Ad Executive, Felipe Julião states that, driven by Ads, the company’s expectation is to close 2024 with revenue ten times greater than that of 2023
PicPay announced, in March, its entry into the media market, which, according to the company, raises expectations of multiplying by ten the revenue obtained last year.
Furthermore, the launch positioned the company to serve an addressable market worth US$8 billion in Brazil alone in 2022. More than 80% of this investment in media is directed to mobile, a segment in which PicPay has a strong presence, with its most 36 million active customers.
Over the next three years — until 2027 — this sector is expected to grow by approximately 60%, according to market research company Insider Intelligence.
Felipe Julião, Ads executive at PicPay, states that the trend is for more and more players in the financial sector to enter the so-called fourth wave of digital advertising, Financial Media.
“At the same time, advertisers will realize the value of this data and increase investments in Financial Media, diversifying their communication channels and the media mix of their campaigns, a latent need for advertisers and agencies today”, he explained.
Fourth wave of advertising
The fourth wave of digital advertising marks a moment in the market when financial players – who hold countless and valuable proprietary customer data (first party data) – begin to offer media and digital advertising solutions within their platforms, in a broad way. and structured for advertisers. Since the emergence of the internet, we have observed three waves: the first of Search, the second of Social and the third of Retail Media. Now, we see the beginning of the Financial Media wave, at a time when people’s financial lives are increasingly digital and the market is looking for ways to find more data and increase the ability to segment and cross-reference this information. With the end of cookies, it has become increasingly difficult for advertisers to leverage third-party data and campaigns have become more complex. The trend is for more and more players in the financial sector to enter this market, leveraging the data they have on users, based on financial transactions and their behavior within their ecosystems. At the same time, advertisers will realize the value of this data and increase investments in Financial Media, diversifying their communication channels and the media mix of their campaigns, a latent need for advertisers and agencies today.
Market reaction
PicPay was a pioneer in this movement. We announced the launch of the Ads business unit in March this year, but we had already been working since the third quarter of 2023. Since then, we have recorded very positive results with clients. Out there, JPMorgan, Revolut and PayPal have already announced their entries. Here, we know that some players in the sector are working to enter this market as well, while others have started to evaluate a move in this direction. On the other hand, with our experience, it is possible to notice a market of advertisers very interested in this new possibility, which already has a lot of potential due to the wide reach of the platforms.
Integrated system
Our tools that serve advertising, both display and CRM, are fully integrated with PicPay systems and databases. This way, we can track all consumer engagement with the campaign, generating interesting insights for advertisers, such as profiles that are engaging and relating more with brands. On the other hand, we have the ability to detect which categories and products generate the most interest for our users and learn from that.
Growth
Our forecast is for tenfold growth by the end of 2024 and maintaining an accelerated pace in the coming years.
First-party data
PicPay has a very rich database of the financial lives of the ecosystem’s 36 million active users, with all records of transactions, product contracts and other transactions. Furthermore, information provided by users through Open Finance is also used, with financial history data with other institutions. More important than having this valuable data is being able to organize and apply this in-depth knowledge about the user to their journey within our app in a native and integrated way. Therefore, we have a Data team responsible for curating and segmenting our first party data, making it available in a structured way on our advertising platforms. Everything so that our advertisers can mix and match variables and arrive at robust, specific and accurate segmentations for the audience they are seeking in their campaigns.
Partnership with Google
Advertisers using PicPay Ads have the option of running campaigns directly with us or using the Google network to deliver their campaigns to our inventory. This is beneficial because through a unique network, which advertisers already use for their other campaigns, they can explore PicPay’s financial ecosystem as a new channel. With centralized metrics and results, advertisers can plan, control and optimize the campaign in a unified way, even taking advantage of the proprietary segmentations they already have. Lastly, advertisers and agencies can take advantage of the budget already allocated to this platform. This partnership is interesting because it puts us together with one of the largest digital advertising players in the world, increasing the addressable market for PicPay.
Addressable
The addressable market for PicPay, for Digital Ads, which closed the year 2023 with R$7.6 billion in investments, could reach R$12 billion in 2027, according to Insider Intelligence. Of this total, the mobile segment already represents more than 80%, but should reach 85% in the next four years.
