App retargeting increases sales for retail apps during holiday season

Anne Freier

In Mobile Advertising. October 10, 2019

Retention marketing ads generate a significant increase in app usage and sales according to new findings by YouAppi.

According to data from the mobile app advertising company, shopping app retargeting and re-engagement ads from Q4 2018 elevated conversions over 70%.

There’s a benefit in selling to existing consumers of course. Previous studies have found that it can cost up to six times as much to win a new customer compared to re-engaging an existing one. What YouAppi’s research shows, is that the same is true for retail apps.

Existing apps that are re-targeted using banners, native and video ads proved more successful with test group users converting 70% or more than the control group. Their orders were an average twice as high.

The study also found that holiday-focussed creatives generated 30% higher conversions than ads without holiday focus.

YouAppi used its Dynamic Audience Segmentation Engine to segment audiences and then separated the groups by those having made installs with no purchases, users who abandoned products in their shopping cart and those who had previously made purchases using retail apps.

“With most users in the US, Canada, Europe, and Asia already accessing the mobile web via smartphones, the critical marketing battle for all but new apps is to retain users,” said Meiry Vaknin, VP Strategic Partnerships, YouAppi. “Based on three years of research into app retention marketing, we’re seeing app retargeting and re-engagement campaigns that bring never active and inactive users to active and continuous app usage and significant revenue growth for apps.”