Segmentation

Isolating App User Groups to Deliver Highly Targeted Ads

Segmentation is a marketing technique that groups users into logical subgroups based on defined criteria such as product usage, demographics, psychographics, communication behaviors, and media use. Mobile app marketers use segmentation to deliver highly targeted, personalized ads to specific high quality user types that drive revenue and are the most engaged. Segmentation improves lifetime value (LTV) and, by extension, ROI.

The basic concept of segmentation is that every user is different. A promotion that drives conversions for new users might not work on long-term users. Instead of blasting the same marketing message to every user, campaigns planned around segments deliver much better results. Segmentation, for example, can enable marketers to launch a re-engagement campaign for users who browse or shop for both children’s apparel and women’s apparel and made purchases last month but were inactive this month. 

When you identify your best users, you can also create “lookalike” segments, or prospects that look like your best users. Every app owner wants to replicate their best users as much as possible.

You can improve user acquisition by retargeting a segment of users that clicked on a campaign but never installed. User segments that don’t bring value to your app or are not in line with your business goals can be excluded.