PicPay enters the advertising market

Part of a strategy to diversify revenue sources, PicPay is entering the advertising market. After more than six months of testing, the financial application is announcing to the market that it will officially incorporate advertising within its platform.

Called PicPay Ads, the startup’s new vertical has a team of around 20 people and was created last year. The startup has already attracted more than 20 companies that have advertised on the app. Among them are the electronics manufacturer Samsung, the butchers chain Swift and the betting house VaiDeBet.

“We are entering the market in a more comprehensive way this year”, says Felipe Julião, executive who heads the app’s Ads front, when NeoFeed. He states that the objective is to target larger businesses, robust campaigns with a higher average ticket.

The company does not reveal data on how much it has invested on this front nor the results obtained so far, but says that it intends, in 2024, to multiply the gains obtained last year tenfold.

Advertisements are only being displayed in some areas of the application, but mainly in notifications sent to users (in the application and in email messages) and in PicPay’s home page. The company says that its application has 3 billion interactions per month.

Two points work in PicPay’s favor in its search for advertisers. One is the number of users it has on its app: 36 million. The other is the fact that the advertising market increasingly requires brands to direct their content to the audience they really want to reach.

To do this, the platforms that require campaigns can provide advertisers with data about the profile of the public that accesses these portals. “Having proprietary data has become essential in the current market,” says Julião. “This allows you to have a great targeting capability.”

Data from the eMarketer consultancy shared by PicPay inform that the digital media market generated US$8 billion in revenue in Brazil last year. Of this amount, 80% was dedicated to content for mobile devices.

By investing in advertising within its digital platform, PicPay gives strength to the movement of retail media. Abroad, giants such as Walmart and Amazon have already outlined their strategies to incorporate advertising on their platforms. In Brazil, Magazine Luiza and Mercado Livre are also following this path.