What Is In-App Advertising? The Ultimate Guide for Publishers

In-app advertising refers to the placement of ads inside mobile applications. It is a way in which publishers make money with their apps by seamlessly integrating ads in various formats, such as banner or video format, within the content of the app. 

Since mobile users spend 90% of their time using apps, this is one effective avenue through which publishers reach a wide and engaged audience.

In-app advertising relies on insights into user behaviour when interacting with the app. Advertisers place their ads in applications that reach their target audience, whereby revenue is shared with the app developers. Such ads are also displayed via real-time bidding systems, where ad inventory is auctioned off to the highest bidder or through direct agreements between advertisers and publishers.

The in app advertising ecosystem encompasses a variety of participants: advertisers eager to connect with mobile users, publishers who possess apps and showcase the ads, and ad networks that serve as intermediaries between the two. Demand-side platforms (DSPs) empower advertisers to place bids on advertising space, whereas supply-side platforms (SSPs) assist publishers in managing their inventory.

Publishers can generate revenue by displaying ads within their apps.

Ads within apps show higher engagement rates compared to mobile web ads. The click-through rates are 0.56 per cent compared to 0.23 per cent for mobile web ads.

In-app ads can be personalised based on user data, leading to better conversion rates and ad performance.

Ads in apps are not impacted by ad blockers and therefore much more viewable than ads on mobile websites.

Advertisers pay for every 1,000 impressions. CPM is ideal for increasing brand visibility but may not guarantee user action.

Sponsors are charged each time a client taps on their promotion. This model assists drive with dealing yet relies upon client commitment.

Advertisers are charged based on completed actions by users, for instance, signing up for a service. This model focuses on conversions.

Common in app promotion, CPI charges advertisers for every app install driven by the ad.

Revenues differ widely depending on the app category, user base, and ad formats. For example, interstitial ads and rewarded video ads typically guarantee higher CPMs, making them more lucrative for publishers.

Banner ads are simple, static ads that usually appear along the top or bottom of the screen.

Short video ads, which usually run between levels in-game applications or before showing content.

These are ads that blend perfectly with the app’s content without intruding on the user experience.

Users watch a video ad to earn in-app rewards, enhancing engagement.

Interactive ads, often found in gaming apps, allow users to try a mini-version of a game before downloading it.

First of all, publishers should integrate an ad network or SDK into their apps. The right ad formats and networks need to be selected by them, according to their audience. Further, tools like JustBaat AdX also help publishers create engaging content that complements their advertisement strategy and enriches the overall app experience.

TargetVideo Premium Demand: Suitable for video ads, allows premium ad placements.

• Google AdMob: A widely-used platform, supporting various ad formats like banners, interstitials, and video ads.
• InMobi: Their key differentiators are rich media ads, along with targeting capabilities.
• Unity Ads: Focusses on monetising gaming apps with playable ads and video ads.
• Smaato: A real-time bidding platform offering access to a wide range of advertisers ​ Publift

Publishers can develop their revenue streams further through several ad format experiments, constantly optimising ad placement based on user behaviour observation, to sharpen their strategies. Using JustBaat’s AI increases this engagement rate even further by automatically converting text to video and making the app experience just that much more compelling.

The future of in-app advertising will be all about personalisation, immersive ad formats such as AR ads, and the use of first-party data amid increasing regulations on privacy. The spending on in-app ads will continue to grow disproportionately, especially with the growth in video consumption and the gaming industry.

In-app advertising is also a powerful opportunity for publishers to create money with their apps while offering value to the advertisers. By leveraging data-driven strategies and exploring innovative ad formats, the publisher can increase their revenues further. Such platforms as JustBaat AI, which turns text into vivid video content, are going to boost user experiences and raise ad performance to the next level.