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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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