In-App Advertising 101: 6 Reasons You Should Target Apps

Contemporary mobile marketers use a variety of tactics, from push notifications to app store optimization (ASO), to reach their audience and achieve their objectives. In-app advertising is a crucial part of the marketing puzzle because it allows businesses to contact consumers while they’re using a product they’re already familiar with.

If you have a mobile app, you can use in-app advertising both as an advertiser and as a publisher. In this post, we’ll explain the function of in app advertising as well as its significance in the mobile app industry.

What Are In-App Ads?

One way for mobile publishers to make money is through in-app advertisements. Developers can monetize their apps by selling ad space and receiving money in exchange for displaying relevant ads to users at optimal times. There is room for the developer to serve as both a publisher and an advertiser. For instance, if a freemium app (one that’s free to download) shares an ad with the user that suggests they purchase in-app money or upgrade to the app’s premium service, this is an example of a freemium app’s usage of in-app advertising.

Users are more inclined to download applications that are free to use, and this monetization technique makes it achievable for many mobile apps. As of 2022, 96.9% of Android applications were free, making it a very competitive environment for commercial apps to gain traction and users.

The freemium model encourages more downloads, but in-app advertisements also enhance users’ global media consumption. It’s because of this that more ad networks are concentrating on advertising via mobile applications. A mobile ad network serves these ads by matching publisher inventory with advertiser-supplied content. As a result of programmatic media purchasing, ad delivery has also evolved. In response to a request from a mobile app, the network will find the highest bidder’s ad and provide it to the app immediately. 

The Importance of In-App Advertisements to Mobile Marketers

The option to make your mobile app free to download is only one of the many ways in which in-app advertising can help marketers achieve their objectives. Here are six examples of why this method is crucial to the success of the mobile marketing ecosystem as a whole.

As Mobile Use Continues to Rise, So Does the Effectiveness of In-App Advertising

Finding appropriate online venues to promote to your demographic is essential. Marketers run the risk of losing out on impressions with their target demographic without in-app advertising. The majority of a user’s time on an Android mobile device, up to 92%, is spent within an app. You can easily communicate with your target audience and adjust your marketing tactics in response to their actions.

The CTR for Apps is Greater Than It’s for Websites

When it comes to click-through rates (CTRs), mobile applications vastly outperform the mobile web. Researchers found that the CTR for in-app advertisements was 0.56% worldwide, but it was just 0.23% for mobile web ads. 

Improved Ability to Zero in on Targets

User demographics and geographic location are two examples of how apps can help marketers reach their intended audience. This improves their chances of reaching their desired marketing outcomes.

Clever and Organic Ad Placement

Mobile app users can see ads at strategic points throughout the app’s flow. This also implies that they can be more subtle and organic than conventional mobile web advertisements. There are a variety of methods to interact with consumers thanks to the various ad forms. Rewarded video commercials are one kind of advertisement that provides in-app money to viewers in exchange for their attention. This is a clever strategy for capitalizing on a user’s interest in a mobile game.

Boost Income

The inclusion of ads inside an app can boost both income and ARPU. This is because developers have more options for ad formats and ways to reach their intended audience. Hybrid monetization combines in-app advertising with in-app purchases to maximize revenue.

Improve Interest and Loyalty Among Users

Mobile marketers can improve user engagement and retention with in-app advertising thanks to improved targeting options and smart ad placements. This will have an effect on LTV and help marketers achieve their objectives.

Which Ad Types Can Be Used for In-App Placements?

There are a variety of options for in-app advertising formats to select from, depending on your goals. The four most common in-app conversion formats are:

  • Rewarded ads
  • Interstitial ads
  • Native ads
  • Banner ads

Final Thoughts

In short, in-app advertising works. It’s a fantastic method for businesses to reach their desired demographic and for publishers to earn money from their audience without being annoying. The options are almost limitless, and you can test in-app advertising in your app to see whether it works for you.

Interesting Related Article: “The Role of Business Intelligence in Creating Mobile Apps