In a significant trend for the e-commerce sector, global shopping app installs have surged by 61% year-over-year (YoY) in the first half of 2024, according to a report from Adjust. This growth far outpaces other app verticals, where e-commerce apps saw a more modest increase of 25%, and overall session activity rose by only 13% YoY. The driving forces behind this remarkable expansion include enhanced retail media networks, innovative digital shopping experiences, and the increased adoption of mobile wallets.
Tiahn Wetzler, Director of Content & Insights at Adjust, emphasizes that shopping apps are revolutionizing consumer interactions with brands. By utilizing cutting-edge technologies like Artificial Intelligence (AI) and Augmented Reality, marketers can create compelling experiences that significantly improve conversion rates. An example of this is the integration of dynamic channels such as social commerce and Connected TV (CTV), which have become essential for engaging customers effectively.
An analysis of the shopping season further illustrates this trend; Adjust reported substantial spikes in app installs during peak sales periods. On October 17, 2023, for instance, installs jumped by 40% above the daily average, with the following day witnessing a 41% hike. The implications of these findings suggest that retailers must strategize their marketing efforts around these seasonal trends to capitalize on consumer behavior.
Regionally, the report provides fascinating insights into app session lengths across different markets. In the Asia-Pacific (APAC) region, the average session length for e-commerce apps was 10 minutes, slightly below the global average of 10.5 minutes. Nonetheless, APAC stood out with a Day 1 retention rate of 15%, outperforming North America and Latin America, which had retention rates of 11% and 14.4%, respectively. This retention metric illustrates the effectiveness of localized marketing and user engagement efforts.
In addition, the report highlights impressive growth in in-app revenue, with a 36% increase YoY. Notably, 60% of this revenue originated from Android devices, indicating a strong preference for this platform among users. The peak in revenue generation typically occurs during the fourth quarter, with November’s revenue exceeding the monthly average by 34% and December experiencing a 22% increase.
Adjust also noted that the global median installs per mille (IPM) rose from 1.94 in 2023 to 2.28 in the first half of 2024. This increase signals the effectiveness of advertising campaigns aimed at boosting app downloads. The APAC region, in particular, showcased remarkable growth, with IPM rising from 1.53 to 3.06 within the same timeframe.
April Tayson, Regional Vice President for INSEAU at Adjust, pointed out the significant shifts in shopping behaviors driven by evolving e-commerce technologies. Southeast Asian nations such as Indonesia, Malaysia, the Philippines, Singapore, and Vietnam have demonstrated a high average time spent within apps, presenting marketers and retailers with fresh opportunities to enhance their campaign strategies. Tayson stresses that capturing and maintaining user attention in these dynamic markets is essential for sustained growth.
In light of these insights, e-commerce app marketers must prioritize understanding intergenerational consumer expectations and the technologies that facilitate those desires. As the app landscape continues to change, developing a cohesive strategy that incorporates a mix of channels and personalized approaches will be crucial. A data-driven philosophy for measurement and analytics will further enable brands to optimize their marketing efforts and enhance customer loyalty.
As we advance through 2024 and beyond, the boost in shopping app installations not only reflects changing consumer behaviors but also underscores the opportunities that lie ahead for retailers willing to adapt. The pivotal role of retail media, integration of technology, and customer-centric approaches cannot be overstated. Businesses that leverage these insights for targeted campaign strategies stand to benefit immensely in this competitive landscape.
