The notable conversion power of in-app ads
In-app advertising has become well-known in the mobile marketing industry for its powerful value as a revenue stream to apps offering inventory space. But did you know that it’s just as valuable, if not more so, for the advertiser? A study by GoodFirms, a B2B evaluation platform, highlights the significant impact of in-app ads on app downloads and in-app purchases (IAPs).
Need to know: Over half of app users download apps from ads within other apps they use, and these users have high purchase intent.
High relevancy leads to higher conversion
Leveraging the power of artificial intelligence (AI) and machine learning (ML), app marketers can now create targeted campaigns that yield better results, ultimately reaching their desired audience more precisely.
GoodFirms' research underscores the value of in-app advertising in improved targeting, higher click-through rates, better user engagement, and revenue growth. This level of precision in ad delivery provides app marketers with invaluable insights and contextual targeting mechanisms to effectively promote their apps.
Which in-app ad formats are popular?
The study also sheds light on the various in-app ad formats that users commonly encounter. Skippable in-stream video ads are seen by approximately 85.2% of users, while non-skippable in-stream video ads reach 52.4% of users.
Banner ads, the most prevalent form of in-app advertising, are encountered by 86.7% of users. Interstitial ads follow closely, with 39.1% of users primarily exposed to this format, and native ads are encountered by 23.9% of users.
Additionally, 29.5% of users prefer watching rewarded in-app videos, suggesting that users are willing to engage with ads that offer tangible benefits. Of these users viewing in-app ads, install rates are quite healthy.
56.5% of app users download apps through in-app ads, and 42.6% make purchases thereafter, indicating the high conversion potential of this advertising method.
Cross-promotion: A cost-effective strategy with high ATT opt-in
It’s clear to see that in-app advertising is an important ad placement to leverage. App developers with multiple apps, however, have a special budget-friendly advantage in their ability to use economical cross-promotion.
These marketers can promote their new apps within their existing app portfolio, effectively reaching a highly targeted audience without the need for ad spend. Cross-promotion allows app marketers to leverage their existing user base and drive downloads and engagement at a lower cost.
Better yet, cross-promotion has been shown to drive high App Tracking Transparency (ATT) opt-in rates. In fact, hyper-casual games that have been installed via cross-promotion boast an impressive 59% ATT opt-in rate! Interested in learning more? Get more ATT stats in our blog ATT two years on: Opt-in rates keep climbing.
AppLovin: Unlocking In-app advertising potential
To implement successful in-app advertising campaigns, mobile app marketers can leverage platforms like AppLovin, which offers a high volume of ad inventory for purchase. AppLovin provides a robust ecosystem for app developers and marketers, empowering them to reach their target audience effectively and drive app growth. Learn about AppLovin Exchange (ALX), the leading real-time bidding (RTB) ad exchange.
Overall, these figures are a positive indication in a privacy-centric mobile marketing industry that users see the value in receiving personalized app suggestions via in-app ads. In-app advertising remains a powerful tool in the mobile app marketing arsenal, providing valuable insights and driving user acquisition and engagement in today's highly competitive market.
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