New apps typically have one goal: gain new users. Running user acquisition campaigns in the first few months of an app’s inception helps these new apps not only gain users, but also increase brand awareness. However, the average app loses 77% of its daily active users within the first 3 days after install. By running retargeting campaigns alongside user acquisition initiatives, app marketers can limit wasting valuable time and money on UA campaigns.
Here, we break down the key focus areas of user acquisition and retargeting campaigns and how combining these strategies can build an unbeatable app marketing strategy that maximizes return on investment.
What Does User Acquisition Help With?
User acquisition campaigns are designed to attract new users and increase the overall downloads for an app. These campaigns tend to have a lower cost per new user than retargeting campaigns, which is why most app marketers begin their growth initiatives with UA.
Growing initial users in the early stages of an app’s launch is crucial for success as it increases the potential for engagement and monetization. User acquisition campaigns aim to drive app downloads by promoting the app across various channels such as social media, search engines, app stores, and advertising networks. The more people who download an app, the greater the chance of gaining active users who engage with an app's features and functionalities.
User acquisition campaigns can also help app marketers gather valuable data about their users. By analyzing user demographics, behavior patterns, and preferences, marketers can gain insights into their apps’ target audience. This data can be utilized to optimize the app, refine marketing strategies, and personalize user experiences, ultimately improving user retention and engagement.
Although user acquisition campaigns play a vital role in the initial growth and success of an app, they do not always foster high quality, paying users. This is where user retention and engagement strategies can be used to ensure long-term app success.
What Does Retargeting Help With?
Retargeting campaigns compliment marketers’ user acquisition strategies because they reduce churn, generate revenue and increase a user’s overall lifetime value (LTV). Mobile app retargeting refers to ad campaigns that target users who have previously visited a mobile app. Based on specific mobile user behavior, marketers can serve personalized ads to encourage users to re-engage, re-install, or complete a down-funnel conversion. By showcasing relevant and personalized ads to users who have already shown interest, app marketers can drive them to open the app and engage with specific actions. This can lead to increased app usage, session duration, and overall engagement.
Benefits of Running UA and Retargeting Together
In some cases, retargeting users beyond seven days since their last touchpoint is already too late to make an impact. This means that in order to have an effective app marketing strategy, marketers will incorporate both user acquisition and retargeting campaigns at the same time. Below are a few of the key benefits of running UA and retargeting together.
Utilize User Data
The user knowledge collected in the initial user acquisition campaign can be directly applied to a retargeting strategy. App marketers can use the data generated by a UA campaign to iterate on strategy or app interfaces. Retargeting is one of the best tools to learn what users are resonating with. By A/B testing an app audience, marketers can learn what high lifetime valued users interact with and how to capitalize on that strategy.
Marketers can also use this data to run personalize retargeting campaigns based on user behavior and preferences. By tailoring the messaging and creative content to specific user segments, marketers can create a more personalized and relevant user experience. This level of personalization can enhance user satisfaction, loyalty, and overall app experience early in a user journey.
Higher Conversion Rates
Retargeting ads can increase conversion rates by as much as 150%. By engaging the most active users in an app, marketers can turn them into paying users quickly. Newly acquired users may open an app multiple times a day without making a purchase. An app retargeting campaign can bring these users further down the marketing funnel by offering discount offers or time-limited deals. By serving targeted ads to these users, they are reminded of the app and are encouraged to convert. This focused approach often leads to higher conversion rates compared to generic user acquisition campaigns.
Increased Return on Investment
User acquisition campaigns tend to have a lower cost per user, but those users generally don’t have a high LTV. Retargeted users tend to spend more, which means they engage with app offers at a lower cost. These retention campaigns can be effective at generating additional revenue by promoting premium features, in-app purchases, or subscription upgrades to existing users. By targeting users who have already made a purchase or engaged with their app, marketers can present them with relevant upsell opportunities, encouraging them to spend more and increase their lifetime value. For example, spending $10 a week to retarget a high LTV user that potentially spends $100 a week can potentially return on your initial ad spend ten times over.
Adapting to the User Journey
The customer journey is rarely a linear path. Users may visit an app or engage with ads multiple times before making a purchase decision. Retargeting allows app marketers to adapt to this nonlinear journey by staying connected with users at different stages. By showing them relevant ads based on their previous interactions, marketers can guide them through the conversion funnel.
User acquisition campaigns often involve reaching out to a broader audience, which can be costly. Retargeting, on the other hand, focuses on a more specific audience that has already shown interest in a brand. This targeted approach can lead to cost savings as app marketers spend their advertising budget more efficiently by concentrating on users who are more likely to convert. The converted users are also more likely to make in-app purchases and have higher engagement as they are already interested in the app versus completely new users.
Takeaways of Why Run Retargeting Alongside User Acquisition
By running retargeting campaigns alongside user acquisition initiatives, app marketers ensure they are not wasting valuable time and money on UA campaigns.
Benefits of Running UA and Retargeting Together
- Utilize User Data: The user knowledge collected in the initial user acquisition campaign can be directly applied to a retargeting strategy. App marketers can use the data generated by a UA campaign to iterate on strategy or app interfaces.
- Higher Conversion Rates: Retargeting ads can increase conversion rates by as much as 150%. By engaging the most active users in an app, marketers can turn them into paying users quickly.
- Increased Return on Investment: Retention campaigns can be effective at generating additional revenue by promoting premium features, in-app purchases, or subscription upgrades to existing users.
- Adapting to the User Journey: Retargeting lets app marketers adapt to a nonlinear, multi channel user journey by staying connected with users at different stages. By showing them relevant ads based on their previous interactions, marketers can guide them through the conversion funnel.
- Cost Efficiency: Retargeting campaigns focus on specific audiences that have already shown interest in a brand. This targeted approach can lead to cost savings as app marketers spend their advertising budget more efficiently by concentrating spend only on users who are most likely to convert.