AppsFlyer, the cloud-based mobile attribution and marketing analytics platform, has unveiled the 2023 edition of its report State of eCommerce App Marketing, that shows the panorama of key trends in the e-commerce industry through mobile applications.
When comparing the changes in the consumption habits of users during the fourth quarter of 2022, compared to the third quarter of 2022, it can be seen how shopping apps are increasingly relevant as the main conversion, purchase and retargeting channel.
And it is that according to the study, during the fourth quarter of 2022he average consumer spending on shopping apps grew 37%, compared to the same period in 2021 (whose increase was only 7%). While retail apps generated, on average, 10% more revenue during November 2022.
Besides this, in-app purchases (IAP) were maintained elevated throughout the Christmas seasonwhich reveals the efforts of retailers to attract customers by offering early discounts and constant incentives, making shoppers visit their shopping apps again, generating repurchases.
This data should serve as a guide for retailers to help them better build their mobile app experience and successfully navigate the holiday peak and holiday season.
netta lev sadehManaging Director EMEA-SANI of AppsFlyer, says, “Marketers who want to take advantage of the key shopping days in November should start planning now. This includes organizing user acquisition campaigns in the months leading up to Black Friday to take advantage of the most affordable prices during this period, and using remarketing strategies to guide users to the app and keep them ready until those peak sales days.
Main conclusions of the report at a global level
Average consumer spending within apps on Black Friday 2002, increased 81% on iOS and 61% on Android, compared to the daily average for the month of November. Globally, by 2022 eCommerce marketing managers spent an average of 4.9 billion dollars (just over €4,300 M) to attract users to apps. However, due to the economic recession, this spending decreased by 25% in the second half of 2022. While the Apple apps for iOS had 85% more paid user share Compared to Android, November conversion rates for both systems were 15% higher than the monthly average.
Customer acquisition costs of marketers (measured in cost per app install or CPI) they had their maximum peak in November 2022. However, during the first quarter of 2023, these fell on average by 30% (33% on iOS and 11% on Android).
Non-organic facilities (NOI) driven by marketing grew 19% on iOS, this thanks to the fall in CPIs and the increase in confidence in the measurement in the application environment after iOS 14.5. Marketing professionals continue to bet on remarketing, since thanks to its constant fee of more than 40% per month, it remains a vital and profitable component of marketing in general.
The report also offers some key insights into the state of health of the Spanish market in this same period of analysis:
During the first quarter of 2023, Spanish electronic commerce suffered a 43% decrease in total installs.
Non-organic installs (NOI) plummeted nearly 50%, while remarketing decreased by 23% compared to the same period of the previous year. In the last quarter of 2022 and thanks to the impact of Black Friday and Christmas shopping, the results showed a reboundcompared to the previous quarter, where the use of remarketing grew 47%.
A massive increase is expected in the figures for the last quarter of 2023as happened in the same period of 2022.
Effectiveness of campaigns through apps
Aggressive holiday campaigns have proven effective in stimulating consumer spending. Unlike ad spend, which tends to peak in November, in-app purchases (IAPs) remained high during the holiday season, suggesting that early bird discounts and holiday season incentives fueled the buying engine.
November is the month with the highest number of expenses by users
The eCommerce applications generatedon average, 10% more revenue in the peak month of November 2022when the economic downturn was already in full effect, compared to November 2021.
The period of 25 to 27 is the prime time for app installs, fueled by the Black Friday frenzy. This period sees a marked increase across all platforms, with iOS numbers outpacing Android. On November 25 alone, Android installs were up 24% over any other day of the month, while iOS saw a steeper increase of 38%.
iOS vs Android
Remarketing on Android (iOS remarketing is more difficult since iOS 14.5) continues to be a vital and profitable component of the global marketing landscape, with a share constant of more than 40% per month. This indicates a continued interest in remarketing strategies to improve marketing campaigns. Seasonal trends indicate a slow rise in remarketing from October to December as businesses around the world prepare for the holiday season. The United States consistently exceeds the global average, often exceeding 55% of conversions.
iOS consistently dwarfs Android in user retention, with an average rate 20% higher. However, this pattern does not hold everywhere. For example, Android takes a rare retention advantage in the single markets of Brazil and Saudi Arabia.
The recent economic turbulence in the United States, characterized by inflation, appears to have changed consumer behavior on Android, whose users are more price-sensitive buyers than iOS.
In fact, 2023 rates on Android have been 16% below the 2022 average (more difficult to compare with Q1 2022 due to the effect of the Omicron wave). On iOS, however, the drop was much smaller, at just 6%.
As expected, buyers of Apple are nearly twice as likely to open their wallets compared to Android users. Every month, the percentage of active buyers of iOS on a global scale almost doubles that of Android.
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