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In-App Ads Still a Small Share of Mobile App Revenues in Brazil

Mobile phone owners in the country willing to pay to get rid of in-app ads

May 2, 2014 | Mobile

In-app ads don’t have a big influence on consumers’ app purchases in Brazil. According to data released in March 2014 by App Annie and the International Data Corporation (IDC), just 27% of mobile app revenues in the country came from advertising within apps last year—the second-lowest share among the nations studied.

Mobile App Revenue Share, by Country and Source, 2013 (% of total)

Instead, mobile users in Brazil were far more likely to go straight to the source to buy the apps they wanted, with the app store grabbing the remaining 73% of revenues.

Results from an October 2013 study by Vserv.mobi and the Mobile Marketing Association suggest that app-related ads may be annoying mobile phone owners in Brazil. Ads displayed after in-app activity were the second least preferred mobile ad format, cited by just 6% of respondents, compared with 55% who favored mobile video ads. But the research also found that consumers in the country just weren’t interested in seeing mobile ads in general, with the second most popular ad format—banners—preferred by just 12%.

Factors that Affect Willingness to Pay for Mobile Apps According to Mobile Phone Owners in Select Countries, Nov 2013 (% of respondents)

There’s no doubt that mobile users in Brazil like their free apps: Q3 2013 polling by the Mobile Entertainment Forum conducted by On Device Research found that downloading free apps was the top mobile content activity in the country, cited by 75% of mobile media users—but what qualities drive them to actually purchase apps? According to a November 2013 study by PricewaterhouseCoopers (PwC), content value was the top factor in influencing mobile phone owners in Brazil to pay for mobile apps.

PwC determined that in-app ads did influence mobile app users to make an app purchase—but not for the reasons intended. Instead, nearly half of respondents said they would be willing to buy a mobile app so that they could use it without seeing ads.

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