AppsFlyer Releases Report Analyzing 4.5 Billion App Installations Worldwide
Purchase Amounts Also Up 55%... "Growth Expected to Peak in Q4 This Year"
[Asia Economy Reporter Kim Heeyoon] Amid the surge in global e-commerce app usage due to the impact of COVID-19, e-commerce app usage in the first half of this year has nearly doubled compared to the previous year.
On the 10th, global attribution company AppsFlyer released the 'E-commerce App Marketing Report: 2021 Edition' containing these findings.
This report analyzes 4.5 billion app installs worldwide and examines e-commerce app usage behaviors and marketing activities from January last year to July this year.
According to the report, e-commerce app installs showed a sharp increase globally starting from January last year when COVID-19 began. The peak was recorded in November, coinciding with major shopping events such as Black Friday in the U.S. and Singles' Day (Guanggun Jie) in China. This year, installs increased by a remarkable 48% from January to July, confirming the ongoing influence of COVID-19.
In particular, consumer purchase amounts within e-commerce apps significantly increased as digital transformation accelerated and online shopping became more active. Global in-app consumer purchase amounts from March to July 2021 rose by 55% compared to the same period last year, already reaching the scale of the fourth quarter, which was the largest shopping season last year.
AppsFlyer analyzed, "Given this trend, growth is expected to peak in the fourth quarter of this year, which includes the year-end shopping season." They added, "The impact of COVID-19, including social distancing and national lockdowns, acted as a catalyst for establishing new consumption habits and trends, contributing to the activation of online shopping worldwide, including in growing markets like Korea."
Following Coupang's IPO valued at several billion dollars, domestic e-commerce marketing has become even more aggressive this year. The number of domestic e-commerce app installs showed an upward trend from January 2020 to July 2021. As competition to attract new users intensified, the cost per install (CPI) for domestic mobile apps rose sharply to $3.29 in March 2021, a 106% increase from $1.58 in January 2020.
Remarketing, which encourages existing or lapsed customers to use apps more effectively, has grown noticeably in major Asian countries including Korea, Vietnam, and the Philippines. Remarketing conversions for e-commerce apps in Asia reached 9 billion from January to July 2020. This growth is attributed to e-commerce companies adopting remarketing as a key strategy and consistently driving purchases through personalized advertising. During the same period, remarketing conversions for domestic apps also showed a steep rise.
However, after Apple updated its iOS operating system to version 14.5 in April, companies have focused more on Android for remarketing. The number of Identifier for Advertisements (IDFA) data globally has significantly decreased, impacting remarketing efforts, with remarketing conversions dropping nearly 30% after the full implementation of App Tracking Transparency (ATT).
Additionally, the increase in app installs has led to a rise in the rate of fraud (online fraudulent activities). The estimated damage amount to e-commerce apps due to fraud in Asian countries from October 2020 to January 2021 reached $58 million (approximately 69.368 billion KRW). In Korea as well, the fraud rate during the same period was around 30%, highlighting the need for fraud prevention in corporate marketing strategies, the company added.
An AppsFlyer representative stated, "This survey shows that due to the impact of COVID-19, the scale of online shopping worldwide, including Korea, is rapidly expanding this year as well, and the trend of online shopping is shifting from mobile web to apps." They added, "Companies and marketers must be able to communicate smoothly with existing customers regardless of location, and it is necessary to organize solutions such as deep linking that connect apps and content so that users can accurately reach the information they want."
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