categories: mobile app retargeting ads are a powerful resource for driving growth and enhancing engagement. From gaming to e-commerce, fitness to finance, each app genre requires a unique approach to retargeting, but all can reap significant benefits from a well-executed strategy.
In mobile gaming apps, retargeting ads are the most powerful tool. For casual games, it might remind players of the fun levels they’ve yet to conquer or the high scores waiting to be beaten. For strategy games, retargeting can showcase the empire a player was building or the alliances they’ve left hanging.
Leveraging AI-driven platforms like Aarki, gaming apps can create dynamic ads that display a player’s progress, upcoming rewards, or time-limited events. These personalized reminders act like irresistible side quests, luring players back into the game world they once loved.
Beyond gaming, each app category demands its own unique retargeting approach. E-commerce apps might showcase abandoned cart items or flash sales, turning window shoppers into buyers. Fitness apps could highlight streaks about to be broken or personalized workout milestones, motivating users to maintain their health journey. For streaming services, retargeting might tease new episodes of a show the user was binging on or suggest similar content based on their viewing history.
The key across all categories is relevance and timing. Advanced DSPs use machine learning to identify not just what to show, but when to show it, ensuring that retargeting feels less like an interruption and more like a helpful reminder of value waiting to be unlocked.
Benefits of in-app retargeting: How it complements your overall strategy
The world of mobile apps has cutthroat competition. Acquiring users is just the beginning. Keeping them hooked? That’s where the magic happens.
While mobile app retargeting ads are implemented differently across categories, it offers common advantages. The following case studies from diverse industries exhibit how retargeting complemented marketing strategies.
1) Boost your user acquisition (UA) strategy
Your user acquisition strategy might be bringing in the crowds, but without retargeting, you’re leaving money on the table. With retargeting, your brand can swoop in to remind users why they downloaded your app in the first place, making your UA efforts truly pay off.
2) Maximize user value
It’s easier to persuade an old friend to come over than to invite a stranger, isn’t it? Retargeting is like sending personalized invites to your app’s users, luring them back with relevant, eye-catching ads. AI-enabled tech tailors these ads perfectly, making users feel more valued.
3) Enhance brand recall
It’s tough to stay memorable in a sea of apps. Retargeting keeps your app front and center, boosting brand recall. Aarki’s smart analytics ensure your ads appear when users are most likely to notice them, keeping your app unforgettable.
4) Drive revenue
Re-engaging users means more in-app purchases and higher revenue. Aarki’s Multi-objective Bid Optimizer™ targets users with precision, turning clicks into cash.
5) Achieve other in-app goals
Beyond revenue, retargeting drives other goals like longer sessions and higher satisfaction. To create impactful ads, it’s crucial to blend creativity with data-driven strategies for optimal results.
In short, retargeting is your ticket to transforming occasional users into dedicated fans. DSP-based retargeting enhances these benefits by providing a streamlined, data-driven approach to reaching your audience.
Choosing the right retargeting partner: key criteria for success
Selecting the right retargeting partner can make or break your campaign’s success. As you navigate this decision, consider these crucial factors that align with the evolving landscape of 2024 and beyond:
1) AI-powered technologies
Artificial intelligence is not just a buzzword—it’s a necessity. Look for a partner that harnesses the power of deep neural networks for contextual targeting. These advanced AI systems can process vast amounts of data to deliver hyper-personalized ad experiences while respecting user privacy.
2) Privacy-first engagement
With the increasing focus on user privacy, your retargeting partner must be well-versed in navigating the new privacy landscape. They should offer solutions that comply with regulations like GDPR and adapt to changes like Apple’s ATT and Google’s Privacy Sandbox.
The ideal partner will have strategies to maintain effective retargeting while respecting user privacy, such as leveraging first-party data and employing privacy-preserving technologies.
3) Holistic creative strategy
An often overlooked aspect of retargeting is the creative element. A holistic approach that combines data analytics with creative expertise can significantly boost campaign performance. Look for a partner that offers an end-to-end solution, integrating creative development with performance analysis.
4) Robust infrastructure and data capabilities
Successful retargeting campaigns require more than just smart targeting—they need a robust technological backbone. Your partner should have access to massive-scale model training data and a comprehensive view of the global mobile app landscape. Infrastructure that can process and analyze vast amounts of data in real-time is crucial for achieving high match rates and effective audience segmentation.
5) Self-service vs. managed service
While self-service platforms offer control, managed services provide expertise and save valuable time. A managed service partner brings a wealth of experience across multiple campaigns and industries. They can:
- Optimize campaigns in real-time, adjusting to performance fluctuations
- Handle the complexities of bid management and inventory selection
- Offer dedicated support for troubleshooting and performance analysis
This expertise allows you to focus on high-level strategy while leaving the day-to-day optimizations to specialists.
6) Transparency and reporting
In the age of data-driven marketing, comprehensive and transparent reporting is non-negotiable. Your retargeting partner should provide clear insights into campaign performance, audience behaviors, and ROI. Look for platforms that offer real-time reporting and customizable dashboards to align with your specific KPIs.
7) Adaptability and innovation
The digital advertising landscape is constantly evolving. Choose a partner who is proactively developing strategies for emerging challenges, such as the constant changing of privacy regulations.
Do’s and don’ts of mobile app retargeting ads
Best practices to master the art of retargeting
The stakes are high in retention. That’s why retargeting isn’t just a tactic—it’s an art form that keeps your users engaged. To help you paint your masterpiece, let’s dive into some best practices that will transform your retargeting campaigns—from basic brushstrokes to a digital Mona Lisa that makes your users visit again and again.
1) First things first – know your target
Set clear, measurable goals for your retargeting activities. Are you looking to awaken dormant users who’ve never made a purchase? Focus on metrics like Cost Per Install (CPI) and Retention Rate.
Aiming to reignite the spark with inactive purchasers? Keep your eyes on the ‘return-on-ad-spend (ROAS)’ prize.
2) Make granularity your best friend
The more precisely you segment your audience, the more personalized and effective your targeting becomes. Group users by idle days since last app open, lifetime purchase value, or game level reached. Each segment is a unique opportunity to tailor your message and maximize impact.
3) Utilize deep linking
Deep linking improves the user experience by directing users to specific content within the app. Instead of sending users to the app’s homepage, deep link them to the exact product or page they showed interest in. For instance, if the ad promotes a specific pair of shoes, the link should take the user directly to that product page within the app.
4) Don’t overwhelm your users with excessive ad frequency
Repeatedly bombarding users with the same ads can lead to ad fatigue and potentially drive them away. Instead, find the right balance in your retargeting frequency to maintain interest without becoming annoying.
5) Leverage creative selection tactics
This is where your art comes to life. Show users what they’re missing—literally. For examples, in case of e-commerce apps, nudge your shoppers to check out items in their carts with exclusive offers. For gaming apps, entice inactive gamers with glimpses of exciting new-level designs they haven’t reached yet.
Don’t reinvent the wheel; leverage designs that have proven successful in your user acquisition campaigns.
6) Incorporate incrementality testing
Incrementality testing for your mobile app retargeting ads measures the true impact. It helps you understand if your retargeting efforts are driving incremental value or simply capturing users who would have converted anyway.
Relying solely on standard metrics without incrementality testing may overestimate the success of your campaigns and lead to inefficient ad spend.
Unlocking the power of persuasive creatives in retargeting
When it comes to mobile app retargeting ads, creatives are the ultimate decision-makers that determine whether users click on your ads. Engaging, relevant, well-crafted creatives can capture attention and drive users back to your app.
Creative strategy for gaming apps
Gaming apps extensively use retargeting to re-engage lapsed players by showcasing new features, updates, and exciting in-app events, ensuring players return to explore fresh content and enjoy new gaming experiences.
Spark players’ interest by showcasing new features, updates, and in-app events. Highlight multiple gameplay scenarios like different game modes, mini-games, or unique competitions to convey the variety your game offers. Ads with freebies for new features or events outperform those merely showing new content.
In our comprehensive playbook for gaming app marketers, we’ve distilled vital creative format strategies, personalization tactics, and campaign setup guidelines to help you craft retargeting ads that resonate with your audience and drive engagement.
For non-gaming apps
Even non-gaming apps hold immense potential for retargeting. By re-engaging users, these apps can significantly reduce customer acquisition costs. Effective retargeting keeps users coming back, driving loyalty and maximizing return on investment (ROI).
Boost credibility by highlighting positive user reviews, awards, and accolades. Inform users about upcoming promotions like sales, limited-time offers, and loyalty programs. This creates a sense of smart decision-making and rewards, enticing users to re-engage with your app.
Our concise guide offers category-specific retargeting tactics for non-gaming apps, providing focused strategies for food and drink, finance, e-commerce, and other verticals to help you create targeted campaigns that speak directly to your audience’s unique interests.
Irrespective of the app category, the goal is to personalize
By following these best practices, you’re not just retargeting—you’re creating a personalized journey for each user, guiding them back to your app with precision and creativity. Mastering these techniques isn’t just smart—it’s essential to stay ahead of the curve and turn former users into loyal advocates.
Measuring the success of retargeting’s ripple effect
Mobile app retargeting ads will always be a game-changer for marketers. When combined with user acquisition efforts, it delivers a powerful double impact. This impact is often seen in improved user engagement, increased lifetime value, and boosted revenue.
By synergizing retargeting with UA, you’re not just plugging a leaky bucket; you’re creating a self-reinforcing cycle of growth. Remember, in the app world, acquisition is just the beginning – retargeting keeps the party going.
Beyond the basics: retargeting-specific metrics
While the usual suspects like clickthrough rate, conversion rate, and ROAS are essential, let’s dive into the retargeting-specific metrics that’ll truly supercharge your campaign insights:
- Incremental ROAS (iROAS): It measures the additional return explicitly generated by retargeting compared to what would have happened without it. This helps isolate the true impact of your retargeting efforts.
- Re-engagement Rate: It is the percentage of previously inactive users who return to your app after being exposed to retargeting ads.
- Frequency: It is how often your retargeting ads are shown to the same user. It’s essential to find the right balance to avoid ad fatigue.
- Lifetime Value (LTV) Impact: It helps you analyze how retargeting affects the overall LTV of your users. Effective retargeting should increase LTV over time.
- Average Order Value (AOV): For e-commerce apps, this measures whether retargeting, especially up-selling or cross-selling, leads to higher-value purchases.
- Uninstall Rate: This metric monitors if your retargeting efforts are affecting app uninstall rates, ensuring you’re not inadvertently driving users away.
But don’t stop there – look at the bigger picture by analyzing how retargeting complements your user acquisition campaigns. Are you seeing higher retention rates for new users? Is your overall customer acquisition cost decreasing?
It’s time to transform insights into action
After all the extensive discussions on the topic, it might surprise you to learn that there is never a fixed strategy for retargeting. The only way to get closest to the perfect context, perfect audience, and perfect time is with deep learning neural networks like Aarki’s. These networks are constantly learning with the massive, rapidly evolving world of mobile to optimize your campaigns for the highest ROI.
As you embark on your retargeting journey, remember that success lies in the perfect blend of cutting-edge technology, data-driven insights, and creative finesse. By leveraging AI-powered solutions, respecting user privacy, and continuously optimizing your campaigns, you’re not just recapturing lost opportunities – you’re building lasting relationships with your users and driving sustainable growth for your app.
Partner with Aarki, a global leader in retargeting, to elevate your app’s user engagement and maximize your app growth. Let our AI-powered technology drive your success in today’s competitive world of mobile app ads. Get in touch with us.
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