E-COMMERCE

E-commerce apps are losing their pandemonium luster: report

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A quick dive:

  • Installs of Android-based e-commerce apps fell 5% (excluding India, where installs grew 116%) in the first half of 2021 compared to the same period in 2021. iOS installations also fell 4% worldwide during the same period, according to AppsFlyer’s The state of e-commerce app marketing in 2022 the report
  • Advertising spending to acquire users fell 50% year-over-year to $6.1 billion from July 2021 to July 2022.
  • Thirty-day app retention on Android devices fell 13% as users continue to explore new services. iOS app retention fell 5% overall over the same period.

Dive Insight:

While fatigue in the wake of COVID-19 may be the biggest factor behind the drop in installs and usage of e-commerce apps — both of which erupted during the peak of social distancing and lockdowns — new developments like the war in Ukraine, supply chain disruptions, rising inflation and concerns about the coming economic downturn also plays a role.

The report shows that inorganic installations are slowing down. In 2022, e-commerce no longer holds the draw it once did. Rising prices, which have taken a toll on marketing budgets and planning in recent months, are also contributing to the decline as companies that encourage app downloads stagnate.

Because of this stagnation, apps are focusing on various tactics to maintain their user base, such as remarketing and using their own media channels to promote. Indeed, from July 2021 to July 2022, the use of own media grew by 360% year over year.

The study notes that as the end of the year approaches, marketers can also arrange to host significant upcoming events such as Black Friday, Singles Day and the FIFA World Cup to drive installs.

“It will be interesting to see how the 2022 holiday season plays out,” the report said. “Post-peak Covid recharging and mounting economic and logistical challenges seem to foretell a downward trend. However, consumer behavior and holiday shopping sometimes have their own way … There may still be an appetite for a festive season that includes both Christmas and the World Cup.”

https://www.retaildive.com/news/e-commerce-apps-pandemic-downloads-recession-holiday/632522/ E-commerce apps are losing their pandemonium luster: report

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