Attribution firm, AppsFlyer, has released its first retargeting report; The State of App Retargeting 2020 Edition. As app stores become increasingly crowded, and app marketing becomes 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.
Notable US Insights
- 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.
- 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).
Notable EMEA Insights
- While each region saw healthy increases in its average retargeting share from 2018-2020, Europe led the pack with a 22% increase
- 50% of Shopping apps in Europe run retargeting campaigns; retargeting conversions make up 50% of their total marketing conversions
- 30% of users are exposed to a retargeting campaign within the first 30 days of installing an app
- 130% higher day 30 retention among Casual games that run retargeting in Europe; 117% higher in the Middle East & Africa
With most apps losing 95% of their users within the first 30 days of install, it is no wonder that 35% of app marketing conversions nowadays 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.
Shani Rosenfelder, Head of Content & Mobile Insights, AppsFlyer