Adjust: E-commerce apps are bouncing back as COVID lockdowns ease

As the COVID-19 pandemic enters a new phase and consumer habits shift amid loosening restrictions in daily life, nowhere is this trend more visible than in the world of e-commerce apps and online shopping according to Adjust. The global app marketing company’s own analysis suggests that marketers are beginning to reverse a freeze in ad-spending on user acquisition as shoppers return to pre-COVID consumption patterns.

In the immediate aftermath of lockdowns, many e-commerce apps pulled back on spending for user acquisition and saw a marked decline of app installs and in-app sessions in late March. But since the beginning of April, Adjust found that e-commerce apps have begun to recover, with installs and in-app sessions on the rise, a sign that ad spend on user acquisition is resuming.

Although the app economy has been largely resilient in the face of COVID-19, with people turning to apps more than ever, e-commerce apps fared poorly by comparison. Adjust’s recently released App Trends report, indicates that e-commerce app installs trended down 12% week-on-week through March 2020, as companies pulled advertising, with a decrease in paid installs of 35% from March to April.

The new data by Adjust suggest these key indicators have risen back to near pre-COVID levels. This follows an overall recovery in digital ad spending in general, as the economy prepares for more activity. Comparing the last week of March to the last week of April, users returning to their favored e-commerce platforms have increased by 43%, thanks to a combination of paid campaigning and users finally ready to purchase again.

The e-commerce industry got a bit shell-shocked in the first few weeks of the COVID-19 lockdown in March, with marketers dialing back ad spend. Yet we’ve seen the vertical rebound in April, as marketers and consumers alike are learning to live with the situation and return to more established consumption patterns. So there’s been a broader push toward re-engagement and re-targeting, in line with bringing customers back into the funnel.

Paul H. Müller, co-founder and CTO, Adjust