Ever noticed how many ads pop up while you are crushing candies or editing your photos with a retouching app? There's actually a whole fascinating world behind those ads – one that's turning mobile apps into serious money-makers. If you are a marketer looking for fresh traffic sources or even an app developer wanting to monetize your creation, you’ve come to the right place. Today we are breaking down everything about in-app advertising – from the basics to tried-and-tested approaches that actually work. No boring jargon, just practical insights to help you make smarter decisions. Read on!
What Is In-App Advertising?
Mobile apps are a marketer's playground these days. Thanks to in-app advertising, you can slide your campaigns right into user experience during their favourite game or just a mindless scroll break. Pretty slick, huh? This lucky ticket will get you to where your potential leads spend most of their screen time.
So, as you might have already guessed, locking premium features behind a paywall is not the only way app developers earn a living. Yes, users can still enjoy the basic features without spending a dime, but they’ll keep the money flowing due to the ads they watch along the way. There are many options: subtle banners, full-screen ads between game levels or native ads that fit like a chameleon – whatever is necessary for any strategy in the playbook, you name it.
How Does In-App Advertising Work?
Now that we know what in-app advertising is, let’s figure out the behind-the-scenes part. The tech doing all the heavy lifting here is programmatic advertising. Basically, it’s an automated buying process: ad networks connect marketers with app developers (or, in other words, publishers) and facilitate transactions for ad spaces to be bought and sold in real time. This arrangement benefits both: advertisers gain access to engaged audiences and developers earn revenue from ad impressions and clicks.
Let's face it – it’s 2025, a high-tech era and mobile usage is through the roof, with everyone practically living on their phones. That's exactly why in-app advertisement isn't just another trendy buzzword. The more people get hooked on their apps, the more your ads scale, the more profit you get, simple as that.
Why Is In-App Advertising Important?
By definition, in-app advertising, like any other form of ads, serves three main players: brands, publishers and potential customers.
Brands get to reach the audiences that really pay attention, publishers earn revenue from ads they display in their apps and users receive free or discounted content in exchange for views. In other words, it’s a triple win, when done right.
Let us remind you: we are talking about billions of people spending what feels like forever on their phones. So every scroll, tap and swipe is a perfect moment for brands to pop up, say “hi” and convert users in ways that traditional advertising could only dream of.
Publishers and app developers, meanwhile, heavily rely on ad revenue to keep their lights on and continue their mission. However, most users expect apps to be free or very low-cost. Advertising in mobile apps helps to bridge that gap, so that developers are able to maintain and improve their apps but making them accessible to users at the same time.
As for users, viewing in-app advertising on Android or iOS is a small price to pay – they get valuable app experiences and don’t even have to open their wallets. Besides, with proper targeting settings and nice ad designs, users will be exposed to relevant products and services that might actually interest them.
Mobile Websites vs. Mobile Apps
This article wouldn’t focus on how in-app advertising works if we believed mobile website ads were way better. It’s quite the opposite.
One of the most significant benefits here is personalisation. Apps understand their users on a whole different level, compared to websites. They know their preferences and habits, thus can display ads that are relevant, not random. To put it metaphorically, in-app ads feel more like they are speaking directly to you, whereas mobile website ads are just shouting into the void.
And since people spend more time deeply immersed in their apps (versus skimming through websites), these personalised ads tend to show excellent performance. No wonder, it’s much harder to stay focused when you are bouncing between browser tabs. Moreover, with fun ad formats like rewarded videos (you know, the ones that give you extra lives in games), users are much more likely to interact with ads than just scroll past them.
What's even cooler is how precise apps can be with their targeting. The user data they collect is much richer which makes it a walk in the park for marketers to select specific audiences based on their behaviour and demographics. Oh, and unlike websites where ad blockers run wild, apps keep those promo messages flowing smoothly to their viewers.
We're not hinting at anything, but draw your own conclusions. Just remember, you know which one is the winner if you need to choose!
Benefits of In-App Advertising
Now that we've shown how in-app advertising outshines mobile web, let's dive into the details of each benefit to see what makes in-app ads so effective.
More Monetization Opportunities
App developers have several smart ways to make money while keeping their apps free for users. From the classic banner ads you might see at the bottom of your weather app, to those full-screen ads that pop up between game levels, there are quite a few options to choose from. Some clever developers even use rewarded videos – you know, like when you watch a 30-second ad to get extra lives in Duolingo. One of the newer trends is playable ads, where you can test out a quick game right in the ad – pretty neat for seeing if you'll enjoy matching tiles in Mahjong before downloading it:
Users Spend More Time in Apps
Apps dominate our phone time – that’s a bit of an understatement. While mobile browsers collect dust, we pour about 90% (surprise-surprise!) of our screen time into apps. Advertisers couldn’t help but notice it and now they are jumping at the chance to reach us there.
It works miracles because apps just pull you in differently. Unlike the quick-glance nature of web browsing, you get lost in a good app. You are battling friends in games, caught up in the latest drama on social or binge-watching your shows – and that focused attention is exactly what makes app advertising leave a lasting impression.
Higher Engagement Rates
In-app advertisements just work better, there is no getting around it. When you are already wrapped up in an app, it’s more likely you’ll actually notice and tap on ads that show up. And let's talk about those clever ad formats – watch a video for some in-game coins or try out a mini-game version of the advertised app. This stuff is borderline addictive!
These aren't your grandma's banner ads. If designed wisely, they flow naturally with what you are doing in the app. Maybe that's why people actually remember these brands and don't immediately reach for the skip button. It's a far cry from those annoying pop-ups that make you want to throw your phone across the room.
Better Ad Targeting
The real superpower of in-app ads? They know their audience scary well. Every time you use an app: what you click, what you buy, how long you stick around – you are painting a picture of who you are. And advertisers crave every bit of this data!
Want to reach night owl gamers in Seattle who love spending on character skins? Done. Fitness enthusiasts who track their runs at dawn? No sweat. With real-time bidding, advertisers can even compete to get their ads in front of exactly the right people at just the right moment. It's like matchmaking, but for ads – and it works because when an ad actually gets you, you are way more likely to give it the time of day.
Improved Conversion Rates
When ads hit the sweet spot, it might feel like they read your mind. Suddenly you are not just scrolling past, you are actually curious. That fitness app ad catches your eye right when you are feeling motivated or that food delivery promo pops up just as your stomach growls. The beauty is in how easy-breezy it all goes, with no clunky redirects or confusing hoops to jump through – one tap and you are there. No fuss, no muss.
Behind the scenes, app makers are watching the whole show unfold. Every thumb-stopping moment, every "meh" scroll-past tells them something. They are constantly tweaking and tuning their approach like a DJ reading the crowd. The better they get at this, the more likely you are to come across ads that actually make you think "hey, I could use that".
No Ad Blockers
Here is a little secret about in-app ads… They are basically unstoppable. Website ads get swatted away by ad blockers left and right, but the beauty of in-app ads is in a simple fact: they are built right into the DNA of the app. They are part of the package deal.
And the funny thing is we kind of roll with it. When you download an app, you know what you are signing up for. It's like this unspoken agreement: you get your free game or tracker, and in return, you'll see some ads. Most of us figure that's fair enough – after all, those developers need to keep going somehow. So while web ads play hide and seek with ad blockers, in-app ads are out there doing their thing, day in and day out.
Challenges of In-App Advertising
In-app ads have massive potential, but they come with their fair share of headaches too. Buckle up to explore the messy reality advertisers are dealing with!
Highly Competitive Market
Talk about crowded! The app marketplace can feel like a packed underground car during rush hour. You know, when everyone is fighting for a tiny bit of space. How do you make your ad the one that catches eyes? You have more chances with trying to be the most interesting person at the party full of comedians and fire-breathers…
Advertisers need a hell of a good strategy and creativity to prevent their ads from blending into the background. If you think that you only need to find a unique angle or eye-catching design that peaks viewers’ curiosity – no, it’s only a start. Once they are hooked, you have to keep them engaged with relevant, cool and timely ads. Easy peasy, right? Well, not really, but that's the challenge!
Dependence on User Data and Privacy Regulations
User data is a real treasure, it’s incredibly valuable but very difficult to obtain ethically. Besides, the reliance on data comes with a price: you have to deal with constantly changing privacy regulations. Advertisers must stay compliant with laws like GDPR and CCPA to guarantee that user data is handled with care and transparency. Want to offer personalised experiences while respecting privacy boundaries? Fun times!
Ad Fatigue and User Experience Issues
We've all been there – bombarded by ads to the point of exhaustion. Ad fatigue is a real issue and it can severely impact the whole journey. When users feel overwhelmed by a flurry of ads, they might easily tune out or, even worse, abandon the app altogether. The balance between "Hey, check this out!" and "FOR THE LOVE OF ALL THINGS HOLY, STOP SHOWING ME ADS" is a form of art. Ideally, ads should blend so naturally into the app experience that users barely notice they are being marketed to. Ah, dreams!
Best In-App Advertising Networks
Looking to earn some real money with your app? Already googling “how to get in-app advertising”? Let's talk about the advertising networks that could make it happen. Here is who's who in the world of app monetization.
Google AdMob
If in-app advertising were a party, AdMob would be hosting it. Google's mobile ad platform is all over the place, it offers pretty much every ad type you can think of. Want to track how your ads are doing? Their analytics are rock-solid. Plus, they've got some top-notch automated tools that do the heavy lifting for you – like finding the highest-paying ads without you lifting a finger.
Facebook / Instagram Ads
Meta knows people. Like, REALLY knows them. Their targeting is so precise it's almost creepy. Whether your audience is into vintage vinyl or vegan cooking, Meta can find them. And with ads that can show up as photos, carousels, videos or those addictive stories, you've got plenty of ways to catch their eye.
Unity Ads
This one is the darling of game developers and for a good reason. Their in-app mobile video advertising fits into games like it was meant to be there. The genius move? Offering players extra lives or cool stuff for watching ads. Players actually want to watch these ads (yeah, you read that right) and developers get paid. Mutual benefit!
InMobi
With their fingers in over 2 billion phones worldwide, InMobi is not messing around. They are big on rich media, video and customisable native ads that actually look good and they are serious about privacy (which matters more than ever these days). Plus, their pricing adapts on the fly to get you the best deals.
Smaato
Think of Smaato as the stock market of mobile ads. They are all about real-time bidding and keeping those ad spots filled. They show you exactly where your money is going, which is refreshing in the sometimes murky world of mobile advertising.
AppLovin
These folks get it – ads need to make money without driving users crazy. Whether it's video ads, offer walls or good old banner ads, AppLovin makes sure everything fits just right. They are pros at what they do: users stay happy, cash keeps flowing.
In-App Advertising Pricing Models
Let's break down how you actually pay for in-app ads. You can view it as ordering from a menu: there are several ways to pick up the tab and each one has its own perks and quirks.
Cost Per Mille (CPM)
This is the classic "pay per eyeball" approach – you're shelling out cash for every 1000 times your ad pops up on someone's screen. Cool, right?
Pros and Cons
Pros:
- Perfect when you just want to get your name out there;
- Budgeting is a breeze since you know exactly what you are paying per thousand views;
- Gets your ad in front of tons of people, fast.
Cons:
- Just because people see your ad doesn't mean they'll care about it;
- Can burn through your wallet if you are trying to get people to actually do something;
- Unfortunately, not all views are created equal.
Cost Per Click (CPC)
Here's where things get interesting: you only pay when someone actually taps on your ad. You pay for results, not just attention.
Pros and Cons
Pros:
- You are only paying when someone is interested enough to click;
- Your money goes toward actual engagement, not just window shopping;
- Super easy to track what's working and what's not.
Cons:
- Costs can be all over the place depending on who else wants those clicks;
- Watch out for fake clicks eating up your budget;
- Might not be your best bet if you are just trying to get your name out there.
Cost Per Action (CPA)
Now we're talking serious business – you only pay when someone does exactly what you want, like signing up or buying something.
Pros and Cons
Pros:
- Only opens your wallet when someone goes all the way;
- Can be a goldmine if your ads convert well;
- Pushes you to make ads people actually want to engage with.
Cons:
- Keeping track of everything can be a headache;
- You might pay for all the setup and get crickets;
- Not great if you are just trying to spread the word about your brand.
Cost Per Install (CPI)
The app developer's favorite – you pay when someone actually downloads your app.
Pros and Cons
Pros:
- Perfect if you want to grow your app's user base;
- Easy to see exactly what you are getting;
- Helps you find people who actually download apps.
Cons:
- Everyone and their dog is competing for installs, so it ain't cheap;
- Some people download and delete faster than you can say "uninstall";
- Really only works if you are pushing an app.
In-App Advertising Formats and Examples
In-app ads come in all shapes and sizes. Pick the right one and your marketing targets don’t stand a chance!
Banner Ads
These are rectangular attention-seekers that hang out at the top or bottom of your screen, accompanied by visuals, snappy text and a “click me” button. They have become the background noise of our app experiences. We’ve mostly trained ourselves to ignore them, yet advertisers keep using this format because somehow it still works!
Interstitial Ads
The following format can be described as full-screen takeovers that pop up during natural transition points in your app. They demand your undivided attention, which honestly feels like eternity and often triggers "where's the X button?!" panic. As always, timing is everything. A well-placed interstitial feels natural and drives conversions. To sum it all up: great for advertisers, potentially rage-inducing for users!
Native Ads
These sneaky little devils are masters of disguise, they blend right into your feed and match the look and vibe of whatever app you are using. That "suggested post" or "recommended article" might actually be marketing in sheep's clothing. They are so seamlessly integrated that your brain often doesn't register them as ads at all. The engagement rates are off the charts and your awareness of being marketed to is practically non-existent. Brilliant, huh?
Rewarded Video Ads
The meaning of this in-app advertising format is simple: I’ll pay you to listen to my sales pitch. It’s a wise move based on human nature: people will endure almost anything for freebies. These are wildly popular in gaming apps. "Watch this 30-second ad and get 50 gems" is perhaps the most honest transaction. Users receive their virtual goodies, advertisers get guaranteed views and everyone walks away satisfied. This way advertising turns from an annoyance into an opportunity. Probably the greatest magic trick the ad industry has ever pulled.
Playable Ads
They let you test drive the product before committing to the download. Again, mostly used for game app promos. These ads are clever because they filter for genuinely interested users – if you enjoy the sample, you'll probably install the full version. And the coolest thing here is interactive format – no more downloading games that looked cool in static ads but turned out to be total duds!
Rich Media Ads
Animations, sounds, videos and interactive elements – these ads have it all. Compared to regular ads that just sit there looking pretty, rich media ads behave like an excited puppy: "Touch me! Swipe me! Play with me!" Yes, they require a lot of development resources but the payoff in user attention makes them worth the investment. However, when done poorly, they can be as annoying as an overly complicated birthday card that plays music and won't shut up.
Offerwall Ads
Offerwall ads present users with a list of tasks they can complete in exchange for rewards. Each one fills users’ virtual piggy bank with coins, gems, discounts or whatever currency floats their boat. You can call it a buffet approach to in-app marketing, users get to browse this menu and select what suits their interests and available time.
Best Practices for In-App Advertising Success
Now it’s time to explore what truly works in in-app advertising. No fluff, just real talk about getting those ads to perform without driving your users up the wall.
Optimizing Ad Placement
Ad placement is exactly like real estate – it's all about location, location, location. You want your ads where eyes naturally land, not shoved in users' faces. Dare to guess? Right when players finish a game level, during natural breaks in the action or at the bottom of the screen where they don't get in the way. And here is a pro tip: those "watch this ad for extra coins" moments? Pure gold, because users actually want to see those ads.
Personalisation and Targeting
Let's get personal… But not creepy-personal. Dig into your user data and figure out what makes them tick. Are they early birds who love puzzle games? Sports fanatics who check scores every hour? Once you know your crowd, you can serve up ads that speak their language. It's like being a digital cupid between your users and ads they might care about.
A/B Testing and Performance Tracking
Here is where you put on your lab coat and start experimenting. Think your green "Buy Now" button beats the blue one? Test it. Wonder if video ads work better than static ones? Test that too. Keep what works, ditch what doesn't. Numbers don't lie, so watch those metrics like a hawk. When something is working, you'll know it – and when it's not, you can pull the plug before it drains your budget.
Ensuring a Seamless User Experience
Nobody likes a party crasher and that's exactly what bad ad placement feels like to users. Want to know the secret? Make your ads feel like they belong there. If users have to fight through a maze of pop-ups just to use your app, they'll bounce super fast. But give them something valuable in return for their attention – maybe some extra lives or premium features – and suddenly those ads become part of the experience, not an annoyance.
Future Trends in In-App Advertising
Let's peek into the crystal ball and see what's cooking in the world of in-app advertising. Here is what's about to shake things up:
AI and Machine Learning. Remember when ads felt random? Those days are history. AI is getting pretty good at figuring out exactly what you might want to see – sometimes before you even know you want it. It's like having a really intuitive friend who always knows what to recommend, except it's your smartphone.
Programmatic Advertising. Figuratively speaking, it’s speed dating for ads. In the blink of an eye, advertisers and apps are matching up, making deals and serving ads. It's all automated and getting smarter by the day.
Interactive and Immersive Ads. Boring static ads? So last decade. Now we're talking ads you can play with – try on virtual sneakers, take a quiz or step into a whole new world with AR. It's not just an ad anymore, it's an experience.
Privacy and Data Protection. The elephant in the room: privacy. With everyone getting savvy about their data, advertisers have to play nice. Think less creepy stalker, more respectful neighbour. GDPR and CCPA aren't meaningless abbreviations, but the new rules of the game.
5G Technology. 5G gives ads superpowers. Those fancy AR experiences and HD video ads that used to buffer? They'll load faster than you can blink. Mobile gaming ads are about to get way more impressive.
Personalisation and Customisation. We are moving beyond "Hey [INSERT NAME]" emails. Ads are getting really personal. They are learning your habits, preferences, even your daily routines. Eerie? Maybe. Effective? Absolutely!
Cross-Platform Advertising. Your phone, tablet, laptop, smart TV – ads are following you everywhere, but in a good way. You can tell your brand’s story across different devices and make sure your viewers will get the whole picture no matter where they are looking.
Social and Influencer Marketing. The line between ads and content is getting blurrier. Your favorite influencer's "totally honest review" might just be the future of advertising. It's less about selling and more about storytelling.
Sustainability and Social Responsibility. Brands are realizing that showing they care about the planet isn't just good PR – it's good business. Get ready for more ads that make you feel good about saving the world, one tap at a time.
Final Thoughts
Now that you've got all these strategies and insider tips under your belt, you are totally ready to make smarter decisions and see actual results from your ad spend. Don't just chase the latest trends, though. The real wins happen when you truly understand who you are targeting, create ads that make thumbs stop scrolling and regularly adjust your approach based on what is working. Stay hungry for new ideas, don't be afraid to try weird stuff that might fail and roll with the punches as platforms and user behaviours shift (which they absolutely will, constantly). The ceiling is high for what you can achieve if you keep exploring. Good luck!
