App marketing platform, Adjust, has released a new report on the rapidly-growing market of mobile app commerce in partnership with Liftoff. The study shows that mobile shopping apps continue to experience significant growth. The report also identifies North America (NAR) as the mobile shopping leader, with users in EMEA receptive and ready to shop – particularly mid-way through the funnel.
Analyzing more than 53 billion ad impressions across 10 million installs and 2 million first-time events between April 2019 and April 2020, the report found the following:
It’s never been a better time to be a shopping app
The analysis points to increased consumer uptake for shopping apps. At $19.47, the cost to acquire a user who completes a first purchase has decreased by more than half year-over-year. Meanwhile, engagement has surged 40%, as 14.7% purchase rates tower over last year’s 10.5%.
Plus, with COVID-19 driving stay-at-home orders, consumers seem to be utilizing mobile shopping even more readily: while install costs are relatively stable throughout the year, they drop to their annual low of $2.48 in March 2020 – just as shelter-in-place peaked.
In a world where physical touchpoints are reduced, apps position brands to keep driving growth. And according to Adjust, companies have already stepped up their game by focusing on re-engaging and retaining their users.
North America surges ahead while EMEA shoppers need more convincing
While shopping app growth is soaring worldwide, North America comes out as the clear winner: Costs-per-first-purchase in NAR are down 4x (to a low $14.85), while conversion rates are up more than 4x (27.6%).
The situation in EMEA is more nuanced. With the lowest register cost ($4.60) and the highest conversion rate for registering (48.2%), this is a region ready to shop – particularly when users are already midway through the funnel.
But the high cost to acquire a user who completes a purchase ($16.27) coupled with engagement rates that are half of those in North America suggest users here need more convincing (27.6% for NA users, compared to 13.6% for those in EMEA).
The e-commerce industry as a whole got a bit shell-shocked in the first few weeks of March in the wake of COVID-19, with marketers dialing back ad spend. But as we saw the vertical start to rebound in April, there’s been a broader push toward re-targeting and re-engagement — in line with bringing customers back into the funnel and keeping their existing ones engaged.
Paul H. Müller, co-founder and CTO, Adjust