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Ad spend on African shopping apps soars by 80%

January 28, 2025

Ad spend on African shopping apps soars by 80% in the first nine months of 2024 compared to the same period in 2023, according to AppsFlyer’s State of App Marketing Africa report.

This significant rise underscores the rapid expansion of Africa’s e-commerce sector, propelled by the widespread adoption of smartphones, evolving consumer preferences, and heightened competition among various platforms.

In countries like Nigeria and South Africa, the increasing availability of smartphones and more affordable internet services have made online shopping more accessible, leading advertisers to substantially invest in engaging these growing user bases.

Both South Africa and Nigeria have become central to this surge in advertising expenditure. Global e-commerce leaders, including Temu, Aliexpress, Amazon, and Shein, are actively competing with regional companies like Jumia, Konga, and Takealot.

For example, South Africa’s online retail market expanded by 29% between 2023 and 2024, reaching $3 billion in sales and accounting for 6% of the nation’s total retail sector.

Africa’s digital transformation has been a key factor in this growth. Two decades ago, mobile phone ownership on the continent was uncommon—only 8% of Ghanaians had a mobile phone in 2002. By 2015, this figure had risen dramatically to 83%.

Smartphone usage has seen a similar upward trend, supported by decreasing device costs. As of 2023, over half of Africans (51%) owned a smartphone, laying a vital foundation for the rise of online shopping.

COVID-19 pandemic

The COVID-19 pandemic also played a significant role in accelerating the shift towards online shopping.

The pandemic accelerated a shift towards online shopping, and these changes in consumer habits have continued to gain momentum, with the number of users in the eCommerce market in Africa forecast to continuously increase between 2024 and 2029 by nearly 60%.

This increase in digital activity has led to intense competition among e-commerce platforms, encouraging advertisers to invest heavily to gain market share.

However, the higher spending doesn’t always result in equivalent revenue growth. While advertising expenditure soared by 80%, revenue from in-app purchases saw a more modest increase of 15%.

This trend suggests that advertisers may be prioritizing the acquisition of new users and expanding their market presence over immediate revenue gains, especially in emerging markets where building brand recognition and attracting users are primary goals.

Retaining customers remains a significant challenge for e-commerce platforms in Africa, particularly as pricing remains a major obstacle. Local companies like Jumia and Konga initially attracted customers by offering free deliveries and substantial discounts.

However, as investor interest in e-commerce cooled, these strategies shifted towards a greater focus on achieving profitable unit economics.

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