The App ecosystem in Latin America is rapidly growing as smartphone adoption reaches record heights. But with increased usage and investment, competition has also intensified. The State of App Marketing: Brazil & LATAM covers key year-over-year trends and helps app marketers understand the performance of their app in this key global region. For example, we can see that apps running campaigns in Brazil and the rest of Latin America are increasingly investing in paid channels, as the following chart shows:

1. The State of App Marketing:
Brazil & LATAM
2018 vs. 2017 Trends

2. Data Sample *
5 Billion
Installs
470 Billion
App opens
$200 Million
Revenue
90 Million
Installs with cost data
* LATAM Data Excludes Brazil

3. FOCUS
Overall Market Trends

4. INSTALLS

5. Non-Organic Rising
Brazil Share of Non-Organic Installs in the App Install Pie
82%
Non-Organic Organic
18%
07-2016
08-2016
09-2016
10-2016
11-2016
12-2016
01-2017
02-2017
03-2017
04-2017
05-2017
06-2017
07-2017
08-2017
09-2017
10-2017
11-2017
12-2017
01-2018
02-2018
03-2018
04-2018
05-2018
06-2018
82%
18%
76%
24%
73%
27%
72%
28%
79%
21%
79%
21%
81%
19%
81%
19%
81%
19%
81%
19%
81%
19%
77%
23%
75%
25%
73%
27%
71%
29%
66%
34%
71%
29%
70%
30%
69%
31%
69%
31%
67%
33%
65%
35%
63%
37%
Brazil

6. 85%
Non-Organic Organic
15%
07-2016
08-2016
09-2016
10-2016
11-2016
12-2016
01-2017
02-2017
03-2017
04-2017
05-2017
06-2017
07-2017
08-2017
09-2017
10-2017
11-2017
12-2017
01-2018
02-2018
03-2018
04-2018
05-2018
06-2018
85%
15%
81%
19%
76%
24%
71%
29%
74%
26%
76%
24%
80%
20%
80%
20%
80%
20%
80%
20%
81%
19%
80%
20%
81%
19%
77%
23%
76%
24%
73%
27%
75%
25%
73%
27%
75%
25%
74%
26%
71%
29%
69%
31%
67%
33%
LATAM
Non-Organic Rising
LATAM Share of Non-Organic Installs in the App Install Pie

7. Apps Increasingly Investing
in Paid Channels
YOY Growth in Average Number of Installs Per App
2017
Non-Organic Organic
20182016
+55%
+35%
-9% +1%
LATAM
2017
Non-Organic Organic
20182016
+165%
+15%
+9%
+3%
Brazil

8. Popularity of Video Surging
Share of Paid Installs Driven by Video Ads
2.2%
3.6%
8.2%
2017 20182016
Brazil
4.6% 4.6%
8.8%
2017 20182016
LATAM

9. Top Media Sources by Installs & Client Adoption (April-May)
2016
Brazil

10. 2016
Top Media Sources by Installs & Client Adoption (April-May)
Brazil
2017
+8
+10

11. 2016
Top Media Sources by Installs & Client Adoption (April-May)
Brazil +9
-3
+5
2018
2017
+8
+10 +11

12. Top Media Sources by Installs & Client Adoption (April-May)
2016
LATAM

13. 2017
+3
+5
Top Media Sources by Installs & Client Adoption (April-May)
+4
-5
+16
LATAM
2016

14. +4
+7
2018
Top Media Sources by Installs & Client Adoption (April-May)
+36
LATAM
2016
2017
+3
+5
+4
-5
+16

15. 1-2-3 Takeaways
Apps investing in non-organic amid
organic decline and increased confidence
in data & analytics
Marketers turning to video to drive quality
installs at scale
Top media lists: Shift from volume to value
1
2
3

16. ENGAGEMENT

17. The Loyalty Challenge Remains
Day 30 Retention
5.5% 5.6%
Non-Organic Organic
6.2%
5.7%
2017 2018
4.8%
4.6%
Non-Organic Organic
6.2% 6.1%
Brazil LATAM

18. The Loyalty Challenge Remains
Week 12 Retention (Weekly Rate)
5.7%
5.5%
2017
Non-Organic Organic
7.3%
7.1%
2018
5.6%
5.0%
Non-Organic Organic
7.5%
7.7%
Brazil LATAM

19. Engagement Challenge → Retargeting
Retargeting Conversions Per App Running Campaigns (2017 vs. 2018)
+62% +13%
Brazil LATAM

20. 1-2-3 Takeaways
1
2
3
Retaining app users over time is a major challenge
Marketers are increasing their investment to bring
users back to their app, especially in Brazil
Marketers should focus on retention-driven
optimization, devise aggressive re-engagement
plan using multiple channels

21. LTV

22. Revenue-Driven Optimization Bearing Fruit for iOS
Day 90 LTV By Platform (USD)
2017 2018
0.76
1.34
1.67
0.74 0.81
1.01
1.16
0.94
Brazil LATAM

23. Increased Revenue Growth from Non-Organic Users
Day 90 LTV By Type (USD)
2017 2018
0.71
0.89 0.880.78 0.79 0.93
0.99
0.91
Brazil LATAM
Non-Organic Organic Non-Organic Organic

24. Brazilian Users Reign Supreme
Share of Paying Users by Platform (90 Days)
2017 2018
2.7%
2.9%
3.5%
3.3%
1.9%
2.6% 2.7%
1.5%
Brazil LATAM

25. Brazilian Users Reign Supreme
Share of Paying Users by Type (90 Days)
2017 2018
2.1%
2.5%
3.4%
3.2%
1.9%
1.5% 1.6%
2.2%
Brazil LATAM
Non-Organic Organic Non-Organic Organic

26. Brazilian marketers and users show the market is far more
advanced than the LATAM average; however consumer
spend and number of paying app users in Brazil, as well as in
Spanish LATAM, is below the global average
iOS LTV outperforms Android, whereas among paying users
the OS gap not as significant
The gap between organic and non-organic LTV is narrowing
1-2-3 Takeaways
1
2
3

27. A Look Back at the
2017 Holiday Season

28. 1.60
1.73
1.70
Volume of Purchases Per User Also Rising, But
Not As Pronounced
Q4 Number of Weekly Purchases Per User
Brazil

29. Black Friday, Cyber Monday & Christmas
Dominate Shopping
Q4 Total Number of Purchases by Week
4.59M 4.69M
3.56M
Brazil

30. LATAM
Black Friday & Cyber Monday Not
a Thing Outside Brazil
Q4 Number of Purchases by Week
2.42M 2.37M
921K

31. LATAM
1.89
1.64
1.91
TITLE TBD
Q4 Number of Weekly Purchases Per User

32. 1-2-3 Takeaways
Brazilians are more advanced users as far as mobile shopping
is concerned with more than double the number of purchases
compared to the rest of Latin America
Black Friday and Cyber Monday is only celebrated in Brazil;
Argentina and Mexico have similar shopping frenzied days but
this frenzy is not yes seen in mobile apps
Christmas and New Year’s is the only time during the year
when there is a massive spike in app shopping in Spanish
LATAM; having said that, the spike is relative to this area and
reaches only half of the volume seen in Brazil alone.
1
2
3

33. Cost & ROI

34. iOS Cost Dropping Across LATAM, But not in Brazil
Cost Per Install (USD)
2017 2018
0.62
0.73
0.88
0.92
0.72 0.74
0.97
0.89
Brazil LATAM

35. ROAS-Driven Optimization Still Lacking
Return on Ad Spend (90 Days)
2017 2018
40.8%37.8%
Break-even point
Brazil
43.4%43.6%
LATAM

36. 1-2-3 Takeaways
The 90 day ROAS is low compared to other global
markets due to sub-par LTV
Price of media keeps rising but LTV is growing
faster, leading to improved ROAS
Surprisingly, the cost of media on iOS is dropping
across LATAM
1
2
3

37. FRAUD

38. Fraud Comes in Waves
Overall App Install Fraud Rate Trend
Jan 18 Fab 18 Mar 18 Apr 18 May 18
10.1%
15.0%
13.4%
14.3%
18.8%
June 18
11.2%
6.5%
9.4%
6.6%
5.1%
8.1%
6.6%
Brazil LATAM

39. Install Hijacking Rate
60% Higher in Spanish LATAM
Fraud Distribution By Type
36.2%
Bots
Device Farms
Click Flood
Install Hijacking
27.3%
26.7%9.8%
Brazil
21%
14.1%
7.1%
57.9%
LATAM

40. $82M
High Payout Attracts Fraudsters
Financial Exposure (January-May 2018)
Brazil
$31M
Spanish
LATAM

41. 1-2-3 Takeaways
Fraud comes in waves, while the spike in June is due to a sizable
increase in Bots
Brazil has almost 3X higher financial exposure than LATAM
because its fraud rate and scale is much higher
Since Brazil is the savviest market in LATAM, fraudsters are
targeting the country with higher rates of advanced bots; in
Spanish LATAM, the more basic type of fraud -- install hijacking --
is inflicting the most damage (60% more than Brazil).
1
2
3

42. UNVEILING
App Install Market Predictions
Industry-First!

43. Predictive Model
5 different statistical models applied to predict future trajectory including
Support Vector Machine (SVM) and K-Nearest Neighbor
Based on AppsFlyer’s historical data comprising of
25 billion installs $16 billion in ad spend 50 thousand apps
For the purpose of our prediction, we divided marketing-driven app installs
into two groups:
1) Attribution market: Non-organic installs that were attributed by all mobile
attribution providers (excluding Firebase and Facebook analytics for apps). Third party
market share data was applied (mightysignal, mobbo, safedk)
2) Non-attributed market: Non-organic installs of apps that did not partner with a
mobile attribution provider.
Other parameters included 3rd party mobile attribution market share data,
CPI prediction per region, number of apps in the app stores, and the number of installs

44. Mobile Attribution keep biting of the
Non-Attributed share
Non-Organic Installs in LATAM in Billions (2017-2020)
0.8
1.6
2017 2018 2019 2020
1.1
2.6
1.4
3.7
1.7
4.6
2.4
3.7
5.1
6.3
55%
37%
Mobile Attribution Non-Attributed YOY Growth
23%

45. High Growth Rate Predicted in Spend
Despite Relative Slowdown
App Install Ad Spend in LATAM, in Billions (2017-2020)
Mobile Attribution Non-Attributed YOY Growth
2017 2018 2019 2020
$1.8
$1.2
$3.1
$1.7
$3.0
$4.8
$6.8
$4.6
$2.2
$6.0
$2.5
$8.5
58%
41%
26%

46. 1-2-3 Takeaways
The Mobile Attribution market in LATAM is expected to
grow at the expense of the non-attributed market as
more apps realize the need
The equation is clear:
Higher cost + more paid campaigns + more apps
+ increased mobile use + more users
= increased spend
With maturity, growth slows but still remains extremely
robust
1
2
3

47. THANK YOU!