Building and maintaining customer loyalty will be a top priority for marketers in the golden quarter according to AppsFlyer’s new State of eCommerce report

AppsFlyer has released the 2024 edition of its State of eCommerce App Marketing report, offering valuable insights into the shifts in consumer habits and marketing budgets. The report highlights the industry's evolution and identifies key trends that brands should harness to drive metrics like app downloads and purchases during the upcoming peak shopping season.

Economic Stability and Mobile Commerce Growth

As the global economy stabilizes, mobile commerce growth appears promising. Marketers have the opportunity to cultivate and nurture customer loyalty, with AppsFlyer’s research showing significant post-first purchase engagement. Despite only 1 in 10 consumers converting during peak seasons for iOS, nearly 60% evolve into loyal customers.

Key Findings

• Non-Organic Installs and Remarketing:

  • Non-organic installs on iOS increased by 60% in 2023.
  • Marketers focus on the first week post-install for remarketing activations, achieving a 40% conversion rate on the first day and exceeding 75% within the first week.

• In-App Purchases (IAP) Growth:

  • In-app purchasing increased by 15% during the 2023 holiday season compared to Q4 2022.
  • Purchase volumes surged by 21% in Q1 2024 compared to Q1 2023.

• Ad Investment and iOS Dominance:

  • Total ad investment in 2023 reached $6.6 billion, highlighting improved marketing confidence.
  • iOS users fueled a 60% year-over-year increase in non-organic app installations and a 21% rise in IAP rates, outpacing Android’s 21% and 9% respectively.
  • Ad spend on Apple devices climbed by 43% over 2023, while Android saw an 18% decrease.

• Global and Regional Insights:

  • Large Asian companies drove a 125% increase in iOS non-organic installs in Q2 and Q3 2023.
  • The US dominated the global stage due to higher Cost Per Install (CPI) rates.
  • The share of paying users on Android rose to 7.71% during the 2023 peak season, compared to 4.77% in the same period in 2022.
  • iOS paying users increased to 9.85% during the 2023 holiday season, up from 8.45% in 2022.

Strategic Shifts in Mobile eCommerce Advertising

Sue Azari, Industry Lead for eCommerce at AppsFlyer, notes that as the global economy stabilizes, brands are swinging back towards paid marketing for user acquisition instead of relying heavily on owned channels. This shift illustrates the impact of eased economic concerns and the need to stand out against competitors. With new players like Temu entering the market, brands are increasing their spending on promoting shopping apps.

The AppsFlyer 2024 State of eCommerce App Marketing report underscores the dynamic nature of the mobile eCommerce advertising landscape. As the peak 2024 holiday rush approaches, brands must focus on remarketing to drive long-term rewards from lasting customer loyalty. Leveraging the insights from this report can help brands navigate the evolving market and achieve their customer engagement goals.