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Unpacking the latest trends in shopping app growth
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Mobile apps are playing an increasingly crucial role in driving engagement, sales, and conversion in the e-commerce space. By 2027, 61% of e-commerce transactions are predicted to take place via mobile wallets. With this in mind, the number of brands adopting a mobile-first approach to their business and marketing strategies is growing exponentially.
Our recent analysis of e-commerce and shopping app data in The shopping app insights report: Trends and tips for high-converting customer experiences reveals insight into user behavior and customer preferences, along with data on usage trends, retention rates, and revenue metrics. The report examines the latest data to help marketers boost campaign performance and successfully drive users to their apps. Download your copy today to get started, or read on for some of the highlights.
Global growth patterns and regional trends
E-commerce app installs climbed 25% year-over-year globally in the first half of 2024, with sessions rising by 13%. This growth was even more pronounced in specific regions. Latin America (LATAM) and the Middle East, North Africa, and Turkey (MENAT) saw the highest year-over-year growth, with installs increasing by 107% and 152%, respectively. These regions also experienced significant session growth, with LATAM up 27% and MENAT up 21%.
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North America and APAC, on the other hand, saw a decline in both installs and sessions. This disparity highlights the importance of tailoring marketing strategies to specific regional trends and user behaviors. The types of campaigns set to succeed in booming markets will likely be significantly different to those stagnating or experiencing degrowth—high volume user acquisition (UA) to capture as much of the interest as possible in the former, and re-engagement and retention focused approaches in the latter.
User engagement and retention
Understanding user engagement is crucial for scalable app marketing. Our data shows that e-commerce apps averaged an 18% day 1 retention rate globally in 2023, dropping to 5% by day 30. Europe performed highest, with a day 1 rate of 15.6% and a day 30 rate of 4.2%. In contrast, North America had the lowest retention rates, starting at 11% on day 1 and falling to 2.8% by day 30.
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These figures underscore the need for a robust retention strategy, particularly in regions like North America where user churn appears to be a significant challenge. With install rates low, working to boost sessions and engage existing users will result in fast wins. Implementing personalized engagement tactics and focusing on delivering value throughout the user journey will help with retention in the immediate sense, while boosting performance across the board long term.
For e-commerce and shopping apps, the strategic significance of deep linking to conversion cannot be understated. Learn more about deep linking and Adjust’s solution, TrueLink.
Revenue metrics, performance, and marketing efficiency
Balancing the cost and effectiveness of UA is fundamental to campaign optimization. The report revealed that the global median installs per mille (IPM) increased from 1.94 in 2023 to 2.25 in the first half of 2024, indicating improved performance—effective cost per mille (eCPM) did, however, rise from $1.46 to $1.87.
The average revenue per monthly active user (ARPMAU) for e-commerce apps globally was $8.29 in 2023. LATAM led at $15.34, while North America was lowest at $5.29. All markets averaged more revenue than install cost, a very positive signal. Looking at user lifetime value (LTV) holistically, the numbers in Q3 are lower overall than other quarters (day 0 $2.53 vs. Q1’s $2.87), representing an opportunity for marketers to introduce targeted promotions and personalized offers in the leadup to the high-volume holiday season.
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Interestingly, the number of partners per app increased across all e-commerce categories from 2023 to H1 2024. The trend towards diversification demonstrates that marketers are exploring more channels to find and reach new audiences. This comes alongside a shift toward new channels like connected TV (CTV), where viewers are known to be more receptive to advertising.
The e-commerce and shopping app landscape is in an incredibly exciting phase, with mobile’s share of the market on the up. This presents great opportunities for marketers, along with challenges in finding and converting the right audiences. While some regions show remarkable growth, others face retention and monetization hurdles. As always, the best solution is to take a data-driven approach, continuously leveraging insights to adapt, optimize, and drive sustainable growth.
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To learn more about how Adjust can grow your shopping app, request a demo today.
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