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AppsFlyer Report on State of eCommerce app marketing in 2023

AppsFlyer, a marketing measurement platform and Amazon Web Services (AWS) Retail Competency partner, have just published the 2023 edition of their State of eCommerce app marketing report. This report provides insight into key trends currently shaping the ecommerce app space. It also details benchmarks from 20 countries across the globe and a vast wealth of data covering installs, remarketing, retention, in-app spending and user acquisition budgets by market. You’ll also find expert contributions from The Very Group, TikTok, and CCC. Download the full report for the complete in-depth analysis and actionable insights on how best to prepare for a competitive Q4. Below we summarize the key takeaways.

In 2022, the global ecommerce app landscape witnessed a significant investment of $4.9 billion in user acquisition (UA) budgets. However, the economic downturn had a substantial impact, resulting in a 25% decline in UA spending during the second half of 2022 compared to the same period in 2021. Notably, India emerged as the leader in Android spending, contributing a remarkable $320 million—nearly 40% higher than in the United States. On the other hand, the United States topped iOS spending, commanding approximately $325 million, constituting approximately 25% of global UA budgets.

When comparing the first quarter of 2023 to the same period in 2022, a significant 30% decrease in cost per install (CPI) is evident. While this decline can be attributed in part to reduced demand following the early 2022 peak, especially with the emergence of the Omicron variant of the COVID-19 virus, the overall trend showcases a clear downward trajectory. Notably, since the peak in November, CPIs have experienced a substantial drop of 33% on iOS and 11% on Android. These findings highlight the potential for more cost-effective user acquisition strategies and signify opportunities for businesses to optimize their marketing budgets on both the iOS and Android platforms.

During November of 2022, amidst the prevailing economic downturn, there was a notable 10% average increase in consumer spending compared to November of 2021. This significant rise in spending demonstrates the resilience of the economy and indicates a robust holiday season despite the challenging circumstances. Additionally, 60% of the top 100 players experienced revenue growth, further affirming the strength of the 2022 holiday season. These positive indicators are promising signs for the upcoming peak season in 2023, suggesting a high probability of continued success and prosperity.

Black Friday 2022 resulted in an impressive 81% surge in consumer spend, surpassing the daily average expenditure for the entire month of November. Android users demonstrated outstanding engagement. This contributed a substantial 61% increase when compared to the monthly average.

In the iOS ecosystem, a remarkable 19% surge was observed in marketing-driven non-organic installs (NOIs), owing to a significant reduction in CPI and enhanced trust in measurement within the post iOS 14.5 app environment. However, the scenario on Android stood in stark contrast, experiencing a decline of 12%.

Among iOS apps, there was a remarkable 85% higher proportion of paying users, reaching an impressive 8.9%, compared to Android apps with a share of 4.8%. Additionally, during the peak month of November, conversion rates on both platforms surpassed the monthly average by an impressive 15%.

These findings highlight significant potential for monetization and revenue generation across both the iOS and Android platforms during the lucrative holiday season.

Download the full report

The state of eCommerce app marketing – 2023 edition, offers an in-depth view by country on key trends shaping the ecommerce space. Download the full report now. You’ll discover key takeaways and best practices from industry experts such as CCC, TikTok, and The Very Group.

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Marco Kormann Rodrigues

Marco Kormann Rodrigues

Marco Kormann Rodrigues is the EMEA Retail Partner Solution Lead at AWS. In his role he recruits, develops and markets partner solutions to the retail industry. Prior to joining AWS, Marco spent years as a consultant implementing SAP for CPG brands and retailers, and more recently analytics SaaS product development for retailers. He holds a BSc in Actuarial Mathematics and Statistics from Heriot-Watt University, Edinburgh and an MSc in Information Systems Engineering from Ecole Centrale Paris.

Shani Rosenfelder

Shani Rosenfelder

Shani is the Director of Global Content Strategy & Market Insights at AppsFlyer. He has 10+ years of experience in key content and marketing roles across a variety of leading tech companies and startups. Combining creativity, analytical prowess and a strategic mindset, Shani is passionate about building a brand’s reputation and visibility through innovative, content-driven projects.