AppsFlyer has released the 2022 edition of its “State of eCommerce app marketing”. After the last two years of exceptional growth in e-commerce, partly explained by the Covid-19 pandemic, the sector is now experiencing a natural slowdown. In 2022, the industry is no longer attracting the same volume of new users and rising prices are starting to weigh on budgets. Additionally, while Apple’s privacy changes have been in place for over a year, data restrictions continue to hamper iOS’ ability to measure and reach consumers.
As the holiday season approaches, marked by an economic downturn, supply disruptions, and numerous changes to privacy and data restrictions, efficiency must be at the forefront. This one mobile marketers spent $6.1 billion on user acquisition from July 2021 to July 2022, but global ad spend has fallen by more than 50% year-over-year due to rising media cost on iOS, the return to normal after the Covid crisis and other macroeconomic conditions such as falling production and investments as well as rising inflation. The rise and volatility of CPI (Cost Per Install) resulted in a 55% year-over-year drop for Android in January and a sharper 53% drop for iOS.
Marketers spent $3.7 billion globally on Android buying space to increase installs (43 million for France), while on iOS this spending reaches 2.4 billion. Unsurprisingly, the United States is at the top of this spending list with $500 million, far ahead of France with its $38 million.
IEcommerce app installs on Android are down 5% overall year-over-year (H1 2021 vs H1 2022), with the exception of India, which had a significant growth. iOS installs also saw a slight drop of 4% over the same period, compared to the peak of downloads seen at the height of the pandemic.
In France, e-commerce app installs dropped by 51% on Android and 31% on iOS between the first half of 2021 and the same period in 2022. With an increase of 116% on Android and 60% on iOS, India has really boosted installs globally. On the other hand, Europe saw many declines (-43% on Android and -13% on iOS in Germany and -27% on Android and -32% on iOS in the UK.
While non-organic installs have remained flat globally, they have seen a decline in France, dropping from nearly 9% of all installs on iOS and Android between April and May 2021 to 4% and 3%, respectively.. But the share of non-organic installs remains the majority at nearly 62% of all installs in France as of July 2022, growing throughout the year as a whole.
The report also reveals that theShare of paying users after 30 days on Android dropped 17% year over year. In France, this share also dropped to almost 5% on iOS and 4% on Android in June 2022.
Conversion to brand-specific media sources has seen a strong increase across all platforms, jumping 360% year-over-year (July 2021 to July 2022) on Android globally and 200% on iOS. It shows that marketers are doing everything they can to maximize their limited budgets.
iOS CPI increases 60% Y/Y (H1 2022 vs. H1 2021) to $4.2 ($3.7 for France in July 2022). On the other hand, Android’s CPI is down 15% over the same period, despite up 30% between April and June to $1.43 ($1.26 for France in July 2022).
Last point, Android 30-day retention drops 13% as mobile users continue to explore new apps and services. Meanwhile, iOS is down 5%, recording better overall retention than Android users, in line with historical trends and what is seen among French users, with a slight drop: retention has dropped to 4.4%. on iOS and 3.7% on Android as of June 2022.