AI Drives 1.8X App Revenue for Saudi Retailer

Saudi Retailer Boosts App Revenue with AI

The e-commerce market in the Middle East and North Africa is projected to reach $50 billion USD by 2029. Mobile apps are a major force in this region, accounting for 10% of global app traffic and revenue.

Extra, a leading consumer electronics retailer in Saudi Arabia, aimed for a 50% increase in sales during its annual “Mega Sale.” The company wanted its app to be central to this goal. Extra recognized its strong brand presence in Saudi Arabia, ranking fourth in branded search volume among top online retailers during the summer sale months. Among electronics retailers, it rose to third. Extra also had the second-strongest brand presence compared to omnichannel competitors, showing significant brand recognition. Analysis indicated Extra held a digital market share similar to competitors, capturing about 7.4% of total click volume for relevant search terms, roughly 2.2% higher than the average of its top peers.

The Challenge

While app downloads increased by 10% year-on-year, competitors captured more of the market in both new downloads and in-app purchases. This represented a significant opportunity to improve.

The Solution: A Full-Funnel Strategy

To fully realize the app’s potential and effectively compete, Extra needed to revamp its app marketing strategy to encourage both app downloads and in-app sales. The original approach primarily focused on the lower funnel, neglecting the exploration and evaluation phases of the customer journey. A full-funnel approach was essential to accelerate customer growth, guiding potential customers from initial awareness to purchase within the app.

Extra partnered with Keyade, a media agency, to implement this full-funnel strategy. This approach used AI to create a smooth path from initial interest to conversion.

AI-Powered Campaigns

For the consideration stage, Demand Gen campaigns were used. These visually appealing, multi-format ads were designed to drive demand and engagement. They communicated the sale details and sparked interest in Extra. Search campaigns ensured the brand appeared when people searched for related products, directing high-intent shoppers to the app with strong ad copy and strategic keywords. Performance Max campaigns then used AI to maximize performance across Google's advertising channels, efficiently finding new customers and boosting in-app sales.

The Results

The full-funnel strategy proved successful. Overall net revenue increased by 1.5X year-on-year during the Mega Sale. App transactions jumped by almost 1.6X, and app revenue soared by nearly 1.8X compared to the previous year’s sale.

Key Takeaway

True digital transformation in app acquisition relies on an AI-powered, full-funnel strategy. By enabling AI to connect every step of the customer journey, businesses can gain richer data, cultivate a more intelligent customer experience, and achieve better business outcomes.

The Future

The next step involves using AI to explore hyper-personalization within the app, tailoring recommendations, offers, and the interface based on individual user behavior. AI agents could also streamline in-app support and guide people through complex purchases, ensuring the app continuously maximizes value and accelerates future acquisition and revenue.