E-commerce apps lose their pandemic luster: report

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Diving brief:

  • Installs of Android-based e-commerce apps fell 5% (excluding India, where installs grew 116%) in the first half of the year, compared to the same period in 2021. iOS devices also fell by 4% globally over the same period. , according AppsFlyer’s 2022 State of Ecommerce App Marketing Report.
  • User acquisition ad spend fell 50% year-over-year to $6.1 billion from July 2021 to July 2022.
  • Thirty-day app retention on Android devices dropped 13% as users continued to explore new services. iOS app retention dropped 5% overall over the same period.

Overview of the dive:

While post-Covid fatigue may be the main factor behind the decline in the installation and use of e-commerce apps – both of which increased during the height of social distancing and lockdowns – new developments, such as the war in Ukraine, supply chain disruption, rising inflation and fears of an impending economic downturn also play a role.

The report found that non-organic installs are slowing down. In 2022, e-commerce no longer holds the draw it once had. Rising prices, which have weighed on budgets and marketing planning in recent months, are also contributing to the decline, as campaigns encouraging app downloads stall.

Due to this stagnation, apps are focusing on different tactics to maintain their user bases, such as remarketing and using proprietary media channels for promotion. Indeed, usage of owned media jumped 360% year over year between July 2021 and July 2022.

As the end of the year approaches, the study notes that marketers can also stage important upcoming events like Black Friday, Singles Day and the World Cup, to encourage installs. .

“It will be interesting to see how the 2022 holiday season unfolds,” the report read. “A cooling after the Covid peaks and increasing economic and logistical challenges seem to predict a downward direction. However, consumer behavior and holiday shopping sometimes go their own way… There may still be an appetite for a festive season, encompassing both Christmas and the World Cup.

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