71% surge in in-app purchases during India’s festive season -report

The festive season in India has always been a time of grand celebration, family traditions, and financial empowerment. Households plan meticulously for this season, enjoying both the festivities and increased consumption. This period often aligns with organizations offering festive bonuses, further boosting financial well-being.

AppsFlyer’s India Festive Report 2023 in collaboration with Meta Platforms shows that despite lingering inflation, India’s economic conditions look promising this year. This optimism is justified as the economy displayed resilience and adaptability, returning from the initial challenges posed by unexpected rains.

As consumer spending continues to rise, the first half of 2023 saw a remarkable 71% surge in in-app purchase (IAP) revenue. The growth in IAP spending is expected to continue as the festive season approaches.

App installations tend to surge during India’s festive season. Advertisers focus on driving both app installs and remarketing conversions. User acquisition campaigns should launch early, focusing on apps in the Finance, Food & Drink, and Gaming sectors, which thrive during October’s festive atmosphere. 

Shopping apps see an early influx of users in September, necessitating proactive user acquisition strategies. Travel apps experienced an upward trend from August, culminating in peak activity during October and December.

Non-organic installs (NOIs) take center stage in the approach to Diwali, with Shopping apps experiencing an early surge and Travel apps registering an upward curve starting from August. The timing is critical for NOIs, with campaigns commencing three to four weeks before Diwali.

Remarketing conversions significantly outperform non-organic installs during the festive season. These conversions experienced commendable year-over-year growth during H1 2023, with Android conversions rising by 24%. In contrast, Shopping apps see their highest non-organic share, indicating that consumers typically plan their shopping weeks before the festivities.

The festive season also witnesses a surge in fraudulent activities, with Android apps experiencing a 47% year-on-year rise in fraud rates. Finance apps are most susceptible to fraud, prompting the need for stronger anti-fraud measures.

This season, consumers shift from online to offline activities, likely prioritizing family time. Meta’s insights show that messaging and video content have become key channels for consumer engagement, with creators and partnership ads playing a significant role in influencing purchasing decisions. 

“The festival season always brings a buoyancy in consumer demand and marketers look to tap into the same. With increased digital penetration and upbeat consumer sentiments this year, there is good scope for businesses to tap the right audience and unlock growth,” said Meta’s Arun Srinivas,  Director & Head of Ads Business India. 

India’s festive season offers opportunities and challenges for businesses and app marketers. Adapting to changing trends and consumer behaviors during this period can lead to success and better connections with the target audience. 

India’s gaming market is also on the rise as highlighted by a recent analysis. Projections indicate a remarkable uptick in both revenue and the gamer population. Anticipated for 2023, India’s gaming sector is on an impressive ascent, with forecasts suggesting it will achieve a substantial $868 million in revenue, representing a remarkable year-on-year increase of 21.2%.