As 2024 progresses, the global cost of living crisis continues to reshape consumer behavior. Rising prices across essential goods and services—from food to housing and healthcare—are putting greater strain on household budgets. App marketers and advertisers are uniquely positioned to provide support during this period of economic uncertainty. As consumers shift to more cautious spending habits, there is an opportunity to offer meaningful solutions, such as targeted promotions, flexible payment options, and personalized, technology-driven experiences that directly address people’s financial concerns.
The intensity of the crisis varies by region but is having a widespread impact globally. In Southeast Asia, rising costs of everyday necessities have significantly affected household spending, with data from August 2024 showing a year-on-year increase of over 15% in basic food items. In Latin America, the surge in energy and utility costs continues to place immense pressure on household finances, with electricity prices in Brazil and Argentina rising sharply. Meanwhile, in India, rapid urbanization has driven housing costs to unprecedented levels, making affordable housing increasingly difficult to secure, especially in major cities.
Europe and North America are also grappling with inflationary pressures, where increases in energy prices and rent have become major concerns. Inflation rates across key Eurozone markets, including Germany and France, remain high, while North American consumers are facing a broad rise in the cost of living, prompting them to search for more affordable alternatives in everyday spending.
As consumers adapt to these changes, they are actively seeking value-driven offers and affordable alternatives. App marketers play a critical role in helping users manage this economic landscape by offering timely, personalized solutions that address their financial needs.
Driving Engagement Through Discounts, Shoppertainment, and Personalization
As consumers face tighter budgets, they are increasingly turning to discounts and promotions to maximize their spending. For app marketers, this shift offers a valuable opportunity to build stronger connections by providing meaningful savings through their platforms. E-commerce giants like Shopee have maintained their popularity in Southeast Asia by consistently offering attractive deals on essential goods, which are seamlessly integrated into the shopping experience. These savings have been instrumental in helping Shopee retain users and boost engagement, highlighting the effectiveness of discounts during economically challenging times.
In addition to offering deals, Shopee has embraced Southeast Asia’s growing trend of “shoppertainment,” which combines commerce with entertainment. This strategy leverages livestreams and short-form video content, where celebrities and influencers promote products in real time. As consumers increasingly seek both value and engaging experiences amid the cost of living crisis, this combination has proven to be highly effective. By involving local artists and influencers, Shopee has created a dynamic shopping environment that encourages users to explore new products and take advantage of exclusive offers.
The appeal of combining commerce and entertainment has significantly boosted user engagement for Shopee, as the platform offers an experience that blends affordability with entertainment. Similarly, TikTok has emerged as a key player in this space with its “TikTok Shop,” which saw its share of the Southeast Asian e-commerce market grow from 2% to 7% in 2024. Through influencer-driven, interactive shopping experiences, TikTok is reshaping how consumers shop online.
As the competition intensifies between giants like Shopee, Lazada, and TikTok Shop, these platforms are focusing heavily on personalized promotions powered by AI-driven insights. Personalization has become central to enhancing user experiences, ensuring that deals align with individual preferences. This mix of entertainment, affordability, and personalization has been crucial for e-commerce platforms in driving customer engagement and loyalty.
Users Embracing Buy-Now, Pay-Later Options
As financial strain pushes consumers to seek more flexible payment solutions, buy-now, pay-later (BNPL) services have surged in popularity across various sectors. E-commerce platforms are increasingly adopting BNPL options, allowing consumers to make purchases without the burden of immediate full payment. Research shows that BNPL services have significantly boosted average order values, with customers feeling more comfortable making larger purchases when offered flexible payment plans. This trend has gained traction particularly among younger consumers, who are increasingly using BNPL as an alternative to traditional credit.
Travel apps and e-commerce platforms have also capitalized on this trend, offering BNPL services to make high-end purchases, such as travel bookings and electronics, more accessible. During times of economic uncertainty, providing payment flexibility has proven effective in enhancing user retention and attracting new customers. By focusing on affordability and convenience, app marketers and advertisers can align their campaigns with the financial realities that many consumers face today.
Connecting with Users on an Emotional Level
Beyond discounts and payment options, app marketers must also address the emotional challenges consumers face. As economic pressures increase, so do stress levels, leading many users to seek out brands that understand and empathize with their situation. Apps in wellness, education, and family services have responded by offering discounts, free trials, or additional resources aimed at improving users’ emotional well-being. These initiatives have resonated with users, who appreciate brands that prioritize support and resilience during tough times.
Incorporating empathetic messaging and support into app marketing strategies fosters trust and loyalty, making users feel valued not just as customers but as individuals navigating difficult circumstances. This deeper emotional connection can be a game-changer for apps in sectors where emotional well-being is integral to user experience, helping to drive engagement and retention.
Appnext’s Discovery Technology: Personalizing Engagement for Cost-Conscious Consumers
As the cost of living crisis continues to impact consumers globally, Appnext’s discovery solutions have become indispensable tools for marketers. By delivering hyper-personalized recommendations that align with individual spending habits, demographics, and geographic locations, Appnext helps marketers connect directly with users in ways that feel relevant and timely. These recommendations are delivered seamlessly, integrated into the daily mobile journey without disruption, making them appear as a natural extension of the device and providing users with the content they need at just the right moment.
Appnext plays a crucial role in offering cost-conscious consumers tailored solutions during this time of financial strain. Its strategic partnerships with major OEMs, such as Samsung and Xiaomi, allow Appnext to integrate smoothly into the mobile experience, ensuring that personalized content—whether discounts, offers, or recommendations—reaches users without interrupting their flow. This unobtrusive integration presents users with the most relevant deals when they are needed, helping consumers make smarter financial decisions.
By focusing on users’ needs during the cost of living crisis, Appnext equips advertisers to deliver real value to their customers. In a challenging market, this ability to respond to customer needs ensures apps remain competitive, drive engagement, and enjoy long-term user loyalty.
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