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App Retargeting Strategies To Drive Revenue To Your Mobile Game

« Atypical times bring new opportunities. It’s time for gaming to seize the moment and rise to the challenges the market presents. »

2020 brought us isolation measures and movement restrictions. As a result, the majority of users are facing significantly more time at home. It is hence not surprising to see more people downloading and playing games on their devices. There is an almost urging need for entertainment.

The increased organic app usage is good news for the gaming industry. Still, is it the spike in downloads and average daily active users on gaming apps temporary, or a permanent change? Can this organic growth be converted into increased revenue for gaming advertisers?

The shifts in the economy and users’ behavior are taking gaming businesses to pivot, hereby seizing the opportunity to reevaluate and tweak their monetization strategy towards sustainable growth by creating a loyal as well as profitable user base. Here we look at how gaming apps can plan their retargeting campaigns to focus on retention and incremental conversions.

Users turn to mobile gaming in times of lockdown

The growth in mobile games downloads and time spent on gaming apps is unmistakable. During the lockdown, data from App Annie shows an increase of weekly mobile game downloads by 80% in China and 35% in South Korea. The same growth is visible on DAUs according to IronSource data. For China, we can observe a 60% increase, along with higher player engagement, on rewarded ads and increased paid installs (up 25% in the US).

This increased activity in mobile games is felt mostly among hyper-casual, strategy/puzzle, and RPG gaming genres. One of the noticeable shifts in user behavior is the increased interest in multiplayer games for its sense of connection with other users and thus “real-life” entertainment factors.

Along with this scenario, Sensor Tower’s 2024 market forecast projects growth in games spending that could reach $72.6 billion worldwide in 2020, up 15.2% year-over-year for the next five years. So, if the spending potential exists, how are app marketers trying to capture it to create incremental and sustainable app growth?

Retargeting is one of the keys to a well-rounded strategy for gaming app monetization. According to Appsflyer data, retargeting for gaming apps can drive an uplift of the average revenue among paying users of over 50%, more than double the industry average. This poses an opportunity for marketers to use retargeting as a way to retain and monetize the surge of organic users downloading their apps.