Mid-core and hardcore gaming apps thrive when they have a core group of invested and engaged users with high lifetime value (LTV). App marketers can’t afford to wait for this engagement to happen organically. In fact, many marketers could benefit from focusing on retargeting three key audience groups: payers, lapsed payers and new installers.
‘Payers’ should be your main targets
Every marketer knows this classic adage: It’s much easier to sell to an existing customer than attract a new one. Yet this age-old axiom is often overlooked in the world of mobile gaming, where user acquisition (UA) is often seen as the best way to market an app.
The fast-paced, high-churn world of gaming apps pushes attention toward getting net-new users. However, most hardcore and mid-core gaming apps have a core group of users that grow more invested and make more purchases over time. Marketers often see this trajectory of highly engaged users as natural and self-propelled, and marketers assume their dollars are better spent trying to put more new users on that path.
But this assumption couldn’t be more wrong. The relatively high level of investment and engagement required for mid-core and hardcore gaming apps to thrive makes the existing user base of payers an even richer marketing target.
A whopping 97% of in-app revenue is generated by repeat purchasers, according to Adikteev’s research. And those repeat purchasers are roughly twice as likely to make another purchase, compared to one-time purchasers.
The law of diminishing returns does not apply
I know plenty of app marketers recognize the value in targeting repeat payers. But many aren’t going far enough. Following the law of diminishing returns, they are assuming targeting repeat payers will quickly become less effective and drive fewer incremental purchases.
But in this case, the data clearly shows the law of diminishing returns does not apply in the world of deeply engaged gamers. The sooner they make a second purchase, the more likely they are to make a third. Retargeting these core users creates a momentum of sorts, where each purchase actually drives further engagement. By nudging users deeper into the game, they’re more likely to purchase yet again.
Retargeting should start on day 1
You’ve likely seen some version of the statistic that between 70-80% of new app installers churn on day 1. Following the logic of the above point (that the sooner that second purchase happens, the more likely a third will follow), it’s critical to retarget new installers. Effective retargeting at this stage gives new installers the all-important nudge they need that improves engagement and starts purchase revenue rolling.
Marketers should get back to basics — and redefine their role in engagement
The main point I’m making here isn’t revolutionary. Rather, it’s one of the oldest rules in the marketing playbook: Focus on your existing, engaged, high-LTV users. App marketers can (and should) play a key role in fostering user engagement. Retargeting new app installers and payers can give them the nudge they need to move deeper into gaming worlds. And the incremental value of those retargeting nudges doesn’t drop off, but rather builds momentum as users grow more and more invested in these games.
Of course, existing users are not a monolith. It’s important to use intent signals to focus retargeting on those most likely to become high-LTV users. If you want to get into understanding this group and other nitty-gritty details — like exactly when to retarget for maximum effect, or how to ensure you’re measuring incrementality — you can check out our full report on app marketing insights for hardcore and mid-core gaming apps.
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