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With a projected 20.5% CAGR, the fintech market is expected to exceed $699.5 billion by 2030. The simple explanation for the category’s rise is that the tumultuous waters of the past 3 years have rocked the rowboat, giving consumers new reasons to keep a watchful eye on their finances — though they need the tools to do so. Fintech apps offer a convenient solution for the economically conscious to strengthen their financial reserves.
Attracting new users should be no issue, but changes to Apple’s and Google’s privacy policies have made it harder to target potential users. Luckily, consumers looking to “grow the gap” of their debt-to-income ratio will be out in force as we exit the season of big spenders — which is why marketers need to think about strategy now. The first step is understanding the trends that will shape UA in Q1 2023.
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Fintech UA Costs Are Lowest During Tax Season
Prepare for a February MAU Bump
Influencer Marketing Increases Engagement
Target the Right Users
Fintech UA Costs Are Lowest During Tax Season
Data from Liftoff shows that CPI, registration, and activation costs fluctuate throughout the year, with the highest costs hitting during November. But after that peak, prices steadily decline as tax season rolls around. In 2022, CPIs reached a low of $1.89 in April while registration and activations costs sank to $10.11 and $13.55, respectively — significant declines from holiday 2021, where activation costs were as high as $23.
So, what’s with the decrease? Odds are that time and simplicity have something to do with it. The IRS estimates it takes the average taxpayer 13 hours to file their taxes, with 4 of those hours dedicated to filling and submitting forms. Failing to do so correctly can result in fines and more time spent correcting issues. It’s no surprise that users are more open to time-saving fintech apps like Intuit to help manage taxes considering the burden.
Prepare for a February MAU Bump
Marketers know the holiday season user surge, but post-holiday retention has been an issue since “there’s an app for that” first flooded Apple’s advertising. However, Apptopia found that the fintech category saw a large bump in MAUs during February of 2022, with the top 10 fintech apps hovering around 5 million MAUs — up from the roughly 3.5 million they saw in October of 2021.
Apptopia’s reasoning behind the boost is similar to the increased interest in health and wellness around the new year; people want to get both their bodies and their bank accounts in shape. Given looming economic concerns, it’s reasonable to expect this year will have similar results. If fears of an economic downturn persist, marketers may see their MAUs reach even higher levels as users try to manage their expenses more granularly.
Influencer Marketing Increases Engagement
Exploring new marketing channels is paramount to success as mobile app markets change their privacy policies. Influencers are becoming a desirable alternative to traditional marketing methods. They can have engagement rates as high as 13.7% on platforms like TikTok, which makes them a safe bet for reaching an audience.
There doesn’t seem to be a direct correlation between successful influencer marketing campaigns and the time of year, but the increased interest at tax time is an indicator for marketers to strike while the iron is hot. Consumers will be on the prowl for personal finance tips, which fintech influencers provide. Partnering with them can help attract younger audiences, who are more inclined to trust influencers.
Target the Right Users with AdAction
UA costs will decline around tax time, but the CPI for Apple users remains significantly higher than their Android counterparts. However, Apple users are also twice as likely to activate their accounts once they’ve downloaded a fintech app, with an activation rate of 15.9% versus Android’s 6.5%. Targeting the right demographics when interest in fintech apps is at its highest can lead to significant rewards for marketers that know how to leverage their messaging.
Of course, targeting a specific demographic is easier with an experienced advertising partner, especially during a high-risk, high-reward season like Q1. AdAction has the creative solutions and experience you need. Whether you want to drive high-quality installs or run an influencer marketing campaign, AdAction knows the marketing secrets that lead to growth. Contact us today to get started.
The post 4 Post-Holiday UA Trends Fintech Marketers Need to Know in 2023 appeared first on AdAction.com.
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