What is in-app advertising?
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In-App Advertising

What is in-app advertising? 

As the name says, in-app ads offer the ability to promote a brand, product, or service to users immersed in the confines of an app on a mobile, social, or gaming platform instead of a web browser.

How does in-app advertising work?

In-app advertising is typically delivered through mobile ad networks. These networks connect advertisers with app developers who have ad space available in their apps. When a user opens an app, the ad network will deliver an ad from one of its advertisers to the user's device.

Types of in-app advertising: 

  • Banner ads: These are rectangular ads that are displayed at the top or bottom of an app's screen.
  • Interstitial ads: These are full-screen ads that are displayed between app screens.
  • Native ads: These are ads that are designed to blend in with the look and feel of an app.
  • Video ads: These are short video ads that are played before, during, or after other videos in an app.
  • Rewarded video ads: These ads offer users a reward, such as in-game currency or a power-up, for watching a video ad.
  • Playable ads: These ads allow users to try out a game or app before downloading it.
  • Rich media ads: These ads are interactive and can include features such as games, quizzes, and polls.
  • Location-based ads: These ads are targeted to users based on their current location.
  • Retargeting ads: These ads are targeted to users who have previously visited an advertiser's website or app.

How to measure in-app advertising: 

In-app advertising can be measured using a variety of metrics, including:

  • Impressions: The number of times an ad is displayed.
  • Clicks: The number of times users click on an ad.
  • Installations: The number of times users install an app after clicking on an ad.
  • Purchases: The number of times users make a purchase after clicking on an ad.
  • Cost per install (CPI): The average amount advertisers pay for each app installation generated by their ads.
  • Cost per acquisition (CPA): The average amount advertisers pay for each desired action generated by their ads, such as a purchase or sign-up.

Why is in-app advertising important to marketers?

Consumers are increasingly living their online experiences via gaming, podcasts, social media, apps. So in-app advertising is a highly effective way to reach a large and engaged audience. Rather than relying on search and other methods to attract online users, in-app ads go to where the audience already is. In general, as mobile has overtaken desktop browsing for online usage, smartphone apps are the primary way consumers interact with media. Gaming app usage continues to rise as well. Given the first-party data provided by apps, these ads can be more accurately targeted to specific demographics, interests, and behaviors. On top of that, they can be timed for natural user breaks in the content they’re interacting with.

Who needs to know what in-app advertising is:

  • Digital marketer
  • Performance marketer
  • App developer
  • Mobile advertiser
  • Marketing manager
  • Brand manager
  • Product manager
  • Sales manager
  • CEO

Use in-app advertising in a sentence: “Given the overwhelming usage rates of our gaming app, integrating sponsorships and promotions with in-app ads has generated 70x leads versus our search ads.”