Yahoo Gemini ads help prompt consumers back to abandoned apps and reignite usage
A mobile-first world
Mobile users are obsessed with apps. In the U.S. alone, consumers spend an average of 3 hours and 40 minutes on their mobile phones every day, and 90% of that time is in apps.* Those apps mean a lot to marketers, because they’re a great channel for staying connected to consumers and driving revenue. So when users stop using an app, it’s important for marketers to re-engage them.
Testing a theory: can ads prompt app re-engagement?
We wanted to look at the effect that Yahoo Gemini ads could have on app users. Could an ad prompt someone to re-engage with an app they already had on their phone, but weren’t currently using? Our goal was to establish a causal relationship between seeing the ad and re-engaging with the app, versus a simple correlation. We used the Tumblr app as our test app.
To set up our experiment, we started with data from Flurry, to help us identify the users who downloaded the Tumblr app but were not using it. We even built a predictive model for churn and factored in those users most likely to abandon the app. After that, we split the users into test and control groups. The test users were shown ads for the app, while the control users were shown placebo ads. We then used Flurry to measure how many users re-engaged with the app.
Good news for app marketers
There were two key findings. First: ads for apps are, in fact, effective at prompting re-engagement. Moreover, the cost of doing this is much less than acquiring new users – getting users back onto the app was achieved at a cost up to 23 times lower than the cost of acquiring a new user. Second: we discovered that ad impressions alone can make a difference, because even if users only saw the ads but did not click through, they were still much more likely to reuse the app than the control group – 11% more likely to be exact.
The key here is that app re-engagement strategies are very cost effective for boosting app usage. Yahoo Gemini offers a custom audience targeting capability. With that, you can target by mobile device ID or in-app actions to deliver ads to your existing app users. This will help maximize all the time, effort and budget you’ve put into acquiring those customers by giving you greater app usage.