India’s festive season, marked by a unique blend of cultural celebrations and consumer enthusiasm, creates a digital landscape brimming with opportunities for app marketers. According to industry estimates, mobile usage spikes by 25-30% during weeks between Dussehra and Diwali, with some high-impact categories like eCommerce, gaming, and hyperlocal services seeing the highest engagement rates. While brands typically double down on user acquisition (UA) to capture this surge in interest, relying solely on UA can lead to missed opportunities. Many newly acquired users tend to disengage quickly, and without a robust retargeting strategy, their potential for conversion is lost. 

By pairing UA with retargeting during the festive period, brands can reconnect with inactive users, boost transactions, and drive meaningful lower-funnel conversions across verticals.

Why Retargeting Matters During Festive Season

While user acquisition is crucial for reaching a larger audience, many of those new users may not immediately convert or even engage with the app. Studies show that across industries, a large percentage of users become inactive after the first week of app usage. Infact, according to industry average, the global average for Day 1 retention rate is only 26%, meaning that a majority of app users go dormant after making just a single purchase or using the app once, requiring brands to take action to bring them back. 

When it comes to the important KPI of Day 7 retention, AppsFlyer reports that in India, up to 80% of newly acquired users across app categories stop using the app within seven days of installation . This makes it vital to have retargeting efforts in place to reignite interest and push them toward transactions.

For eCommerce apps, the festive season sees a surge in app traffic and purchase intent. While user acquisition efforts might initially drive this spike, retargeting campaigns can help convert window shoppers into buyers. Targeting users who dropped off at different stages of the buyer's journey (such as browsing without completing a purchase) helps push them back into the funnel. Running a festive sale retargeting campaign with limited-time offers, for instance, can nudge inactive users back into the app to finalize their purchases.

Targeting Lapsed Users for Maximized ROI

Retargeting strategies can be tailored based on when users are likely to lapse, which varies across app categories. For example, hyperlocal delivery apps, which cater to groceries, food, and quick delivery needs, often see high Day 7 retention but a significant drop-off by Day 30 if users haven’t made a second purchase. Implementing retargeting campaigns targeting users at these key points can help to reactivate them. Push notifications or in-app messages offering discounts for the next order can drive retention and lead to repeat transactions.

In mobile gaming, Day 7 and Day 30 markers are also critical. Retargeting players who have lapsed after engaging with a new game during a festive season launch can prompt them to return. Rewarded ads, offering free in-game currency or exclusive items, can draw users back in, increasing their lifetime value (LTV). Gaming apps often struggle with churn, so retargeting users after a week of inactivity is essential to drive in-app purchases and maximize the impact of UA efforts.

1. Key strategies that can be implemented are: 
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   - Different campaigns for users who have lapsed for shorter periods (e.g., 7 days) versus those who have been inactive for longer periods (e.g., 30 days). 
   - Identifying users based on in-app behavior before they lapsed—whether they browsed, added items to the cart, or engaged with specific content. This allows for more tailored messaging.
4. - Targeting based on user's locations, such as restaurants, malls, airports, etc.
   - DCO to personalize ads with content that reflects the user's past behavior. For instance, feature specific products the user viewed or engaged with to increase the chance of reconversion.

The Power of a Full-Funnel Approach

The combination of user acquisition and retargeting allows marketers to drive both upper-funnel awareness and lower-funnel conversions during the festive season. As UA campaigns introduce a fresh audience to the app, retargeting ensures that these users are nurtured and guided towards transactions.

A blended strategy is particularly useful for high-consideration categories like FinTech, where users might take longer to decide on a product or service. Offering personalized incentives like cashback or rewards points can bring inactive users back into the app, pushing them to complete actions such as account upgrades or investments. For lapsed users, campaigns should focus on pushing lower-funnel conversions such as completing purchases, signing up for premium services, or booking appointments.

To truly succeed during India’s festive season, app marketers must look beyond just acquiring new users and focus on maximizing the potential of their entire audience. Combining user acquisition and retargeting creates a cohesive strategy that keeps users engaged at every stage of the funnel. As mobile engagement continues to peak during key festive periods, the opportunity to capture both new and lapsed users becomes even more critical for sustained growth. By identifying key moments of user lapse and crafting targeted retargeting campaigns, marketers can significantly boost lower-funnel conversions and increase lifetime value.

Ready to make this festive season a firecracker success? Reach out to us on marketing@mdsp.co to help your app grow!