Mobile commerce grows as cost of acquiring new customers falls

A new report from mobile app marketing specialist Liftoff reveals that the cost of acquiring new customers for mobile shopping apps is falling.

The cost of getting someone to install an app is just $4.45, though converting that into a purchase costs considerably more (over $75), with an install-to-purchase rate of just 5.9 percent.

The study which analyzed 26.9 billion ad impressions across 4.8 million app installs between April 2016 and April 2017 also shows that September is the best month to pick up new users. Those who register in September are more likely to complete a purchase ahead of the holiday season and consequently the cost of achieving a sale from these users is only $62.65.

The report's authors note that, "It's getting less expensive to acquire new mobile shoppers year over year, which suggests that an interesting flywheel effect may be at play here: as users continue to grow more comfortable with their phones, it's growing less expensive for marketers to acquire mobile users. This then contributes to the growth of mobile commerce, which in turn encourages mobile users to make more purchases on their phones and ultimately contributes to the continuing downfall of the already-shaky brick-and-mortar climate."

While North America is a more mature market, users there are the least likely to register across the geographies examined, the install-to-registration rate is only four percent. However, they are more than two times more likely to move forward with a purchase once they have registered. With a saturated app market, North American mobile users may simply be overwhelmed by the sea of apps available to register for -- but once they commit, they are likely to buy, North American users convert to an in-app purchase at a rate of 17.7 percent.

Conversely, Latin American mobile users are more likely to register in a shopping app, with an install-to-registration rate of 13.78 percent. However, they are the least likely to move forward with a purchase. Latin American consumers is 95.5 percent less likely to complete a mobile purchase than their North American counterparts.

You can read more about the findings in the full report which is available to download from the Liftoff website.

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