Ecommerce app growth slows amid recession concerns

The accelerated consumer behavior shift to ecommerce that occurred during the pandemic has cooled off, according to the latest ecommerce report from mobile app analytics company AppsFlyer.

The report says global ecommerce app growth is being skewed by a surge in India, where app installs have more than doubled (116%) on devices powered by Google’s Android software, which powers nearly all non-Apple smartphone. Global app installs on Android grew from 19% (H1 2021 to H1 2022), or fell by 5% when discounting India.

Meanwhile, global adspend on ecommerce app installs dropped by 55% and 53% year-over-year on Android and Apple, respectively.

Companies did spend more in the US, though, thanks in part to the high perceived value of audiences with Apple devices. Spending on iOS (Apple’s iPhone and iPad software) grew more than 2.5x (163%) from January to May 2022 despite the downward trend in non-organic app installs (when users download apps without having first interacted with marketing or ads) during the same period.

The report found that, though volatile from H1 2021 to H1 2022, iOS CPI (cost per install) climbed by 60% globally. Android CPI fell 15% in the same timeframe.

In-app purchases and ecommerce app installs were found to predictably peak in November around Black Friday and pre-Christmas sales.

In its report, AppsFlyer therefore recommended that ecommerce app marketers spend before Black Friday and take advantage of November’s Sundays, especially with the World Cup occurring in November and December this year.

“November is prime time for apps for revenue and user acquisition…” the report said.. “To make the most of [Black Friday], marketers need to start laying the groundwork early: plan UA campaigns before well before Black Friday to take advantage of lower costs during this period and leverage remarketing to drive users to the app from paid and owned channels.”

AppsFlyer also recommended marketers “ruthlessly optimize towards profitability” in the increasingly high-cost, low-spend ecommerce environment.