The fact that there are over 6.3 billion smartphone users is the driving force behind estimates that the mobile app industry will generate over $953 billion in revenue by 2023. The Apple App Store and Google Play Store have a combined 4.83 million apps available for download, making the competition for user attention greater than ever. Not to mention, 73% of users churn within 90 days. Since the vast majority of apps available across both App Stores are free, user engagement and purchases are often the main source of revenue generation for app publishers. As such, mobile app publishers compete not only for new users to download their apps, but also for user engagement once their apps are installed.
How are the top app publishers able to cut through the noise and win back loyal users who engage with their apps each day? Here we will share the secret sauce that top app publishers are using in 2022, and it begins with incorporating mobile app retargeting in your long-term growth strategy.
How Does Mobile App Retargeting Work?
We know that retargeting users is necessary to increase retention, but how does it work? As an example of what app remarketing can look like, let’s take a look at Greg, a millennial who likes to play mobile gaming apps in his free time. Keep in mind that most games in the app store are free-to-play and are monetized through in-app purchases and advertisements. This means that for many gaming publishers, user downloads are not enough for monetization. Rather, consistent app engagement is key.
Greg has enjoyed a particular mobile gaming app for some time, but recently switched to a different gaming app on the App Store. How will the first gaming publisher win back Greg’s loyalty and engagement? A mobile app retargeting strategy will use AI and machine learning to analyze Greg’s behavior as a user who loves to play mobile app games. Using real-time data, a successful app remarketing strategy will place an attractive ad in another app, inviting Greg to return to the original game. Once Greg has returned to the game, he can make an in-app purchase, such as buying in-game coins or unlocking a new level, or watch an in-game advertisement.
This process uses a measured methodology to retarget users in real-time. Let’s dive deeper to see just how a successful mobile app retargeting campaign can allow top app publishers to re-engage loyal users.
High Performing App Remarketing Campaigns
For a mobile app retargeting campaign to perform well, mobile app publishers need to consider how, when, and where their ads are being placed. That’s where Dynamic Creative Optimization, or DCO, comes in. DCO is a critical tool for building app audiences by analyzing user behavior patterns and serving dynamically changing ads to individual users based on real-time data.
These algorithmically optimized creatives enhance performance by attracting users, like Greg, back to the app. This works by matching the creatives to the user at the right step in the user funnel. For instance, if Greg completed level 12 in the mobile app game before churning, the best app remarketing creative will show attractive visualizations and messaging for level 13. Personalized, dynamic creatives can thus lead to more app engagement and a higher performing mobile retargeting campaign.
Testing, Testing, 1..2..3!
How do advertisers determine whether their mobile app retargeting ads successfully attract users like Greg? Only high quality dynamic ads can truly capture a user’s attention. When it comes to serving personalized ads, A/B testing multiple creative sets helps discern which types of creatives perform best for an advertiser’s specific vertical and audience segment. This involves collecting insights on multiple creative sets and continuously optimizing based on your findings.
This could mean making messaging more concise, adding a call-to-action that correlates with the specific app, using bright and eye-catching designs, and enabling a deep link that lands a user at the right location. As such, advertisers can focus on launching new creative concepts while iterating winning ones. This keeps their mobile retargeting campaigns optimized at every step.
Measuring Value Add Through Each User with App Remarketing
When launching any growth marketing campaign, advertisers need to show the direct value add of their advertising spend. Incrementality testing measures the incremental lift that advertising spend contributes to the conversion rate. It does so by calculating the percentage of total conversions that resulted directly from the advertising campaign. This allows advertisers to assess their budget optimization, and set the right incentives for their campaigns.
Transparency is key when measuring value. Through customized reports and direct dashboard access, advertisers can see how their mobile app retargeting campaigns are performing. A strong mobile retargeting campaign will provide insights directly to app publishers, so they can measure how their goals are being met, and which methods are working well.
App Remarketing Takeaways:
The mobile app industry is thriving more than ever, with an expected $953 billion in revenue by 2023. Top app publishers are taking advantage of this incredible growth in 2022 with mobile app retargeting: the secret sauce to winning loyal users and increasing app engagement.
- How App Remarketing Works: The retargeting process uses a measured methodology to retarget users in real-time. With a combination of real-time data, AI, and Machine Learning, a successful retargeting strategy places relevant ads that send users back to the app.
- High-Performance Mobile App Retargeting Campaigns: Dynamic Creative Optimization, or DCO, analyzes user behavior patterns and serves dynamically changing ads to individual users based on real-time data. These algorithmically optimized creatives enhance performance and lead to more engagement.
- Testing, Testing, 1..2..3: A/B testing multiple creative sets helps advertisers determine which types of creatives are performing best for their specific vertical and audience segment. This process helps advertisers focus on launching new creative concepts while iterating winning ones.
- Measuring Value Add Through Each User: Incrementality testing measures the incremental lift that advertising spend contributes to the conversion rate, allowing advertisers to assess their budget optimization and set the right incentives for their campaigns.
Mobile app retargeting is the biggest 2022 mobile trend you need to be part of. Contact us here to win back loyal users and achieve your growth KPIs.