7 reasons for in-app advertising in the marketing mix

Find out how important in-app advertising can be for you and how it really works – whether it’s push notifications or in-app sales.

From push notifications to app store optimization (ASO) – modern mobile marketing aims to address the right users at the right time in the best possible mix. In-app advertising is one of the most important components, as the target groups are addressed while using already existing apps. Both advertisers and app publishers can take advantage of this type of marketing.

What is in-app advertising?

In-app advertising is a monetization strategy for mobile publishers. Developers can offer advertising space in their app and receive remuneration for displaying advertising to their users. Developers can be publishers and/or advertisers. An example is when a freemium app (free to install) displays an ad asking users to purchase in-app currency or upgrade to the app’s premium service.

This monetization strategy makes it possible for many mobile apps to be installed for free, greatly increasing the likelihood that users will download them. In August 2021 96.9 percent of all Android apps were available for freemaking it difficult for paid apps to reach and install large audiences.

In-app advertising implicitly not only increases the number of installs because the app is free, but also increases the overall media consumption of users worldwide. This has led more and more ad networks to focus on advertising via mobile apps. These ads are served through a mobile ad network that connects publishers’ inventory with advertisers’ creative content. Programmatic media buying has also changed the way ads are served. The mobile app requests an ad from the network, which causes the network’s algorithms to identify and serve the highest bidder’s ad in real time.

Why is in-app advertising important for mobile marketing?

In addition to being able to offer mobile apps for free to install, in-app advertising offers several benefits for marketers.

  1. In-app advertising takes advantage of the longer time users spend on their phones: If you want to reach your target groups, you have to find out where they are and when. Without in-app ads, marketers risk missing the best time to advertise to their target audience. Up to 90 percent of the time spent on mobile devices is spent in apps (2019 data for US). This provides ample opportunity to reach users and optimize marketing strategy based on user activity.
  2. Apps have a higher click through rate (CTR): Compared to the mobile web, apps achieve a significantly higher CTR when users see ads. One Study by Opera Mediaworks found that the CTR of in-app ads was up to 1.3 times higher than that of mobile web in all countries surveyed. This is through a medialets report confirmed that the average CTR for mobile apps is 0.58 percent, while on mobile web it’s just 0.23 percent.
  3. Improved targeting options: An app’s audience can be targeted based on criteria such as demographics and location. This gives advertisers expanded targeting options to reach target audiences and achieve marketing goals.
  4. Natural and intuitive ad placement: In-app advertising can be placed at optimal moments in the user experience of a mobile app. This also means that they appear less intrusive and more natural than traditional advertising. Different ad formats also make it possible to address users in different ways. For example, rewarded video ads offer users an in-app currency as a reward if they watch an ad for a certain period of time. In this way, the engagement of users for mobile games can be optimized.
  5. increase sales: In-app advertising can increase average revenue per user:in (ARPU). This is because different ad formats can be used and developers can test a number of different methods to serve ads to their target audience. In-app advertising can also be used in conjunction with in-app purchases – a method known as hybrid monetization.
  6. Optimize user experience: In-app advertising can be seamlessly integrated into the user experience. This means that the mobile app selling the merchandise also benefits from creating a better user experience by ensuring that the ads are not intrusive.
  7. Increase user engagement and retention rates: With improved targeting capabilities and intuitive ad placements, mobile marketers can leverage in-app advertising to increase engagement and retention rates. This impacts lifetime value (LTV) and helps marketers achieve their campaign goals.

What ad formats are there for in-app ads?

  1. Rewarded Ads: This format allows you to reward users for engaging with your ad. For example, users can receive a discount or in-app currency for watching a video ad.
  2. Interstitial Ads: Interstitials are expandable ads that can take up the entire user screen. They can contain rich media content such as videos to engage users. Ad placement for interstitials is particularly important as they take up the entire screen, which can either have a positive impact on users or disrupt the user experience.
  3. Native Ads: This is advertising content that exactly matches the look and feel of the mobile app in which it is promoted.
  4. banner ads: This traditional format, which is synonymous with the desktop and mobile web, can also be used in the in-app space

In addition to in-app advertising via the native apps of Xiaomi, Huawei, Oppo, Vivo and Samsung, there are other advertising channels on mobile OEMs (original equipment manufacturers) that are important for marketers. Own and OEM-offered marketplaces, the ability to place ads anywhere in the Android launcher environment, as well as the option to pre-install apps, combined with the massive reach of mobile phone manufacturers make advertising on mobile OEMs a must in everyone marketing strategy.

The biggest advantages of mobile OEMs:

  • achieve growth goals: With OEMs, marketers can reach new audiences and enter new markets to grow globally.
  • achieve acquisition goals: The cost per installation for a larger number of users is lower.
  • Fraud-proof ecosystem: There are no third-party providers between budget holders and the OEMs. This allows marketers full access to a secure environment for user acquisition.
  • Build trust with the target audience: Users who are loyal to certain OEMs find the ads more trustworthy.
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Source: OnlineMarketing.de by onlinemarketing.de.

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