A recent report by Adjust reveals that global shopping app installs have increased by an astounding 61% year-over-year (YoY) in the first half of 2024. This growth significantly outpaces the average gains seen in other app verticals, which experienced a 25% rise in installs, accompanied by a 13% increase in sessions.
Several key factors have contributed to this surge in shopping app popularity. Firstly, the expansion of retail media networks has provided a more integrated marketing approach that connects businesses directly with consumers. Retail media networks allow brands to leverage data from their platforms to create targeted advertising campaigns, leading to higher engagement rates and conversions.
Next-generation digital shopping experiences also played a critical role. Integrating artificial intelligence (AI) and augmented reality (AR) features into apps provides users with personalized experiences that enhance their shopping journeys. For instance, apps employing AR can allow customers to visualize products in their own spaces before purchasing, which is particularly beneficial for categories like furniture and home décor.
Mobile wallets have become another driving force behind the growth of shopping app installations. As online shopping continues to grow, consumers are increasingly leaning toward payment solutions that offer convenience and security. The rise of mobile wallets facilitates smoother transactions, which, in turn, encourages users to make purchases through shopping apps.
Tiahn Wetzler, Director of Content & Insights at Adjust, emphasized, “Shopping apps are transforming how consumers interact with brands and make purchases.” By utilizing innovative technologies and integrating dynamic channels such as social commerce and Connected TV (CTV), marketers can enhance user engagement and drive higher conversion rates.
The shopping season’s significance, particularly in Q4, cannot be overlooked. Adjust noted a considerable spike in app installs during shopping events; specifically, there was a 40% increase in installs above the daily average on October 17, 2023, followed by an additional 41% uptick the next day. This trend highlights the importance of seasonality in shopping app marketing strategies.
Regionally, the Asia-Pacific (APAC) areas have demonstrated impressive engagement metrics. The average session length for e-commerce apps in this region is approximately 10 minutes, slightly shorter than the global average of 10.5 minutes. However, APAC shines in its Day 1 retention rate of 15%, which surpasses North America and Latin America, which recorded rates of 11% and 14.4% respectively. This indicates a strong initial user interest and loyalty towards shopping apps in the region.
Moreover, in-app revenue has seen a staggering 36% increase YoY. Remarkably, 60% of this revenue is generated from Android users. The revenue spikes in Q4 of 2023 underscore the potential financial benefits for businesses that optimize their app offerings around peak shopping times. November showed a revenue increase of 34% over the monthly average, while December saw a rise of 22%.
Markedly, the global median installs per mille (IPM) increased from 1.94 in 2023 to 2.28 in the first half of 2024. This statistic is a testament to the effectiveness of advertising campaigns designed for shopping apps and indicates that marketers are becoming more successful in reaching potential users.
In the competitive landscape of e-commerce, understanding consumer expectations is crucial. Wetzler highlighted, “In a market where engagement and customer loyalty are critical to moving the bottom line, staying at the forefront of intergenerational consumer expectations and the technologies behind them is paramount.” The path to scalable growth for shopping apps lies in a strategic mix of channels, smart personalization, and a thorough commitment to measurement and analytics.
April Tayson, Regional Vice President for INSEAU at Adjust, brought attention to rapidly changing shopping habits in the APAC region. Countries such as Indonesia, Malaysia, the Philippines, Singapore, and Vietnam are witnessing a significant amount of time spent within apps, presenting a valuable opportunity for marketers to enhance their campaign strategies and capitalize on this trend.
To summarize, the increase in shopping app installs, driven by advancements in technology and changing consumer behaviors, sets a promising outlook for e-commerce businesses. Retailers and marketers that commit to innovative strategies and effective use of data analytics stand to benefit from this upward trend. Focusing on user experience, diversifying payment options, and creating targeted campaigns will be the keys to thriving in this vibrant marketplace.
