Just about 3 years ago, if one were to write about the mobile space in Latin America, particularly Brazil, they would have found the scenario to be much different than what it is now.
While on a global level the mobile ad tech industry was already thirsty for more and better performance, as well as for new ways of increasing their revenues from their apps, Brazil was still taking its first steps into mobile.
In a short span from there on, Brazil has emerged as one of the top growing countries in mobile in the LatAm region. The growth of the mobile market has been fast rising, having surpassed the U.S. in number of downloads on the Google PlayStore in Q2 2017. This puts the region in the spotlight for mobile advertisers looking to ramp up their UA efforts in a new market as well as for those advertisers looking to expand in new regions.
Many factors have been responsible for this growth: infrastructure, consumer behavior, the government and companies in mobile — the positive trend is here to stay. If we lay down the most important statistics and trends from the last year, we are already so excited about how we can expect the region to pan out by the end of this year!
We looked at the top three trends to help our readers get a better feel of why is it worth considering this region for your mobile app strategy!
Growth in Mobile Usage
Up until 2015, the mobile infrastructure was one of the biggest barriers to growth. Not only were the devices expensive, but network coverage, too, was minimal.
With the rise of moderately-priced and more accessible smartphones, it became possible to have one or more apps to communicate and to socialise, or to play games, enabling a part of the population that was still excluded from the digital era to take shape.
Increase in Mobile Ad Spending
With the growth in mobile usage and improved network coverage, 3G and 4G are now common in the country. This has equipped the average Brazilian to now increasingly use internet payments, thus getting comfortable in paying online on mobile.
Talking, sharing, browsing, playing and buying on their phones has become a habit for Brazilian users, who, driven by the conditions mentioned above (as well as the natural taste for socializing and interacting), are now more comfortable on mobile. And app advertisers are getting the message. According to a latest eMarketer report, this year for the first time mobile is expected to account for more than half of Latin America's digital market, totalling $5.29 billion.
Continued Boost in Mobile Gaming
According to a report from Statista, the revenue in the Brazilian mobile games segment is expected to amount to $307 million in 2018 and show an annual growth rate of 6%. At about 110 million gamers Latin America ranks at the fourth spot in the number of mobile players, behind China, Europe, and North America. It is not surprising, then, to find that mobile gaming is one of the most popular app categories for users, opening up a plethora of opportunities for advertisers, too.
Wrapping It Up
To sum it up,
- Brazilian users are hungry for technology and it's more visible in the mobile field. Besides the size of the mobile users base, more sophisticated devices are accessible, so the spend on mobile content is naturally growing as well.
- In the last years, traditional brands have become more mobile-oriented and marketers discovered how to manage app business KPI's. They found that in mobile they have more metrics and tools to reach their target audiences and convert them in very valuable customers.
- Brazil is a really important market for game companies due to the size of the gaming population and the engagement level of Brazilian gamers. Brazilians are very open to try new tech-related products and services, mainly those related to entertainment. That's why mobile games developers invest a lot in customization of their products.
The current state of the mobile LatAm market shows an upward growth and it will be interesting to see how the market evolves as we near the end of the year. For mobile advertisers, emerging mobile markets present exciting opportunities, but it is important to take the next steps in market expansion carefully. It is crucial to localize apps while taking into account cultural differences, languages, currencies and even state legislation. Consider the large and dynamic population that makes up this region and takes your next step into this booming market.
Eager to learn more about LatAm? Check out our infographic for a peek into this region and more interesting insights!