Anyone who creates an app today has the ambition of the app becoming widely used, acquiring tons of engaged users and ultimately generating a good stream of revenue. That’s the dream right? However, the reality is very different. App developers now know just how hard it is to “make it big” in the super crowded app ecosystem. It is hard enough for apps to get noticed amidst the thousands of other apps that monetization remains a distant dream for most. Gartner predicts that by 2018, less than 0.01% of apps will be considered a financial success by their developers. Grim? Maybe. But there are ways to maximize the odds of success of an app and contextual targeting is an important one.
What is contextual targeting?
In simple terms, contextual targeting is essentially the practice of reaching the right users at the right time with the right message. Contextual ads are highly relevant as they are created while keeping the “context” in mind. This means that the ad is only served when it is most relevant to the user. For e.g. pushing a coupon for coffee to a non-coffee drinker in the afternoon is a complete fail. However, pushing a coffee coupon to a coffee lover in the morning as he is passing by his favorite coffee store is very relevant. Such contextually relevant ads have a higher chance of the user engaging with the ad and eventually converting.
Why is it important?
Today, at any given time, there are thousands of ads in different formats fighting for a user’s attention. Whether these ads are on television, desktop or on mobile devices, they are all trying to grab a piece in the user’s mind space. The user is being bombarded by so many ads at the same time, it has become vital that ads are extremely contextual and relevant. Developers need to embrace contextual targeting if they want to stand any chance at grabbing users’ attention and eventually converting them.
Contextually targeting users has the following advantages:
- Better click through rates: Studies have shown that contextually relevant ads have much higher click through rates in desktop display ads. Though mobile marketing is still in a nascent state, contextually relevant mobile ads still have a higher chance of being clicked compared to blanket advertising. Therefore, It is also a better investment of your advertising dollars.
- Higher user engagement: If users are served in-app ads and push messages that are relevant and highly targeted, they will be more prone to engage with the message and consequently with the app. Apps that use contextually relevant push messages experience high levels of user engagement. Seeing an ad at the right time and the right place about something that a user cares about, will often result in the user clicking on the ad and engaging with it.
- Improved user experience: In today’s digital world, users are bombarded with ads from all quarters throughout the day. Contextually relevant ads will significantly lower the chance of annoying users and provide a much better user experience.
Targeting users with contextually relevant messages increases user engagement and app developers definitely must use this tactic if they want their users to be loyal.
What is needed to contextually target users?
Contextual targeting is crucial if you want your users to be loyal and engaged. To be able to effectively target users at the right time and the right place, it is vital to know more about who the end users are and what they are interested in. It is only when app developers have a deep insight into their users’ interests and their lives that they can serve contextually relevant messages to them. It is therefore vital for app developers to be able to understand their users better. Companies like Personagraph can help them do just that. App developers must leverage user understanding and put contextual targeting front and center of their mobile user engagement strategy.