Consumer spending in eCommerce apps climbs 55%

Anne Freer | October 11, 2021

App Business

Retail spend using mobile devices rose 55% during the Q4 2020 holiday season and is expected to remain strong this year.

That’s according to AppsFlyer’s latest State of eCommerce App Marketing report.

eCommerce app installs climbed 55% on Android and 32% on iOS in 2021 with combined UK installs peaking at 151% during 2020. App installs doubled once again in Q1 2021 signalling sustained growth of the sector.

“To make the most of the prime festive season, retailers should put mobile, and particularly mobile apps, at the heart of their Q4 strategy,” said Shani Rosenfelder, Head of Content & Mobile Insight, AppsFlyer. “For marketers, this means ensuring a smooth transition from mobile web to app, where performance is significantly higher. It also means bringing the communication with existing buyers to wherever they are, and making sure they use deep linking to reach the right destination within the app smoothly and contextually.”

Non-organic installs jumped 133% during Q2 2020 and a further 44% toward the end of the year.

Remarketing was 3x higher than during pre-pandemic times while CPIs climbed by 398% between March 2020 and March 2021.

“As we head into the last few months of the year where remarketing strategies reach peak effectiveness, eCommerce app marketers will be under pressure to put plans in place to capitalise on increasing consumer demand,” comments Gal Ekstein, General Manager EMEA & LATAM at AppsFlyer. “As well as responding to the opportunity, app marketers need to overcome the ongoing challenges brought on by Apple’s App Tracking Transparency (ATT) framework and SKAdNetwork. To fully maximise ATT opt-in rates and increase iOS remarketing audience sizes, marketers should focus efforts on drastically improving the user experience of mobile apps as well as evaluating when and how to display the ATT prompt.”

The report also noted that global eCommerce app install ad spending hit $5.4 billion in Q4 2020 and Q1 2021 with the US responsible for a third of global app install spend at $1.8 billion.

iOS remarketing dropped 30% while it was up 10% on Android.

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