How IMVU Boosted Retention & ROAS with AI Retargeting

Scaling engagement and revenue through AI-driven ad optimization through InMobi.

The Challenge

IMVU, the world's largest avatar-based social platform, sought to improve user retention and maximize return on ad spend (ROAS) by refining its retargeting strategy. With a vast user base engaging in social experiences, virtual shopping, and content creation, IMVU needed a scalable solution to re-engage users, prevent churn, and increase lifetime value (LTV). The challenge was to develop a retargeting approach that not only kept users engaged but also drove measurable revenue growth while optimizing ad spend.

The Solution

To achieve its goals, IMVU partnered with InMobi DSP, leveraging its deep-learning algorithm and data-driven retargeting capabilities to maximize user retention and revenue. The partnership enabled IMVU to create a smarter, AI-powered approach to bringing users back into the platform, ensuring higher engagement and monetization.

A key component of the strategy was AI-driven retargeting through InMobi’s Auto Bidder technology. This system dynamically adjusted ad placements based on user engagement and purchasing behavior, ensuring that high-intent users were targeted with the most relevant content at the right time. By automating this process, IMVU significantly improved its return on ad spend (ROAS).

To further refine audience segmentation, personalized re-engagement was implemented through Leanplum’s mobile marketing platform. This allowed IMVU to track in-app behavior and segment high-value users who showed strong purchasing intent. These users were then served highly relevant ads designed to bring them back to the platform, increasing overall conversion rates.

IMVU also optimized ad frequency and timing to ensure maximum impact. Data analysis revealed that increasing frequency caps within the first three days post-install led to higher conversion rates. This insight allowed IMVU to fine-tune its bidding strategy, ensuring that newly acquired users were exposed to targeted messaging during their most active decision-making windows.

Finally, cross-platform integration ensured a seamless omnichannel experience. IMVU’s retargeting campaigns spanned mobile, desktop, and in-app placements, ensuring consistent brand messaging across different touchpoints. Additionally, creative customization played a crucial role, with tailored ad creatives promoting exclusive content, special offers, and new features to drive repeat engagement and long-term loyalty.

The Results

Through this data-driven partnership, IMVU successfully transformed its retention strategy, proving the value of personalized, AI-powered re-engagement initiatives.

The InMobi-powered retargeting campaigns drove significant improvements in retention, engagement, and revenue growth, demonstrating the impact of AI-driven optimization:

  • 3.5X ROAS in August 2020, surpassing expectations.

  • 2X ROAS in June and July 2020, proving sustained efficiency over multiple months.

  • 279% increase in revenue from retargeting efforts in 2019.

  • 27% increase in ROAS in the U.S. market through InMobi’s Auto Bidder technology.

  • 16% decrease in cost per order, enhancing overall campaign efficiency.

Through this data-driven partnership, IMVU successfully transformed its retention strategy, proving the value of personalized, AI-powered re-engagement initiatives.

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