Seema Shah · October 2024
MMM: The State of Digital Shopping Apps and Advertising in Mexico and the US in 3Q24
Evolving US consumer shopping patterns have prompted advertisers to pull holiday ad spend earlier into the year to drive sales. Sensor Tower data shows that holiday-specific ad spend grew by 13% YoY in Oct'23. In Oct'24 MTD, advertisers have already spent ~$15mn on holiday campaigns. Meanwhile, in Mexico, Temu has expanded rapidly, becoming the largest shopping app by MAUs, potentially driven by its industry-leading increase in ad spend over the past nine months.
Key Takeaways:
US consumers’ shift in holiday shopping patterns (particularly shopping earlier) is reflected in broader ad spend trends, as holiday-specific ad spend was up 13% YoY in Oct’23
Per ST data, the shopping vertical accounted for 60% of holiday spend in Oct’23, up 6ppts YoY, as timely sales events such as Amazon’s Prime Deal Days and Target’s Circle Week prompted increases in advertising spend in the wider category
Overall, holiday spend remains fairly consistent in regards to its time frame and spacing, as Oct’22 and Oct’23 only accounted for 5% of holiday spend in both 4Q22 and 4Q23. Amazon was an early adopter of this preemptive holiday sales push, with its October Prime Early Access Sale in Oct'22, which accounted for 24% of total holiday spend in Oct’22
Target and Walmart quickly added their own competing holiday sales events to lure shoppers. In Oct’23, Target and Walmart accounted for 3% and 2% of holiday spend, respectively
In the wake of elevated costs and an increasing reliance on digital channels to drive sales, China-backed e-tailers have expanded their presence in Mexico considerably, which could impact the performance of localized retailers and ecommerce companies. Per ST data, in Mexico, Temu and Shein posted industry-leading MAU growth of 102% and 23% YoY in 3Q24, respectively, compared to 21%, 9%, 5% and 4% YoY for Kueski, Mercado Libre, Liverpool and Amazon, respectively
For more information, request the full report from reports@sensortower.com.
