Let there be no doubt: in 2018 and beyond, personalized advertising will be a key driver of revenue growth. If you’re a savvy digital marketer, you’ll get on board with the data-driven revolution.
Personalization: The Secret to Success in App Retargeting
For decades, marketers have yearned to personalize their message — to speak directly to the target audience, not as a herd of anonymous consumers, but as individuals.
Personalization has been the holy grail for marketers across all industries. While traditional advertising has been a blunt instrument of mass communication, programmatic digital ads are a whole different story.
Artificial intelligence has turned the ad-tech world upside down. With massive datasets and increasingly sophisticated algorithms at our disposal, we can now tailor our ads to the precise tastes and interests of each individual consumer. We can engage people in a genuinely meaningful and relevant conversation. In doing so, we can drive customer loyalty and boost lifetime value. Marketers who understand how to use this new power will thrive in 2018 and beyond.
The numbers don’t lie
As we’ve shown in our recent success studies, not all app users are created equal. They expect to be treated as individuals. They want content that matters to them, and they reward the brands that can deliver it.
There’s mounting empirical evidence to support this idea. A recent study showed that personalized ads were three times more effective than traditional ads at driving user engagement. Another study by Localytics confirms that personalization is key. App users expect advertisers to understand their needs.
As we ring in the new year, it’s time to ask yourself some hard questions. How well do you really know your users? How accurately can you describe their personas? Are you using app retargeting and artificial intelligence to their full potential?
The future is data-driven
Behavioral data is the lifeblood of personalized marketing. Every time a user interacts with your app, you collect valuable insights. Once you understand these insights, you can segment your users into various groups and subgroups.
You might want to target users who haven’t opened your app for a few days. Or maybe you’re interested in users who open your app regularly, but rarely make a purchase. By harnessing the power of your behavioral data, you can create an almost limitless combination of target audiences, each of which can be engaged with a unique, personalized message.
Here’s a real-world example. Simplaex recently teamed up with the developer of a popular mobile fighting game. Our goal was to boost the company’s advertising revenues by reengaging old users in Europe and North America.
We targeted our campaign at players who hadn’t used the app for seven days or more.
Thanks to the massive cognitive power of Wallace, our Artificial Intelligence Officer, the developer was able to follow their users’ digital footprints and create dynamic audience segments.
We started running a mix of standard and personalized banner ads. According to our A/B tests, players who saw the personalized ad spent 2.2x more in the app than players who saw the standard banner. The personalized ad delivered a healthy ROAS of 540% — nearly double the 243% of the standard ad.