Finance and retail apps increasingly used by UAE consumers

Businesses in the UAE are doubling down on mobile apps in an effort to increase customer engagement and spending, and the overall number of mobile app installs in the country is up 23% in H1 2022, compared to the same period last year. While finance apps were the most successful, with installs increasing by an astounding 183%, other categories that experienced significant app install growth included entertainment (31%), travel (36%), social (30%), and food & drink (15%).

“It’s clear that as we emerge into the post-pandemic world, the accelerated momentum toward mobile that we’ve witnessed over the last two years has now created a mobile-first mindset among consumers and businesses. Our findings indicate a growing preference for mobile apps as the primary engagement channel. While this is ushering in a new era of convenience for consumers, it has greatly increased the competitiveness of the space. Businesses must now seek innovative and measurable means of enhancing user experiences and increasing engagement on their mobile apps,” said Samer Saad, Regional Manager – Middle East, AppsFlyer.

Retail apps were a notable outlier, with overall installs dropping by 9%. This is most likely due to the surge in the sector during the pandemic, which has been difficult to replicate as consumers’ ability to visit physical stores has returned. Unsurprisingly, AppsFlyer’s data still showed significant peaks during events like Ramadan and Black Friday — though the peak during Ramadan this year was less than in 2021, possibly because the figure last year was significantly higher than average.

As consumer spending on mobile apps rises, increasing the download and usage of UAE businesses’ mobile applications could now be a “make or break” for their bottom line. In-app purchases increased 9% in the year between March 2021 and February 2022. Finance apps led the pack once again, with nearly three-fold (277%) growth in in-app purchases, while eCommerce apps saw 41% growth despite the previously mentioned drop in installs.

While there appears to be an increasing preference among UAE consumers to interact with businesses through apps, the fact that 9 out of 10 UAE organizations now offer a mobile app makes this a highly competitive space. As a result, mobile app marketers play a critical role in driving the success of their organizations’ mobile-first strategies.

Remarketing, specifically the retargeting of users who have expressed some interest in the brand, has proven to be extremely effective with UAE consumers, with conversions from this activity increasing 43% in H1 2022 compared to H1 2021. This increase was largely driven by remarketing installs on Android devices (up 79%), as opposed to iOS, which saw a 9% decline, which is unsurprising given the remarketing challenges introduced by the release of iOS 14.5. As a result, mobile marketers have shifted their budgets to Google’s mobile operating system, increasing their app installation ad spend on Android by 75%.

“In today’s mobile-first world, growing app installs, and increasing purchases made via mobile apps are two sides of the same coin. To achieve what are now business imperatives, calls for a multi-faceted approach, combining a focus on exceptional mobile user experience and highly strategic marketing efforts. As this space begins to saturate, data will prove decisive to driving the effectiveness of these two initiatives. When marketers can identify the barriers to the installation and usage of their mobile apps, they will be able to optimise every dollar invested into their campaign and thus drive the most impactful outcomes,” said Saad.