Brazil: An App Advertisers Dream? (3)
App Superpower Brazil continued its impressive download growth and became in 2014 the #2 country by Google Play downloads.
Top Countries by Google Play 2014 Downloads (source: Appannie.com):
#1 – USA
#2 – Brazil
#3 – India
With a smartphone penetration of 29%, it basically means that close to 60 million Brazilians have a smartphone. With a surge in mobile internet connections, 3 out of 4 Brazilians use their smartphones daily. This phenomenon was fueled by the World Cup in 2014 and will continue to gain momentum with the Summer Olympics in 2016 (thanks to Guy Goldberg from Affilaxe for his comment!)
Brazil also has a massive Facebook user base:
Top Countries by Facebook Users
#1: USA 150 Million
#2: India 108 Million
#3: Brazil 71 Million
Cost Per Install (CPI) + 100% in 2 Years
Higher advertising costs in that country is a testament to its attractiveness.
In 2013, the average cost per install (CPI) was at $0.51 with a clickthrough rate (CTR) of 0.21% (Source: Salesforce).
Today, the CPI has doubled to $1.00 on average. For gaming, e-commerce and travel niches, it’s much higher while for utilities, launchers and other light apps, it’s lower.
Of course, an increasing CPI in a huge market such as Brazil can become a business nightmare. Only app developers with a profitable and sustainable business plan can prevail. In fact, one of the most important factors for these app developers is the lifetime value (LTV) of a customer.
According to VentureBeat, 66% of app developers have sub-$10 LTV while 17% have $0 LTV. Raising the app advertising prices will leave winners with an LTV of at least $20 per customer. They can afford to pay higher app advertising costs. They are able to offer affiliates the highest affiliate fees and it would not matter if it is based on CPI or revenue sharing.
Knowing Your Core Users
Understanding who your core users are on mobile is crucial for any advertiser aiming for success in 2015 and beyond.
Let’s take the super successful app developer Sing! Karaoke app by Smule. Their highest CTR ad running in Brazil uses an age targeting that can only be a result after extensive (and expensive) split testing. If you compete in the same space, this insight alone can save a lot of time and money.
The corresponding ad creative transmits the message fast:
If you know your target, Brazil is still a wide open field with lots of opportunities.
Top Countries by Google Play 2014 Downloads (source: Appannie.com):
#1 – USA
#2 – Brazil
#3 – India
With a smartphone penetration of 29%, it basically means that close to 60 million Brazilians have a smartphone. With a surge in mobile internet connections, 3 out of 4 Brazilians use their smartphones daily. This phenomenon was fueled by the World Cup in 2014 and will continue to gain momentum with the Summer Olympics in 2016 (thanks to Guy Goldberg from Affilaxe for his comment!)
Brazil also has a massive Facebook user base:
Top Countries by Facebook Users
#1: USA 150 Million
#2: India 108 Million
#3: Brazil 71 Million
Cost Per Install (CPI) + 100% in 2 Years
Higher advertising costs in that country is a testament to its attractiveness.
In 2013, the average cost per install (CPI) was at $0.51 with a clickthrough rate (CTR) of 0.21% (Source: Salesforce).
Today, the CPI has doubled to $1.00 on average. For gaming, e-commerce and travel niches, it’s much higher while for utilities, launchers and other light apps, it’s lower.
Of course, an increasing CPI in a huge market such as Brazil can become a business nightmare. Only app developers with a profitable and sustainable business plan can prevail. In fact, one of the most important factors for these app developers is the lifetime value (LTV) of a customer.
According to VentureBeat, 66% of app developers have sub-$10 LTV while 17% have $0 LTV. Raising the app advertising prices will leave winners with an LTV of at least $20 per customer. They can afford to pay higher app advertising costs. They are able to offer affiliates the highest affiliate fees and it would not matter if it is based on CPI or revenue sharing.
Knowing Your Core Users
Understanding who your core users are on mobile is crucial for any advertiser aiming for success in 2015 and beyond.
Let’s take the super successful app developer Sing! Karaoke app by Smule. Their highest CTR ad running in Brazil uses an age targeting that can only be a result after extensive (and expensive) split testing. If you compete in the same space, this insight alone can save a lot of time and money.
The corresponding ad creative transmits the message fast:
If you know your target, Brazil is still a wide open field with lots of opportunities.
Thank you Franco!
Brazil definitely is a great place for Mobile offers.
Thanks man. Love your case studies. Never promoted app installs on FB though. Guess it's time to jump in 
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