Marketing

Why more and more consumers shop on smartphones – eCommerce Magazine

The global app marketing platform Adjust has now, in collaboration with Liftoff, specialized in mobile app marketing and retargeting, a new report on the rapidly growing Shopping apps market created. The report is based on the most extensive data collection to date and shows that shopping apps are used worldwide as inspiration and decision-making aids.

This app category has seen significant growth in the past twelve months. North America (NAR) is a leader in Mobile shopping, followed by users from the EMEA region. The analysis of more than 53 billion ad impressions, over ten million installations and two million first-time events in apps between April 2019 and April 2020 revealed surprising findings.

All-time high for shopping apps

The Adjust and Liftoff report shows growing consumer acceptance for shopping apps. At $ 19.47, the cost of acquiring a user who makes a first purchase is more than half the previous year. At the same time, engagement in apps has increased by 40 percent and that average buying advicee is currently 14.7 percent above the 10.5 percent of last year.

In addition, the initial restrictions imposed by the Covid 19 pandemic favored mobile shopping behavior: while the cost per installation remained relatively stable throughout the year, it dropped exactly to an annual low of $ 2.48 in March 2020 the time when the exit restrictions had peaked.

Shopping apps Source: Adjust
The acquisition costs of shopping apps from 2017 to 2020. (Graphic: Adjust, Liftoff)

Consumers are adapting

“The entire e-commerce industry suffered a small shock in the first weeks of March when advertising spending was significantly reduced due to the COVID 19 pandemic,” explains Paul H. Müller, Co-Founder and CTO of Adjust. “In April the industry recovered and more investments were made in re-targeting and re-engagement to bring new customers back into the funnel and keep existing customers.”

In a world where there are fewer physical touch points in retail, apps can drive the growth of a brand. “Last year, our analysis showed that the massive discount campaigns from retail giants such as Amazon, Flipkart and Alibaba Mobile are causing users to shop online all year round. This trend continues, ”explains Mark Ellis, co-founder and CEO of Liftoff. “Consumers are adapting to a changing retail environment and rely more on their smartphones than ever. There has never been a better time to market a shopping app. ”

North America is the leader, users in EMEA are even more reserved

While the growth of shopping apps around the world is growing rapidly, North America is the clear leader: the acquisition costs per first purchase in the NAR region have decreased fourfold to $ 14.85, while the conversion rates have more than fourfold rose to 27.6 percent.

Shopping apps Source: Adjust
The installation costs and conversion rates of shopping apps. (Graphic: Adjust, Liftoff)

The situation in EMEA, on the other hand, is somewhat more complex. The region has the lowest cost of registering users, at $ 4.60, and the highest conversion conversion rates, at 48.2 percent. Users in this region are quite ready for mobile shopping, especially if they are already in the middle of the marketing funnel.

However, the acquisition cost for users who actually make a purchase is a whopping $ 16.27. Combined with an engagement rate of 13.6 percent, which is only half as high as in North America (27.6 percent), it becomes clear that users in EMEA are somewhat more reluctant to mobile shopping.

The methodology of the report: The Shopping apps report 2020 is based on internal data from Liftoff, which was collected from April 1, 2019 to April 1, 2020 and comprises around 53 billion ad impressions, over ten million installations and two million first-time events in apps. The report tracks the development of acquisition costs and conversion rates worldwide. For this purpose, he breaks down the most important engagement activities and trends in order to compare the performance in different regions such as North America, LATAM, EMEA and APAC and also takes a close look at the countries of Brazil, Japan and the USA. (sg)

Also read: Retargeting campaigns more and more successful – that’s how easy it is to make apps known