China-based apps drove 85% of iOS UA — up 10% YoY
A tariff-driven shift in 2025 led to a significant reallocation of these budgets from the US to Western Europe. Total UA spend in 2024 reached $4.6B, of which $1.4B was spent in the US.
The State of eCommerce App Marketing – 2025 Edition
In collaboration with
Key findings
Remarketing spend hit $16.4B in 2024, 3.5x higher than UA budgets
In 2025 (Jan-May), budgets for remarketing grew 29% YoY, driven by a 42% leap in iOS. During peak season 2024, the share of remarketing accounted for 86% of total iOS budgets (including UA), up from 61% in November 2023.
iOS in-app purchase revenue rose 10% YoY in 2025
While consumer spend on Android grew just 6% from January to May, iOS spending was stronger and more consistent. India stood out with 44% YoY iOS growth in November, while Brazil and France saw Android declines.
iOS wins on conversion speed and loyalty
iOS users convert 1.3 days sooner than Android users, with a 39% higher first-time purchase rate and 68% stronger re-purchase performance—reaching the critical second conversion faster.
Web-to-app installs rose 38% ahead of peak season
From September to November 2024, brands leaned more on owned media, using smart banners on mobile sites to drive installs and re-engagement. Another 37% spike followed in spring 2025.
Up to $1B of ad spend exposed to install fraud
Fraud rates varied widely: iOS peaked above 30% in late 2023 before dipping to 25.9%, while Android remained steadier but climbed in regions like Brazil. Localized, platform-specific tactics are essential to minimize risk.
Introduction
iOS and remarketing gain ground ahead of a mixed Q4 outlook
eCommerce app marketing in 2025 is being shaped by a series of shifts—some strategic, others circumstantial. One of the most visible changes is the reallocation of user acquisition budgets by China-based apps.
Their growing dominance in iOS-driven app install activity has shifted the center of gravity from the US to Western Europe. Tariff-related pressures have made US acquisition less attractive, prompting a rise in spend across Germany, France, and the UK.
This timing shift has also changed campaign strategy. In 2024, many marketers acquired users well before the holiday season, then leaned more heavily on remarketing in Q4. That pattern may repeat in 2025, especially amid continued market volatility and shifting consumer behavior.
Remarketing continues to grow as a lever for lifetime value, especially in markets where reactivation is more efficient than acquisition. At the same time, user journeys are becoming more cross-platform. From web to app, marketers are linking touchpoints more seamlessly to reduce friction and improve conversion.
iOS also stands out across every performance layer. It drives higher conversion and loyalty rates, faster time to purchase, and stronger IAP growth. With iOS users converting more, spending more, and doing so sooner, the platform remains a top priority even if costs per conversion are three to four times higher than on Android.
Consumer spending is expected to rise modestly this holiday season, but with greater caution. Shoppers are planning earlier and becoming more selective. At the same time, the geographic allocation of marketing budgets remains closely tied to macroeconomic conditions, adding uncertainty that should prompt marketers to prepare contingency plans.
In response, many brands are using AI to optimize pacing, creative, segmentation, and remarketing—helping teams respond faster and operate more effectively.
To support strategic planning for the upcoming holiday season, the 2025 edition of The State of eCommerce App Marketing analyzes $4.2 billion in media spend, surfacing trends from last year’s peak and the first half of this year.
Data sample *
1,600
eCommerce apps (excluding marketplace and groceries) with at least 3,000 installs per month per country.
29B
Marketing conversions including 26 billion remarketing conversions and 3 billion paid installs from Oct. 2023 to May 2025 (inclusive).
$4.2B
Ad spend by eCommerce apps covering user acquisition and remarketing from Oct. 2023 to May 2025 (inclusive).
* All results are based on fully anonymous and aggregated data. To ensure statistical validity, we follow strict volume thresholds and methodologies and only present data when these conditions are met.
** When normalized data is presented, the share of each month out of the total for the entire time frame is shown to create a trend.
“Retail marketers are shifting Q4 strategies amid global uncertainty and evolving shopper behavior. Campaigns are launching earlier to build momentum across mindsets like “Early Bird” and “Deal Seeker.” Messaging focuses on value, highlighting flexible payments and using AI to surface personalized insights via Shopping Ads (e.g., recaps, videos, comparisons, and shipping speed) to ensure continuous engagement in Q4.”
Top trends
Chinese apps’ iOS UA surge continues, reshaping global spend
China-based eCommerce apps continue to dominate iOS app install ad spend. This is especially significant given that iOS captures 20–30% more UA budget than Android, despite its smaller market share. From Oct 2023 to May 2024, China-based apps drove 77% of global iOS UA. A year later, that share rose to 85%.
This surge came with a sharp reallocation of spend by Chinese apps from the US to Western Europe, driven primarily by tariff pressure. Specifically, the US cancelled the ‘de minimis’ exemption which has allowed packages valued at under $800 to enter the country without being subject to tariffs.
Indeed, since tariffs were imposed, iOS UA spend in the US dropped 32%, while in the UK, Germany, and France it leaped by no less than seven times. Clearly, China-based apps are moving budgets between high value markets with a strong iOS presence.
These advertisers have scaled through ultra-low pricing, heavy media spend, and personalized experiences. AI-powered campaign automation and creative testing are also helping them localize faster and deploy at scale with minimal friction. In response, traditional eCommerce brands are adjusting their strategies: expanding budget lines, improving UX, strengthening loyalty, and exploring new media channels.
In November 2024, iOS UA surged in Android-dominant markets:
- Brazil: iOS +481%, Android −22%
- India: iOS +70%, Android +24%
- Mexico: iOS +21%, Android −21%
Meanwhile, the US saw a sharp drop in November peak: iOS UA fell 38%, and Android 32%. Many China-based apps had already ramped UA in July, aiming to avoid peak-season CPI spikes and shift toward remarketing in Q4.
Indonesia also stood out, with Android UA rising 43% YoY in November and 67% in Jan–May 2025, reflecting renewed investment in high-scale, cost-efficient markets.
App install UA ad spend in 2024 by platform (in millions of USD) *
* Total spend is calculated by modelling cost data received by AppsFlyer and then factoring category and country specific Sensor Tower market share data to estimate industry-wide figures.
Remarketing spend grows fast as retention takes priority
Remarketing remained the backbone of eCommerce app growth in 2024 and 2025, accelerating across platforms and geographies. In 2025 (Jan-May), budgets for remarketing grew 29% YoY, driven by a 42% leap in iOS (and 16% in Android).
During the Q4 holiday season—when attention peaks and competition surges—re-engagement also took center stage.
China-based apps, already dominant in iOS UA, ramped up remarketing globally. In November 2024 alone, spend jumped +218% YoY in the US, +220% in Germany, +330% in Brazil, and +136% in Mexico.
This growth was not limited to iOS. In fact, China-based apps increased iOS remarketing spend by 230% and Android by 100%, reflecting a more balanced approach than in acquisition.
In 2025, tariffs again shifted China-based remarketing budgets. Spend declined in the US, especially on iOS, while surging in Western Europe and LATAM. iOS led growth, but Android also gained ground—marking a strategic shift toward scalable, high-yield markets.
The US remained the largest remarketing market, with $6.67B in 2024 spend. While US-based apps still lead in volume, China-based players now account for over $2.3B in US re-engagement.
India also stood out. In early 2025, remarketing spend reached $447M, and 99.7% of it came from India-based apps, highlighting the country’s strong focus on retaining domestic users.
AI has also played a growing role in this shift. Marketers are increasingly using AI-driven audience segmentation, pacing, and bidding to optimize remarketing especially where user-level signals are limited.
With UA costs high and re-engagement more efficient, remarketing is no longer just a retention tool. It’s a growth engine and for many apps, the foundation of long-term performance.
Remarketing ad spend in 2024 by platform (in millions of USD) *
* Total spend is calculated by modelling cost data received by AppsFlyer and then factoring category and country specific Sensor Tower market share data to estimate industry-wide figures.
UA and remarketing budgets rebalance across regions
Throughout 2024, remarketing dominated budget allocation across both platforms, particularly on iOS. This reflects a growing focus on lifetime value, positioning remarketing as a foundation of eCommerce app strategy.
The holiday season confirmed this trend. In November 2024, iOS remarketing spend rose +41% YoY, reaching 85% of total iOS budget (up from 61%!). Android climbed to 79%, up from 71%. During Singles Day and Black Friday, marketers leaned into retention to avoid the high cost of peak-season acquisition.
In 2025, signs of rebalancing emerged. From March to May, iOS UA spend rose +52% over its 2024 average, reaching 27%. This aligns with renewed acquisition activity, particularly by China-based apps in Germany, France, and the UK.
Regional dynamics varied:
- Western Europe saw a UA rebound after a remarketing-heavy Q4
- In the US, remarketing remained dominant
- In India, over 99% of remarketing spend came from local apps, with UA volumes staying low
- In Brazil, UA remained steady even as remarketing spiked
Ad spend split by type of activity *
* Among apps with minimal spend in both UA and remarketing.
“We ramp up UA efforts about 4-6 weeks before Ibotta’s seasonal peaks to acquire new users who are actively planning Q4 shopping. As we get closer to and into peak season, our focus shifts to activating or reactivating our existing user base. These are users who already understand the value of Ibotta, and it’s far more cost-effective to drive purchases from them than to acquire new users in a highly competitive environment.”
Paid installs lead growth, but not in every market
In 2025, paid installs drove overall growth across most eCommerce app markets. Brazil, France, Germany, and India all showed install trends that closely follow paid campaigns.
The US broke this pattern. In both November 2024 and early 2025, install trends in the US aligned more closely with organic, reflecting a brand-led ecosystem where loyalty and visibility outweigh media spend.
During the holiday season, paid installs surged across key markets—rising +155% in Brazil and +76% in India—while organic installs remained flat or declined, underscoring the dominance of media-driven acquisition during peak seasonal activity.
Leading into November, paid UA ramped up in September and October, followed by a 33% global spike. The pacing varied:
- Germany saw steady growth throughout Q4
- Brazil peaked sharply in November
- India started gaining in October
This follows a familiar pattern: acquire early, shift to remarketing during the holidays, and re-engage in Q1–Q2.
In 2025, markets already reliant on paid UA doubled down, largely driven by China-based app investment. The gap between paid-led and organic-led markets widened further.
Install trends by type and platform (normalized)
iOS drives IAP growth as Android lags slightly
In-app purchase (IAP) trends in 2024 and early 2025 revealed platform-level differences. iOS led the way with YoY IAP growth of 10%, compared to 6% on Android. The gap reflects differing user value, economic context, and monetization strength.
India stood out for iOS IAP momentum: +44% YoY in November, and +31% in Jan–May 2025. While iOS represents a small slice of the market, high-value users are becoming more important.
Globally, iOS posted steady IAP growth through the holidays. Android was more mixed. In November, spend dropped -32% in Brazil and -30% in France. In contrast, the US remained stable with IAP spend unchanged in November, then edging up in 2025: +7% on iOS, +4% on Android.
The UK posted strong results: +12% (iOS) and +15% (Android) in November, with sustained momentum into 2025.
In Brazil, Android revenue fell −28% in 2025, despite strong UA. Economic uncertainty and currency pressure are driving a gradual shift toward iOS.
While paid UA drove install growth in 2025, IAP behavior followed different rules, highlighting how user value is shaped by platform economics and local conditions, not just acquisition volume.
In-app purchase revenue trend by platform (normalized)
Repeat purchases reveal the value of true loyalty
Not all conversions are equal. While many users make a first purchase shortly after install—often due to a promotion or incentive—the second purchase signals something deeper: trust, intent, and the start of loyalty.
From January to May 2025, iOS regular user conversion averaged 11.0%, compared to 7.9% on Android, a 39% gap. The difference in loyal users was even more striking: iOS averaged 4.7%, while Android trailed at 2.8%, reflecting a 68% gap in deeper engagement.
Several markets stood out. In Indonesia, iOS loyalty was 70% above the global average, and South Korea exceeded it by over 60%. On Android, Japan’s loyal user rate was 80% above the platform average, with South Korea and Saudi Arabia close behind.
In the US, iOS led in overall conversion, but Android users who made one purchase were more likely to make another. The loyal-to-regular ratio was 22% higher on Android, pointing to strong re-engagement potential, even in markets where iOS dominates acquisition.
AI is starting to support these efforts. By analyzing early behavior signals, marketers are identifying which users are most likely to convert again. These insights are helping improve loyalty modeling and target follow-up campaigns more effectively.
The second purchase is more than a metric. It marks the shift from transactional to habitual, and from short-term conversion to long-term value.
Share of buyers by type in 2025 *
* Install to purchase rate is the share of installers who made at least 1 in-app purchase within 30 days of installing the app, while install to loyal rate includes users who made at least 2 in-app purchases in the same time period; 2025 figures represent the monthly average from January to May.
“Surveys show that what moves the needle isn’t the incentive itself but the sense that their first purchase is remembered and made incrementally more useful. That mix of acknowledgement, education, and well-timed reminder consistently nudges first-time buyers over the threshold into repeat-purchase territory.”
iOS users convert faster and keep spending
Time-to-purchase trends show iOS users monetize faster than Android users by an average of 1.3 days for the first purchase, maintaining that lead through second and third transactions. Simpler flows and higher LTV likely play a role.
The gap is widest in Japan and South Korea, where Android users are 1.5 to 2.5 days slower to convert.
Brazil is the exception: time to purchase is nearly identical across platforms, likely due to Android’s dominance and strong local payment infrastructure.
iOS users also buy again sooner, with faster repeat purchase velocity. This supports higher monetization momentum.
By contrast, Android users show greater drop-off. While first purchases happen at a reasonable pace, repeat conversion slows significantly suggesting less habitual behavior and more re-engagement friction.
Time from install to purchase (cumulative) *
* Representing days since install; read as for example, the average time from install to purchase in Saudi Arabia on iOS is 2.49 days for the 1st purchase, 3.58 days since install for the second purchase (or 1.08 days from 1st to 2nd purchase) etc.
Web-to-app flows gain traction as key cross-platform route
Web-to-app activity grew significantly in 2024 and early 2025. From September to November, traffic rose +38%. Another +37% jump followed from February to May.
This reflects broader adoption of banners or prompts on brand websites that push users directly into the app for install or re-engagement often using smart linking.
These flows are simple but effective. By guiding users from mobile web into the app, they reduce friction and drive higher conversion.
AppsFlyer data shows users coming through web-to-app have much higher install-to-action rates and LTV than those acquired through traditional channels.
Web-to-app install trend (normalized) *
* The growth trend of app installs driven by users who clicked on a banner to install the app in the company’s web site.
Fraud threats persist as tactics evolve across platforms
Install fraud remains a persistent threat for eCommerce marketers. From October 2023 to May 2025, iOS fraud rates dropped from 30.1% to 25.9%, though with noticeable spikes during peak UA activity. Android stayed more consistent, rising slightly from 9.4% to 10.5%.
The iOS spike in 2025 likely reflects aggressive acquisition campaigns by China-based apps. When UA scales rapidly and performance goals broaden, exposure to fraud often increases.
Tactics are not disappearing, they’re shifting. In Brazil, Android fraud is dominated by click flooding and fake publisher traffic. In other regions, bots and install hijacking are more prevalent. Market-to-market variation is growing.
As fraudsters begin using AI to automate attacks and adapt to detection methods, the industry is responding. Advanced machine learning models are now being used to flag anomalies, score traffic in real time, and spot new attack patterns before they spread. The pace of fraud innovation is accelerating, and so is the need to innovate back.
The financial impact is significant. In the US alone, fraud that went unblocked would have cost $179 million on iOS and $98 million on Android. Globally, fraud exposure in eCommerce apps is approaching $1 billion.
What’s clear is that a one-size-fits-all approach no longer works. Effective protection depends on adapting to local threat environments and tailoring defense systems to platform behavior. As fraud evolves through automation, marketers must pair precision with speed to stay ahead.
Financial exposure to install fraud by platform (in millions of USD) *
* Fraud exposure is the estimated financial value of fraud prevalent in the market – not actual damage or losses from fraudulent activity. It is calculated by multiplying the detected fraudulent installs by CPI, and then factoring Sensor Tower market share data in the market in question to estimate industry-wide exposure.
Experts’ corner
Lee Jones
Managing Director, Global App Ads Commercialization
Lee has driven the Google's global app advertising strategy and go-to-market operations for over 9 years. A staunch advocate for the app ecosystem, Lee is dedicated to fostering success for app developers. A graduate of Middlebury College, he frequently speaks at industry events and has been featured in publications like Venturebeat, AdExchanger, and Think With Google.
How are you seeing leading brands approach the balance between UA and remarketing today—and how has that evolved over the past year?
Leading eCommerce brands are strategically balancing user acquisition (UA) and remarketing with a focus on Lifetime Value (LTV). They recognize that mobile apps are crucial for long-term retention, as app users demonstrate higher order values and stronger brand loyalty compared to web users.
Brands are now focusing on identifying and acquiring high-value app users early in the acquisition funnel through intelligent bidding solutions, such as tROAS and app-conversion bidding, knowing these individuals are more likely to become loyal customers. We see this leading to strong success for our retailers:
1) adidas saw 2.4X higher ROAS from app users compared to mobile web users in Q4 2023 by implementing app deep links and optimizing bidding for web and app purchases in Performance Max and Search campaigns. Their increased investment in App Campaigns for Installs aims to acquire high-value app users and sustain long-term growth.
2) G-star RAW reported +450% higher Performance Max ROAS through strategic investments in App Campaigns for Installs.
Brands are now focusing on identifying and acquiring high-value app users early in the acquisition funnel through intelligent bidding solutions, such as tROAS and app-conversion bidding, knowing these individuals are more likely to become loyal customers. We see this leading to strong success for our retailers:
1) adidas saw 2.4X higher ROAS from app users compared to mobile web users in Q4 2023 by implementing app deep links and optimizing bidding for web and app purchases in Performance Max and Search campaigns. Their increased investment in App Campaigns for Installs aims to acquire high-value app users and sustain long-term growth.
2) G-star RAW reported +450% higher Performance Max ROAS through strategic investments in App Campaigns for Installs.
With increasing pressure on efficiency and rising CPI in peak seasons, what are some best practices you recommend for sequencing UA and re-engagement?
To boost efficiency and combat rising costs, a refined strategy focusing on the synergy between user acquisition (UA) and re-engagement is essential. Best practices include:
Early User Acquisition (UA) Investment: Build a strong user base before the Q4 rush to maximize reach and avoid higher acquisition costs.
Focus on the First Purchase for Loyalty: Create a memorable on-boarding experience to establish a strong relationship after that first purchase for each user..
Integrate Campaigns: Instead of siloed UA and re-engagement efforts, marketers should view them as interconnected. App Campaigns for Installs (ACi) are highly efficient for UA, while Performance Max and Search campaigns are effective for re-engagement, especially when seamlessly linked via Web to App Connect.
Seasonality Adjustments: Test Seasonality Adjustments for App Campaigns to inform bidding about upcoming events that may significantly impact conversion rates. This feature estimates increased conversion rates for promotions and includes a “black-out learner” to manage ramp-down periods and offers start/end date controls.
Early User Acquisition (UA) Investment: Build a strong user base before the Q4 rush to maximize reach and avoid higher acquisition costs.
Focus on the First Purchase for Loyalty: Create a memorable on-boarding experience to establish a strong relationship after that first purchase for each user..
Integrate Campaigns: Instead of siloed UA and re-engagement efforts, marketers should view them as interconnected. App Campaigns for Installs (ACi) are highly efficient for UA, while Performance Max and Search campaigns are effective for re-engagement, especially when seamlessly linked via Web to App Connect.
Seasonality Adjustments: Test Seasonality Adjustments for App Campaigns to inform bidding about upcoming events that may significantly impact conversion rates. This feature estimates increased conversion rates for promotions and includes a “black-out learner” to manage ramp-down periods and offers start/end date controls.
How should marketers adapt their strategies across platforms and surfaces—particularly as cross-platform behaviors (like web-to-app flows) gain traction?
Marketers must adopt a holistic approach to the customer journey to effectively adapt to cross-platform behaviors, ensuring a seamless experience across web, app, and desktop. This is crucial given that consumers interact with over 130 mobile online touchpoints a day.
(Source: Google/Measure Protocol, Consumer Journey Analysis, US, online consumers 18+, n=370 Android users, Oct 24 – Nov 6, 2024)
What this means is first setting unified measurement and KPIs.
Implement comprehensive measurement to track and connect app conversions across platforms.
Bridging internal team silos between web and app marketing by setting combined Key Performance Indicators (KPIs) instead of segregating them by campaign type or channel. This fosters cross-collaboration for a cohesive marketing strategy.
One global retail customer saw 10x higher ROAS and 11x higher conversion rates from their app compared to web by analyzing Average Revenue Per User (ARPU) across both channels.
And second, building seamless web to app experiences. Consumers expect intuitive experiences across web and app. Web to App Connect (W2AC) is a core solution to optimize customer journeys between web and app, fostering conversions and app loyalty. Advertisers who have implemented this are seeing 2.8x conversion rate on their Search and pMax campaigns on average. (Source: Google Internal Data, Global, April 2025)
(Source: Google/Measure Protocol, Consumer Journey Analysis, US, online consumers 18+, n=370 Android users, Oct 24 – Nov 6, 2024)
What this means is first setting unified measurement and KPIs.
Implement comprehensive measurement to track and connect app conversions across platforms.
Bridging internal team silos between web and app marketing by setting combined Key Performance Indicators (KPIs) instead of segregating them by campaign type or channel. This fosters cross-collaboration for a cohesive marketing strategy.
One global retail customer saw 10x higher ROAS and 11x higher conversion rates from their app compared to web by analyzing Average Revenue Per User (ARPU) across both channels.
And second, building seamless web to app experiences. Consumers expect intuitive experiences across web and app. Web to App Connect (W2AC) is a core solution to optimize customer journeys between web and app, fostering conversions and app loyalty. Advertisers who have implemented this are seeing 2.8x conversion rate on their Search and pMax campaigns on average. (Source: Google Internal Data, Global, April 2025)
Based on what you're seeing in Q4 planning, how are marketers adjusting their campaign timing or messaging amid global uncertainty and softer consumer signals?
Amid global uncertainty and softer consumer signals, retail marketers are making significant adjustments to campaign timing and messaging for Q4, responding to evolving shopper behaviors.
Adjustments to Campaign Timing: Marketers are initiating campaigns earlier than ever. An “Early Start is Key” to build a user base and maximize reach during peak demand.
Different shopper mindsets (“Early Bird,” “Evergreen,” “Deal Seeker,” “Last Minute”) influence shopping progression throughout the season, emphasizing the need for continuous engagement.
Adjustments to Messaging: Marketers are prioritizing value-driven messaging for example highlighting flexible payment options. They also leverage AI to highlight value, such as using Shopping Ads to provide hyper-relevant details like AI recaps, video suggestions, price comparisons, deals, and shipping speeds.
Adjustments to Campaign Timing: Marketers are initiating campaigns earlier than ever. An “Early Start is Key” to build a user base and maximize reach during peak demand.
Different shopper mindsets (“Early Bird,” “Evergreen,” “Deal Seeker,” “Last Minute”) influence shopping progression throughout the season, emphasizing the need for continuous engagement.
Adjustments to Messaging: Marketers are prioritizing value-driven messaging for example highlighting flexible payment options. They also leverage AI to highlight value, such as using Shopping Ads to provide hyper-relevant details like AI recaps, video suggestions, price comparisons, deals, and shipping speeds.
What are the most effective ways brands are building loyalty—not just driving repeat purchases, but developing long-term retention?
Building loyalty and long-term retention for eCommerce brands goes beyond mere repeat purchases and is heavily centered around the mobile app experience and personalized engagement, Some of the most effective ways I have seen eCommerce brands do this is by:
Making sure your web campaigns are tracking and bidding against conversions that happen in your app. This helps to integrate user experiences across channels, encouraging app loyalty.
Offering personalized rewards, exclusive content, and community-building features directly within the app or by utilizing loyalty member pricing in Performance Max and Shopping to deliver personalized discounts based on customer loyalty tiers, incentivizing existing customers and maximizing their Lifetime Value (LTV).
Using the retention goals in Performance Max to optimize campaigns for re-engaging lapsed or high-value app customers.
Acquiring high LTV customers by leveraging the New customer acquisition (NCA) goal in High Value Mode. This enables you to bid higher for new customers that are similar to your existing most valuable customers.
Making sure your web campaigns are tracking and bidding against conversions that happen in your app. This helps to integrate user experiences across channels, encouraging app loyalty.
Offering personalized rewards, exclusive content, and community-building features directly within the app or by utilizing loyalty member pricing in Performance Max and Shopping to deliver personalized discounts based on customer loyalty tiers, incentivizing existing customers and maximizing their Lifetime Value (LTV).
Using the retention goals in Performance Max to optimize campaigns for re-engaging lapsed or high-value app customers.
Acquiring high LTV customers by leveraging the New customer acquisition (NCA) goal in High Value Mode. This enables you to bid higher for new customers that are similar to your existing most valuable customers.
What role does creative strategy play in acquisition and conversion performance, especially on Google surfaces like Search, YouTube, and Discovery?
Creative strategy is critical for capturing attention and driving action across Google surfaces, particularly on visual-first platforms like YouTube and Discovery, and plays an increasingly important role with AI advancements.
Advertisers who adopt automatically created assets see an average of 5% more conversions at a similar cost per conversion in Search and Performance Max campaigns.
(Source: Google Internal Data, Search and Performance Max campaigns using automatically created assets without pinning and including Final URL expansion for Performance Max, 02/24/2024 – 03/22/2024)
Advertisers who adopt automatically created assets see an average of 5% more conversions at a similar cost per conversion in Search and Performance Max campaigns.
(Source: Google Internal Data, Search and Performance Max campaigns using automatically created assets without pinning and including Final URL expansion for Performance Max, 02/24/2024 – 03/22/2024)
How do you see AI shaping marketing strategies this holiday season and into 2026?
AI is positioned as the “engine” that powers personalized experiences and optimized campaigns for eCommerce, fundamentally reshaping marketing strategies through 2026.
From campaign optimization with AI-powered App Campaigns for Installs offering cross-channel solutions to effectively reach the right users or AI Max for Search campaigns leveraging AI to understand user intent beyond keywords…
… To creative development, generative AI is “supercharging nearly every part of the creative process,” from ideation to creating new ads and videos from scratch. Asset Studio, launching later this year, will be a unified workspace within Google Ads to review, generate infinite variations, and optimize creative assets.
The power of AI for creatives is endless now with Imagen and Veo. We will be able to proactively suggest creative ideas and assets, such as seasonal promotions with product features and recommended discounts.
AI also works behind-the-scenes to automatically enhance ad thumbnails, intelligently resize videos (using “outpainting”) for optimal performance and provide detailed insights into which creative elements (text, colors, scene types, etc.) perform best.
From campaign optimization with AI-powered App Campaigns for Installs offering cross-channel solutions to effectively reach the right users or AI Max for Search campaigns leveraging AI to understand user intent beyond keywords…
… To creative development, generative AI is “supercharging nearly every part of the creative process,” from ideation to creating new ads and videos from scratch. Asset Studio, launching later this year, will be a unified workspace within Google Ads to review, generate infinite variations, and optimize creative assets.
The power of AI for creatives is endless now with Imagen and Veo. We will be able to proactively suggest creative ideas and assets, such as seasonal promotions with product features and recommended discounts.
AI also works behind-the-scenes to automatically enhance ad thumbnails, intelligently resize videos (using “outpainting”) for optimal performance and provide detailed insights into which creative elements (text, colors, scene types, etc.) perform best.
Jennifer Johnson
Senior Manager, Growth Marketing
Jennifer is a Senior Manager of Growth Marketing at Ibotta, with previous experience at a performance focused digital marketing agency. At Ibotta, she drives full-funnel digital acquisition and retention strategies for the app, working to improve efficiency and scale.
As we head into a high-stakes Q4, how should marketers adapt their UA and remarketing strategies given the current economic and geopolitical climate?
This year, the economic and geopolitical climate significantly impacts consumer spending. We’re seeing heightened price sensitivity and a strong desire to maximize value and increase savings. What’s different is the sustained inflation and economic uncertainty, pushing consumers to be more deliberate with their purchases and actively seek out deals.
Our UA strategy is shifting to emphasize our value proposition and immediate savings. Instead of brand awareness campaigns, we’re focusing on messaging that highlights how Ibotta helps users stretch their budgets and save money on everyday essentials and holiday purchases.
For retargeting, it’s about showcasing cash back on specific offers and reminding users of the cash back they’ve already earned or could earn on items they frequently buy or have shown interest in. We’re also segmenting audiences more granularly to deliver highly relevant messaging, determining what works best now and adapting that for the holiday season.
Our UA strategy is shifting to emphasize our value proposition and immediate savings. Instead of brand awareness campaigns, we’re focusing on messaging that highlights how Ibotta helps users stretch their budgets and save money on everyday essentials and holiday purchases.
For retargeting, it’s about showcasing cash back on specific offers and reminding users of the cash back they’ve already earned or could earn on items they frequently buy or have shown interest in. We’re also segmenting audiences more granularly to deliver highly relevant messaging, determining what works best now and adapting that for the holiday season.
How early should marketers ramp up UA, and when should remarketing take over in peak season?
During peak shopping periods, the most effective mix is a strategic blend of both paid UA and retention, with a lean towards retention and reactivation focused remarketing as the season progresses.
We typically ramp up UA efforts about 4-6 weeks before Ibotta’s biggest seasonal programming. This allows us to acquire new users who are actively planning their holiday shopping and are receptive to money-saving solutions. During this initial UA push, we’re looking for users with a higher propensity to engage with cash back offers on both grocery and other holiday shopping categories.
As we get closer to and into the peak shopping period, our focus shifts slightly to activating or reactivating our existing user base. These are users who already understand the value of Ibotta, and it’s far more cost-effective to drive purchases from them than to acquire new users in a highly competitive environment.
We leverage push notifications, in-app messaging, and email campaigns in addition to paid campaigns to highlight timely offers that align with holiday shopping categories like general merchandise, toys, and apparel along with our relevant grocery offers.
We typically ramp up UA efforts about 4-6 weeks before Ibotta’s biggest seasonal programming. This allows us to acquire new users who are actively planning their holiday shopping and are receptive to money-saving solutions. During this initial UA push, we’re looking for users with a higher propensity to engage with cash back offers on both grocery and other holiday shopping categories.
As we get closer to and into the peak shopping period, our focus shifts slightly to activating or reactivating our existing user base. These are users who already understand the value of Ibotta, and it’s far more cost-effective to drive purchases from them than to acquire new users in a highly competitive environment.
We leverage push notifications, in-app messaging, and email campaigns in addition to paid campaigns to highlight timely offers that align with holiday shopping categories like general merchandise, toys, and apparel along with our relevant grocery offers.
What are some of the most effective owned media tactics you've seen for driving app installs or engagement?
We have several owned media tactics that drive user engagement and new user acquisition. A few that come to mind include:
Gamification: We’ve found that integrating fun, engaging challenges and bonuses within the app drives re-engagement and increased redemption rates. For example, holiday-themed bonuses for redeeming multiple offers or rewards for reaching a certain savings threshold.
Email: Segmented email campaigns delivering personalized offers based on past purchase behavior or browsing history are incredibly powerful. We also use email to announce new retailers, popular product categories, and holiday deals.
Push Notifications: Timely and relevant push notifications are key for reminding our users about expiring offers, new cash back opportunities, and personalized recommendations. The key is not to over-notify, but to provide genuine value with each ping.
Referral Programs: Our existing users are our best advocates. We reward both the referrer and the new user for installs and initial redemptions which is a highly effective method for gaining and retaining users.
Social Media: Engaging with our community on social media, sharing user success stories, and highlighting top deals helps drive organic installs and fosters a sense of community around saving money.
Gamification: We’ve found that integrating fun, engaging challenges and bonuses within the app drives re-engagement and increased redemption rates. For example, holiday-themed bonuses for redeeming multiple offers or rewards for reaching a certain savings threshold.
Email: Segmented email campaigns delivering personalized offers based on past purchase behavior or browsing history are incredibly powerful. We also use email to announce new retailers, popular product categories, and holiday deals.
Push Notifications: Timely and relevant push notifications are key for reminding our users about expiring offers, new cash back opportunities, and personalized recommendations. The key is not to over-notify, but to provide genuine value with each ping.
Referral Programs: Our existing users are our best advocates. We reward both the referrer and the new user for installs and initial redemptions which is a highly effective method for gaining and retaining users.
Social Media: Engaging with our community on social media, sharing user success stories, and highlighting top deals helps drive organic installs and fosters a sense of community around saving money.
Install fraud continues to be a major concern. What advice would you offer marketers navigating fraud risk in high-scale or high-CPA environments?
Install fraud remains a persistent challenge. A few ways we’re mitigating the impact are:
Fraud Detection Tools: We’ve invested in mobile fraud detection solutions that use machine learning to detect fraud patterns like bot installs and click injection.
Diversify Networks: While some networks may offer lower CPIs, they might also have higher fraud rates. We make sure to work with a diverse set of networks and carefully vet them for their fraud prevention capabilities.
Event Optimization: Optimize for deeper funnel events beyond just the install (e.g., app registration, first purchase, repeat purchases). A majority of our media campaigns are set up this way. This helps ensure you’re paying for genuinely engaged users, not just fraudulent installs.
Use Internal Data: Cross-reference app install data with your own internal user behavior and transaction data. We make sure to keep an eye on platforms with high install volume but low or no subsequent engagement. This is a strong indicator of fraud.
Allowlisting/Blocklisting: Based on fraud detection insights, consider allowlisting publishers or sources with better quality and blocklisting those with consistent fraud issues.
Fraud Detection Tools: We’ve invested in mobile fraud detection solutions that use machine learning to detect fraud patterns like bot installs and click injection.
Diversify Networks: While some networks may offer lower CPIs, they might also have higher fraud rates. We make sure to work with a diverse set of networks and carefully vet them for their fraud prevention capabilities.
Event Optimization: Optimize for deeper funnel events beyond just the install (e.g., app registration, first purchase, repeat purchases). A majority of our media campaigns are set up this way. This helps ensure you’re paying for genuinely engaged users, not just fraudulent installs.
Use Internal Data: Cross-reference app install data with your own internal user behavior and transaction data. We make sure to keep an eye on platforms with high install volume but low or no subsequent engagement. This is a strong indicator of fraud.
Allowlisting/Blocklisting: Based on fraud detection insights, consider allowlisting publishers or sources with better quality and blocklisting those with consistent fraud issues.
Looking ahead, what are some of the biggest shifts you expect in ecommerce app growth strategies in Q4 and over the next year?
Personalization at Scale: Moving beyond basic segmentation, marketers will leverage AI to deliver truly individualized experiences, from product recommendations to dynamic pricing and tailored offers, driven by real-time consumer behavior.
Increased Focus on Acquired Customers’ Value: With economic pressures persisting, every marketing dollar will need to demonstrate clear incremental value and contribute to long-term customer lifetime value. We’ll see a move away from vanity metrics to more rigorous measurement of true business impact.
Enhanced Measurement and Attribution in a Privacy-First World: Marketers will continue to adapt to ever evolving privacy regulations. The novelty has worn off of these regulations so it’s time to really invest time in privacy-preserving measurement solutions, leveraging first-party data more effectively, and, with more major ad platforms adopting probabilistic attribution, embracing those models where deterministic data is scarce.
Early (but not too early) Holiday Content: Research shows that consumers are starting holiday shopping earlier and expect deals and savings to extend beyond peak days (Black Friday, Cyber Monday etc.). We have found this to be true in prior years, but, we have also found that launching campaigns too early can be just as inefficient as launching them too late. It dilutes the message and can fall on deaf ears if consumers aren’t ready to start their holiday shopping.
Increased Focus on Acquired Customers’ Value: With economic pressures persisting, every marketing dollar will need to demonstrate clear incremental value and contribute to long-term customer lifetime value. We’ll see a move away from vanity metrics to more rigorous measurement of true business impact.
Enhanced Measurement and Attribution in a Privacy-First World: Marketers will continue to adapt to ever evolving privacy regulations. The novelty has worn off of these regulations so it’s time to really invest time in privacy-preserving measurement solutions, leveraging first-party data more effectively, and, with more major ad platforms adopting probabilistic attribution, embracing those models where deterministic data is scarce.
Early (but not too early) Holiday Content: Research shows that consumers are starting holiday shopping earlier and expect deals and savings to extend beyond peak days (Black Friday, Cyber Monday etc.). We have found this to be true in prior years, but, we have also found that launching campaigns too early can be just as inefficient as launching them too late. It dilutes the message and can fall on deaf ears if consumers aren’t ready to start their holiday shopping.
Eugene Kuznetsov
Product Lead
Eugene is a customer-focused product leader who has built products for millions of users at Apple, Bumble, and Lazada. Currently, at Holland & Barrett, Eugene helps drive the company's vision to become a trusted wellness partner for 100 million people.
How can eCommerce apps overcome the challenge of post-install conversion and retention during Q4 to drive loyalty and maximize LTV?
December installs are a gift and a risk: traffic soars, but many new shoppers vanish after the festivities. We counter that drop-off by steering every holiday buyer toward an easy, recurring habit. Post-checkout screens and future emails invite them to review additional information on products or explore corresponding wellness articles.
Those small prompts are timed to moments of natural excitement, so they feel helpful, not pushy. Inside the app, we refresh the home feed with “seasonal wellness” content: snackable tips on immunity, stress or sleep that link back to the products they just bought. The tone is editorial rather than promotional, which keeps push-opt-out low.
Finally, when January arrives, we pivot language from “holiday” to “reset”, nudging the same users toward fresh-start goals without introducing a new learning curve. By keeping the value proposition consistent – easy re-order, bite-size guidance—holiday cohorts stay active well.
Those small prompts are timed to moments of natural excitement, so they feel helpful, not pushy. Inside the app, we refresh the home feed with “seasonal wellness” content: snackable tips on immunity, stress or sleep that link back to the products they just bought. The tone is editorial rather than promotional, which keeps push-opt-out low.
Finally, when January arrives, we pivot language from “holiday” to “reset”, nudging the same users toward fresh-start goals without introducing a new learning curve. By keeping the value proposition consistent – easy re-order, bite-size guidance—holiday cohorts stay active well.
We've seen a trend toward front-loading acquisition earlier in Q3 and then focusing on re-engagement in Q4. How does that shift affect your planning?
In July-September, lower CPIs and less crowded feeds allow us to welcome new cohorts at a sensible cost. Our sprints in that period focus on onboarding polish. It collects signals we’ll need later.
The moment October lands, the roadmap pivots: the time shifts to retention levers and peak preparation, CRM swaps acquisition copy for re-engagement journeys, and our push calendar aligns around Singles’ Day (11.11) and gift-shopping peaks.
Two weeks before Black Friday, the paid-media slider swings hard toward remarketing; so we chase people we already know, because their purchase intent is naturally high. The upshot is a smoother curve: cheap installs early, revenue-rich engagement later.
The moment October lands, the roadmap pivots: the time shifts to retention levers and peak preparation, CRM swaps acquisition copy for re-engagement journeys, and our push calendar aligns around Singles’ Day (11.11) and gift-shopping peaks.
Two weeks before Black Friday, the paid-media slider swings hard toward remarketing; so we chase people we already know, because their purchase intent is naturally high. The upshot is a smoother curve: cheap installs early, revenue-rich engagement later.
To foster loyalty, how can first-time buyers be converted to repeat customers within 30 days?
The countdown to loyalty starts the moment order #1 is confirmed. Our thank-you page and email first acknowledge the customer’s new loyalty status—simple, human, “we see you.”
Within 24 hours, an email lands with usage tips and a “buy it again” shortcut. Seven days later, communications appear only if the shopper has opened the app since delivery; they suggest an offer or wellness article.
Around day 20, if no second purchase has been made, we send a gentle nudge – usually educational content tied to the original product, rather than a hard promotional message. Surveys show that what moves the needle isn’t the incentive itself but the sense that their first purchase is remembered and made incrementally more useful.
That mix of acknowledgement, education, and well-timed reminder consistently nudges first-time buyers over the threshold into repeat-purchase territory.
Within 24 hours, an email lands with usage tips and a “buy it again” shortcut. Seven days later, communications appear only if the shopper has opened the app since delivery; they suggest an offer or wellness article.
Around day 20, if no second purchase has been made, we send a gentle nudge – usually educational content tied to the original product, rather than a hard promotional message. Surveys show that what moves the needle isn’t the incentive itself but the sense that their first purchase is remembered and made incrementally more useful.
That mix of acknowledgement, education, and well-timed reminder consistently nudges first-time buyers over the threshold into repeat-purchase territory.
In our data, iOS users tend to convert faster and repurchase more. Have you adapted product flows or messaging by platform to reflect that behavior?
We run a single codebase, so feature parity is non-negotiable, but subtle cues still tune the experience.
On iOS, we prioritise convenience—Apple Pay, Add to Wallet, and a checkout that requires a few taps.
On Android, we have fewer steps in onboarding. Aside from those entry variations, both platforms surface the same values—loyalty QR, easy search, rapid re-order journeys – so nobody feels they’re getting a shorthand experience. It’s less about tailoring the product and more about respecting each ecosystem’s navigation norms.
On iOS, we prioritise convenience—Apple Pay, Add to Wallet, and a checkout that requires a few taps.
On Android, we have fewer steps in onboarding. Aside from those entry variations, both platforms surface the same values—loyalty QR, easy search, rapid re-order journeys – so nobody feels they’re getting a shorthand experience. It’s less about tailoring the product and more about respecting each ecosystem’s navigation norms.
How do web-to-app flows and owned media drive installs and re-engagement, and how does that impact product experience?
Our primary bridge from web to app is a smart banner that appears on high-intent pages with a clear “app-exclusive” hook – a 20% discount. Tap once, and the user lands inside the app.
We keep login friction minimal by letting users authenticate later if they simply want to browse. Because the banner is tied to a real advantage, conversion feels like an upgrade rather than a detour, and web visitors transition into app regulars at a far higher rate.
We keep login friction minimal by letting users authenticate later if they simply want to browse. Because the banner is tied to a real advantage, conversion feels like an upgrade rather than a detour, and web visitors transition into app regulars at a far higher rate.
What signals do you look for in the first session or first week that indicate a high-value user—and how do you act on them?
Three quick signals guide our nurture lane: account with loyalty sign-up, depth of exploration, and omnichannel shopping behavior.
When a user ticks these boxes, personalization weights increase: they have tailored product carousels, the buy again journey appears sooner, and a more personalized discount is offered. Subtle, but it turns curiosity into habit.
When a user ticks these boxes, personalization weights increase: they have tailored product carousels, the buy again journey appears sooner, and a more personalized discount is offered. Subtle, but it turns curiosity into habit.
Where are you experimenting with AI in your product or retention strategy?
AI operates backstage. It re-orders search and category grids on the fly, ensuring shoppers see relevant SKUs first without manual tagging.
A lightweight generative-copy tool keeps product Q&A fresh, so visitors always find human-readable answers.
Behind the scenes, predictive models score the likelihood of churn each night; anyone trending downward gets a nudge – maybe a wellness reminder, maybe a soft loyalty perk – well before they even think about uninstalling. The tech is transparent to users; the impact is that the app feels timely and helpful rather than pushy.
A lightweight generative-copy tool keeps product Q&A fresh, so visitors always find human-readable answers.
Behind the scenes, predictive models score the likelihood of churn each night; anyone trending downward gets a nudge – maybe a wellness reminder, maybe a soft loyalty perk – well before they even think about uninstalling. The tech is transparent to users; the impact is that the app feels timely and helpful rather than pushy.
When it comes to UA vs. remarketing during the peak holiday season, what do you see as the optimal mix?
Think of the budget slider as moving left to right. Six weeks before Black Friday half of it points toward UA: high-intent search, ASO bursts, and smart-banner testing.
Two weeks out we slow that tap and swing the slider toward remarketing – push, paid social re-engagement, loyalty point boosts – because the likelihood of conversion per click is highest even as CPIs climb.
Two micro-moments get extra weight: November-December peaks (gifts on the mind) and the first week of January (returns are done, resolutions begin). The mix keeps average CPA stable while maximising lifetime value from holiday cohorts.
Two weeks out we slow that tap and swing the slider toward remarketing – push, paid social re-engagement, loyalty point boosts – because the likelihood of conversion per click is highest even as CPIs climb.
Two micro-moments get extra weight: November-December peaks (gifts on the mind) and the first week of January (returns are done, resolutions begin). The mix keeps average CPA stable while maximising lifetime value from holiday cohorts.
With the global surge of Chinese apps on iOS, how have you seen broader market pressure shape your strategy?
Escalating iOS CPIs force a disciplined stance. Every paid campaign faces a simple test: will the cohort break even within 90 days? If forecasts fall short, spend throttles automatically.
Parallel to that guardrail, we push harder on lower-cost loops – SEO, smart-banner optimization, referral programs, QR sign-ups – so a greater share of growth arrives without bidding wars.
Creative refresh cycles slim down to two weeks to combat ad fatigue without raising bids. In practice, we still scale new users each quarter, but the balance of paid versus owned remains healthy, shielding us from sudden auction spikes.
Parallel to that guardrail, we push harder on lower-cost loops – SEO, smart-banner optimization, referral programs, QR sign-ups – so a greater share of growth arrives without bidding wars.
Creative refresh cycles slim down to two weeks to combat ad fatigue without raising bids. In practice, we still scale new users each quarter, but the balance of paid versus owned remains healthy, shielding us from sudden auction spikes.
Key takeaways
