Dive Temporary:
- Android-based e-commerce app installs dropped 5% (when excluding India, the place installs had been up 116%) within the first half of the 12 months, in contrast with the identical interval in 2021. IOS installs additionally dropped 4% globally over the identical interval, in keeping with AppsFlyer’s 2022 State of eCommerce App Advertising report.
- Advert spending for consumer acquisition dropped 50% 12 months over 12 months, amounting to $6.1 billion from July 2021 to July 2022.
- Thirty-day app retention on Android units dropped 13% as customers proceed to discover new companies. iOS app retention dropped 5% total in the identical interval.
Dive Perception:
Whereas post-Covid fatigue would be the greatest issue within the drop in e-commerce app set up and utilization — each of which surged throughout the peak of social distancing and lockdowns — newer developments, such because the conflict in Ukraine, supply-chain disruption, rising inflation and fears of a looming financial downturn are additionally enjoying a task.
The report discovered that non-organic installs are slowing down. In 2022, e-commerce is not holding the draw it as soon as did. Rising costs, which have taken a toll on advertising budgets and planning in latest months are additionally contributing to the decline as campaigns encouraging app downloads are stagnating.
Attributable to this stagnation, apps are specializing in totally different ways to take care of their consumer bases, corresponding to remarketing and utilizing owned media channels for promotion. Certainly, the usage of owned media jumped 360% 12 months over 12 months between July 2021 and July 2022.
As the top of the 12 months approaches, the research notes entrepreneurs can also stage pushes round important upcoming occasions like Black Friday, Singles’ Day and the World Cup, to encourage installs.
“It is going to be fascinating to see how the 2022 vacation season will play out,” reads the report. “A cooldown after Covid peaks and mounting financial and logistical challenges appear to foretell a downward route. Nonetheless, shopper habits and vacation purchasing typically have a method of their very own … There should be an urge for food for a celebratory season, encompassing each Christmas and the World Cup.”
