App Marketing Strategies That Drive Revenue and Retention


Presented by Adikteev

Retargeting is an essential part of any mobile marketing strategy in 2022, especially in an extremely crowded market where everyone is vying for user attention. A solid retargeting strategy and measurement framework makes the most of an existing user base and increases returns on UA ​​investments.

There are three main areas where retargeting is important. The first is to prevent churn, which is a major challenge for the majority of app developers. You need to make sure users already in your app stay engaged and don’t go anywhere.

The second area is the activation of new installations. These are the users who have downloaded your app, but have yet to take the first step towards engagement, whether that means subscribing, making a deposit, or other actions.

And the third category is upselling your users. This involves contacting a user who has already made a small purchase and retargeting them to see if they would be interested in making more, or a higher value purchase, or both.

“There’s no one-size-fits-all solution, but three main points keep coming up for marketers,” says Kate Lovejoy, COO of Retargeting at Adikteev.

Here’s a more in-depth look at these three key strategies — plus a look at the one that’s become a huge topic for app marketers in 2022.

Target high LTV users to increase revenue

Your goal here is to serve retargeting ads to high value-to-life (LTV) user segments – that small percentage of paying users that generate the majority of your revenue. It seems counterintuitive, since these users are already active, but keeping these users engaged and happy is key to increasing revenue.

In hardcore gaming apps, targeting the small number of paying users (also known as whales or VIP users) has been shown to lead to high retention and in-app revenue; in e-commerce apps, it ensures repeat shoppers continue to convert within the app.

Keeping these super valuable users in your app is absolutely vital. Once a user is gone for about a week, they are unlikely to return. With a retargeting strategy, you can ensure that your app stays top of mind, reminding those users to stay in the app, and also pushing them to make additional purchases.

Timely creations are essential. Users want to see relevant creatives at the right time and in the right context. Achieving this requires smart creative retargeting and a strong auction platform to ensure you reach these users in a timely manner.

Classification of users by open application

Segmenting users into different buckets, or segments, allows you to build a tailored strategy for each. The most crucial audience segments that most marketers use are new installers, former payers, and current payers.

With new users, 70% of unsubscribes happen immediately after installation. While some will turn out no matter what (because every UA strategy produces misfires), it’s still important to protect your UA investment. It’s also a good way to filter which of those users are expected to stay, Lovejoy says.

Former payers often have high intent; retargeting these users can create new high LTV users, keep them active and show the app’s potential. As for current payers, these are the ones you want to keep in your app ecosystem and should always pay attention to.

This strategy is best suited for ad monetization apps or casual games that invest heavily in UA, but need a way to retain those users. Retargeting can help them maximize the amount of revenue that can be extracted from users who do not intend to make a purchase through rewarded video ads.

“With retargeting, you can emphasize or accelerate user behaviors in the app, but you can’t create behaviors that don’t exist. A user who has opened five times in the past can be convinced to create a genuine habit of checking the app every day and become a highly engaged user, on the other hand, if you only see 0.10% of users perform a certain action, it will be very difficult to get more users to do that with just one retargeting campaign,” says Lovejoy.

First-to-second conversion strategy

There is always a drop in app users who have made a purchase – a large portion of them never make a purchase again. A first-to-second conversion strategy can change that.

“If I were launching a retargeting campaign for a mobile app, this is the first strategy I would opt for,” Lovejoy says. “I consider it a low hanging fruit. You have those people who have been willing to make a purchase once before. Retargeting can help them buy again and build that habit. Usually these campaigns are quite profitable and quite progressive.”

Typically, you start by analyzing the average time between first and second conversion, which helps determine when to show an ad to users, to drive them to make that second purchase. This conversion window differs significantly from application to application. If the average time is three days between those two points, you’ll start targeting them after three days to nudge them into that second purchase (if they haven’t done it on their own). The idea here is that some users might need a bit more of a boost than others.

It’s important to start pushing for a second conversion, because the sooner the second conversion is made, the better the chance of a third, and so on.

Beyond Retargeting

However, app marketing is not just about retargeting. Rather than focusing on a single app, cross-promotion is all about keeping LTV users high within your app ecosystem as a whole.

When you think a user is likely to unsubscribe, you want to push them to another app in your ecosystem. This is a particularly relevant strategy for game studios that have a variety of titles in their portfolios.

“But I think there are some really great opportunities if you’re willing to challenge that and say, why not go after the two-day lapsed payers, or the active payers and measure the incremental increase? Let’s experiment here” “The studios that I see becoming the most successful are willing not only to look at the data to challenge their notions, but also to test assumptions live.”

To learn more about the different retargeting strategies for apps, get in touch with Adikteev here.

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