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Brazil: An untapped mobile advertising opportunity
Introduction
Over the next few years, smartphone adoption in Brazil will soar. By 2017,
the number of smartphone users in Brazil is expected to grow by almost
50% from 49 million to 72 million.1 Many of these people will use these
smartphones to gain access to the Internet for the very first time.
In this white paper, we explore the trends we are seeing in Brazil around
app usage: which categories of mobile apps are most popular, which apps
Brazilians are using on a daily basis, and which apps are the top installed.
We also explain how the increase of smartphones in the country, along with
the growing middle class, is setting up a huge opportunity for mobile
advertisers in Brazil. The age of television and billboard ads is dead. The
new future is in mobile advertising, and there’s a $3 billion opportunity to
seize in Brazil.2
Jana’s proprietary data presented in this white paper comes from a
sampling of Brazilian mCent members for the month of June 2015. Jana’s
Android app mCent allows users to download and try apps without
incurring mobile data charges. This is made possible thanks to partnerships
with all major operators in Brazil: Claro, Oi, TIM, and Vivo.
JANA.COM 22
Table of Contents
Introduction 2
The Android market in Brazil
Brazil’s mobile landscape: A snapshot 4
Brazil’s growing love affair with Android 5
How Brazilians are using their phones
App metrics that matter 6
Top installed apps 7
Top apps by data usage 8
Top apps by DAU 9
Top used app categories in Brazil 10
Top three categories: A closer look 11
How advertisers can reach Brazilians, wherever they are
Brazil: An untapped mobile advertising opportunity 12
Conclusion 13
About Jana and mCent 14
Sources 16
2
3
Brazil’s mobile landscape: A snapshot
GROWING MIDDLE CLASS IS SPENDING MORE ON MOBILE
Number of Brazilian Brazilian spending power Android dominates Brazil
smartphone users is growing by 50% Is increasing
90%
49 72 5.3 of smartphones
sold in Brazil are
Android
million
to
million million
Brazilian households will
join the emerging middle class
#2
country by
50%
of Brazil’s
($15,000-$30,000) by 2020 downloads in smartphone users
2015 2018 Google Play use Samsung
BRAZILIANS ARE ACTIVE APP USERS UNTAPPED MOBILE ADVERTISING
OPPORTUNITY IN BRAZIL
Top app categories
The average Ad spend Screen time
87%
Brazilian Android
user uses
38% 12% 69%
of Brazilian users
18
apps daily 24%
31.4%
of Brazilian members use Shopping
apps everyday % of % of
of Brazilian users use Music & Audio
apps everyday ad spend screen
use Communication WhatsApp
apps everyday Messenger has time
32%
14%
90%
market penetration 0.5%
of Brazilian users
use News & Magazines in Brazil
of Brazilian users apps everyday TV Mobile TV Mobile
use Games
apps everyday
SOURCE: JANA; EMARKETER; BCG; INTERMODAL; MILLWARD BROWN; ZENITH OPTIMEDIA 4
Brazil’s growing love affair with Android
90% of smartphones sold in Brazil are Android, and global brands
represent a majority of the Android devices sold—Samsung,
Motorola, and LG. Samsung dominates the Brazilian smartphone
market with 50% market share—more than Motorola (21.1%) Three global mobile brands dominate
and LG (17%) combined. Smaller, local brands make up a tiny
portion of the market share individually and still only hold 11.9%
market share in Brazil
of the market combined.
In comparison, Apple leads the smartphone market in the United
States with 43.8%. But Brazilian market-leader Samsung is not
Other*
too far behind with 28.7%. LG and Motorola are also in the top LG 11.9%
four, making up a much smaller percentage of the U.S. market at 17%
8.2% and 4.9% respectively.3
In Brazil, the cost of Apple’s iPhone is double that of an Android
device. When Apple entered the Brazilian market, the iPhone 5s
sold for 2,799 reais, or $1,174,4 and has not decreased in cost Motorola
since. In comparison, the average selling price of an Android 21.1% Samsung
device in Brazil in 2013 was $521. Only a tiny portion of Brazil’s
affluent class can afford such pricey devices, making Android the 50%
preferred smartphone operating system in the country.
*Other includes Sony, Asus, Alcatel, HP, Blu, HTC, Sony Ericsson, ZTE,
Android CCE, Google, Feiteng, Karbonn, Mpman, Tablet DL, Acer, and Huawei
The average
Android user represents
90%
Analysis based on a sampling of mCent users in April 2015
in Brazil uses
18
apps everyday
of smartphones
sold in Brazil
SOURCE: JANA; EMARKETER; INTERMODAL 5
App metrics that matter
When we look into how an app or particular category is performing, we detect Daily Active Users (DAU) signify evaluation of the app, or habitual, consistent
and measure three metrics: number of installs, data usage within the app, and usage. Many developers optimize their app to increase DAU, mainly because it
daily active users (DAU) relative to other apps. measures loyalty among existing users.
Installs reflect the general awareness and consideration of an app within a Ultimately, all three of these data points measure steps in the customer
market. We evaluate market awareness by looking at the prevalence of journey toward the holy grail for app developers: transactions and positive
specific apps installed among members' phones. ROI. As competitiveness heats up in Brazil between app makers, optimizing for
each step in the customer journey—between awareness and transaction—is
Data usage measures a consumer's intent to use an app. By measuring the important for survival in the ecosystem.
bytes used within an app, we measure the next step in the customer journey:
assessment of an app through browsing, reading, or watching content.
Awareness
Installs
User discovers a new app
Consideration
User sees the potential value and downloads app
Intent
Data usage
User assesses if an app will fulfill expectations and needs
Evaluation
DAU
Habitual usage solidifies value and builds trust
Transaction
User completes a specific action
Repeated transactions
User completes multiple actions throughout lifecycle
6
Top installed apps
Utility apps help Brazilian smartphones run
more smoothly
Top apps in Brazil by installs
Among the top apps by installs in Brazil, 40% of the
apps are Utility apps. Jana categorizes Utility apps to
include Productivity, Personalization, and Tool
1 Google apps* 16 BR Apps categories from the Google Play Store.
2 YouTube 17 Motorola FM Radio In relation to income, it would take 13 hours of
minimum-wage work in order to afford a 500 MB
data plan in Brazil.5 Since the cost of mobile data is
3 WhatsApp Messenger 18 Motorola Alert so high, smartphone users need these apps to free
up memory (Clean Master), protect them against
4 Facebook 19 Motorola Assist viruses (Antivirus Booster & Cleaner), and help their
smartphones run more smoothly overall.
5 Messenger 20 Palco
6 Instagram 21 Samsung Video
Top categories
7 S Suggest 22 4shared
Entertainment
8 Dropbox 23 Clean Master
12%
Other**
9 Twitter 24 Evernote Communication 4%
12%
10 ChatON 25 Snapchat
11 Motorola Camera Media & Video
16%
Utility*
12 Motorola Gallery 40%
13 Motorola Help Social
16%
14 Antivirus Booster & Cleaner
15 Motorola Migrate
*Utility includes Personalization, Tools, and Productivity
**Other includes Google apps that span across multiple categories
Highlighted apps are Utility apps (Personalization, Tools, and Productivity) (Tools, Communication, Travel & Local, Social, Entertainment, Books & References,
Analysis based on a sampling of mCent users in June 2015 Productivity, Media & Video, Music & Audio, News & Magazines, Tools)
*Google apps (Google Play, Gmail, Maps, Google, Google+, Hangouts, Chrome Browser, and Google Drive) include pre-installed apps
JANA.COM 6
SOURCE: JANA 7
Top apps by data usage
Top apps in Brazil by data usage Top categories
1 Facebook Media &
Video Music &
2 YouTube Tools 7% Audio
13% 7%
3 Chrome Browser
4 WhatsApp Messenger Entertainment
13%
5 Snapchat
Social
27%
6 Psiphon
7 Instagram Communication
33%
8 Netflix
9 Google+
10 Google Play services
11 Messenger
12 UC Browser Social and Communications apps are most used among all categories
When measured by data usage, Social and Communication apps are the most used apps in
13 Palco the list of the top 15. When combined, Social and Communication apps have almost 2x
more data usage than any of the other four categories combined.
14 Google
Just because an app consumes a lot of data, it may not necessarily mean that users are
15 4shared spending a lot of time using the app. Video and music streaming apps, like #2 YouTube and
#13 Palco, use up a lot of data to run on a device and can make ranking the list by data
usage a bit tricky. However, #1 Facebook has twice the amount of data usage as YouTube,
Analysis based on a sampling of mCent users in June 2015 despite using a lot less data to run. Its high data usage indicates that users are spending
more time using the social networking app.
SOURCE: JANA 8
Top apps by DAU
Top apps in Brazil by DAU
1 Google Play services Facebook’s apps get the most daily activity
2 WhatsApp Messenger Overall, Google apps make up a majority of the top 15 apps when
measured by daily active users. But among the top five apps
measured by daily active users, Facebook-owned apps dominate.
3 Facebook Facebook, WhatsApp Messenger, and Facebook Messenger
have almost 1.5x more daily active users combined than Google
4 Google and Google Play combined.
5 Messenger Facebook’s popular WhatsApp Messenger has the most activity
of any messaging app on the list. It has twice the amount of
activity than Google’s only messaging app in the list (Hangouts).
6 YouTube
7 Google+
8 Chrome Browser
9 Hangouts
10 Gmail
11 Instagram
12 Google Maps
WhatsApp Messenger has
90%
13 Twitter
market penetration
14 Google Drive
in Brazil
15 Google Play Music
Highlighted apps are Facebook-owned apps
Analysis based on a sampling of mCent users in June 2015
SOURCE: JANA 9
Top used app categories in Brazil
14%
38% of Brazilian users
87%
use News & Magazines
apps everyday
of Brazilian users
use Music & Audio
32% 12%
apps everyday
of Brazilian users of Brazilian users
of Brazilian users
use Games use Shopping
use Communication
apps everyday apps everyday
apps everyday
Smartphone users in Brazil
use an average of
4
Communication
2
Music & Audio
2
Games
apps everyday apps everyday apps everyday
SOURCE: JANA 10Top three categories: Communication
Top Communication
A closer look Facebook-owned WhatsApp
Messenger has almost 2x more
apps by DAU
daily active users than Google’s 1 WhatsApp Messenger
Hangouts app.
Among all app categories, Communication, Music & Audio, and Games 2 Messenger
are the three categories with the most activity. We took a closer look at After the top five used 3 Chrome Browser
each category. Communication apps, the number
of daily active users for each app 4 Hangouts
drops off significantly—#5 Gmail 5 Gmail
has 4x more daily active users than
#7 imo. 6 imo
7 Skype
Only two browsers make the top
10, but one is more-used than the 8 UC Browser
other. Chrome has 7x more daily 9 AntiVirus Security
activity than UC Browser.
10 Wasabee
Music & Audio Games
Top Music & Audio Top Games
Of the top 10 used apps 77% have a mobile game
measured by daily active apps by DAU installed on their smartphones, apps by DAU
users, one-third are local to each with an average of five
Brazil. 1 Google Play Music games total. 1 Pipa Combate
2 Palco 2 Clash of Clans
Localized content attracts Freemium apps dominate
more listeners—Palco has 1.4x 3 Letras mobile games in Brazil—all top 3 Zombie Tsunami
more daily active users than 10 used games are free to
4 Music Player 4 My Talking Angela
the non-localized apps in the download and feature in-app
top 10 combined, excluding 5 SoundCloud purchases. 5 Subway Surfers
Google Play Music.
6 Sony Music 6 Pou
Casual games are the most
Music streaming apps are the 7 Vagalume used category, making up 40% 7 8 Ball Pool
most used—seven of the top of the top 10. These games
8 Shazam 8 Candy Crush Soda Saga
10 used music apps in Brazil have more daily users than the
stream music, rather than 9 Spotify Music Arcade and Sports games in 9 Farm Heroes Saga
simply store it. the list combined.
10 4shared Music 10 aa
SOURCE: JANA 11Brazil: An untapped mobile advertising opportunity
Ad spend Screen time
69%
31.4%
24%
% of % of
ad spend screen
time
0.5%
TV Mobile TV Mobile
For the last 15 years, Brazil’s economy has enjoyed stable growth, and the average household income in Brazil has increased.6 The increase in income is leading to a
high rate of families moving from one socioeconomic class to another, especially into the emerging middle and affluent social classes.
By 2020, 5.3 million households will move from the restricted to the emerging middle class ($15,000 to $30,000 per year) in Brazil. Emerging, established ($30,000
to $45,000 per year), and affluent (+$45,000 per year) households will account for more than 85% of incremental spending from 2010 to 2020.7 As Brazilians move
from one income level to the next, what they are choosing to purchase is changing, including their spending on mobile devices. Once someone’s income surpasses
$15,000 a year, their spending on postpaid mobile plans increases.8
With more and more Brazilians getting their hands on smartphones, the opportunity for advertisers to reach them through mobile advertising is growing. However,
traditional advertising models like television ads currently make up a vast majority of the ad spend in Brazil. Ad spend on television outpaces spending on mobile
advertising by 68.5%. Yet, the percentage of screen time users spend on mobile devices exceeds television screen time by 7.4%. In the next three years, 72 million
Brazilians will own a smartphone.9 There is a huge opportunity for advertisers to reach these users through mobile advertisements in Brazil.
SOURCE: MILLWARD BROWN; ZENITH OPTIMEDIA 12Key findings
Android dominant OS in Brazil: 90% of Upward mobility: 5.3 million Brazilian
smartphones sold are Android, and the households will be among the emerging
country is #2 by downloads in Google middle class by 2020
Play
The advertising opportunity lies in
Music streaming apps get more daily mobile: TV ad spend exceeds ad spend on
active users than music storage apps mobile, yet mobile users are spending
”
more screen time on their devices than
Casual games are most popular; they watching TV
draw in more daily active users than any
other game category
Facebook beats Google in messaging:
WhatsApp Messenger has 2x more daily
active users than Google Hangouts
13About Jana and mCent
Who is Jana and what is mCent?
75% of Brazilian mobile subscribers are on pay as you go mobile
plans. The high cost of data prevents many users from discovering,
downloading, and using apps that could enrich their lives.
Jana enables free apps to be truly free in Brazil and other emerging
markets. Through Jana's mCent app, our members discover and try
a world of new apps without incurring any data charges. Thanks to
our partnerships with 311 mobile operators, Jana can reach millions
of smartphone users in Brazil and around the world.
To date, Jana has driven
67,861,106 MB
of app usage for our clients in Brazil.
14Our mission is to make the Internet
free for the next billion
Join the world’s most transformative brands
https://jana.com/contact
15Sources
(2014, December 11). 2 Billion Consumers Worldwide to Get
1, 9
Smart(phones) by 2016. Retrieved from http://www.emarket-
er.com
Cheng, S., Abida, R., & Cunha, O. (2013, July 4). Redefining
2, 6, 7, 8
Brazil's Emerging Middle Class. Retrieved from
https://www.bcgperspectives.com
3
(2015, July 2). comScore Reports May 2015 U.S. Smartphone
Subscriber Market Share. Retrieved from http://www.com-
score.com
4
(2014, February 14). Apple to Sell IPhone at Costliest $1,174
in Brazilian Debut. Retrieved from http://www.bloomberg.com
5
Data from Jana, ITU, International Labor Organization
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