Almost two-thirds (63.2%) of mobile advertising revenues will pass through mobile applications by 2020, IHS says in a new study. As of this date, mobile advertising revenue is expected to total $ 53.4 billion.
The reasons for this: the explosion of mobile applications and the continued growth in the use of smartphones on a planetary scale. Since the launch of the Apple App Store in mid-2008, online application stores have delivered more than 500 billion downloaded applications worldwide, study carried out with the assistance of Facebook.
While the share of non-native advertising remained in the majority in the field of mobile advertising until 2014, the balance of power has since reversed. Eventually, in-app advertising should consolidate its market share.
Then, at the end of 2015, 3.3 billion smartphones were in use worldwide. In the most mature markets (Western Europe, North America, and some Asian markets) there are 85 smartphones per 100 people. But there is still room for growth: the installed base of smartphones worldwide is expected to be 5 billion in 2018.
From this perspective, third-party in-app advertising (i.e. advertising displayed in a mobile application, operated and served by a third party on a publisher’s inventory) should be the most dynamic format. It is expected to grow 70.7% per year in terms of revenue to reach $8.9 billion in 2020. That is a good reason why advertisers outsource dedicated software development teams to get earned through mobile advertising.
How to display ads in the app?
There are several types of ad content in an app:
BANNER ADVERTISING
Remember those annoying 320×50 and 300×50 pixels? These are the good old banners.
Purely textual or containing text and images – they collect a lot of criticism, but they are still popular among advertisers. This is the cheapest form of mobile advertising.
FULL-SCREEN ADS (INTERSTITIAL ADS)
What is its difference from the notorious banners? At least in size.
Banners occupy a tenth of the screen and appear there throughout the entire time the application is used. Interstitials occupy the entire screen, and at the same time the user sees them at the most natural moments of transitions within the application (for example, between game sessions).
What is the beauty of such advertising?
a) provides a higher CTR (aka click-through rate )
b) more eye-catching (especially video content)
c) compared to the ubiquitous banners, it is not annoying. The user can close the advertisement at any time and return to working with the application.
But be careful. If you neglect general recommendations (for example, start showing ads during a game session or when the user enters their data into the financial manager), you will get massive aninstal (in simple terms, users will scatter).
Well, as you yourself can understand, given the greater efficiency, full-screen advertising will cost more than banners.
VIDEO ADVERTISING
Expensive, attractive, efficient. That’s all you need to know about video ads (kidding, this is not all).
But video ads are indeed one of the most expensive types of ad content. It accounts for more than a third of all ad network profits .
Video ads are short video clips (15 or 30 seconds each) that the user sees either when launching the application, or during natural transitions while using the application. And if Interstitial ads show high engagement and CTR, just imagine the results of video ads!
NATIVE (IT’S THE SAME NATURAL) ADVERTISING
Unlike all other types of advertising, Natural Advertising is designed to mimic regular, non-advertising content. These are not banners that are an eyesore, wherever you look. Native advertising looks like an integral part of the application, and therefore does not cause as much rejection and annoyance.
RICH MEDIA
Rich Media, Rich Media or “rich features” banners are the most dynamic and creative type of advertising content. They attract the user’s attention with a combination of animation, video, sounds. That is why such advertising ensures maximum user engagement and, as a result, maximum conversion.
Here are the 10 highest paid app monetization networks:
1. Admob
The world’s largest advertising network owned by Google.
- Platforms: Android, iOS, Unity, Cocos, webOS, Flash, Windows Phone
- Model: CPM, CPC, CPI
- Formats: banners, interstitial, native advertising, In-App Purchase Ads
2. Unity-Ads
Mobile advertising platform for monetizing apps and games on Unity.
- Platforms: Unity, Android, iOS
- Model: CPI, CPCV
- Formats: video
3. Chartboost
The world’s largest gaming and cross-promotional ad network. Serves over 300,000 games and 1 billion players every month.
- Platforms: Android, iOS, Fire OS, Unity, AIR, Cocos, GameSalad, Cordova
- Model: CPI, CPC, CPM, CPCV
- Formats: interstitial, video, rewarded video
4. InMobi
InMobi was established in India in 2007 and has since grown into the largest independent mobile advertising network and has become an international leader in mobile technology.
- Platforms: Android, iOS, Unity, Marmalade, Appcelerator
- Model: CPM, CPI
- Formats: banners, interstitial, video, rewarded video, native advertising
5. MoPub
Mobile monetization platform purchased by Twitter in September 2013. It is now the world’s largest programmatic platform and mediator for two dozen of the largest ad networks.
- Platforms: Android, iOS, Mobile Web, Unity
- Model: CPM
- Formats: Banners, interstitial, video, native
6. Adcolony
An ad network that specializes exclusively in video ads. Since 2014, AdColony has been owned by Opera Mediaworks and operates as part of this advertising giant.
- Platforms: Android, iOS, Unity, Adobe AIR
- Model: CPI, CVV / CPCV
- Formats: video, rewarded, interstitial, native video
7. Smaato
Worldwide advertising RTB platform operating in the market since 2005. Now it is the largest independent mobile advertising exchange, capable of serving as an adapter for ad networks such as iAd, MoPub, AdMob. Total 90,000 developers and publishers, 420 connected networks, 800 million monthly users, 180 billion impressions.
- Platforms: Android, iOS, Windows Phone, Blackberry, Unity, Appcelerator
- Model: CPM, CPC
- Formats: banners, interstitial, video, native
8. Appodeal
Appodeal offers a free programmatic mediation service for mobile advertising for developers. Unlike traditional ad networks, in Appodeal, each ad impression is played out in a real-time auction format between the largest ad networks, RTB exchanges and DSPs, including AdMob, AdColony, AppLovin, Chartboost, Facebook, myTarget, Yandex, Unity Ads, Vungle and many others
- Platforms: iOS, Android, Unity, libGDX, Scirra Construct 2, Monkey X, Game Maker, Xamarin, Cordova, Basic4Android, Adobe Air, Gideros, PhoneGap, Marmalade, Cocos2D-X
- Model: CPI, CPM, CPC
- Formats: banners, video, interstitial, native advertising, native video
9. Leadbolt
Leadbolt is an Australian ad network operating in 165 countries and serving over 10 billion ad impressions per month.
- Platforms: Android, iOS, Unity, Cocos, Marmalade, Xamarin, XDK, Titanium, Corona, Cordova
- Model: CPC, CPI, CPE
- Formats: video, rewarded, native, interstitial, offer wall
Advertising network of the largest social network. The main feature is the transparent work directly from Facebook and all the targeting options provided by the social network.
- Platforms: Android, iOS, Unity
- Model: CPC, CPI
- Formats: banners, interstitial, native advertising