Mobile apps are increasingly crucial in driving engagement, sales, and conversions in the e-commerce space. By 2027, 61% of e-commerce transactions are predicted to take place via mobile wallets. Considering this trend, an increasing number of brands are rapidly embracing a mobile-first strategy for their business and marketing efforts.
Adjust's recent analysis of e-commerce and shopping app data in The shopping app insights report: Trends and tips for high-converting customer experiences provide insights into user behavior and customer preferences, as well as information on usage trends, retention rates, and revenue metrics. The report analyzes the most recent data to assist marketers in enhancing campaign performance and effectively attracting users to their apps.
Global growth patterns and regional trends
In the first half of 2024, global e-commerce app installations surged by 25% compared to the previous year, while sessions increased by 13%. This growth was particularly notable in certain regions. Latin America (LATAM) and the Middle East, North Africa, and Turkey (MENAT) experienced the most significant year-over-year increases, with installations rising by 107% and 152%, respectively. These areas also saw substantial session growth, with LATAM increasing by 27% and MENAT by 21%.
Conversely, North America and APAC saw a decline in both installations and sessions. This variation highlights the importance of tailoring marketing strategies to specific regional trends and user behaviors. Campaigns that succeed in expanding markets will likely differ significantly from those in stagnant or declining areas—focusing on high-volume user acquisition to capture as much interest as possible in the former, and emphasizing re-engagement and retention strategies in the latter.
User engagement and retention
Grasping user engagement is essential for effective app marketing. According to our data, e-commerce apps had an average global retention rate of 18% on the first day in 2023, which decreased to 5% by the 30th day. Europe led with a day 1 retention rate of 15.6% and a day 30 rate of 4.2%. Conversely, North America recorded the lowest retention, beginning at 11% on day 1 and dropping to 2.8% by day 30.
These statistics highlight the necessity for a strong retention strategy, especially in areas like North America where user churn is a major issue. With low installation rates, increasing session numbers and engaging current users can lead to quick success. Employing personalized engagement strategies and emphasizing value throughout the user journey will aid in immediate retention and enhance overall performance in the long run.
Revenue metrics, performance, and marketing efficiency
Optimizing campaigns requires a careful balance between the cost and effectiveness of user acquisition (UA). The report shows that the global median installs per mille (IPM) rose from 1.94 in 2023 to 2.25 in the first half of 2024, reflecting enhanced performance. However, the effective cost per mille (eCPM) also increased from $1.46 to $1.87.
Globally, the average revenue per monthly active user (ARPMAU) for e-commerce apps was $8.29 in 2023. LATAM led with $15.34, while North America was at the lower end with $5.29. All markets generated more revenue than the cost of installation, which is a positive indicator. Examining user lifetime value (LTV) comprehensively, Q3 figures are generally lower than other quarters (day 0 $2.53 compared to Q1’s $2.87), suggesting a chance for marketers to roll out targeted promotions and personalized offers as the busy holiday season approaches.
Interestingly, the number of partners per app grew across all e-commerce categories from 2023 to the first half of 2024. This trend towards diversification indicates that marketers are exploring a wider range of channels to discover and engage new audiences. This shift is accompanied by a move towards new platforms like connected TV (CTV), where audiences are typically more open to advertising.
The e-commerce and shopping app sector is in a thrilling phase, with mobile's market share on the rise. This offers significant opportunities for marketers, along with challenges in identifying and converting the right audiences. While some regions exhibit impressive growth, others encounter challenges in retention and monetization. As always, the most effective strategy is to adopt a data-driven approach, consistently using insights to adapt, optimize, and foster sustainable growth.
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