Adjust and Liftoff’s latest report on the rapidly-growing market of mobile app commerce shopping apps claims historic engagement with 40% boost in purchase rates as mobile shopping takes pole position.
The Mobile Shopping Apps Report 2020, which Adjust says utilizes the most extensive data to date, shows that mobile shopping apps—the global go-to for inspiration and assistance in-store and everywhere – continues to experience significant growth.
The report identifies North America (NAR) as the mobile shopping leader, while users in APAC – a mature market and early adopters of mobile commerce – show signs of shopping fatigue, with a dip in engagement and conversion rates.
Analyzing more than 53 billion ad impressions across 10 million installs and 2 million first-time events between April 2019 and April 2020, the report found the following:
At USD 19.47, the cost to acquire a user who completes a first purchase has decreased by more than half year-over-year. Meanwhile, engagement has surged 40%, as 14.7% purchase rates tower over last year’s 10.5%. Over the past two years, the trend is even clearer, with purchase engagement up 149%.
Plus, with COVID-19 driving stay-at-home orders, consumers seem to be utilizing mobile shopping even more readily; while install costs are relatively stable throughout the year, they drop to their annual low of USD 2.48 in March 2020 – just as shelter-in-place peaked.
According to Liftoff CEO Mark Ellis, times are bright for retail app marketers.
“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. 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,” says Ellis.
According to Adjust CTO Paul Müller, in a world where physical touchpoints are reduced, apps position brands to keep driving growth. Müller claims companies have already stepped up their game by focusing on re-engaging and retaining their users.
“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. 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,” says Müller.
APAC Has Shopping Fatigue, North America Surges
Last year, the mature markets of APAC and NAR showed similar trends. While users were registering more readily for shopping apps, converting to purchases was a challenge, suggesting that users in these regions were ‘window shopping’ on mobile. However, the data shows a major flip this year: APAC and NAR usage patterns diverge, with North America coming out in front.
Costs-per-first-purchase in NAR are down 4x (to a low USD 14.85), while conversion rates are up more than 4x — 6x higher than that of APAC (27.6% compared to APAC’s 4.7%).
Meanwhile, APAC costs have nearly doubled in the past year, up to USD 54.90. The region finishes last in engagement with purchase rates less than half that of last year, suggesting the region is ripe for a refresh. However, the region also offers significant value for money – CPIs (Cost Per Installs) dropped significantly between 2018 and 2019 (from USD 3.17 to 2.58).
(Ed. The 2020 Shopping Apps Report claims to draw upon Liftoff’s internal data from April 1 2019 – April 1, 2020; spanning 53 billion ad impressions across 10 million installs and 2 million first-time events. Specifically, the report tracks costs and conversions globally, breaking down key engagement activities and trends to compare performance across regions (North America, LATAM, EMEA, and APAC) and profiles 35 countries (Brazil, Germany, Indonesia, Japan, and the U.S., and the U.K.) To download the full report, click here.)