AppsFlyer Releases 2021 E-Commerce App Marketing Status Report, User Spending Increased 55% Year-on-Year

AppsFlyer, a global marketing measurement and experience management platform, recently launched the 2021 E-commerce App Marketing Status Report . The report depicts key trends in the global mobile e-commerce industry to help e-commerce app marketers increase user activity and promote business growth as the year-end shopping carnival approaches.

The COVID-19 pandemic continues to spur solid growth for the mobile commerce industry this year. So far, retail apps are already performing close to levels seen during the peak of the 2020 holiday shopping season.

In 2021, e-commerce app downloads on Android increased by 55%, on iOS by 32%, and user spending also climbed by 55%. It is foreseeable that the performance of various indicators during the holiday shopping season in the fourth quarter of 2021 will break previous records.

Ronen Mense, President and Managing Director of AppsFlyer APAC, said, “The e-commerce industry needs to continue to adapt to the new era of data-driven marketing, and marketers need to accept that data accuracy and user privacy will coexist in the long run.” Ronen also said, “It is critical for marketers to be 100% sure of the true results of their marketing efforts. Real results will ensure marketers optimize ad spend, grow their business and provide users with excellent experiences.”

Global: E-commerce app installations increased by nearly 50%, and customer acquisition marketing expenses exceeded US$5.4 billion

From January to July 2021, the number of users who downloaded e-commerce apps increased by 48%. Overall, the number of users on the Android side increased by 55% compared with the same period last year, and the number of users on the iOS side increased by 32%.

However, after the Apple ATT framework was launched at the end of April this year, the installation trend on both ends showed obvious fluctuations. In July this year, Android downloads increased by 5% compared to May, while iOS downloads fell by 12%. According to analysis, rising media costs have led to a decline in non-natural installations, and marketers have limited data for optimization, which is likely to be the reason for this phenomenon.

In addition, in the fourth quarter of 2020, global e-commerce app customer acquisition advertising spending was close to US$5.4 billion. In the first quarter alone, the US market spent more than US$1.8 billion on customer acquisition advertising, accounting for nearly one-third of global spending.

App marketers are scrambling to acquire users in a fiercely competitive global market. The United States leads the world in customer acquisition budgets due to high media costs and a large number of users.

In 2021, marketers increased their budget investment on the Android side, and iOS remarketing conversion volume experienced a decline. The report pointed out that the remarketing conversion volume on the iOS side fell by 30%, while the Android side increased by 10%. However, marketers maintained interaction with authorized ATT pop-up users, and the remarketing conversion volume still showed an upward trend compared with the same period last year. In addition, as of July 2021, 30% of users have not yet updated to iOS14.5.

Asia Pacific: IAP revenue in many countries quadrupled, and total installations in India increased by 200% year-on-year

The COVID-19 pandemic has stimulated users' enthusiasm for purchasing, and in-app purchases have continued to grow, especially in Malaysia, the Philippines, Singapore, Thailand, Vietnam and India. The social isolation policies enforced by various countries have further catalyzed new consumption habits and trends in the digital field. Even in developed markets like Singapore, IAP revenue has increased by 50% compared with the same period last year.

The CPI price in the Korean market has risen rapidly, from $1.58 in January 2020 to $3.29 in March. Singapore leads other markets in the proportion of paying users, with 17% of paying users on iOS. The anti-fraud market in Japan has also made progress. Marketers in the country have strengthened anti-fraud mechanisms. In March 2021, the fraudulent installation rate in the Japanese market dropped from 76% to 26.8% compared with the same period last year.

It is worth noting that the total number of e-commerce app installations in India increased by 200% compared with the same period last year. In the second quarter of 2021, the total number of installations tripled compared with the same period last year. Among them, Android contributed more installations, while iOS installations remained basically the same.

The Indian market has achieved tremendous growth, and competition among marketers in the region has intensified accordingly, and CPI costs have begun to rise. With the upcoming Diwali and year-end shopping season, the CPI upward trend is expected to intensify further, and it is very likely to break last year's record.

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