Insights On Retargeting in the Programmatic Industry


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For maximizing value, user re-engagement and retargeting are invaluable to the modern advertiser. Although retargeting isn’t a new concept to advertisers, many of them still do not invest in this strategy due to the lack of knowledge on the right campaign success measurement and attribution.

In this article, and in many succeeding ones, we will dive deep into the important aspects of retargeting and will share our tips to help advertisers realize their benefits.

Drive Revenue Uplift with Retargeting 

App marketing doesn’t end with an install. Acquiring new users is the first step towards the revenue lift. A more important step to monetize your app is re-engaging lapsed users and drive them to more purchases.

Focusing on users who have a strong interest in the app will result in a better return on investment (ROI). Combining the right targeting with creative personalization will further entice a user to re-engage. 

On a recent reactivation campaign we ran for a casual game app, personalized ads outperformed non-personalized creatives by almost 3x the return on ad spend (ROAS) and generated more ad engagement.

Follow the Retargeting Trends

Currently, retargeting is used by several app verticals - the ones that bring in the most conversions are e-commerce, food & drink, and travel apps. That doesn’t mean that other app verticals won’t see success in retargeting. Know the trends that could get you started in your retargeting campaign.

  • Perform a lift analysis

Mobile marketers who decide on retargeting users continuously do lift analysis throughout their campaign. In doing so, they can see the effectiveness of the strategy they’ve put in place. Aarki determines the lift through PSA testing. It can help you analyze the impact of your campaign strategies on ROI. We divide the audience into two groups, the target and control, which are shown relevant and PSA ads, respectively. Another way we perform a lift analysis is by having a hold back group, which is similar to control groups, where they aren’t shown any ads. 

  • Personalize ads

As we’ve mentioned, personalizing your ad creative proves successful when retargeting users. With user-level attribution, you can personalize your ads at a granular-level. We use audience segments shared by advertisers. With this info, you’ll be able to design a message and ad creative that’s specifically targeted to those segments.

  • Prevent users from lapsing

It’s critical to re-engage lapsed users. But preventing them from lapsing in the first place is key to gaining high lifetime value (LTV) users. Many apps see retention rates declining after a few days. This period is crucial to reminding users about your app and keeping them engaged.

The Bright Future of Retargeting

  • More focus on retargeting

Although some advertisers are still hesitating whether it is worth investing in retargeting, we expect even more of them to shift a good portion of their marketing budget to retargeting in the near future. 

According to AppsFlyer, between 2017 and 2019 the share of apps running retargeting has nearly doubled, while the share of conversions increased by more than 2.5 times. This year, 1 in 4 of all conversions are the result of app retargeting efforts. All these numbers will encourage advertisers to invest more funds in retargeting. We expect more game developers to join us. 

  • Focus on Quality over Quantity

The size of the user base will no longer be the primary element to consider. User quality and performance will be the key factors advertisers will look for while selecting a partner for running retargeting campaigns. 

To acquire high LTV users that drive more retention and more ROI, marketers will leverage advanced audience-targeted approaches and different segmentation strategies. With the help of AI, marketers will understand their audiences better, leading to more customized and relevant ad messaging. 

  • More Sophisticated Creative Personalization

The age of personalization is here to stay, and brands will be working smarter to ensure customers receive more relevant, contextual messaging informed by data and insights. Tailoring your retargeting ads to the right person at the right time with the right content will be the winning formula. 

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At Aarki, we leverage user attributes like recent spend, level reached, wallet balance, and more, and create ads that dynamically optimize messaging to an individual user at ad serving time. This helps us encourage a non-spender to start spending, a regular spender to make in-app purchases more frequently, and high spenders to further increase their spend. 

When employed wisely, retargeting can help retain loyal users and turn them into valuable customers for your app, improving the return on ad spend (ROAS). Ready to show your valuable users what they’re missing out? 

 

Topics: Retargeting