7 Things You Need to Know About The App Market In Latin America
Have you ever imagined that the mobile industry would represent between 4% and 5% of the economy of Latin America today, while in the developed world, for example the Unites States and main European countries, mobile represents only 2% of the economy? In fact, according to eMarketer, Latam is one of the world’s largest mobile markets.
There were nearly 300 million mobile users in the region at the end of 2015 and it is estimated that the this number will reach 396 million in 2016, 252 million of which will own a smartphone.
It was only several years ago when limited data connections were the main obstacle for mobile growth in Latam. However, developments in infrastructure, the emergence of 4G technology and improved access to high-speed Internet have helped propel mobile penetration in the region.
As a result, there is also a significant growth in app downloads and app usage in Latin America according to new data from Business Insider. Therefore, Latam today represents a unique opportunity for developers and marketers looking to invest in a rapidly growing market.
Here’s what you need to know about Latin America’s app market:
1) Brazil and Mexico account for most mobile app sessions in Latin America, according to eMarketer, accounting for 55% of sessions in the 12 months between June 2015 and June 2016. However, small countries like the Dominican Republic and Bolivia scored some of the highest growth in terms of session activity, at 116% and 155% increases year-over-year, respectively.
2) About 20% of time spent on mobile was devoted to sports, and nearly 20% was devoted to messaging and social.
3) It’s unlikely that developers will be able to rely on the same app monetization methods they use in developed markets because there is a lack of credit cards in the region. For this reason, publishers should look into alternative methods of monetization, such as partnering with mobile network operators to allow users to pay for their apps via their monthly phone bill, mobile coupons or subscriptions.
4) Marketing automation software is not prevalent yet. Very few companies in Latin America use marketing software today, and only 3% of marketers listed automation as their top priority for software features. Instead, these marketers are more focused on other areas, such as content creation and SEO.
5) Both the CPI and CPA pricing models became much more competitive this year compared to last year. Earlier, with considerably lower costs, marketers got good results, but today prices have risen as technologies have become more complex. But by measuring post-install events (which show users’ behavior within mobile apps), we can better understand in-app user engagement.
6) Location-based retargeting in the region enables marketers to define specific places that users often visit. This allows for segmented mobile campaigns, and as such the delivery of a personalized ad to drive better engagement. It is a totally new concept in mobile retargeting in Latam.
7) Mexico & Argentina are the two best markets to invest in. Both countries have a significant volume of consumers in addition to moderate costs that allows for good results. Brazil has the most advanced market in Latin America (halfway between Europe or the United States), but the market is more competitive with many more players leading to higher average costs. However, it is still without a doubt the country that has to be part of any strategy in Latam.
eMarketer predicts that in 2016 Latam will represent $2.34 billion in mobile ad spend. This not only demonstrates that the Latin American market is fast growing, but also that it’s far from reaching its ceiling.
Are you ready to take advantage of the great opportunity entailed by mobile marketing in Latam?