Ecommerce App Marketers Spent $30 Million on User Acquisition But Installs Dropped

Ecommerce App Marketers Spent $30 Million on User Acquisition But Installs Dropped
B&T Magazine
By B&T Magazine



Australian ecommerce app marketers spent $30.51 million on user acquisition last year but, despite the spend, installs dropped by nine and five per cent on iOS and Android, respectively (lead image: Antony Wilcox).

The data comes from AppsFlyer’s 2022 State of Ecommerce App Marketing report, which outlines key Australian trends to guide marketers in building a mobile-first experience that will drive engagement and revenue for the upcoming holiday season.

While there was a high spend on user acquisition for ecommerce apps, ad spend nosedived for Android and iOS due to rising and volatile CPI. iOS saw a year-on-year in January from 16.26 per cent down to 0.72 per cent. Android, meanwhile, dropped 10.68 per cent down to 1.8 per cent.

Non-organic (NOI) installs in Australia slowed down for both iOS and Android  between January 2021 and July this year as enthusiasm continued to cool after COVID-led surges of 2020. iOS NOI installs dropped from 9.31 per cent to 4.53 per cent while Android installs experienced a dip from 6.07 per cent to 4.26 per cent.

iOS ecommerce app installs in Australia nosedived by by nine per cent in the first half of this year compared to 2021. Android installs fell by five per cent during the same period.

Owned media conversion surged across platforms with owned media re-engagements on Android rising from 0.76 per cent in January 2021 to 17.2 per cent in July 2022. iOS saw an increase from two per cent to 7.27 per cent in the same period. This reflects that marketers are now doing what they can to squeeze more value out of tight budgets.

“The likelihood of a downward trend for ecommerce apps is not the end for marketers, as November is annually the best month for installs and sales across most markets with Black Friday and Singles Day coming up ,” said Antony Wilcox, director of growth Australia & New Zealand, AppsFlyer.

“This year, especially, consumers might still have an appetite for spending in the holiday season thanks to the addition of the World Cup. For this reason, apps can focus on remarketing to retain the users they did pick up over the past few years and publishers need to make the most of their owned media channels.”

The report looked at an anonymous aggregate of proprietary global data from 5.1 billion app installs from 700 apps and 26 billion remarketing conversions.




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