Sales in e-commerce apps grew by 21% in 2024, prompting companies to invest more in mobile marketing, according to the new report "State of E-Commerce App Marketing 2024" released by AppsFlyer. The study highlighted a purchasing pattern among consumers during peak seasons, such as the end of the year, and revealed that a large part of the recovery of the mobile marketing market in e-commerce is focused on Apple (iOS) users.
The report showed that nearly 60% of consumers become loyal customers after their first purchase in e-commerce apps, highlighting the crucial role of mobile apps in strengthening engagement. In 2024, there was a 60% increase in non-organic installs on iOS, with marketers focusing tactically on the first week post-installation for remarketing activations. This effort resulted in a 40% conversion rate on the first day and exceeding 75% within the first week.
Renata Altemari, Country Manager for AppsFlyer in Brazil, commented: “As the global economy continues to stabilize, the growth prospects for mobile app commerce look promising in the coming months, providing marketers with an opportunity to cultivate and nurture customer loyalty.”
The research also revealed that in-app purchases (IAP) increased by 15% during the 2023 holiday season compared to the fourth quarter of 2022, maintaining a positive trajectory in 2024. Total advertising investment in 2023 surged to US$ 6.6 billion, highlighting renewed confidence in marketing efforts.
Renata Altemari added: “We saw a 12% increase in paying user share across platforms during peak season, especially in Brazil, the US and India (on Android). After a tough year for the mobile e-commerce market in 2022, we have seen interesting growth since March last year.”
iOS users played a significant role in this recovery, driving a 60% year-over-year increase in non-organic app installs and a 21% growth in in-app conversion rate compared to 2022. Additionally, Apple's share of advertising spending increased by 43% in 2023, while the allocation for Android decreased by 18%, mainly in Brazil and India.
Sue Azari, eCommerce Industry Leader at AppsFlyer, said: “The mobile advertising landscape is subject to constant strategic shifts. As the global economy begins to stabilize, brands in the mobile advertising space are increasingly turning to paid marketing as a means of engaging users, rather than relying heavily on owned channels.”
Key Global Insights from the State of E-Commerce App Marketing 2024:
- Consumer spending on apps increased 15% year-over-year in Q4 2023.
- Apple iOS users drove a 60% year-over-year increase in non-organic installs in Q4 2023.
- The first week after app download is critical, with 40% of remarketing conversions occurring within the first day and over 75% within the first week.
- Total global app advertising spend is expected to reach $6.6 billion in 2023, with iOS leading the way at $2.9 billion.
Azari concluded: “As the 2024 holiday rush approaches, brands that want to stand out must focus on remarketing and reap long-term rewards with lasting loyalty.”
