Retaining users is incredibly important for businesses to grow and succeed. A mere 5% increase in user retention can increase company revenue by anywhere from 25 to 95%. It’s also more cost-effective to retain users than it is to acquire new ones by about one fifth the cost. Returning users tend to spend more and at higher frequencies. With all these high value reasons, the time is now to establish an effective mobile app retargeting strategy.
Mobile app retargeting focuses on bringing back lapsed or dormant users who have previously been active within an app. They can be returning gamers ready to play more levels or spend on coins, or they can be loyal brand followers referring products or services to their friends. No matter the vertical, goal or action, retargeting is custom, personalized, and beneficial to every business looking to grow and sustain app engagement in our current economy.
Now is the time for app marketers to invest in retargeting in order to increase user loyalty and in turn, grow their app's user base and revenue.
Why Retargeting is More Important Than Ever
With the looming anticipation of a global recession, marketing budgets around the world are tightening. And, if they haven’t yet done so yet, CMOs are watching budgets, total spend and the market very closely. App marketers will have to focus on where they decide to spend their dollars. Many will immediately think about how they can maintain or even grow during an economic downturn. Some might consider scaling up user acquisition to overcompensate for lost revenue.
While user acquisition is an important tool in an app marketer’s toolbox, and usually is the first step in their strategy, the real and lasting secret is to funnel energies and budgets into generating success in mobile app retargeting, retention, and app re-engagement.
It’s important to think back to the fact that acquiring a new customer is more expensive than retaining an existing one. Tightening budgets bring a sharper focus on the investments that meet long term revenue and business goals. Focusing on retaining your brand’s user base will reap more for the business than trying to win new users at a higher cost. An existing customer is 60-70% likely to convert compared to the decreased 5-20% odds of a new user. With that said, retargeting in this economy is a safe and smart investment.
Why Choosing a High Value Retargeting Partner is Important
Scaling up retargeting efforts can seem like a daunting task, regardless of your organization’s size. For smaller teams, there may be an issue of bandwidth or a lack of access to top tier recommendations for partners. For larger ones, teams may not have in-house expertise required to run an effective campaign. Regardless of the size of your company, your mobile advertising goals should remain the same – to retain users and grow your revenue.
Deciding on a reliable retargeting partner is an important and necessary step for app marketers to reach revenue goals. Not only do partners give expert recommendations, but they will be able to get creative and optimize quickly on campaigns. They are also a creative resource to test out and determine the most engaging and best performing mobile app ad strategy.
Using a retargeting partner to drive conversions and user re-engagement frees up in-house marketing teams to work on other priorities for their company. Retargeting partners can be set up to effectively manage a company’s retargeting goals freeing in-house teams to work on branding and other relevant marketing tasks. Let the experts take over and do what they do best.
With potential cutbacks on team spending, it’s important to make sure that the marketing unit is operating at peak efficiency. Traditionally, it has been said that users require seven touchpoints with a brand before they convert. Using a partner that is an expert in their field to assist with these touchpoints removes the burden from in-house teams.
Increased Accuracy and Knowledge
Partners with long-term knowledge and a history of success bring that expertise to their client’s bottom line. Whereas app publishers may have accumulated insights about their own users, retargeting partners can go much further to develop a successful campaign for their clients. They can provide insights and data points pertaining to a vast universe of app users versus ones from just one publisher.
Working with a retargeting partner allows app marketers to experiment with different ideas based on historical data. An expert re-engagement partner can help marketers create personalized audience segments in order to target and win those high-value users. Personalized audience segmentation allows app marketers to see what is working with specific user groups and quickly optimize towards high-performing users.
In-house teams can rely on the expertise of retargeting partners with a managed demand side platform when it comes to experimentation and creativity. Because partners have a wealth of experience and knowledge in the space with the help of a DSP and platform AI, they are more likely to create campaigns that drive conversions quickly. It may take an in-house team months to learn insights whereas external partners can scale their skillset to acquire that knowledge straightaway.
Full Picture of Performance
Beyond using partners to help with segmentation and experimentation, retargeting partners give app marketers a comprehensive evaluation of their performance. An expert partner will be able to pull from past performance data and make recommendations based on that information. Retargeting partners take the guesswork out of campaign analysis.
Using retargeting partners that have worked with a wide variety of apps is an important part of choosing a partner. App marketers want a fully experienced retargeting partner that can give accurate recommendations. In-house teams may be able to understand retargeting results, but might not be as quick to understand what to do with them. Leaning on a retargeting partner to get the full picture of a re-engagement campaign’s performance saves time and energy for in-house marketing teams.
Access to Top Tier Retargeting Partner
Finally, choosing a top tier retargeting partner that has a long history of result generation is pivotal to app marketer’s success. YouAppi, for example, has ten years of experience in the mobile app advertising space. YouAppi has two times the conversions on campaigns than in-house retargeting teams. When app marketers choose these kinds of retargeting partners that have proven track records, they will yield high quality results.
Takeaways of The Time is Now to Focus on Retargeting
Retaining users is incredibly important for businesses to grow and succeed. Now is the time for app marketers to invest in retargeting in order to increase user loyalty and in-turn, grow your brand’s user base and revenue.
Why Choose a Retargeting Partner?
- Limited Bandwidth: Using a retargeting partner to drive conversions and user re-engagement frees up in-house marketing teams to work on other projects. for their company. Retargeting partners are set up to effectively manage a company’s retargeting goals quickly and efficiently.
- Increased Accuracy and Knowledge: When working with partners who are experts in their industry, they bring historical knowledge and insights to the table. Partners will provide insights and data points pertaining to a vast universe of app users versus ones from just one publisher.
- Full Picture of Performance: An expert partner will be able to pull from past performance data and make recommendations based on that information. Partners take the guesswork out of campaign creation!
- Access to Top Tier Retargeting Partner: YouAppi has ten years of experience in the mobile app advertising space and yields two times the conversions on campaigns compared to in-house retargeting teams. App marketers can achieve ROI when they choose these kinds of retargeting partners.