Surge in eCommerce App Engagement and Spend: Report

AppsFlyer unveiled its 2024 State of eCommerce App Marketing report, underscoring significant growth in consumer purchasing and marketing investments. As businesses gear up for the golden quarter, the report predicts a heightened focus on customer loyalty strategies.

Marketers are poised to capitalize on shifting consumer habits, with insights revealing that while only 1 in 10 consumers convert during peak seasons on iOS, nearly 60% become loyal customers post-initial purchase. This trend follows a substantial 60% surge in app installations last year, prompting marketers to strategically target the first week post-installation for maximum engagement.

Key findings indicate a robust increase in in-app purchases (IAPs), rising 15% year-over-year in Q4 2023, with Apple iOS users leading the charge with a 21% uptick. Concurrently, total ad spend soared to US$6.6 billion in 2023, with iOS platforms dominating at US$2.9 billion, signaling heightened marketing confidence.

Notably, UAE organizations allocated US$25 million and US$28 million towards Android and iOS user acquisition campaigns respectively in 2023, underlining the region’s strategic embrace of mobile eCommerce.

Sue Azari, AppsFlyer’s Industry Lead for eCommerce, highlighted the evolving landscape, stating, “As the global economy stabilizes, brands are increasingly pivoting towards paid marketing for user acquisition, underscoring a shift away from owned channels.”

Looking ahead to the 2024 holiday season, Azari emphasized the importance of effective remarketing strategies to foster lasting customer loyalty amidst intensifying market competition.