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Dynamic segmentation for app marketers 101

Micah Motta, Senior Content Writer, Adjust, Dec 02, 2022.

Introduction

Many marketers today utilize dynamic segmentation to increase the precision of their targeted marketing. In app marketing, being able to speak directly to the target audience of each of your campaigns is critical to success. This guide walks you through how dynamic segmentation works and how you can use it to improve your campaigns’ return on investment (ROI). We also provide three examples from Adjust clients to demonstrate how you can implement dynamic segmentation into your own strategy.

Segmentation: Static versus dynamic

Before diving into the definition of dynamic segmentation, let’s review what segmentation is in app marketing.

Segmentation

Segmentation is the grouping of potential users and users by shared characteristics in order to provide specific content and personalization that will resonate most with those particular users. For an introduction to this topic, read Customer segmentation 101: A marketer’s guide to building valuable audiences.

Static segmentation

At the beginning of the user journey, users are often divided into groups by language, location, in-app behavior, interests, and more. As the name suggests, in static segmentation, a user exists in a fixed group and will not change unless manually removed and added to another group.

Dynamic segmentation

In contrast, dynamic segmentation automatically updates user segments in real time when new information comes in. For example, if a user’s location changes, the segment for the user will change (if the user has opted-in to sharing their location). Or, if a user drops in the frequency of in-app sessions, they will be moved to a retargeting segment.

Why do marketers prefer dynamic segmentation?

App marketers can use dynamic customer segmentation to ensure users receive messaging and creatives based on their most recent actions and stated preferences. As users are immediately moved to the most-relevant segment when they trigger a specified event, the app enhances its chances of engaging the users. This automation increases marketing efficiency as well as targeting precision.

Segmentation and user privacy updates

Note that since the introduction of Apple’s App Tracking Transparency (ATT) framework and the subsequent rollout of iOS 14.5, getting user-level data such as location and preferences will depend on users opting-in to allow your app to collect this information.

While we recommend getting the opt-in to work with consented data as a priority, app marketers can still find success in measuring aggregated SKAN data. Check out our playbook iOS 14.5+ Success made simple with Adjust and TikTok to get SKAdNetwork (SKAN) best practices and view Adjust’s next-generation conversion value and predictive analytics solutions.

3 Examples of dynamic segmentation

Nescafé 3in1’s NE’APP delivers tailored messaging

Nescafé 3in1 launched its food and drink app NE’App in Turkey. The brand’s instant coffee drink enjoys mass appeal in Turkey. Therefore, upon launching app campaigns, Nescafé 3in1 knew it needed to create different campaigns for different age groups, particularly keen to capture Turkey’s coveted, digital-savvy youth.

The brand utilized Adjust’s Audience Builder solution to create different targeting audiences. After analyzing initial results and A/B testing, Nescafé 3in1 tailored its messaging to each dynamic audience segment. As a result, NE’APP soon achieved over 1.5 million downloads and 171K monthly active users (MAU).

Vivino studies user behavior

The wine and marketplace app Vivino desired to scale its marketing efforts across channels and improve its retargeting strategy. The app grouped users into dynamic cohorts using Adjust's Audience builder to study the sources of installs, user in-app behavior, and in-app purchases.

Vivino’s marketing team compared user behaviors and patterns across cohorts to optimize its campaigns to better retarget users and understand where to place its ad spend. Since working with Adjust, Vivino has increased orders attributed to attribution channels by 500% and has been able to increase its month-to-month marketing budget by 300%.

Jazeera Paints lasers in on retargeting

Jazeera Paints has long been established as the leading paint manufacturer in MENA and the GCC. It recently introduced its own “all-in-one” e-commerce paints service app and needed to monitor its campaigns. The paint giant had typical KPIs like installs, uninstalls, and click-through rate, but also custom events it used to monitor the customer journey, such as when a user requested a service or selected a paint color.

Jazeera Paints used Adjust’s Audience Builder to build customized audiences and then analyze these targeted audiences to understand which segments to pursue with retargeting campaigns. The company then crafted messaging and creatives on these insights to engage each of these high-value audiences. As a result, Jazeera Paints saw an 86% increase in in-app actions and an increase in orders by 136%.

Adjust and dynamic segmentation

Adjust’s solution Audience Builder, allows you to create custom audiences that will be automatically segmented, removing any manual work. We’ll let you set up dynamic audiences with any ad network. Your audiences will be updated in real-time, improving targeting efficiency and therefore, user engagement. Additionally, you can utilize Audience Builder to split segments for A/B testing, retargeting, and run cross-promotional campaigns. If you’d like to see how Adjust can help maximize your app growth with our powerful mobile analytics platform, request your demo now.