The Beauty of the Post-Purchase Moment for In-App Ads

June 7, 2024

The benefits of marketing in a “walled garden” like Amazon or YouTube are well-known: brand safety, privacy compliance, smarter targeting, etc. But there is perhaps no better walled garden than a retailer’s mobile apps. Think of them as micro-gardens where the audiences are even better defined and more engaged, offering fertile ground for in-app ads.

Offerwalls, post-purchase, and interstitials provide savvy marketers with opportunities to position their offers to a well-defined consumer at critical moments. They capitalize on a heightened level of consumer engagement, excellent first-party data, and emerging machine learning capabilities.

When done right, this blend of art, technology, and strategy improves the shopping experience, drives revenue for the retailer, and delivers better performance for the advertiser. 

The Symphony of Engagement

According to a 2022 Salesforce report, 73% of consumers expect companies to understand their unique needs, and 62% think companies should anticipate them. Well-timed ads can do just that. For instance, ads appearing on a purchase confirmation page capture the moment when a customer is still in a buying mood without interrupting the natural sale cycle. And using data to target a relevant ad at the customer will build loyalty among their customer base. This brings us to the next point: personalization.

The Art of Personalization

According to the venerable consultant group McKinsey and Co., 71% of consumers expect personalized interactions from companies and 76% express frustration when they don’t receive them. Of course, retailers should protect their customers’ data by setting limits with their partners and using tools like data clean rooms. The safe use of customer data is how advertisers can ultimately achieve this desired level of personalization. 

Personalization goes beyond contextual targeting like hotel or car rental ads after purchasing a plane ticket. Personalized post-purchase offers will showcase offers for third-row vehicles for big families or hip hotels with active nightlife for couples. This level of personalization transforms ads from mere marketing messages into useful, even anticipated content.

The Ease of Implementation

Retailers don’t need to build these marketing opportunities from scratch. In many cases, SDKs are readily available for retailers to integrate a fully functioning advertising platform into their apps. A line of code is sometimes all you need. Retailers can partner with a third-party to avoid taking on a big build-out and staffing and managing a team to run a retail media network. A fully functioning post-purchase advertising tool can be implemented quickly using your brand colors and design. 

The Science of Strategy

Behind the beauty of in-app advertising lies a foundation of sophisticated strategy and technology for delivering targeted ads. Advanced algorithms ensure the right ad reaches the right user at the right time. Retailers and advertisers can leverage these tools to track performance, optimize ad placements, and maximize revenue. The ability to analyze metrics such as engagement rates, click-through rates, and return on investment (ROI) allows for continuous refinement.

The Harmony of User Experience

A key element of successful in-app advertising is balancing monetization and user experience. Overly aggressive or poorly placed ads drive users away, but thoughtfully integrated ads enhance the app experience.

Brands can refresh their creative and adjust their targeting in order to reduce ad fatigue. When implementing in-app advertising, retailers should also be mindful of the steps they can take to protect the customer experience:

  • Frequency capping ensures customers don’t see the same ad too many times. 
  • Ad placement/inventory lets the retailer decide where the natural breaks occur so ads appear as part of the experience, and not an interruption.

The Potential for Growth

With US consumers spending an average of 3 hours and 47 minutes in apps daily, compared to just 23 minutes on mobile websites, in-app advertising is poised for significant growth. With advancements in technology, the integration of AI, and the increasing sophistication of ad networks, the potential for in-app advertising is boundless.

This means new opportunities for monetization for retailers and more relevant, engaging ad experiences for consumers. The future of in-app advertising promises to be even more intertwined with app functionality, making ads a natural and beneficial part of the digital ecosystem.

Conclusion

The beauty of in-app advertising lies in its ability to blend seamlessly into the mobile app experience. As mobile technology advances, the potential for in-app advertising will only grow, creating value for both users and retailers. By embracing the beauty of in-app advertising, retailers can enhance their apps, delight their users, and achieve sustainable growth in an ever-evolving digital landscape.

Ready to integrate post-purchase ads into your mobile app experience? Get in touch with us here.

Check out more resources to get fluent in:

In-App Advertising | Commerce Media | Retail Media | Post-Transaction Advertising