Ad spend on African shopping apps soars by 80% amid growing eCommerce competition 

Ad spend on shopping apps in Africa increased 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 increase highlights the growth of the continent’s eCommerce landscape, driven by increasing smartphone penetration, shifting consumer behaviours, and intensified competition among platforms.  

“In markets like Nigeria and South Africa, the growing penetration of smartphones and affordable internet access has made eCommerce more accessible, prompting advertisers to invest heavily in reaching these expanding audiences,” explains Netta Lev Sadeh, Managing Director EMEA SANI at AppsFlyer.  

South Africa and Nigeria have emerged as the leading drivers of this ad spend growth, with global eCommerce giants like Temu, Aliexpress, Amazon, and Shein competing fiercely against local players such as Jumia, Konga, and Takealot. For instance, South Africa’s online retail sector grew by 29% between 2023 and 2024, reaching $3 billion in sales and representing 6% of the country’s total retail market.  

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Africa’s digital revolution has been pivotal to this growth. Two decades ago, mobile phone ownership on the continent was rare — only 8% of Ghanaians owned a mobile phone in 2002. By 2015, that number had soared to 83%. Smartphone penetration has followed a similar trajectory, bolstered by falling device prices. As of 2023, over half of Africans (51%) owned a smartphone, providing a crucial foundation for the expansion of online shopping. 

The pandemic also played a transformative role, Sadeh notes.

“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 surge in digital engagement has sparked fierce competition among eCommerce platforms, prompting advertisers to spend aggressively in a bid to capture market share. However, the increased spending doesn’t necessarily translate to proportional revenue growth. While ad spend skyrocketed by 80%, in-app purchase revenue grew by a more modest 15%.  

“It may indicate that advertisers are focusing more on acquiring new users and expanding their market reach rather than driving immediate revenue growth, particularly in emerging markets where brand awareness and user acquisition remain priorities,” Sadeh said.  

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Source: Techpoint.africa