By Netta Lev Sadeh – Managing Director EMEA at AppsFlyer
Over the past decade, Africa has emerged as a significant player in the global mobile app market, exhibiting remarkable growth and innovation. 2023 continued this trend, as mobile app usage surged across the continent last year reflecting evolving consumer behaviours and technological advancements.
To guide user growth in 2024, mobile app marketers must track trends from the past year. This involves analysing the impacts of the global economic downturn, evolving user acquisition strategies, and privacy-driven changes. Marketers face the ongoing challenge of sustaining growth amid constant change, a significant hurdle expected to persist into 2024. In terms of what you should expect in 2024, here are five key takeaways from 2023.
1. Decrease in ad spend on app installs
A noteworthy revelation from 2023 was the decline in app install ad spend by 6%, totaling $82 billion worldwide. This decrease was predominantly attributed to a 10% drop in Android budgets, contrasting the 2% growth observed in iOS budgets. In Africa, these trends paralleled the global scenario, albeit with localised fluctuations across different app categories.
Non-gaming apps in categories like shopping, finance, and entertainment experienced a significant 10% YoY drop in user acquisition budgets, while travel and lifestyle apps saw a rise in spending. Gaming app budgets remained stable, but there was a shift in spending patterns within genres, impacting hyper-casual games the most.
2. A resurgence of iOS installs
In 2023, iOS non-organic installs saw an impressive resurgence, with a notable 9% YoY increase, indicating a remarkable turnaround from the challenges faced in the wake of iOS 14.5. The rise in efficiency among marketers and ad networks contributed significantly to this growth, especially in non-gaming apps, whereas gaming apps on iOS showcased stability rather than growth.
While the data confirms the resurgence in iOS installs, it’s noteworthy that Africa remains predominantly Android-dominated. For instance, South Africa saw a notable 15% increase in eCommerce app installations from Q1 2022 to Q1 2023 on Android platforms.
However, for Africa, this resurgence in iOS installs could signify 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 in 2024.
3. Steady growth for in-app purchase revenue
Interestingly, despite economic slowdowns, in-app purchase (IAP) revenues in both gaming and non-gaming apps saw promising growth, climbing by 11% and 19%, respectively. Non-gaming apps, particularly in travel, food & drink, utility & productivity, and lifestyle categories, spearheaded this surge, signalling consumer willingness to spend within apps.
The African market mirrored this trend, showcasing resilience in IAP revenues despite the economic challenges, with certain app categories witnessing substantial growth in consumer spend. We expect this to continue in 2024 as economic signs improve.
4. Decline in Android remarketing conversions
Remarketing conversions on Android experienced a 9% decline, echoing the economic downturn’s impact on user acquisition strategies. Yet, with the impending shift towards new frameworks like the Protected Audiences API and SKAN 5 for iOS, marketers are optimistic about the future of remarketing amidst privacy-led data restrictions over the coming year.
5. A modest growth in app downloads
The overall growth in total app downloads slowed down to a mere 2% increase in 2023, a significant decline from the 10% rise observed in the previous year. The impact of changes in Android’s Privacy Sandbox and Apple’s potential policy changes, especially concerning third-party app stores, is anticipated to influence download volumes in 2024.
In summary
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 faces shifts in adopting innovations like Connected TV and navigating changes such as Android’s Privacy Sandbox and Chrome’s cookie depreciation.
AppsFlyer’s recent insights reflect a resilient industry. Despite a 25% spending downturn, our “2023 State of eCommerce” report highlights a $5 Billion marketing spend in e-commerce apps. This offers retailers key trends for user engagement and sales, especially during peak times like holidays.
Amidst challenges, Africa’s mobile app landscape displays promise, fueled by resilience, strategic insights, and a dynamic consumer base poised for further expansion in 2024. As we look into the new year, the landscape remains dynamic, yet presents significant prospects for growth. Advancements in privacy-focused frameworks offer potential opportunities within Africa’s mobile app market.
The evolution of mobile app trends in Africa presents an exciting landscape ripe with opportunities and challenges. AppsFlyer’s contributions in decoding user behaviour, enhancing 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 preparedness for imminent changes, the African mobile app industry stands poised to navigate challenges and harness the potential for growth in the coming year.
Catch up on news and other tidbits on our WhatsApp Community Page, Twitter/X, and subscribe to our weekly newsletter to ensure you don’t miss out on any news.
