It is evident that the global economy has had an impact on consumer spending in the app world. It has put app marketers under pressure to reconsider their efforts to keep customers and drive repeat purchases. The top priority for many of these marketers in 2023 is improving the user experience (UX) to increase retention.
Thanks to mobile programmatic, metrics such as CTI (Click to Install) can be tracked to gauge user sentiment, and the RR (Retention Rate) can be analyzed to assess user satisfaction.
According to AppsFlyer’s App uninstall report – 2023, 49% of app uninstalls occur within the first 24 hours, with a higher rate of 66% for gaming apps! This is a warning for many – that if your app fails to meet users’ expectations, they might well abandon it without leaving any comments on your product page.
The State of Mobile 2023 report by Data.ai reveals that in 2022 global downloads increased by 11%, and time spent on apps grew 9% year over year (YoY). However, according to the same report, global consumer spending on apps decreased by 2% YoY. In the United States disposable income is declining. Similarly, a slight decline in consumer spending on games has been observed. Despite this, entertainment such as OTT, Short Videos, and more, boosts the growth of non-gaming apps.
Just like an aircraft needs a team of experts to attend to it before takeoff, so does a mobile campaign need a team to define the marketing strategy, the creative concepts, as well as the metrics needed to track performance. All these elements need to be fine-tuned before the aircraft takes off and a ‘Bon Voyage’ be guaranteed.
Metrics To Look Into When Running a Retargeting Campaign
When looking at the user journey, metrics provide a way to monitor the performance of the user’s pre and post-install behavior. But what if those that have lapsed or have gone quiet on you, are out of reach? This is where retargeting is able to help.
A retargeting marketing strategy can help to re-engage dormant users by using real-time bidding (RTB) technology to find the right audience for a more personalized message with targeted creative. Using this type of strategy can tap into the Lifetime Value (LTV) users who once used the app and have since uninstalled it – reminding them of a passion they once had for it.
However, it is of the utmost importance to look at the right metrics – those that will help you measure the effectiveness of a retargeting campaign so you can optimize it accordingly. Let’s go through them one by one.
Impressions: a fundamental metric to measure your mobile marketing initiatives. It is the smallest unit for an ads auction and is frequently associated with cost per mille (CPM). It represents the volume of your marketing campaign.
CPR: Cost Per Reactivation is the price you pay per user re-engaged. It is used in retargeting campaigns and is similar to the cost per install. Sometimes it is cheaper than the cost per install because you are targeting a specific audience list.
CPA: Cost Per Action is frequently used in the measurement of non-gaming apps, and in contrast to gaming apps, some of the non-gaming such as shopping apps require more nurturing before a user converts to purchasing. This nurturing includes, for example, the cost of getting a user to register, sign up for a free trial, view items, or add items to a cart.
RR: Retention Rate is the percentage of users returning after a given time. When it comes to measurement, a reasonable time period is 30 days, however, this is dependent on the app vertical and OS, where a 2, or 7 day period can be considered.
Important to note: If you are looking for a universal benchmark that is widely used, Adjust suggests that the average Retention Rate on Day 1 is 25% for Android and 28% for iOS; on Day 7 – 11% for Android and 13% for iOS; and on Day 30 – 6% for Android and 7% for iOS.
ARPU: Average Revenue Per User is the amount of revenue each user generates. This includes all in-app purchases, in-app advertising, paid downloads, and any other paid subscriptions.
ARPPU: Average Revenue Per Paying User is used to evaluate the efficiency of an existing in-app purchase (IAP) campaign. If a new feature (an ‘IAP event’) has been introduced to the user flow, this metric is likely to show how successful it is. It can also be used as a benchmark for A/B testing when running a retargeting campaign.
LTV: Lifetime Value is a way of calculating the value of a new user. It is how much that user is predicted to be worth to you over their whole relationship. LTV can serve many purposes – it can measure success, and the value of a user’s loyalty and is a tool for forecasting growth.
ROAS: Return on ad spend is a metric that shows how much revenue is generated from a specific ad campaign. It helps you to understand which campaign generates the most revenue.
ROI: Return on investment is the metric used to measure the yield on a particular investment relative to its cost. ROI tells you whether the campaign is profitable enough to secure the continuation of your business.
There are many aspects to consider when evaluating your marketing strategy. The metrics you choose to use depend on your app category, your methods for monetization, as well as your marketing goals! So, it is important to be clear on these goals before launching your campaign so that you can work effectively with your media partner to scale and drive performance.
Tips From Retargeting Campaign Experts
If you are in the early stage of testing your retargeting strategy and haven’t quite figured out its effectiveness in your app, then running an incrementality test is a must. To do this, you should look at the incremental lift in key metrics. ROI is one of the metrics you could look at to measure the incremental impact on revenue.
In addition to the metrics listed above, you can look at ‘find rate’ and ‘touch rate’ – both of which will help you understand the capability of your partners.
- Find rate – the % of users in the audience list found in the bid stream
- Touch rate – the % of users who have seen the retargeting ads
‘A Missed Opportunity’: The Tale of a Disappointed Customer
Ad fatigue and ad frustration can be a real problem for app users, and if your marketing campaign is not well-planned, it can lead to users abandoning your app quickly. It’s important to make sure that all aspects of your marketing campaign are carefully considered, including the frequency and placement of ads, the messaging, and the targeting.
If you do notice that your users are becoming fatigued with your ads (this is where the metrics described above will help you), a retargeting campaign can be a great way to re-engage them. By refining your ad strategy based on user behavior and preferences, you can increase engagement and reduce churn.
Ad frustration is a real issue and tiny mistakes can lead to app abandonment in a matter of minutes.
Imagine a scorching hot summer night. You’re walking home and spot a billboard advertising a new coffee shop. You see a refreshing glass of peach iced tea – the perfect shade – so cold the droplets are visible. It instantly draws you in. To add to it, the interior of the shop looks equally appealing.
You’re parched and drawn to the shop – eager to try the tea, so you quickly head over to it. When you get there, you’re met with a long queue. And the air conditioning isn’t working. Despite this, you’re convinced it will be worth the wait. So, you stand in line.
And then – just as you get to the counter, the barista – who is in a terrible mood – informs you that they’ve run out of ice and can only serve you a hot drink. You’re so disappointed you vow never to return to the coffee shop again.
Well, this is how easy it is to put off a potential customer into a victim.
This scenario highlights how a customer’s expectations are built up along the way, and how a series of small mistakes can compound their disappointment and ultimately lead to them rejecting you completely. The customer and the coffee shop serve as a metaphor for apps and users.
So, remember, the user’s frustration is real!