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While Q4 is often the highlight of the marketing calendar, Q5—extending from just after Christmas to the end of January—has emerged as a prime opportunity for mobile marketers. With less competition, lower advertising costs, and heightened user activity, Q5 is an ideal time to capitalize on holiday momentum and explore creative strategies.
Device activations, gift card redemptions, and New Year’s resolutions fuel app activity providing a perfect setting to expand campaigns, increase installs, and maximize revenue. Achieving success in Q5 requires an understanding of its distinct dynamics. Let’s delve into data-driven trends from our partner Adjust, along with actionable insights and strategies, to turn this overlooked “quarter” into a profitable period for your app business.
Health and fitness apps dominated Q5 growth, with a 38% increase in installs and a 10% rise in sessions in January 2024 compared to December. This reflects users’ focus on New Year’s resolutions, such as achieving fitness goals and adopting healthier lifestyles.
The effective cost per install (eCPI) for health and fitness apps also increased from $0.75 in December 2023 to $1.16 in January 2024, highlighting heightened competition for acquiring health-conscious users during this period.
Marketers can take advantage of this momentum by providing free trials, fitness challenges, and incentives for habit tracking.
Crafting messaging around New Year goals and delivering engaging onboarding experiences can help sustain user engagement well beyond the initial January spike, ensuring higher acquisition costs deliver long-term value.
Gaming apps also saw notable growth during Q5, with installs increasing by 4% and sessions rising by 8%, driven by downtime and heightened leisure time. The eCPI for gaming apps saw a minor decline, from $0.72 in December to $0.68 in January, reflecting steady demand and cost-effective acquisition opportunities.
The increase in sessions highlights the effectiveness of in-app events, promotions, and cross-platform campaigns in keeping users engaged. For gaming marketers, Q5 presents an excellent opportunity to introduce seasonal events such as New Year-themed challenges, exclusive rewards, or subscription offers to boost engagement and retention. Utilizing connected TV (CTV) campaigns and second-screen viewing habits can further extend reach, while retargeting users with limited-time offers or new content maintains interest and enhances return on investment (ROI).
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Prospects for Finance, Entertainment, and Shopping Apps During Q5
In the finance sector, installs increased by 5%, while the eCPI significantly decreased from $1.22 in December to $0.87 in January. However, sessions fell by 4%, likely due to a drop in transactional activity after the holiday shopping season. This discrepancy presents an opportunity for finance apps to enhance onboarding processes and emphasize features that promote ongoing use, such as financial goal tracking or budgeting tools.
The lower acquisition costs during Q5 enable finance marketers to concentrate on developing long-term user engagement strategies that align with consumers' financial planning for the new year. By taking advantage of the reduced eCPI, finance apps can attract budget-conscious users while establishing themselves as vital tools for achieving financial objectives.
Entertainment apps experienced a 1% increase in installs, with sessions rising by 2%. The eCPI for this category decreased from $0.86 in December to $0.64 in January, making Q5 an economical time for acquiring new users. Social apps saw a 4% rise in installs, but sessions decreased by 1%, while eCPI dropped from $2.40 to $2.15. These trends present an opportunity for marketers to employ customized campaigns and engaging content to turn new users into active participants, even with reduced session activity.
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Shopping apps saw limited growth during Q5, with a mere 1% rise in installs and a 1% drop in sessions, indicative of the usual post-holiday lull. Nonetheless, the eCPI for shopping apps fell sharply from $0.77 in December to $0.55 in January, offering a prime chance for cost-effective user acquisition.
Marketers can re-engage users with post-holiday campaigns that leverage self-gifting trends and promote gift card redemptions. By shifting the focus from holiday gifting to self-indulgence, and offering personalized discounts, curated bundles, and exclusive deals, interest can be rekindled. Loyalty programs and customized recommendations can further enhance long-term engagement and repeat purchases, maximizing Q5's potential for shopping apps.
Q5 offers a distinct opportunity for mobile marketers to enhance their strategies and capitalize on increased consumer engagement at typically reduced advertising costs. Here’s how you can fine-tune your campaigns and effectively connect with your audience:
