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Whitepaper: Why in-app advertising is the new go-to

By Olivia Atkins, Writer

December 10, 2019 | 4 min read

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Think about how often you use your mobile; what percentage of that phone time is spent using apps? New research suggests that it can be as much as two hours and 57 minutes per day per person. Recent reports meanwhile also suggest that the global in-app advertising market was valued at $82bn in 2017 and is projected to reach $258bn by 2025.

Smaato looks at the value of in-app advertising in 2019

Smaato looks at the value of in-app advertising in 2019

The Drum, in partnership with mobile advertising company Smaato, has written a whitepaper looking at some of the challenges and opportunities around in-app advertising, especially given that many marketers are still struggling to include mobile apps in their marketing strategies.

With commentary from industry experts and insight into how technology has changed and impacted consumer’s habits, particularly across mobile gaming and FMCG brands. As Dan Rosen, COO of M&C Saatchi Performance says in the report: “The most important trend is also the simplest – time spent on mobile when compared with other media channels or experiences. Mobile app continues to be the preferred access point to the consumer’s digital world.”

In-app advertising opportunities

The paper also explores new opportunities in mobile advertising, where in-app advertising had largely been the preserve of gaming. Smaato’s Mobile Games Playbook finds that while the top categories of ads in gaming apps include media (TV, music, gaming), retail and automotive. “So, while 10% of in-game ads are for other mobile games, the overwhelming majority of in-game advertisers are digital entertainment platforms, retail stores, FMCG brands and auto manufacturers.”

Marketers can find out more about concerns around fraud to gain a better understanding of how to monetise new opportunities in this sector. Learn about in depth at initiatives such as The Trustworthy Accountability Group (TAG) which represents one of the most important advertising industry initiatives in the fight against criminal activity and improvement of transparency in the digital advertising supply chain.

The report reminds advertisers of the importance of shifting ad spends to digital platforms, in response to the increase in use for both communication and entertainment consumption. But brands have to be clever about how and where they advertise online as well as mindful of not disrupting the consumer’s journey.

Meanwhile, outside of the West, there’s an even greater potential for in-app advertising. Harald Kratel, VP of global marketing at Smaato, notes that China has incredible potential for in-app advertising growth as a sheer consequence of its level of smartphone penetration: currently 40% of people in China own a smartphone, which is almost greater than the total of Europe and America combined.

Are you ready when it comes to in-app advertising?

Despite the many apparent benefits of in-app advertising, particularly as part of an overall mobile advertising strategy, there are issues around both education and technology capability that are preventing advertisers from considering in-app advertising with the readiness they should.

The whitepaper concludes that to take advantage of the opportunities around in-app advertising growth, app publishers and agencies will need to undertake a period of outreach to brands and advertisers in order to communicate its benefits. While specialists within those organisations already understand the distinction between in-app and wider mobile advertising, that information has yet to filter through to the wider industry. As issues of viewability and the need for accurate user data across devices become more acute, so too does the need to share the benefits of in-app advertising.

Download the whitepaper by filling in the form below or clicking here.

Whitepapers Advertising Apps

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