Strong growth of e-commerce apps forecast – eCommerce Magazin

  • AppsFlyer also predicts a sharp increase in spending on e-commerce apps in 2021.
  • E-commerce installations will increase by 55 percent for Android systems and 32 percent for iOS in 2021.
  • The Apple operating system iOS 14 and ATT influence the acquisition and remarketing budgets of companies.

This year, the use of retail apps is already approaching the peak values ​​of the 2020 Christmas season, so that the e-commerce industry starts the last quarter of 2021 on an elevated level. With ecommerce installs up 55 percent on Android and 32 percent on iOS in 2021, and consumer spending up 55 percent overall, the holiday shopping season is set to break records in the fourth quarter.

“To get the most out of the Christmas business, retailers should put mobile and especially mobile apps at the center of their strategy for the fourth quarter,” said Ben Jeger, Managing Director Central Europe at AppsFlyer. “For marketers, this means ensuring a smooth transition from mobile web to app, where performance is significantly higher. In addition, it is important to let the communication with existing buyers take place where they are and ensure that they use deep linking to reach the right destination within the app easily and contextually. ”

Christmas business: The most important results for Germany

In 2020, the installations increased by 32 percent, at the beginning of the pandemic (between February and May) by leaps and bounds by 53 percent. The installations in Q1 2021 are 67 percent higher than in Q1 2020, so the growth from the first wave of the pandemic continues.

Marketers stepped up their activities during the first Corona wave when users spent more time on their smartphones, so that non-organic installations rose by 64 percent between February and May 2020. The same was true during the shopping season at Christmas: Between September and November 2020, NOIs increased by 26 percent.

The loss of IDFA as a result of the introduction of iOS 14 has recently had a major impact on remarketing budgets: Since the rollout of iOS 14 in April, remarketing on iOS has decreased by 49 percent in Germany.

Christmas sales AppsFlyer
The report “State of eCommerce App Marketing 2021” from AppsFlyer also provides results for Germany. (Graphics: AppsFlyer)

German users seem to be moving to mobile e-commerce purchases earlier than other countries, with a 6-fold increase in revenue from in-app purchases on iOS between February and April 2020. Even before Black Friday there was a significant increase – the Retail spend in apps increased 147 percent between October and November 2020. Mobile is therefore not just a research tool for buyers, but a real transaction channel with significant growth in both paying users and IAP sales.

The growth has its price: CPI costs rose by 79 percent between Q1 2020 and Q1 2021. The reasons for this are the increased demand for advertising inventory by new market participants, increased spending by existing market participants and significant media buying activities prior to the introduction of iOS 14.

Christmas business: the most important results worldwide

The installations of e-commerce apps will increase by almost 50 percent worldwide in 2021, but the introduction of ATT by Apple has led to a decline. Between January and July 2021, the number of users who downloaded an e-commerce app rose by a total of 48 percent (Android plus 55 percent, iOS plus 32 percent year-on-year). However, Apple’s introduction of the ATT framework in April 2021 has affected the installation patterns by platform.

While Android grew by 5 percent between May and July, iOS installations fell by twelve percent. This is most likely due to the loss of non-organic installations caused by rising media costs and the limited data for optimization available to marketers. Global ad spend on e-commerce app installs reached $ 5.4 billion in Q4 2020 and Q1 2021 alone, with the U.S. accounting for a third of global app installation spend at over $ 1.8 billion unite.

IOS remarketing is down 30 percent while Android is up 10 percent. The slump in iOS remarketing can be traced back to marketers increasing their remarketing budgets for Android. The numbers are still higher than last year, however, because marketers are heavily targeting consenting users and the 30 percent of users who have not yet updated to iOS 14.5 (as of July 2021).

Challenges from the App Tracking Transparency Framework

“The App Tracking Transparency Framework (ATT) from Apple and SKAdNetwork pose great challenges for marketers, especially when it comes to remarketing conversions,” continues Ben Jeger. “To maximize ATT opt-in rates and grow iOS remarketing audiences, what matters to marketeers is when and how they display the ATT prompt and how they optimize the overall user experience. After all, in November and December, that is during the Christmas business, we achieve peak values ​​for the effectiveness of remarketing. ”

AppsFlyer Jeger
Ben Jeger is Managing Director – Central Europe at AppsFlyer. (Image: AppsFlyer)

About the methodology of the study: The report “State of eCommerce App Marketing 2021” by AppsFlyer is an anonymous aggregation of proprietary global data from 4.5 billion app installs from 650 apps and 25 billion remarketing conversions. The EMEA region accounted for 750 million app installations, over 250 apps and 3 billion remarketing conversions. AppsFlyer helps brands make decisions through privacy-friendly measurement, analytics, fraud protection and engagement technologies. AppsFlyer is based on the idea that brands can increase the privacy of their customers while delivering extraordinary experiences. (sg)

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