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E-COMMERCE

Study says e-commerce and app marketing are in a ‘natural slowdown’

By our News Team | 2022

But don’t panic as November is traditionally the best month for installs and sales across most markets because of Black Friday.

Is e-commerce on the up or undergoing a slowdown? As always, it may depend on who you listen to and how they’re analysing the data.

AppsFlyer, the data analytics and data privacy business, recently released its 2022 edition of its ‘State of eCommerce App Marketing’ report, which seems to indicate that e-commerce in general, and app marketing in particular, have entered into a natural slowdown.

E-Commerce

Photo by Cottonbro from Pexels

The report outlines key global trends to guide marketers in building a mobile-first experience that will drive engagement and sales for the upcoming holiday season.

“In 2022, e-commerce is no longer attracting the same volume of new users, and rising prices are starting to take their toll on marketing budgets and planning,” the researchers say.

“Heading into the holiday season that is marked with an economic downturn, supply disruptions, as well as continuing privacy changes and data restrictions, efficiency should be on the forefront of marketers’ minds.”

November is typically best months for app installs

They add that the likelihood of a downward trend for e-commerce apps is not the end for marketers, as November is annually the best month for installs and sales across most markets with Black Friday.

“This year, especially, consumers might still have an appetite for spending in the holiday season thanks to the addition of the World Cup. For this reason, apps should focus on remarketing to retain the users they did pick up over the past few years and publishers need to make the most of their owned media channels,” says Shani Rosenfelder, Director of Market Insights at AppsFlyer.

According to the study, Android e-commerce app installs dropped 5% globally YoY (H1 2021 vs. H1 2022) – excluding India which gained significant new traffic. iOS installs also took a slight 4% downturn in the same period after the surge in downloads during Covid.

Analysing the study, industry website Marketing Dive noted: “While post-Covid fatigue may be the biggest factor in the drop in e-commerce app installation and usage — both of which surged during the height of social distancing and lockdowns — newer developments, such as the war in Ukraine, supply-chain disruption, rising inflation and fears of a looming economic downturn are also playing a role.”

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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.