In-app advertising: The complete guide to effective mobile ads

Choosing the right type of in-app ad

The right choice of in-app ad can yield lucrative rewards, so it’s important to dedicate time and resources to the decision-making process. There is no “one size fits all” approach; many marketers find that testing out various options is the best way to find the option that best meets their needs.

A key consideration when embarking on an in-app ad campaign is where and how the most receptive audience will be found, ensuring that marketing budgets are spent wisely on ads that users find relevant and engaging. Let’s dive further into the four main types of mobile app advertisements and the best practices to match your campaign goals with your ideal audience.

Banner ads

Originally a feature of desktop marketing and having fallen into favor with mobile marketers in recent years, banner ads are subtle and not intrusive, typically used to build brand awareness. Taking up a horizontal portion of the screen (usually either top or bottom), a banner ad was traditionally an embedded static image encouraging the user to click to access an offer or learn more. Modern mobile marketing sees banner ads feature GIFs and videos too, although the static image approach is still a popular option.

Stats indicate that in-app banner ads perform 11.4 times better than other banner ads (on mobile web or desktop), and so they remain an effective format for marketers aiming to to raise awareness of a brand, app, service, etc. A potential risk of banner ads is “banner blindness”, a term coined when they were used primarily on web and considered easily ignored. Mobile marketers keen to avoid this should put time and resources into a banner ad’s design and text, perhaps using A/B testing to optimize the click-through rate (CTR).

Check out our recent blog post to learn more about optimizing in-app banner ads.

Video ads

A popular choice amongst mobile marketers seeking high CTRs is in-app video advertising. A banner or pop-up that appears on-screen during an app session, they are highly engaging and often appear on social media platforms. Video ads can take on many forms—for example, Instagram ad formats alone include reels, stories, carousels, etc.

A subset of in-app video ads is rewarded video ads, offering users clear incentives for watching. These are proving very engaging with gaming app users who will invest time in watching the entirety of a video in order to gain rewards such as in-game privileges or extra lives. In the gaming context, rewarded video ads are largely received well, with 53% of players saying they play a game longer because of receiving rewards through in-app ads.

Rich media ads

Rich media ads are interactive, using components such as video, audio, text, and animation to encourage user interaction. When a user is presented with a rich media ad, they are given the opportunity to truly engage with a brand, so this method of mobile in-app advertising is popular amongst marketers aiming to boost engagement and brand awareness.

Native ads

A native ad is unobtrusive by nature and fits in seamlessly within the environment of an app. By matching the app’s style, the ad encourages trust. Utilized more and more by marketers who want to benefit from the positive attributes of the brand of the app where the ad is placed, the native advertising sector is booming and predicted to be worth $400bn by 2025.

Native ads can prove more expensive and challenging to implement than alternative types of mobile app advertising, but such highly customized and well placed messaging can drive impressive click and download volumes.

More in-app ad formats

The types of ads that apps can display vary—and in some cases, apps will come up with their own unique ad formats. In addition to the four main types of ads for mobile apps we’ve covered, we’re witnessing the rising popularity of these alternative ad formats:

• Carousel ads: Popular on social media, carousel ads allow advertisers to display up to 10 images or videos within an ad, with users swiping through them to view all media. The amount of advertising real estate presented by a carousel ad allows an advertiser to offer a user a curated visual experience, with options for multiple link destinations.

• Unskippable bumper ads: Familiar to YouTube users, bumper ads play before a chosen video. They are up to six seconds long and can’t be skipped, unlike skippable instream video ads. Short and minimally disruptive, they harness the power of video and audio and are displayed to a captive audience.

• Interstitial ads: A video or image filling the full screen of a device, interstitial ads are usually displayed at a moment of transition in the user journey, for example moving between levels in a gaming app. The user has two options—to click the ad or close the ad. The full-screen nature of these ads for mobile apps can result in a higher CTR, although marketers must be aware of this possibly being the result of accidental clicks when users intend to close the ad. It’s crucial that interstitial ads are relevant in the context they’re displayed, to avoid irritating users rather than engaging them.

• Playable ads: A type of rich media ad most often seen within the gaming vertical, playable ads give users the chance to try out the gameplay of a new app before downloading or purchasing it. Once this short trial period is over, a call to action (CTA) will prompt the user to install the app. Playable ads can result in lower uninstall rates for apps, thanks to users already having experienced the app’s content.

The reach and success of the various types of mobile app advertisements can vary wildly between apps and between industries. A Goodfirms survey “In-App Advertising: Trends, User Perception, and Challenges” found skippable instream video ads and banner ads to have the most reach, with 85.2% and 68.7% of respondents being exposed to them, respectively. The survey found that 42.6% of smartphone users have ended up buying products after clicking in-app ads and 56.5% of app users downloaded apps recommended through an in-app ad. This high conversion rate proves that the ideal type, design, and placement of an in-app ad can pay dividends in the long term.

In-app advertising workflow

At a basic level, the mobile in-app advertising workflow starts with an ad being requested, placed, and displayed to users. If a user takes action based on the ad, the network informs the advertiser and this data is used to optimize campaigns.

• Find the right audience: Matching the right ad to the right audience is always integral to campaign success. App publishers need to ensure that their user acquisition (UA) efforts are bringing in the right users, and advertisers need to ensure that they are choosing the right ads. High relevancy leads to higher rates of conversion. Today’s mobile marketers often employ artificial intelligence (AI) and machine learning (ML) to build optimum target audiences.
• Don’t overdo it: There is a balance to be found. No matter how great your ad is, no one wants to be bombarded or have ads interfere with their in-app experience. You will avoid annoying your potential customers by segmenting your audience and addressing them with relevant ads. Consider ad timing as well, and always aim to enhance the user experience rather than detract from it.
• Use the right pricing model: From cost per mille (CPM) to cost per click (CPC) and cost per install (CPI), various pricing models exist. Make sure you’re choosing the one that best suits your campaign’s aims.
• Remain on top of privacy legislation: A host of global data privacy standards exist, and they’re updated regularly. Keep a close eye on these to ensure that your advertising remains compliant.
• Choose the right MMP: When it comes to using campaign intelligence to improve on previous campaigns, engaging with an MMP like Adjust is key. The data and insights made available via an MMP are central to remaining informed as you move campaigns forward and optimize future plans (or in real-time!). MMPs also help to safeguard against mobile ad fraud and keep data clean.
• Understand the full user journey: Another significant benefit of an MMP is the ability to view how a user has interacted with your app after their initial ad click. By measuring in-app events and user behavior, you’ll learn which kind of users offer most monetization value and can use this information to target potential high-value users in future.
• Remember to retarget: Don’t neglect the users who have converted but then lapsed. Retargeting is the ideal way to re-engage with these valuable users who have already shown an interest in your brand. These users have already shown signals of intent, so could help to boost ROAS and lifetime value (LTV).

• Cross-promote if you have multiple apps: A budget-friendly option open to app developers with multiple apps is the ability to cross-promote apps within apps, targeting optimized audiences and requiring no ad spend. Brand trust is high amongst these users.

The power of advertising in mobile apps lies in its ability to improve CTR, engagement, and boost revenue. Employing targeting to display ads to the most relevant user base adds a level of precision that only serves to further reward savvy marketers.

The in-app ad options available to the modern mobile marketer are so vast that exactly the right ads to match strategy can be realized. Every consideration can be taken into account, for example the exact point at which the ad is displayed, ideally at a moment that catches an engaged user at a convenient time (e.g. not in the middle of active gameplay).

Evaluating the effectiveness of your ads is critical to a powerful and successful campaign. Ask yourself questions throughout, such as whether you’ve selected the right ad network, segmented your audience in the optimum way, and nailed the creative and content. If you fall down on one of the factors, your campaign may not reach its full potential.

Intricately segment your audience with Adjust, implement robust advertising through AppLovin, and then use Adjust’s Measure products to confidently gain the full picture of your user journeys across all devices and channels.

Learn how Adjust can help you to grow your app—request a demo today.