With Netta Lev Sadeh – Managing Director EMEA at AppsFlyer
Over the past decade, Africa has emerged as a major player in the global mobile application market, exhibiting remarkable growth and innovation. 2023 continued this trend, as mobile app usage increased across the continent last year, reflecting evolving consumer behaviors and technological advances.
To drive user growth in 2024, mobile app marketers need to monitor trends from the previous year. This includes analyzing the impact of the global economic downturn, evolving user acquisition strategies and changes based on privacy. Marketers face the ongoing challenge of sustaining growth amid constant change, a major obstacle expected to persist through 2024. As for what to expect in 2024, here are five key takeaways from 2023.
1. Reduce ad spend on app installs
A notable revelation from 2023 was a 6% decrease in app install ad spend. a total of $82 billion worldwide. This decline was mainly attributed to a 10% drop in Android budgets, as opposed to a 2% increase seen in iOS budgets. In Africa, these trends paralleled the global scenario, albeit with local variations in different application categories.
Non-gaming apps in categories such as shopping, finance and entertainment saw a significant 10% year-over-year decline in user acquisition budgets, while travel and lifestyle apps saw an increase in spending. Gaming app budgets remained stable, but there was a shift in spending patterns within genres, impacting more casual gaming.
2. A refresh of iOS installations
In 2023, non-organic iOS installs saw an impressive resurgence, with a a remarkable increase of 9% year-on-year, indicating a remarkable recovery from the challenges faced after iOS 14.5. Rising efficiency among marketers and ad networks contributed significantly to this growth, especially in non-gaming apps, while gaming apps on iOS showed stability rather than growth.
While the data confirms the resurgence of iOS installations, it is notable that Africa remains largely dominated by Android. For example, South Africa saw a remarkable increase of 15%. on e-commerce app installs from Q1 2022 to Q1 2023 on Android platforms.
However, for Africa, this resurgence in iOS installations could mean increased market adaptability and improved strategies among mobile app marketers, suggesting a potential avenue for further growth and expansion in the region. We expect to see these trends continue into 2024.
3. Steady increase in revenue from in-app purchases
Interestingly, despite the economic slowdown, revenue from in-app purchases (IAP) in both gaming and non-gaming apps showed promising growth. climbing 11% and 19%, respectively. Non-gaming apps, particularly in the travel, food and beverage, utility and productivity and lifestyle categories, led this wave, signaling consumers’ willingness to spend within apps.
The African market reflects this trend, demonstrating resilience in IAP revenue despite economic challenges, with some app categories seeing significant growth in consumer spending. We expect this to continue in 2024 as economic signs improve.
4. Drop in Android remarketing conversions
Android remarketing conversions showed a 9% drop., echoing the impact of the economic downturn on user acquisition strategies. However, with the upcoming shift to new frameworks like the Protected Audiences API and SKAN 5 for iOS, marketers are optimistic about the future of remarketing amid privacy-based data restrictions in the coming year.
5. Modest increase in app downloads
The overall increase in total app downloads slowed to just 2% growth in 2023, a significant decrease from the 10% rise seen the previous year. The impact of changes to Android’s Privacy Sandbox and potential Apple policy changes, especially regarding third-party app stores, are expected to impact download volume in 2024.
summarizing
The mobile app landscape in Africa has undergone a transformative journey in 2023, marked by significant challenges and notable trends that will shape the industry in 2024. The region is experiencing changes in adopting innovations such as Connected TV and navigating changes such as Android’s Privacy Sandbox and Chrome’s cookie devaluation.
AppsFlyer’s recent insights reflect a resilient industry. Despite a 25% cost reduction.us”State of eCommerce 2023The report highlights a $5 billion marketing spend on e-commerce apps. This provides retailers with key trends for user engagement and sales, especially during peak periods such as the holidays.
Amidst challenges, Africa’s mobile app landscape is promising, fueled by resilience, strategic insights and a dynamic consumer base poised for further expansion in 2024. As we look towards the new year, the landscape remains dynamic but presents significant growth prospects. Developments in privacy-focused frameworks offer potential opportunities in Africa’s mobile app market.
The evolution of mobile app trends in Africa presents an exciting landscape full of opportunities and challenges. AppsFlyer’s contributions to deciphering user behavior, improving marketing strategies and ensuring data integrity have positioned it as a catalyst for success in the African app market. With a focus on adaptability, resilience and readiness for impending change, the African mobile app industry is poised to face challenges and tap into growth opportunities in the coming year.
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