In this blogpost we share some insights and key points to consider to grow your app and ultimately your business.
54% of Latin Americans use more apps after the pandemic and spend 18 times more time on them, when they shopping, than on a website.
The potential of Latin America is immense. Coupled with untapped customer supply, the region is increasingly emerging as an ideal investment location.
LATAM has a wide range of new and fragmented markets, so apps wishing to participate in this region will need a deep knowledge and understanding of the required solutions and operational challenges.
Let's start with the basics. Whether you're launching an app or switching web traffic to your app, there are ways to encourage users to download your app. To achieve this, it is important that users perceive the value of their purchase, and that your product achieves the product market fit. In a few words, your app has to solve a specific problem for users, it has to be useful and valued by them.
40% of LATAM users uninstall the app after 30 days.
Competitors are just a click away, and in an era where great experiences are not the norm, many apps spend marketing budgets to attract customers, but most manage to frustrate customers with poorly designed experiences. That's why it's important to make sure your app provides a good user experience.
What is not measured is rarely improved. Therefore, measurement is key to evaluating the performance of an app. It's true that reaching new users is the first step in growing your app, but it's also important to look at the right metrics to understand what happens after the first install.
In your strategy, among other basic data, you need to know how many users downloaded it, how many users carried out actions and what the conversion rate is.
Apps have become an important resource in people's lives and, at a time when the demand for greater privacy by users is transforming the digital ecosystem, having your own data is essential for the success of your brand. Interacting with consumers through the app will allow you to quickly collect data and spot trends.
There are a variety of metrics that can effectively analyze the strengths and weaknesses of in-app advertising, as well as its overall performance.
This includes CTR (click-through rate), which is the percentage and number of users who clicked on a particular link (in this case, an in-app ad). Another simple and useful metric is the cost per lead generated. It's just a matter of dividing the investment in a particular ad by the number of leads directed at marketing and sales.
Deep links allow you to place links that direct users to specific locations within your app, making it easy for them to find what they're looking for. It not only makes life easier for users, but also improves the performance of ads. On average, these types of campaigns generate double the conversion rate in LATAM.
You can also use data-driven attribution to see which of your active ads are converting.
Latin America surpassed 1.3 billion mobile app downloads in the first quarter of 2021 on both iOS and Google Play, according to data from AppsFlyer. Compared to the United States, the report noted that "Mexico and Spanish-speaking countries in Latin America outperformed the download market, showing strong year-over-year growth."
This definitely shows the potential of advertising in apps, especially in games, social networks and messaging applications. The first is the most popular. Second and third place are due to the largest number of active users (Facebook is the leader in LATAM, followed by WhatsApp).
Brazil, Argentina, Mexico, Chile and Colombia are the markets where the TikTok app, which has gained a lot of momentum recently, ranks first in terms of downloads.
Latin America has 20 countries and 13 dependencies, making it one of the most diverse regions in the world. The languages spoken in most of these countries are Spanish and Portuguese, but there is even more diversity as there are both English and Dutch speaking regions. These are the basics you should know when preparing your project before delving into these specific areas.
Language is just one aspect of localization.
Another is the locals' favorite sports, leagues, and competitions. Latin Americans are big soccer fans.
Payment statistics in Latin America vary greatly by country and region. For example, in Brazil, unlike those living in the south, most adults in the north do not have access to financial services such as debit cards, credit cards, or even bank accounts.
Latam may not have the same market access as other countries like the US and Europe. National financial institutions, payment networks and fintech companies are therefore more popular than international ones.
Consumers are getting used to digital wallets and contactless mobile payments, even though the region remains largely unbanked and cash transactions remain predominant. Several Latin American countries are developing, adapting and innovating alternative payment methods for citizens without access to financial services. As a result, fintechs, banks, and even governments are increasingly adopting digital payments to enhance the financial inclusion inherent in the region.
It is important to understand the payment preferences of your users and offer them the options that are known to them in their country and that are most beneficial for their current situation. This enhances your betting experience and builds trust.
AppsFlyer, the marketing experience and measurement platform, has released the 14th edition of its Performance Index (PI).
Meta Ads ranked first in the SKAdNetwork (SKAN) index, which measures in-app (in-app) engagement, purchases (IAPs), and advertising, according to the report.This issue is Apple's first post-ATT (App Tracking Transparency) issue looking at the impact of ad activity and media sources on mobile apps on iOS.
Install quality reportedly exceeds in-app engagement and in-app purchases (IAPs).
TikTok For Business ranked second, dropping one place compared to last year. Despite the decline, it is still one of the most popular advertising tools for advertisers. It ranks second in power and volume ranking for non-gaming apps and second in power ranking for the IAP index for gaming.
Meanwhile, Google maintains its dominance in Android. Before and after Apple's privacy changes, the search giant maintained its leadership in this operating system, ranking first in power rankings and in number of IAPs and retention rates.
When it comes to trends, there are several reasons why we can expect esports to grow in Latin America in the coming years. The main reason is the emergence of strong teams in the region in games like Dota 2, League of Legends, and Counter-Strike: Global Offensive (CS:GO).
The region has already hosted several tournaments, with Mexico hosting a play-in event for the League of Legends World Championship.
In many parts of the world, esports is already developing at a rate that rivals traditional sports. Latin America may not be the most prominent esports market right now. However, this market should not be overlooked with the expansion of teams, general popularity and number of tournaments in the region.
Taking these into account, experts agree that AVOD (advertising-based Video on Demand) remains a popular format in Latin America. AVOD gives users free access to multimedia content while watching advertisements. YouTube is the leader in this format, followed by video game apps. Subscription streaming services, very popular in LATAM, can also offer these consumption options.
ComScore's 2021 report, "State of Social Media in Latin America" shows that:
When looking at the most used instant messaging apps in the region, WhatsApp ranks first, followed by Facebook Messenger, Skype, Snapchat, Telegram, and others. More than 90% of Latin American app users use WhatsApp.
Latin American media, companies and public institutions have adopted WhatsApp as a means of direct communication with their users. The impact of WhatsApp in the daily lives of Latinos is increasingly evident. WhatsApp is an important conversion and loyalty channel for marketers.
WhatsApp does not allow advertising in the app. We will not see ads while chatting or checking statuses. But with WhatsApp Business, we can take advantage of having a communication channel.
We can share a catalog of products, support and/or services, through the company profile.
According to ComScore (2021), influencer posts represent 6.5% of all of Latin America.
Even more shocking, influencers were responsible for 52% of interactions in the region.
In Latin America there are at least 12 million influencers, according to data from the firm Influencity specialized in linking brands with content creators. It should be noted that this data refers to influencers on the Instagram platform. Specifically:
A very small percentage of Instagram content creators in LatAm are mega-influencers (> 1,000,000 followers)
Now, the most recommended practice is to rely on small influencers, either by contacting them directly or through intermediary platforms.
TikTok, for example, has experienced a boom in Latin America in the last year, with a vast number of famous “Tiktokers”; however, 32.5% of the audience on TikTok corresponds to young people between the ages of 10 and 19, and the platform's content is mainly entertainment.
For their part, Facebook, YouTube and Instagram continue to be the most used social networks by both men and women of all ages.
When it comes to iGaming legislation, most South American governments are stepping up their attempts to legalize, regulate and tax the increasingly popular iGaming sector.
Countries like Argentina and Uruguay are at the forefront of enacting practical gambling regulations that benefit local economies while reducing the negative effects of illegal gambling.
Bolivia and Ecuador, on the other hand, still adhere to rules establishedover a century ago, usually by religious leaders, resulting in a devastated national gaming industry. Meanwhile, countries like Brazil show that they are closing the gap by enacting laws that modernize their laws, despite opposition from conservatives who resist change and cling to the old ways.
Latam has a lot of untapped business potential, but there are some challenges that new and expanding applications can face. Having a trusted partner who knows the market can help drive your success and growth in such a particular region.
Rocket Lab has invested in the development of solutions to conquer and penetrate the vast and diverse consumer market of LATAM with state-of-the-art technology.
A range of effective solutions designed to help operators enter local markets. Their experienced team has the knowledge to navigate the complexities of LATAM and scale successfully without a hitch.
Published Nov, 28, 2023
Published Oct, 09, 2023