AppsFlyer: Facebook faces growing Google rivalry in mobile ad retargeting

Brief:

Facebook faces greater competition from Google in mobile ad campaigns that target people who have previously used an app, per a study that mobile attribution and marketing analytics firm AppsFlyer shared with Mobile Marketer. Google's share of retargeting increased 44% in the second half of last year, compared with market leader Facebook, whose shared expanded 5%, as measured with the AppsFlyer Retargeting Index.
Retargeting has become more important as app developers cope with low retention and high uninstall rates, per AppsFlyer. The number of apps running retargeting campaigns grew 20% in the second half compared with the prior six-month period, while the number of apps that attributed more than 30% of their conversions to retargeting rose 18%.
Additionally, TikTok Ads, the mobile ad network started by the popular viral video app, topped AppsFlyer's growth ranking, more than doubling (120%) its share of the app install market in the second half. TikTok Ads also appeared in the AppsFlyers' power ranking for the first time, with a No. 4 spot in non-gaming universal volume.

Insight:

The Facebook-Google "duopoly" grew stronger in the second half of 2019, particularly in the area of retargeting campaigns aimed luring mobile users back to apps they may have neglected or uninstalled, AppsFlyer's data suggests. Facebook saw double-digit growth in its share of the retargeting market in six of 11 sub-regions, with strength in Eastern Europe. Google experienced double-digit growth in seven of those sub-regions, especially North America, India and the Middle East, per AppsFlyer, which provided regional data for the first time. The findings suggest that mobile marketers should increase the use of Google in their retargeting campaigns.

Retargeting was most popular in the Asia-Pacific region, whose share of global conversions climbed 12% in the second half of 2019. The share of retargeting conversions among the total, including retargeting and non-organic installs, in the region rose nearly 10%, closely followed by North America. Retargeting is predominant among non-gaming apps, which make up 90% of retargeting conversions. Developers of gaming apps are likely to boost their ad retargeting activities this year with improvements to measurement and performance, per AppsFlyer.

Criteo grew further behind Facebook and Google while maintaining a distant third-place ranking in retargeting. RTB House was in fourth place with its strength in shopping and travel apps, while Remerge reached fifth place with strength in gaming and food and drink apps, per AppsFlyer. Its rankings are based on data for about 25 billion app installs and 52 billion app opens during the second half of 2019.

TikTok Ads' growth rate and high AppsFlyer power ranking are additional indicators of the viral video app's rapid ascent on the mobile landscape. The platform lets mobile marketers reach new audiences across a variety of segments and markets, including China, where it operates under the name Ocean Engine. TikTok Ads also increased scale in India, North America and Western European regions such as Italy, Spain and the U.K., per AppsFlyer.