If your business isn’t devoting resources to in-app advertising, you should take note of the following number: 77% of brands have asked their media or mobile app marketing agency to make an investment in this category.
And, frankly, we believe that number should be closer to 100%.
If you’re not willing to explore making a similar — or even greater — investment, your business could find itself playing catch-up to competitors and missing out on a booming market.
Why in-app advertising works
We live on our phones.
At this point, that notion has crept into the realm of cliche, but that doesn’t make it any less true. People use mobile devices for just about everything and spend nearly four hours per day interacting with them. By 2019, mobile devices will surpass televisions in terms of daily use.
Apps, in turn, account for more than 90% of all time spent on smartphones.
You don’t have to be a marketing savant to draw the conclusion. People spend enormous time within mobile apps, which means that in-app inventory should be a key focus for media buyers and brands.
A recent study by Fyber, a firm specializing in app monetization, paints an interesting picture of the in-app inventory landscape. According to Fyber’s global research, in-app inventory will account for 43% of overall digital ad budgets within the next five years — a nearly 30% increase from today’s numbers.
Currently, 68% of brands use in-app ads to foster awareness, while 52% of brands are using in-app ads to generate new sales. One of the most popular environments for in-app ads is gaming; 60% of brands favor advertising within games for their scale and reach, while 59% cited high user engagement. Roughly 78% of brands have used in-app ads within games, while 91% of agencies and 87% of brands say they plan to do so in the future.
The benefits of in-app advertising
The explosive popularity of apps allows brands to reap a variety of benefits from advertising within this format. These advantages include:
- More sophisticated and accurate targeting
- Deeper user engagement
- Higher return on investment
According to Fyber’s research, brands and mobile app marketing agencies report that certain types of ads tend to perform better than others. The ads that have performed best for study participants include playable ads, video ads, and opt-in ads.
Firms located in the U.S. and the U.K. have found the most success with in-app ads with nearly one-third of U.S. firms reporting that their in-app ad spend is at least 50% of their digital marketing budget. Meanwhile, 82% of U.S. firms say that they have asked their agencies to focus on in-app ads specifically, rather than the broader category of mobile advertising.
These numbers reflect the growing interest in the in-app advertising space. People are using apps more often, they are spending more time inside these apps, and in-app advertising is — by a considerable margin — the fastest-growing form of digital advertising. Apps are used throughout the day, often during periods when users cannot access other media. This means that in-app ads can reach audiences in a way that other marketing channels cannot.
One study showed that in-app ads are 13 times more valuable than mobile ads. While they generate similar numbers of impressions, in-app ads more than doubled the CTR of mobile ads while generating 13.5 times the revenue.
What a top Florida mobile app marketing agency can do for you
Our team understands the power of mobile marketing — and we have the experience and insight needed to help our clients deliver maximum return on their investments. Please contact us today for more information about how our mobile app marketing agency can help your business.