Live shopping and advertising on connected TVs are some of the strategies that are revolutionizing the e-commerce market
Per Essay – 20.10.2022
E-commerce app installs grew 14% in 2021 in Latin America alone, surpassing the global average of 12%, according to Adjust’s 2022 Mobile App Trends Report. The company highlights six trends among e-commerce apps that retailers and merchants should in the industry should be aware of in order to continue to drive the growth of e-commerce.
1. Audio experiences
Audio has seen a significant resurgence as a result of the COVID-19 pandemic, with the global podcast market seeing an annual growth rate of 31.5% and audio apps such as Spotify, Deezer, YouTube Music and Apple Music making a big splash. . Audio experiences can also expand in the e-commerce industry, being used for user-to-user Q&A, recording testimonials, and in-app customer support.
2. Live shopping
Live shopping on social media has grown exponentially since the pandemic, especially on platforms like Instagram and YouTube. In addition, Twitter has begun testing “live commerce” in Brazil, a live buying tool to open up space for advertisers during this period of high activity in the second half of the year with Black Friday and the World Cup.
Brands display a product and then a link, allowing viewers to tap and add the item to their cart. As of 2021, live stream conversion rates are ten times higher than other e-commerce formats and will continue to grow.
3. Buy services now, pay later
Consumers increasingly expect Buy Now Pay Later (BNPL) services as an alternative method of purchase. This payment option allows customers to purchase and pay in multiple installments. In Brazil, this category can be seen, mainly, with the creation of the installment payment service by Pixo. According to Hello Research, around 70% of Brazilian consumers claim to be very interested in using this feature with the option to purchase in four interest-free installments, for example.
Some tech giants are also entering this space. For example, this year Apple announced a buy now, pay later service called Apple Pay Later. This feature allows US consumers to split the total cost of an Apple Pay purchase into four equal payments over six weeks, interest-free and fees-free. As of 2020, PayPal offers its BNPL service Pay in 4, which allows PayPal users to pay in four installments.
4. CTV advertising
Connected TV (CTV) advertising is a trend that many app marketers are exploring across all verticals, including e-commerce. Since Apple’s iOS 14.5 update, the release of AppTrackingTransparency (ATT), and Google’s suspension of third-party cookies, app marketers are looking for other channels to easily reach their target audience while respecting data privacy rules.
According to Magnite, 91% of Brazilians watch content weekly on connected TVs. Many marketers have noted this increase in CTV’s viewership, and Magnite points out that 79% of Hispanic viewers have no problem watching ads on connected TV in exchange for free programming or reduced subscription costs.
5. Mindless trading
The headless architecture uses an API to send real-time information between the consumer-facing digital storefront or front-end and back-end processes, tools and systems. This in turn enables easy integration and management of multiple channels, eliminating the need for separate processes and tools.
Many retailers have turned to headless technology to create a seamless experience for their customers across all channels. In the last two years alone, has the US risen? 1.65 billion dollars for this technology. For example, Twitter announced its partnership with e-commerce software Shopify, allowing merchants to connect their Twitter accounts to the social network’s Shopping Manager platform and access its tools.
6. Augmented reality help
Augmented reality (AR) assistance with in-app purchases isn’t new, but it’s certainly on the rise this year. A report by Valuates states that the global AR in retail market will have a CAGR of 20% between 2022-2028. This continued growth is likely due to the rise in the use of connected devices and greater smartphone penetration worldwide.
In this case, AR digitally adds the product to the actual smartphone view. For example, Sephora’s app has a feature called Virtual Artist, which uses facial recognition to allow customers to try on different shades of makeup in the app.
With the FIFA World Cup kicking off right before the holiday shopping season, e-commerce can give brands more power to capitalize on the biggest and most popular sporting event in the world. Additionally, Larissa Olival, Adjust’s Sales Executive, points out that it is critical for marketers to be aware of changing trends and adapt their marketing strategies to improve customer engagement, build customer loyalty and increase revenue.
Globally, e-commerce sales are expected to reach $5.42 trillion by the end of 2022, up from $4.9 trillion in 2021, according to Shopify. The mobile channel is the main driver of this growth, with 67% of e-commerce sales coming from mobile devices in 2021. According to Adjust’s 2022 Mobile App Trends Report, e-commerce retail sales via mobile devices will reach $3.56 trillion in 2021 .with over 100 billion hours spent on in-app purchases.
Also read: 39% of Brazilians accept being tracked by apps, according to Adjust guide