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New AppsFlyer Report Reveals eCommerce App Industry’s Resilience as Marketing Spend for Attracting New Shoppers to Apps Approaches $5 Billion

Despite 25% plunge in spending in 2022 amid economic downturn, AppsFlyer’s 2023 State of eCommerce report showcases some positive retail global trends in a shifting economic landscape

 AppsFlyer today released the 2023 edition of its State of eCommerce App Marketing report, an in-depth look at key global industry trends to guide retail marketers in building a mobile-first experience that drives engagement and sales for the second half of 2023, especially during the peak holiday season.

While retail marketers continue operating in an uncertain economic landscape, last year’s Q4 holiday shopping season, which saw more in-app purchases by consumers compared to Q4 in 2021, should provide a glimmer of hope. Consumer spending on shopping apps climbed 37% in Q4 2022 compared to Q3 2022, 30% higher than the rise in 2021 over the same period. On average, retail apps generated 10% more revenue in the peak shopping month of November 2022 compared to November 2021. Additionally, In-app purchases (IAP) remained high throughout the entire holiday season, suggesting that retailers focused on attracting customers with early discounts and continuous holiday season incentives, leading to shoppers making return visits to their favorite shopping apps and also making repeated purchases, which drove shopping’s economic engine.

“Black Friday in South Africa last year once again showed its prowess in terms of app installs, with iOS installs rising by more than 30%, and Android installs increasing by more than 15% on this day, compared to the daily average in the month of November, showcasing the importance of this period in particular for eCommerce apps,” said Netta Lev Sadeh, Managing Director EMEA SANI, AppsFlyer. “It is critical for app marketers to start their planning now leading up to this year’s Black Friday if they want to maximize this vibrant shopping period. Disruptive user acquisition campaigns could be paramount in the months leading up to Black Friday, and if executed successfully, could be the defining point in the increase or decrease in app installs.”

Key Africa insights from the 2023 State of eCommerce:

Key Global Insights from the 2023 State of eCommerce:

“The impact of the downturn on ad spend as seen during the first quarter of 2023 has been significant with marketers cutting budgets, but the success of the 2022 holiday season, even amidst the prevailing financial slowdown worldwide, should instill greater confidence in marketers as they plan for the upcoming holiday season,” said Shani Rosenfelder, Director of Content Strategy & Market Insights, AppsFlyer. “Emotional marketing offers a greater resonance now more than ever, so marketers should stay attuned to the needs and sentiments of their audience to connect with them on a deeper level.”

Methodology

AppsFlyer’s State of eCommerce App Marketing, 2023 Edition is an anonymous aggregate of proprietary global data from 3.7 billion app installs from 8,500 eCommerce apps and 22 billion remarketing conversions.

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