AppsFlyer Reports Decline in UA Spend Despite Mobile Growth
AppsFlyer has revealed the UAE findings of its annual State of eCommerce Mobile Marketing report. The data highlights how Chinese eCommerce apps continue to dominate user acquisition (UA) spending in one of the world's top mobile-first economies.
In the first half of 2025, Chinese apps accounted for 73% of all UA spend in the UAE. France followed with 13%, and India with 8%, driven by focused campaigns and expat-centric strategies.
The report pointed to growing competition from overseas brands. As a result, local eCommerce retailers saw their UA investments shrink. This trend reflects budget reallocations, rising pressure from international players, and market consolidation.
AppsFlyer experts noted that local brands still have growth opportunities. However, success will require clear strategies and performance-driven, localised campaigns.
Sue Azari, Industry Lead eCommerce at AppsFlyer, explained that Chinese apps have long targeted markets outside China. She said the UAE is a natural fit due to its premium audience and digital maturity. French apps are focusing on iOS users, while Indian advertisers likely see strong potential in the UAE's South Asian expat population.
AppsFlyer also reported strong growth for iOS in the UAE. While Android app installs are projected to grow 713% since 2017, iOS installs are expected to rise by 1383% over the same period. Year-on-year, iOS installs are forecast to more than double in 2025.
At the same time, iOS fraud rates dropped 63% year-on-year in H1 2025. Android's fraud rate, however, rose 234% in the same period. This indicates iOS is becoming a safer and more attractive platform for marketers, despite Android's scale.
The report also revealed a decline in overall UA spending. In H1 2025, Android UA spend fell 21% compared to the same period in 2024. iOS spend declined only 6%, showing more resilience.
Yet, the period also saw record-high remarketing investments. Q1 2025 remarketing spend tripled compared to Q1 2024
Ramadan and retail events played a major role in early-year performance
Azari encouraged marketers to align campaigns with seasonal peaks like Ramadan and build remarketing strategies to sustain engagement afterward. She also noted that declining Android UA spend may offer cost-effective inventory for savvy brands.
AppsFlyer concluded that the UAE remains a competitive market for mobile commerce. Advertisers who balance premium iOS strategies with cost-effective Android engagement and adapt budgets to seasonal trends are best positioned for success.
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