Mobile devices have become an integral part of our lives. We use our smartphones for various purposes, from communication to entertainment, shopping and information. With this increased reliance on mobile devices, the way we engage with digital content and advertisements has evolved significantly. Users are now spending a whopping 90% of their mobile time within apps, as opposed to mobile web browsers. This shift has profound implications for the advertising industry.

This blog explores why in-app advertising has become the driving force in the mobile marketing landscape, surpassing traditional banner ads on mobile websites.

More Engaged Audience

One of the fundamental reasons behind the dominance of in-app advertising is the high level of engagement it offers. Compared to traditional marketing channels, the mobile app audience is far more captive and engaged. This engaged audience is the ideal target for display advertising, leading to higher engagement, click-through rates (CTRs), and ultimately, higher ad revenue for app publishers.

Higher Chance of Conversion

In-app advertising statistics have uncovered some compelling insights. In-app ads exhibit a click-through-rate (CTR) of 0.56%, significantly surpassing the 0.23% CTR of mobile web ads. Moreover, in-app ads boast a customer conversion rate that is three times higher than traditional ads and a user retention rate that is four times greater. This clearly indicates that in-app advertising offers a higher chance of converting interested users into customers.

In-App Advertising Targeting

When users browse websites through mobile web browsers, advertisers and publishers can only gather limited data about them through the use of cookies. However, when users engage with mobile apps, ad publishers can collect a wealth of targeted information through device ID, including data such as age, internet provider, gender, operating system, device type, location, and more. This granular data enables advertisers to create more effective and personalized ad campaigns.

More Personalization

In-app-based mobile advertising allows ad publishers to create highly personalized and customized ads, increasing the odds of engaging the audience and convincing them to click through. Moreover, app developers obtain user data permissions via app stores before installation, giving ad publishers more control over the ad-serving process and the ability to identify their audience effectively.

Better Results with In-App Advertising

In-app advertising not only offers a higher chance of engagement but also performs exceptionally well in terms of results. According to AppSavvy, in-app ads perform 11.4 times better than banner ads on mobile websites. Their unique positioning within the user’s journey through the app allows them to command greater attention and engagement. In contrast, banner ads on mobile websites often go unnoticed, driving minimal user engagement.

No Ad Block Concerns

Ad blockers have become increasingly popular among users seeking to avoid the intrusion of banner ads. However, this is not a significant concern for in-app advertisers, thanks to the freemium business model. This model allows them to serve ads to mobile users who can use the app without paying any price, ensuring that their advertisements reach a wide audience.

In Conclusion

The rise of in-app advertising can be attributed to its ability to provide a highly engaged audience. Improved conversion rates, targeting, personalization, superior results, and resilience against ad blockers. As the mobile landscape continues to evolve, advertisers and marketers must recognize the power of in-app advertising and harness its potential to connect with their target audience effectively. In-app advertising has become the key to reaching and engaging the modern mobile user.

 

RMG Advertising provides In-App Advertising powered by Location Intelligence and Predictive Targeting to deliver the highest levels of engagement and conversion.