Budgeting for Player Retention and Re-engagement Campaigns

When budgeting for player retention and re-engagement campaigns, it is essential to allocate a dedicated portion of your marketing budget specifically for these efforts, typically during the mature growth phase of your game lifecycle. A common approach is to reserve a "sustain" bucket of your budget for retention-focused campaigns such as app ads (AA), remarketing, and cross-promotion, after initial user acquisition and scaling phases are complete.

Key budgeting strategies include:

• Stage-Based Budgeting: Allocate your budget according to game lifecycle phases:

  • Test phase (pre-launch/soft-launch): Experiment with new geographies and creatives.
  • Scale phase (launch/ramp-up): Focus on broad channels and high-impact formats to drive installs.
  • Sustain phase (mature growth): Prioritize retention and re-engagement campaigns to maximize long-term player lifetime value (LTV).

• Percentage Allocation: While exact percentages vary, retention and re-engagement campaigns often receive a smaller but crucial share of the total user acquisition budget, typically after scaling acquisition efforts. For example, 5–10% of your budget might be allocated to specific ad formats like playables that also support engagement.

• Agility and Optimization: Use an agile budgeting approach that allows you to reallocate funds dynamically based on real-time performance data. This flexibility helps optimize spend on retention campaigns that show positive return on investment (ROI).

• Use of AI and Data Analytics: Employ AI and machine learning tools to forecast and optimize budget allocation for retention and re-engagement campaigns, improving profitability by identifying the most effective spending opportunities.

• Measuring Impact: Implement incrementality testing (e.g., ITT methodology) to measure the true impact of re-engagement campaigns on revenue and player activity, ensuring that budget spent on these campaigns drives net new value rather than cannibalizing existing revenue.

• Supporting Strategies: Complement paid re-engagement campaigns with ongoing retention tactics such as regular content updates, rewarding progression systems, community building, personalized rewards, and limited-time events to keep players engaged organically.

In summary, budgeting for player retention and re-engagement should be part of a stage-based, data-driven, and flexible marketing plan that balances acquisition and retention efforts. This ensures sustainable player engagement and maximizes lifetime value while adapting to evolving player behavior and market conditions.