The mobile app landscape has experienced a significant shift in recent years, particularly among iOS users, with consumer spending and loyalty emerging as two crucial factors driving success. Across key metrics such as app downloads, remarketing conversions, and transaction volumes, notable gains have been recorded, a trend anticipated to persist into 2024. Advertising investments have surged, notably on iOS, while Android has experienced mixed results, with increases in most markets countered by declines in top markets like India, according to The State of eCommerce App Marketing 2024, AppsFlyer.
Consumer Spend: Rising Steadily, Driven by Economic Recovery
Since March 2023, mobile eCommerce has experienced robust growth, fueled by the ongoing economic recovery. Notably, Q4 2023 saw a 15% year-over-year increase in in-app purchases (IAPs), marking a steady climb that continued into Q1 2024 with a remarkable 21% surge. This trend underscores the ever-growing appeal of mobile commerce as a platform for consumer spending.
iOS Leads the Way, with Android Close Behind
The iOS platform stood out as a significant driver of this growth, experiencing a 21% spike in IAPs during Q4 2023. This surge surpassed Android’s 9% growth, underscoring the higher purchasing power and engagement levels of iOS users. While Android saw increases in most countries, a decline in the top markets of India and Brazil served as a notable exception.
The Power of the First Purchase: Turning Installers into Loyal Consumers
Amidst fierce competition, the app conversion journey is fraught with challenges, with a mere fraction of installers translating into buyers. For iOS, this conversion rate peaks at 10% during peak seasons, highlighting the challenges of securing initial transactions. However, once users make that first purchase, nearly 60% go on to make at least one more, underscoring the value of targeting this crucial juncture.
Marketers are wise to focus their efforts on the first week post-install, with the highest conversion rates occurring within the first day. Remarketing activations during this critical period can significantly boost the number of installers converted into paying customers.
Investing in Retention: Remarketing Strategies for Loyalty
Understanding the importance of retention, marketers are increasingly investing in remarketing efforts to drive repeat purchases. Data reveals that the second purchase typically occurs 10 days post-install, presenting an opportunity for marketers to explore further investments in remarketing campaigns around this time frame.
Mobile Ad Spend: iOS Dominates, Despite Lower Market Share
Despite holding only 15-20% of the device market share, iOS commanded a substantial share of mobile ad spend in 2023. Total app install spend reached 6.6 billion,with iOS accounting for2.9 billion of that total. This significant increase in ad spend on iOS (43% YoY) compared to a decline on Android (18% YoY) underscores the platform’s appeal to advertisers.
Retail Media Networks: A Growing Force in Ad Spend
Retail Media Networks (RMNs) are poised for explosive growth, with eMarketer predicting a doubling in retail media ad spend between 2024 and 2028. Advertisers are eagerly investing in this channel, with 73% planning to increase their RMN budgets within the next year. As retail media becomes an increasingly important source of revenue for publishers, advertisers are leveraging first-party data to drive growth across various platforms.
As the mobile app commerce landscape continues to evolve, brands must stay ahead of the curve to capitalize on emerging trends and strategies. By focusing on acquiring and retaining loyal customers, investing in remarketing efforts, and leveraging the power of retail media networks, eCommerce brands can drive significant growth in their mobile commerce efforts.
Know more about how to maximize mobile ecommerce performance? Contact MOCA at business@moca-tech.net.