Retargeting Fuels 35% of App Marketing Conversions According to New Report by AppsFlyer
Retargeting gains traction between 2019 and 2020 with 10% increase in adoption rates as a third of apps with allocated marketing spend include it in their marketing toolbox
AppsFlyer, the global attribution leader, released its first retargeting report; The State of App Retargeting 2020 Edition. As app stores become increasingly crowded, and app marketers find it more difficult to gain the attention of users and drive conversions, retargeting has proven to be a reliable engagement tactic, growing even faster than user acquisition. Globally, 30% of apps now run retargeting campaigns, while in the U.S. the data shows that marketers are adding more retargeting to their mix with an 18% rise, as overall adoption grew 12% this year.
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“Global adoption of retargeting continues to grow, rising more than 10% since 2018, proving that it is an effective tool for marketers,” said Shani Rosenfelder, Head of Content & Mobile Insights, AppsFlyer. “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.”
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Notable US Insights
- Multiple verticals are leaning into retargeting. Photography apps increased retargeting campaigns by nearly 250% from 2019 to 2020. Shopping is another vertical that has embraced retargeting, with the adoption rate increasing by 25% in a year, and the retargeting share surging 35% from 2018 to 2020 to reach no less than 65% of conversions.
- Owned media retargeting increased 60% from 2018-2019. Owned media allows marketers to bring users back at almost no expense, which has contributed to its rise.
- Almost 4 in every 10 apps running retargeting have a share of retargeting that exceeds 30%.
- Retargeting helps drive paying users. Within lifestyle, apps running retargeting had a 130% higher rate of paying users. Among hardcore games apps, a 298% leap in revenue has been generated by paying users exposed to retargeting.
- Low adoption despite high performance shows a missed opportunity for gaming apps. In casual and midcore gaming, the adoption rate is only 7-8%, while performance of apps that run retargeting is significantly better (at least 60% uplift in retention and 105% jump in share of paying users).
“As marketers recognize 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,” said Doug McMillen, Vice President, Enterprise Strategy, AppsFlyer. “With this report, marketers have insight into the benefits and opportunities around retargeting, and how to leverage it for maximum impact.”
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