How Should Brands React to the Continued Rise of In-App Ads?


As the mobile app download bonanza continues, brands face a continuing and important question: What should their in-app strategy be and what are the best ways to maximize it?

Business Insider reports that “Mobile app stores — the iOS App Store and Google Play — saw a record-breaking quarter, according to App Annie. Downloads grew 15% YoY during Q1 2017, reaching 25 billion downloads globally, and consumer spending was up 45% YoY to $15 billion in Q1 2017.”

What key insights should brands know to best leverage this market?

BI Intelligence released “a detailed report on app monetization that explores the top app monetization strategies under user- and advertising-paid approaches, and the growing combination of both.”

  • “The app ecosystem is expanding quickly, and it’s becoming increasingly challenging for app developers to compete in a crowded market.”
  • “To capture a piece of the growing market, app developers must adapt their strategies at least as quickly as consumer trends and preferences change.”
  • “Developers can choose a user-paid or an advertising-paid approach to monetizing their apps. Different monetization strategies work best with different apps.”
  • “There are a number of widespread challenges that developers must contend with both before and after they enter the app market.”

In terms of advertising, Mobyaffiliates reports that “According to research from eMarketer, in-app advertising is set to be a key driver of mobile growth over the coming years. Estimated to reach $20.8bn in spending this year to account for 72% of total mobile ad spend, the majority share of in-app marketing still comes from non-programmatic transactions.”

The post continues: “Mobile users now spend more time in apps than on the web. In fact, 79% of consumer time is spent in-app, whilst 20% use the mobile web. It’s unsurprising then that 73% of ad spend happens in-app. After all, advertisers go where their audiences are.”

And what trends should advertisers understand when looking to play in this market? Business2Community reports on several:

1) Programmatic vs. Header Bidding: “Programmatic advertising — somewhat complicated overall, but essentially the process of using computers and algorithms to determine ad buys, as opposed to RFPs and human beings — is on the rise within in-app, although it has a competitor in header bidding. “

2) Video: “Video has been proven over time to deliver higher-value customers to businesses. Most effective marketing involves analyzing channel performance and reducing spend on channels with less performance; as a result, more companies are navigating to in-app video advertising as a potential for positive ROI. That growth in video will only continue in 2017.”

3) Chatbots: “Chatbots have been on the rise for a few years, and you’ll continually see them in 2017 and beyond. The major reason is that baking a purchase process into messaging typically yields positive results for brand-customer relationship, in large part because of the ease of process.”

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