In-app advertising continues to grow at speed, and over the next few years, the predicted spend on in-app advertising is predicted to be over 7x what it was in 2017.
Apps have become engrained into our daily lives, we use them to catch up with friends, to manage our finances, to share what we’re doing, to kill some time playing games, to catch up on the news, to read a book, to listen to music, there’s an app for everything. And with an app for everything, there’s a lot of opportunity to get in front of people with paid advertising.
So, where are advertisers spending their money? And how do consumers respond to in-app advertising? We’ve got the stats you need to make the most of the growth opportunities with in-app advertising. If you’re looking for the latest SEO stats instead, see our other article, 30 Key Stats For SEO in 2023.
At Embryo, our Paid Media teams are experts in paid advertising, so if you’re looking to capitalise on the in-app advertising boom, contact us on 0161 327 2635 or email [email protected] and let’s talk about getting your products and services in front of the right people at the right time.
Where Are Advertisers Spending On In-App Ads?
The top app category for ad placements won’t come as a surprise to you, it is, of course, social media. Second, again likely not a surprise, games. If you’ve ever played a game on a mobile device you’ll know how important ads are for driving revenue to allow continued development.
Top In-App Ad Spend Stats
- Worldwide In-App Ad Spend is predicted to hit $314.56billion in 2023.
- By 2027, this is predicted to grow by 47% and reach $469.29billion.
- In 2024, of all in-app ad spend:
a. It’s estimated that social media will account for 38.1%.
b. It’s estimated that games will account for 30.19%.
- In 2024, per mobile internet user, that equates to a per person spend of:
a. $24.71 on social media
b. $19.57 on games.
How Are Consumers Engaging With In-App Ads?
Ads are only as good as their performance, and in-app advertising sees consumers interact differently with ads than general web placements such as display. Consumers are more engaged, more likely to click, and more likely to take an action after clicking, when viewing in-app advertising. This could be down to in-app advertising having more aligned personalisation with users because they tend to be less affected by ad-blockers in the same way that browsers are. We’ve collated some stats on consumer in-app ad engagement.
Top In-App Consumer Ad Engagement Stats
- Apps convert three times more product viewers than mobile web.
- In-app ads (average CTR 0.56%) globally perform better compared to web ads on mobile (average CTR 0.23%).
- In-app video ads have a 7.5x higher CTR than display banner ads.
- Native in-app ads receive 3x more attention than display ads.
- According to a survey, 52% of smartphone users find in-app ads useful.
- On average, rewarded video ads have a 75.8% completion rate.
- iOS users are 21% more likely to click on in-app advertising than Android users.
- The gaming segment of mobile in-app advertising has a click-through rate of 11.4%, which is the highest among all categories.
- 92% of mobile app time is spent on apps that are supported by in-app advertising.
- On average, mobile users are exposed to more than 4,000 in-app ads per month.
How Is The In-App Advertising Industry Performing?
We know that in-app advertising continues to grow, and in particular in the gaming sector, but how does the industry overall perform? What is the perception of in-app advertising for consumers? Here are the top in-app advertising industry stats we’ve collated for this article.
Top In-App Advertising Industry Stats
- In-app banners account for 56% of all in-app advertising inventory.
- 83% of consumers are willing to share their data for a more personalized experience.
- In 2020, mobile in-app ad revenue accounted for more than half of the global digital ad spend at 53%.
- 47% of marketers use in-app advertising to achieve their marketing objectives.
- Approximately 69% of mobile app developer’s revenue is generated from in-app advertising.
- 94% of mobile ad revenue is generated through data-driven, targeted in-app advertising.
- The eCPM for iOS in-app interstitial ads is 51% higher than that of Android in-app interstitial ads.
- 59% of smartphone users consider in-app advertising to be less invasive than other ad formats.
If we look over all of those stats above, we see a positive picture for in-app advertising. The sector continues to grow, gaming and social media are leading the charge, we see consumers interacting more positively with in-app ads, and we know that a vast majority of time spent on mobile devices are in apps. All of this comes together to present a good opportunity for brands to engage with a large audience and get increased returns in comparison to other forms of paid advertising, specifically display.
This isn’t to say that in-app advertising is right for every business, there will be sectors that will see better results than others, but at a minimum it’s worth testing, and should you see the results you’re looking for, then in-app advertising can become another part of your overall marketing strategy.
If you need help with getting in-app ads up and running, we’re here to help. Take a look at our case studies and see how we’ve helped businesses from all different industries to improve their digital marketing performance.