eCommerce app marketers are spending more to acquire users while installs stall

eCommerce app marketers are spending more to acquire users while installs stall

The Covid-19 pandemic heralded the period of on-line buying and app retail. Nevertheless, as customers returned to regular life, mCommerce has slowed a bit. 


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Constructing on the mobile-first expertise, a rising variety of eCommerce entrepreneurs want to navigate a market that’s going through financial downturn, privateness adjustments and knowledge restrictions. 

In 2022 eCommerce app entrepreneurs spent $61 billion to accumulate new customers, based on a report from AppsFlyer, representing 50% in spending.

What’s driving the drop in eCommerce advert spending?

Whereas 2020 noticed eCommerce buying gross sales rise 25% adopted by 17% in 2021, declines in progress had been beneath 10% in 2022. Partially responsible for this are the financial downturn and recession fears pushed by the struggle in Ukraine. eCommerce apps are additionally not attracting the identical variety of customers this yr. Apps are more and more specializing in remarking to retain customers. 

Android eCommerce app installs fall 5%

General installs for Android eCommerce apps fell 5% year-on-year excluding India which gained new visitors. iOS installs dropped 4% throughout the identical interval after an increase in obtain throughout Covid. Within the US, app installs fell 21% whereas iOS gained 4%. The APAC area continues to be essentially the most promising marketplace for eCommerce app installs. 

110% rise in app installs in India

The APAC area continues to be essentially the most promising marketplace for eCommerce app installs. Installs jumped 110% on Android in India. Each owned media and in-app purchases continued to draw robust progress between 2021 and 2022 in India. Each India and Brazil benefitted from decrease CPIs that drove non-organic installs to over 60% of whole installs. Non-organic installs additionally represented nearly all of installs within the US however have been dipping beneath 50% as of July 2022. 

As much as 8x leap in owned media reengagement conversions

Owned media jumped 360% over the yr as entrepreneurs are working tougher to get worth from their budgets. This was significantly dominant within the APAC area. Nevertheless, Android not too long ago added opt-ins to push notifications which may result in a drop of 30% in opt-in charges. Entrepreneurs are warned to replace their apps accordingly and repeatedly optimising their settings.

13% drop in Android retention

As cell customers proceed to discover new apps 30-day retention charges fell 13% on Android. Retention charges on iOS fell by 5% which is according to earlier tendencies. In India, iOS retention charges had been greater than double these of Android. 

“The chance of a  downward pattern for eCommerce apps is just not the top for entrepreneurs, as November is yearly the perfect month for installs and gross sales throughout most markets with Black Friday and Singles Day,” stated Shani Rosenfelder, Director of Market Insights, AppsFlyer.

“This yr, particularly, shoppers would possibly nonetheless have an urge for food for spending within the vacation season because of the addition of the World Cup. Because of this, apps ought to deal with remarketing to retain the customers they did choose up over the previous few years and publishers have to profit from their owned media channels.”

Key takeaways

  • $6.1 billion spent in eCommerce apps between July 2021 and July 2022
  • 5% drop in Android eCommerce app installs worldwide
  • 110% rise in India Android eCommerce apps
  • 13% drop in 30-day retention on Android