Driven by high penetration of smartphones and an active and diversified application market, Brazil is establishing itself on the international mobile scene. In 2023, spending by Brazilian users on mobile applications reached US$1.7 billion, reflecting an increase of 26.2% compared to the previous period and placing the country in 11th place globally in this regard.
In terms of revenue, apps generated US$4.5 billion in Brazil last year, with emphasis on the entertainment category (13.4% of this amount) which grew around 7% compared to 2022, and e-commerce (13.11%), which increased by 13.2% compared to the previous period. The newly consolidated data comes from Rocket Lab’s ‘Mobile Analysis 2024’, in partnership with Statista.
The mobile app growth adtech report, focused on comprehensive solutions for acquiring and retaining users in apps, also reveals that Brazil remained in 4th place in the number of app downloads, with 10.2 billion in 2023 versus 10 billion in previous period, globally, there were 257 billion applications downloaded last year. Regarding categories, entertainment also stood out, with 830 million downloads, followed by fintechs, with 429.3 million.
Cell phone connections totaled 221 million in the country, surpassing the Brazilian population of 215.3 million recorded by the 2022 Census, and an impressive 97.1% of the Brazilian population accesses the internet via cell phone, versus 97.6% of the global average, dedicating 5.02 hours a day to it, compared to 5 hours for the global average, reports ‘Análise Mobile 2024’.
“Even in the face of a slow resumption of growth in the Brazilian economy, the mobile application industry showed positive signs in 2023. The data brought by the report prove that users are spending more on applications, reflecting the strengthening of confidence among Brazilian consumers in this channel, as well as companies that are investing more in digital advertising on mobile”, explains Bruno Ferreira, head of Sales at Rocket Lab in Brazil.
Global investments in this type of advertising reached US$362 billion in 2023, an increase of 7.5% compared to the previous year, and are transforming users’ experience with brands in the mobile scenario, the report points out.
“Although marketing budget cuts may seem like a quick fix, companies that make investments in mobile advertising as an ongoing practice and constant learning are more likely to recover. After all, applications play an important role in expanding the reach and participation of brands in the market, as well as in gaining knowledge and strengthening relationships with audiences. Retargeting, for example, can be an effective strategy to retain users and increase the monetization of this type of channel”, points out Ferreira.
According to the executive, there is a need for rapid innovation and highly efficient marketing strategies in optimizing mobile campaigns, such as growth hacking. The global evolution of technologies, such as 5G, virtual reality (VR) and artificial intelligence, also affects the country, potentially boosting user engagement in apps and offering new insights and opportunities for advertisers.
“Another trend that needs to be monitored closely is the global expansion of iOS. Although the smartphone market is still dominated by Android compared to iOS, other research has shown greater spending by iOS users on apps. Furthermore, 2023 was the first year, after 13 years, in which Apple sold more cell phones than Samsung, and all of this has confirmed that investments in media on iOS have been growing compared to previous years”, he notes the head of Sales.
While Brazil follows many global trends, its high mobile penetration, user engagement, explosive growth in downloads and user spending highlight its unique and vibrant market. For Rocket Lab’s head of Sales in the country, the expectation for 2024 is a continued focus on personalization, technological innovation and marketing efficiency, with an even greater range of opportunities for brands and developers who can navigate this increasingly dynamic scenario. .
“The Brazilian application market should experience great expansion in the coming years. Such growth is driven by several factors, such as smartphone penetration, increased internet access and users’ inclination to choose digital services. The market is also stimulated by advances in technology in mobile applications and the expansion of the variety of apps available, which has also led to an increase in competitiveness. It is also important to highlight the Brazilian startup ecosystem, which plays a significant role in the development and innovation of applications”, says Ferreira.
For him, following trends and counting on a good partner and correct mobile marketing strategies, it is possible for brands to stand out even more in the market.
“In a highly competitive scenario, investing in media partners that guarantee an intelligent strategy and reach complementary quality traffic sources is essential to boost app installs, engagement and profitability. It is also necessary to combine different campaigns to boost results, not focusing on just one type of campaign with a single cost model, generally fixed CPA, and expanding coverage to all stages of the funnel. Finally, it is more than recommended to use and abuse retargeting to guarantee the retention of a user that is increasingly sought after by brands”, concludes the executive.
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