I was spending $85,000 a month acquiring new users while ignoring the 2 million people who'd already installed our app and stopped using it. One of my analysts finally worked up the courage to ask: "Why are we paying $4 for strangers when we could pay 40 cents to bring back people who already know us?"
She was right. That question led us to completely restructure our marketing budget. Within six months, retargeting became 35% of our spend—and generated 60% of our revenue.
Most mobile marketers are obsessed with acquisition. The smart ones know that retargeting is where the real money is.
Why Mobile Retargeting Matters
The numbers speak for themselves:
- Average app loses 77% of users within 3 days of install
- Retargeting can reduce churn by 20-30%
- Re-engaged users have 2-3x higher conversion rates
- Retargeting CPAs are typically 50-70% lower than acquisition
💡 Key Insight
Users who have already installed your app are your warmest audience. They've demonstrated intent—retargeting just gives them the nudge to come back.
Types of Mobile Retargeting
1. Lapsed User Re-engagement
Target users who haven't opened your app in a defined period (7, 14, 30+ days). Goals include preventing churn and reactivating dormant users.
Best practices:
- Segment by days since last session
- Personalize messaging based on past behavior
- Offer incentives for return (discounts, bonus content)
- Use urgency when appropriate ("We miss you!")
2. Cart/Funnel Abandonment
Re-engage users who started but didn't complete a key action—adding items to cart, starting registration, or beginning a subscription flow.
Best practices:
- Retarget within 24-48 hours of abandonment
- Show the specific items/content they abandoned
- Address potential objections in creative
- Consider time-limited discounts
3. Upsell/Cross-sell
Target existing customers with relevant upgrade opportunities or complementary products based on their purchase history.
4. Seasonal/Event-based
Re-engage users during relevant moments—holidays, sale events, game updates, or personal milestones.
Retargeting Channels
In-App Advertising
Reach users while they're using other apps. Benefits include:
- Large reach through ad networks
- Rich creative formats (video, playable, native)
- Frequency capping across inventory
Push Notifications
Free channel for re-engagement (for users who opted in). Best for:
- Time-sensitive offers
- Personalized recommendations
- Transactional updates
- Feature announcements
Works for users who provided email addresses. Effective for:
- Detailed content and offers
- Re-engagement sequences
- Cross-platform reach
Social Media
Custom audiences on Facebook, Instagram, TikTok, and others allow retargeting based on app activity.
"The best retargeting doesn't feel like advertising—it feels like a helpful reminder of something the user already wanted."
Audience Segmentation Strategies
Effective retargeting requires smart segmentation:
By Recency
- 1-3 days: Gentle reminders, feature highlights
- 7-14 days: Value proposition refresh, incentives
- 30+ days: Win-back campaigns, major updates
By Behavior
- Browsers: Users who explored but didn't convert
- Cart abandoners: High intent, address objections
- Past purchasers: Upsell and loyalty campaigns
- Power users: Referral and advocacy programs
By Value
- High LTV: Premium treatment, exclusive offers
- Mid LTV: Upgrade opportunities
- Low LTV: Cost-efficient reactivation
Creative Best Practices
- Personalize: Use dynamic creative with user's name, past items, or preferences
- Show value: Remind them why they installed in the first place
- Create urgency: Limited-time offers drive action
- Deep link: Take users directly to relevant in-app content
- Test relentlessly: A/B test messaging, offers, and creative formats
Measuring Retargeting Success
Key metrics to track:
- Reactivation rate: % of targeted users who return
- Cost per reactivation: Spend / reactivated users
- Retention lift: D7/D30 retention vs. control group
- Revenue per reactivated user: LTV of re-engaged users
- ROAS: Revenue attributed to retargeting spend
Privacy-First Retargeting
With ATT and Privacy Sandbox, retargeting strategies must adapt:
- Leverage first-party data (in-app events, email, push tokens)
- Use probabilistic matching where deterministic isn't available
- Focus on contextual relevance over individual tracking
- Build robust first-party data collection