Sneak Peek: Apple ASA is coming to Brazil and Latin America, bringing new opportunities for nuggets of customer acquisition!

2024-02-23 15:36:00

Shortly after the start of the year, Apple officially released the latest news:

Apple Search Ads is coming to Brazil and more Latin American markets. You will soon have the opportunity to promote your apps in one of the largest markets in the world, Brazil, plus Bolivia Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Panama and Paraguay.

Image source: Apple's official website

The App Store, as a worldwide representative of a channel with high-quality traffic and excellent user experience, attracts 650 million user visits every week.

ASA (App Store Ads), on the other hand, helps developers and brand owners achieve more effective user acquisition and brand exposure by displaying ads in the App Store. Since the launch of ASA, it has helped developers gain a large number of quality users in more than 60 countries/regions around the world.

According to statistics, 70% of App Store users discover new apps through search, and nearly 65% of app downloads occur after users perform a search. In addition, search result ads have an average conversion rate of 60%. As a result, ASAs are a great way to reach a wider audience on the App Store.

01

Latin America Market Basics

When “Latin America” is mentioned, some people wonder: what is “Latin America”? Some people sigh: this place is too far away from me. Some comment: it is full of magic realism. And some people are already making a fortune and enjoying life in Latin America.

Latin America refers to all the countries and regions in the southern part of the Americas, including 33 countries and some non-independent regions. Of the population of Latin America and the Caribbean, Mexico, Central America and the Caribbean total 174.6 million, while the South American continent has a total population of 324.9 million.

Among the individual countries in LAC, the most populous is Brazil, with 165.2 million as of 1998, the fifth most populous country in the world after China, India, the United States, and Indonesia. Currently, the total population of Latin America reaches 651 million.

In the last decade, LAC has seen rapid growth in Internet technology and has become one of the fastest growing Internet populations in the world. in 2010, the number of Internet users in LAC was only 200 million. By 2021, this number had grown to 498 million and is expected to exceed 500 million.

In the last decade, the number of Internet users in Latin America has grown 1.5 times. Considering the level of development in the region, this is a very impressive growth rate.

As of 2021, Latin America's overall Internet penetration (the percentage of Internet users per 100 people) will reach 76%, with fixed broadband penetration at 16.7% and mobile Internet penetration at 108%.

The number of Internet users and Internet penetration rate in Latin America are both very high, and the mobile application market is developing at a fast pace with great potential. Public data shows that Latin America is one of the fastest growing app markets in the world.

In 2022 alone, the number of app downloads in two countries, Brazil and Mexico, will exceed 16 billion. In-app spending in these two markets has also increased by 20% over the previous year, reaching $113.4 billion and $71.1 billion, respectively.

More than 60% of Latin Americans say they use apps more frequently now than they did two years ago. One report shows that Latin American users spend 18 times more time in apps compared to websites.

The Internet and mobile application markets in Latin America are developing rapidly, providing vast opportunities and potential for domestic enterprises and products to operate overseas.

02

Performance of Different Types of APPs in Latin American Market

1. Games

Photo credit: ADJUST Report

According to the latest data, mobile gaming apps in Latin America experienced strong growth during the New Crown outbreak, but as the outbreak subsided, installs and sessions began to decline.

Happily, however, this trend was reversed in October 2022 and peaked in January 2023 before leveling off. By July 2023, installations had increased by 22% and conversations had risen by 11% compared to the October 2022 trough.

On a country level, Chile led the way in terms of installation growth in the first half of 2023, with a 35% lift from the second half of 2022. Latin America as a whole saw a 7% increase in both sessions and installations. Mexico saw a 14% increase in installations, followed by Argentina (9%) and Colombia (8%), respectively.

It is worth noting that while the Chilean market is experiencing rapid growth in installs, session growth is relatively mediocre, suggesting that finding the balance between user acquisition, re-interaction, and user retention is critical.

2. Fintech

Photo credit: ADJUST Report

According to the data, fintech apps in the Latin American market maintained steady growth in terms of both installations and sessions in 2022, but saw a significant boost in 2023.

There are multiple reasons behind this growth, including healthy stock markets, a localized rebound in cryptocurrencies, and increased market interest in digital payments and banking services.

It is important to note that session volume has a very pronounced up and down curve, and the decline always occurs at the end of the month.

However, the year-to-date performance in 2023 has been quite impressive, especially in terms of installations, which have grown by a whopping 46% year-on-year. Brazil has seen the highest growth in installations in the first half of 2023 compared to the second half of 2022, at 45%. Argentina saw the fastest growth in sessions, with a 20% increase, matched by a 20% increase in installations. Mexico had the second highest increase in installations at 19%, while Chile and Colombia remained stable at 2% and 1% respectively. It is worth noting that Chile saw a slight uptick in sessions, with an 8% increase. In addition, Brazil saw a 14% increase in sessions, in addition to a significant increase in installations.

Overall, the Latin American market for FinTech apps has seen impressive growth in 2023, especially in terms of installations.

3. E-commerce