Mobile shopping apps continue to gather steam as engagement rates surge 40%.
Based on the analysis of 53 billion ad impressions from 10 million installs between April 2019 and 2020, they found that North America has risen to the forefront while Asia Pacific has entered a period of shopping fatigue.
Meanwhile, the cost to acquire a new user for retail apps decreased by more than half year-on-year to an average $19.47.
Purchase rates stood at 14.7% compared to 10.5% in 2019. But levels over the last two years are even higher at 110%.
“Last year, our analysis found that the rise of sales bonanzas from retail giants like Amazon, Flipkart and Alibaba were tilling the soil for other retailers, priming mobile users to shop year-round, and this trend is only continuing,” explained Mark Ellis, co-founder and CEO of Liftoff. “As consumers adapt to the changing retail landscape, they’re leaning on mobile more than ever. It’s never been a better time to be a retail app marketer.”
It’s clear that COVID lockdowns were a significant factor in consumers’ changing shopping habits.
“The e-commerce industry as a whole got a bit shell-shocked in the first few weeks of March in the wake of COVID-19, with marketers dialing back ad spend,” said Paul H. Müller, co-founder and CTO of Adjust. “But as we saw the vertical start to rebound in April, there’s been a broader push toward re-targeting and re-engagement — in line with bringing customers back into the funnel and keeping their existing ones engaged.”
The report also revealed that North America cost-per-first purchase was down 4x while conversion rates were up over 4x and 6x higher than in APAC.
At the same time, APAC costs doubled over the past year to $54.90 while its engagement was down with purchase rates less than half those of 2019.