Acquiring a new user costs 5-25x more than re-engaging an existing one. Yet most mobile marketers focus almost exclusively on new user acquisition. This guide shows you how to build effective retargeting campaigns that bring lapsed users back.
Why Retargeting Matters
The average app loses 77% of daily active users within the first 3 days after install. Retargeting helps recover these users at a fraction of new acquisition costs, improving overall LTV and ROAS.
Retargeting ROI
Well-executed retargeting campaigns typically see 3-5x higher ROAS than cold acquisition campaigns, with CPAs 40-60% lower.
Building Your Retargeting Audience
Segment by Behavior
- Installers who never converted: Completed install but no key action
- Lapsed purchasers: Made a purchase but haven't returned
- Cart abandoners: Added items but didn't complete purchase
- High-value churned users: Previously active, now dormant
- Trial expirers: Free trial ended without conversion
Segment by Recency
- 3-7 days inactive: Early lapse, easiest to recover
- 7-14 days inactive: Moderate lapse, needs incentive
- 14-30 days inactive: Significant lapse, stronger offer needed
- 30+ days inactive: Deep lapse, may require aggressive promotion
Creative Strategies
Personalization
Reference specific user behavior:
- "Your cart is waiting" with product images
- "You left off at Level 15" for gaming apps
- "New items from brands you love" based on browse history
Incentives
Match the incentive to the lapse severity:
- Light lapse: Feature announcements, content updates
- Medium lapse: Small discount (10-15%), bonus currency
- Heavy lapse: Significant discount (25%+), exclusive offer
Urgency
Create time-limited offers: "24-hour flash sale" or "Offer expires tomorrow" can significantly boost conversion, but use sparingly to maintain credibility.
Channel Selection
- Push notifications: Free, immediate, but requires opt-in
- Email: Cost-effective, good for detailed messaging
- Paid retargeting ads: Reaches users who uninstalled
- In-app messaging: For users still with app installed
- SMS: High open rates, use for high-value segments only
Measurement Framework
Track these KPIs for retargeting success:
- Reactivation rate: % of targeted users who return
- Cost per reactivation: Total spend / reactivated users
- Post-reactivation LTV: Value generated after return
- Incremental lift: Compare to control group not retargeted
Post-ATT Retargeting
With iOS privacy changes, retargeting requires new approaches:
- Use first-party data and email lists
- Implement server-to-server integrations
- Leverage probabilistic matching where available
- Focus on Android for scaled paid retargeting
Common Mistakes
- Over-frequency: Showing the same ad too often annoys users
- Generic messaging: Not personalizing to user behavior
- No suppression: Continuing to retarget converted users
- Ignoring timing: Not considering user timezone and activity patterns
Conclusion
Retargeting is one of the highest-ROI channels in mobile marketing. Build your segments thoughtfully, personalize your messaging, and always measure incrementality. The users you've already acquired are your most valuable asset—don't let them slip away.