The method of ad retargeting is globally growing faster than user acquisition (the number of non-organic installs).
This is according to a recent report by AppsFlyer, titled ‘The State of App Retargeting 2020 Edition’.
Retargeting is a marketing strategy that aims to drive engagement across paid and owned channels, by re-engaging with existing app users. It has become a key strategy to improve customer retention.
Effective tool
Global adoption of retargeting continues to grow, rising more than 10% since 2018, suggesting that it is an effective tool for marketers.
Shani Rosenfelder, head of content and mobile insights, AppsFlyer, said: “With most apps losing 95% of their users within the first 30 days of install, it is no wonder that currently 35% of app marketing conversions result from retargeting; driving better retention and more revenue. We still see an opportunity for growth, particularly among gaming apps, which have plenty to gain from retargeting.”
The report highlights that industry-wide retargeting share per app was up nearly 15% in 2019 from 2018 with marginal change in 2020. This, it states, attests to the success that app marketers have found in this method.
In Europe, 50% of shopping apps run retargeting campaigns, with retargeting conversions making up 50% of their total marketing conversions.
The study also notes that, in EMEA, 30% of users are exposed to a retargeting campaign within the first 30 days of installing an app.
The report states: “When we compare change in the average retargeting share in EMEA over the past two years, we can see that retargeting is taking off in at least one vertical in nearly every country.
“Shopping is the leading vertical in all regions in its use of retargeting, showing impressive results. It makes sense that retargeting would be particularly effective in shopping because direct response campaigns encourage action, which drive purchases of products users expressed interest in.”
The report adds: “Social casino apps have taken the cue. For the past year, more and more studios in that genre are investing resources in building a retargeting activity that is both automated and sophisticated and can drive paying users back to the game at the best timing and place. Therefore, it’s not surprising to see that the average retargeting share for social casino apps doubled this year in key markets for this genre – the UK and Germany.”
Lifestyle app marketers in the Middle East and France, in particular, were clearly enjoying retargeting success, with 45% and 27% retargeting share in 2020, respectively.
ApplsFlyer noted that its research highlights how retargeting can pay off when the relationship between retargeting and the share of paying users is examined.
“By retargeting existing users, especially those with higher likelihood to complete a purchase, you increase the potential to drive more payers and improve your conversion rate,” the report explains.
“When you look at social casino apps in Russia, for example, apps that run retargeting campaigns are rewarded with an 87% higher share of paying users. Meanwhile, those running retargeting campaigns in midcore have a 70% higher share of paying users, and for casual, it’s 100%.
“Then, take a look at entertainment apps in the UK, where the share of paying users that run retargeting is 13.1% — almost three times higher than the share of paying users that do not run retargeting.”
Shopping apps in Germany enjoy a boost, too, albeit a modest one. Those that run retargeting see a slightly higher share (+14%) of paying users than ones that do not.
The impact of the coronavirus was also taken into consideration in the study, which looked at how app user behaviour changed in two different time frames: year-on-year in January-February and February-April.
Doug McMillen, VP Enterprise Strategy, AppsFlyer, said: “As marketers recognise the importance of engagement, retargeting is becoming more crucial than ever to their success, buoyed by the fact that retargeting has shown resilience amid COVID-19.”
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