E-commerce app marketers spend more on user acquisition, while installs stagnate

Install trend by country and platform among e-commerce apps (Source: Appsflyer)

The Covid-19 pandemic has ushered in the era of online shopping and retail through apps. However, as customers returned to normal life, mCommerce slowed down a bit.

Building on the mobile-first experience, a growing number of e-commerce marketers are looking to navigate the market in the face of economic crisis, changes in privacy and data restrictions.

In 2022, e-commerce app marketers will spend $61 billion on new user acquisition, according to a report AppsFlyerwhich represents 50% of the costs.

What’s Causing the Decline in E-Commerce Ad Spend?

While e-commerce sales grew by 25% in 2020 and then by 17% in 2021, growth fell below 10% in 2022. This is partly due to the economic slowdown and fears of a recession. for the war in Ukraine. E-commerce applications are not attracting the same number of users this year either. Apps are increasingly focusing on observation to retain users.

Android e-commerce app installs down 5%

Overall Android e-commerce app installs fell 5% year-over-year, excluding India, which gained new traffic. iOS installs fell 4% over the same period after a spike in downloads during Covid. In the US, app installs fell 21%, while iOS gained 4%. The APAC region remains the most promising market for e-commerce app installs.

Global installs of e-commerce apps are declining (Source: Appsflyer)

110% increase in app installs in India.

The APAC region remains the most promising market for e-commerce app installs. Installs are up 110% on Android in India. Both owned media and in-app purchases continued to attract strong growth between 2021 and 2022 in India. Both India and Brazil benefited from lower CPIs that brought inorganic installations to more than 60% of total installations. Inorganic installs also account for the majority of US installs, but fell below 50% in July 2022.

Screenshot 2022 9/29 at 12.57.18 asiafirstnews

Owned media and remarketing continue to grow in India (Source: Appsflyer)

Up to 8x jump in own media reengagement conversions

Owned media increased 360% year over year as marketers work harder to squeeze value out of their budgets. This was particularly dominant in the APAC region. However, Android recently added opt-in for push notifications, which can lead to a 30% drop in opt-in rates. Marketers are advised to update their applications accordingly and continuously optimize their settings.

13% drop in Android retention

As mobile users continue to explore new apps, 30-day retention rates fell 13% on Android. Retention rates on iOS fell by 5%, in line with previous trends. In India, retention rates for iOS were more than double those of Android.

“The likelihood of a downtrend for e-commerce apps is not over for marketers as November is the best month of the year for installs and sales in most markets with Black Friday and Singles Day,” said Shani Rosenfelder, director of market insights at AppsFlyer.

“Especially this year, consumers may still want to spend the festive season thanks to the addition of the World Cup. For this reason, apps must focus on remarketing to retain the users they have acquired over the past few years, and publishers must make the most of their own media channels.”

Main conclusions

$6.1 billion spent on e-commerce apps between July 2021 and July 2022 Android e-commerce app installs down 5% worldwide 110% increase in India’s Android e-commerce apps 13% decline % to 30 -daily retention on Android

source – www.businessofapps.com

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