3 Billion $ Mobile Marketing Opportunity.
I've been hearing from some pretty big marketers this month: "We are still focusing on mature markets like the US." "We'll be thinking about less mature markets soon." And I look at my watch. As we see markets like Brazil, China and Indonesia continue to ripen (with fruit literally falling off the tree), there's still a concerning lack of urgency to gain foothold within them. The question is, where will your growth come from in 2016 if not from a new market? Can you really depend upon significant growth to continue in well saturated, mature markets? The idea of missing that boat would keep me up at night.
3 billion dollar opportunity in Brazil. You can't afford to wait.
Without a doubt 2016's growth will come from emerging markets like Brazil. Yet, as more mature markets have become saturated, we are seeing that a surprising number of major players still lag behind in making the shift. Interestingly, it is the smaller and (sometimes) scrappier competitors who are jumping right into emerging markets to claim their market share early, and it is working! Smart.
The apps that really want to get ahead in markets like Brazil, Indonesia and China have already started. At Jana, we measure penetration in these markets via our free mCent app. Our data is showing us some really interesting trends. For example, in Brazil we see that a well known music giant like Spotify has only 5% market penetration, while a smaller and newer app, Palco, is enjoying a growing penetration rate of 18%. Granted, it would only take one big push from Spotify to catch right up - they'd really have to do it right now. Meanwhile, in other emerging markets like India, Saavn (another newer music app), is really crushing it, and setting themselves up for a huge 2016 in that market. Saavn has gotten a huge leg up in understanding the user behaviors in India and is now capitalizing on the progress they made earlier this year.
Apps have a tremendous, and frankly critical decision to make as they finalize strategy plans for 2016. Will you continue to focus entirely on well developed, mature markets.. or allocate time and significant budget to the next markets: Brazil, Indonesia, China and so on. If I were on one of these Marketing or User Acquisition teams I'd be doubling down in Brazil.
The shift to the middle class in Brazil
By 2020 over 5 million households in Brazil will move to the middle class (15k-30k per year), and discretionary spending will shift with those changes. During 2016, choices will be made, including choices on how to spend while on mobile devices. Will you be there as they shift? TV spend exceeds Mobile ad spend, yet mobile is where Brazilian consumers are- spending more time on their smartphone than in front of the TV screen.
How to think about mobile marketing in Brazil
The first step is to understand the unique behaviors and preferences of the consumers in those markets, and how they engage and form habits. The second is to build a substantial presence. If you have competitors, there is a big opportunity to claim your rank in these markets now, making it virtually impossible to be unseated 12 months from now.
- Some important considerations for mobile marketing in Brazil include:
- Mobile users are, in many cases, connected through prepaid services. Enabling these users to get access to and engage with your app by offsetting the cost is important.
- Your Brazilian consumers are unlikely to use credit cards (meaning resetting success metrics away from measuring only transactions will be important). Your key metrics should be engagement and retention.
- Don't have the assumption is that these markets operate like the US or the UK. The players who are treating these like their primary markets, are setting different success metrics. Don't fixate on transactions exclusively in these markets as your only measure of success. Since even in mature markets like the US only 1% will transact, you should expect far lower numbers in Brazil and others geos. That does not mean your marketing plan is failing, it is just a different timeline and stage of market maturity.
- Despite headlines about Brazil's recession, demand for mobile content isn't shrinking! This makes it the right time to enter - costs are lower.
- For more detail on consumer behavior in Brazil you can download a full Brazil report here
Want a quick analysis of your competitive landscape in one of these emerging markets? Leave a comment, or email me at firstname.lastname@example.org and we will help your marketing team take a look at how you stack up market to market, and where the best opportunity is before you finalize your 2016 plan. Look forward to helping your team out.