Around the World with Bidease: Azerbaijan

Azerbaijan

Azerbaijan Nestled between the Black and Caspian Seas, Azerbaijan is a unique Eurasian nation that blends ancient cultural heritage with rapid modernization. Azerbaijan’s journey towards digitalization, in particular, has seen significant growth. With smartphone penetration and internet usage on the rise over the past few years, there is an increasing audience for mobile apps and digital content. For app marketers and developers looking to capitalize on new, emerging markets, Azerbaijan presents an interesting opportunity.

At a glance:

Country: Azerbaijan
Official language: Azerbaijani (Azeri)
Capitol: Baku
Population: 10.14 million
Most popular app by downloads: Birbank
Most popular app category: Gaming
OS breakout: 92% Android, 8% iOS
Mobile Rank: Low-Moderate

Getting to Know Azerbaijan

Azerbaijan’s history stretches back millennia, with ancient carvings in Gobustan dating to 10,000 BC, highlighting its early human presence. The nation has seen influences from the Persian Empire, the spread of Islam in the 7th century, and later Russian rule in the 19th century, contributing to its diverse cultural tapestry. In 1918, Azerbaijan established itself as the first democratic and secular republic in the Muslim world, though this was brief before becoming part of the Soviet Union in 1920. Regaining independence in 1991 after the Soviet Union’s dissolution, Azerbaijan has since sought to blend its historical heritage with modern development, leveraging its oil and gas wealth to advance its economy and assert its significance in the region’s geopolitics.

Today, Azerbaijan comprises a primarily Muslim population, with nearly 70% of residents falling between 15 and 64 years old and the median age landing at 34. As the birth rate slows and life expectancy increases, however, the population is expected to age over time.

Cultural and national norms are highly important to Azerbaijanis. Unlike other countries where lingua francas are typically the most common mobile device language setting, nearly 87% of all Azerbaijani devices are set to the local language, Azeri. Likewise, holidays like Novruz Bayam (Persian New Year) in March, Eid al-Fitr (or Ramadan Bayram) in April this year, and Independence Day in May mark some of the most important cultural, religious, and national events of the year.

Azerbaijan As an Emerging Mobile Market

With the release of the first smartphone in 2007, mobile cellular subscriptions in Azerbaijan skyrocketed. In fact, by 2011 subscriptions had increased 124%. Today, the market is fairly stable with minimal growth over the past decade and a stable mobile penetration rate over 100%. Despite this steady state and remote location, Azerbaijan’s mobile penetration hit nearly 107 subscriptions per 100 inhabitants in 2022, a similar rate to the U.S. and substantially higher than Canada in the same year.

In-app advertising spend has also steadily increased since 2022, after seeing rapid growth between 2017 and 2021. During that period, in-app ad spend increased from $15.6M USD $39.6 million USD, or 154%. By 2028, that figure is expected to further increase to $67.9 million USD, or another 71%.

Mobile gaming, in particular, has taken off. In 2023, mobile gaming revenue brought in $48.4M USD and is projected to grow nearly 47% by 2029 to $71M USD. The most popular gaming apps in Azerbaijan include Subway Surfer, Roblox, and PUBG mobile, aligning with global trends. Outside of gaming, other popular app verticals include social and messaging, with TikTok, WhatsApp, Instagram, and Telegram leading the way.

Android devices dominate the market, with the preferred models coming from XiaoMi and Samsung. This is due to the low cost of living in Azerbaijan. The average salary in the capitol, Baku, is approximately $34,000 USD, however that figure significantly decreases when we take rural and suburban areas of the country into account. Considering the new iPhone 15 starts at $800 USD (versus the average $300 USD cost of Android devices), the affordability and diverse offering among Android devices makes them the Azerbaijani favorite.

Azerbaijan Shows Promise for Programmatic Advertising

High smartphone penetration, increased mobile advertising activity, and an engaged audience across multiple apps sets the stage for programmatic advertising to thrive in Azerbaijan. Outside of social media apps and walled gardens like Meta, Google, Snap, and X (Twitter), 100 different apps across multiple verticals saw more than 50,000 daily active users log on from Azerbaijan over the last 90 days.

App monetization for Azerbaijani apps has the potential to take off, but it would require more developer activity in the region. In the last 90 days, only 14 apps based out of Azerbaijan saw more than 10,000 daily active users worldwide. Developers in Azerbaijan can build their own app or partner with numerous app developing companies locally, however, most of these companies are based in nearby European countries.

In the meantime, advertisers can leverage automated, data-driven strategies to place ads across a variety of app verticals, reaching Azerbaijani audiences at scale with precision and efficiency. Understanding the local market nuances, such as the most common device language and popular app categories, can help advertisers craft personalized messages that resonate deeply with this unique audience. Embracing local cultural and societal nuances will further amplify campaign relevance and impact.

At Bidease, we employ local teams in Eastern Europe and other emerging regions to help advertisers navigate these markets and grow their apps. Sign up today to start capitalizing on performant, untapped markets like Azerbaijan, or learn more about emerging mobile markets in Eastern Europe and MENA.