Mobile shopping still hot despite store reopenings and new Apple policies

Liftoff has released its 2022 shopping apps report in partnership with Singular, analysing key trends among mobile shoppers in the post-ATT (Apple’s AppTrackingTransparency framework) landscape.

This reveals that mobile shopping shows no signs of slowing down despite consumers returning to bricks and mortar stores following Covid-19 lockdowns and restrictions.

According to the data, mobile continues to be a preferred source for many shoppers, leading to a steady increase in app installs derived mainly from paid traffic. 

The research draws on more than 182 billion ad impressions and 2.4 billion clicks across 16.5 million installs between 1st May 2021, and 1st May 2022.

The analysis suggests that mobile marketers are achieving promising results with new audiences as the pandemic has made mobile a go to channel for shopping.

ITA purchases rose from May 2021 to early 2022 and have since stabilised around the 21% mark, showing that users continue to install mobile apps and make significant purchases.   

“App-based shopping has become more prominent since the pandemic started,” says Jeremy Bondy, CEO at Liftoff.

“Mobile shopping is the new normal and makes it easy for people to browse and buy from the comfort of anywhere. Despite the push to return to in-person retail, there is still strong momentum behind mobile shopping, and we will continue to see that trend for the foreseeable future.” 

The release of ATT in April 2021 made it significantly harder for advertisers to target and personalise their campaigns on iOS ad networks, forcing mobile marketers to pivot and adhere to updated privacy tracking guidelines.

In this new era, many marketers found success with paid traffic, as 70-80% of new app installs from high-growth apps came from paid traffic throughout 2021.

Typically, Android and iOS split user acquisition spend 40/60, with the lion’s share going to Android. Liftoff and Singular’s report found that in the two months immediately post-ATT, spending on Android increased to 65% and has dropped off in the months since.

“We’re optimistic that our report, in partnership with Liftoff, will provide mobile marketers with the proper insights and tools to succeed,” says Susan Kuo, COO and Co-founder at Singular.

“In the evolving mobile marketing industry, prioritising engagement and relevance with users when ad targeting has proven to lead to high conversion and retention rates.” 

Undoubtedly, the pandemic changed the way users approach shopping and dining by increasing the demand for app-based solutions.

As more people have begun returning to in-person dining, the report reveals that shopping apps cost less to acquire and are more likely to convert compared to food delivery apps (19.6% ITA compared to 16.8% ITA for food delivery apps).

The average cost per action (CPA) for purchases remained relatively low at $12.64, with conversion rates remaining high at 18.5%, showing that shopping ads are still reaching new audiences.