In-app Advertising Market Outlook 2031
The global in-app advertising market size was valued at USD 155.1 Billion in 2022 and is projected to reach USD 473.4 Billion by 2031, expanding at a CAGR of 13.2% during the forecast period 2023 - 2031. The growth of the market is attributed to the higher click-through rate and rising usage of mobile applications.
Mobile advertising is one of the most preferred means for marketers to promote their main brands and products. Several promotion methods such as banner advertisements, interstitials, and video advertisements are used by business organization through the mobile advertisement. To ensure high return-on-investment (ROI) on the products and services, advertisers also uses several advanced app solution such as private marketplaces in-app (PMPs) that also allows the protection from fraudulent practices.
In-app advertising is a key method for promotion or advertising of goods and services using application for mobile devices and is widely used by business organizations as compared to mobile web advertisement. Using the app, marketers are able to connect the targeted audience easily with help of information about users’ location, age, interest, product choice, and consumption patterns. One of the major factors for growing popularity of in-app advertisements is due to increasing spending from marketers in advertising solutions to reach to far-reaching audience. Moreover, rapid development of mobile application from several developers plays an important role in the market expansion. These developers get paid for allowing brands or products to be promoted using their applications.
To encourage views and capture attention of customers, these applications offer more engaging, dynamic, and effective medium for advertisers. In a study of 2018 based on eMarketer data, mobile applications constituted around 25% of customers’ total media time, out of which 90% of the time was spent on applications. For many advertisement agencies and companies, in-app advertising represents a dynamic marketing channel that allows enterprises to customize ads to increase demand of their products and meet the needs of customers’ demand.
In-app Advertising Market Trends, Drivers, Restraints, and Opportunities
- Growing penetration of smartphones and rising usage of smartphone applications such as WhatsApp, Facebook, Instagram, and other social media platforms are major drivers for the in-app advertising market.
- Rising trend of online gaming and popularity of e-commerce websites are other key factors propelling the in-app advertising market growth.
- Frequently uses of messaging applications over other smart phone applications that results in producing significant effect of messaging applications on the in-app advertising market. This is expected to boost the market in the coming years.
- Rapid development of applications in several stores such as iOS store, Google Play store, and others are expected to drive the in-app advertising market expansion.
- Technicality issues and complex in testing software for iOS and android based application system are some of the major restraints that can hamper the growth of the in-app advertising market.
Scope of In-app Advertising Market Report
The report on the global in-app advertising market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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In-App Advertising Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Types (Banner Ads, Interstitial Ads, Rich Media Ads, Video Ads, and Native Ads), Platforms (Android, iOS, and Others), and Applications (Messaging, Entertainment, Gaming, Online Shopping, Payment & Ticketing, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Tapjoy, Inc., Google AdMob, BYYD Inc., Flurry, Inc., Tune, Inc., Amobee, Inc., InMobi, Glispa GmbH, One by AOL, and Chartboost
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Global In-App Advertising Market Segment Insights
Interstitial ads segment is expected to grow at a rapid pace
Based on types, the global in-app advertising market is divided into banner ads, interstitial ads, rich media ads, video ads, and native ads. In 2019, the banner ads segment dominated the market since the ads is one of the most common types that include animated or static media or images placed in high-visibility areas. To promote brand and pull visitors on advertiser’s website cost-effectively are main objectives of banner advertisements.
On the other hand, the interstitial ads segment is projected to grow at a fast pace during the forecast period. Interstitial ads are full-screen ads including videos, image or text that appear on screen in transitions in a mobile application. With breaks or pauses in the content, the ads become less disturbing and gives more immersive experience. Moreover, using the in-app advertising, marketers are able to reach those users who are difficult to connect using conventional advertising channels.
Android segment is projected to exhibit a robust CAGR
On the basis of platforms, the in-app advertising market is segmented into Android, iOS, and others. The Android segment represented a major market share in 2019 and expected to exhibit a robust CAGR during the forecast period. Rising use of tablets and smartphones are key driving factors for the segment expansion. Market share of platforms such as Java, Windows, and BlackBerry are projected to register a slower growth rate because of lower penetration of supported devices.
Growing constant update of new applications in stores especially in Google Play store is expected to drive the segment growth due to rising number of smart phone applications downloads. Another major factor that is responsible to boost the market is increasing demand for cost efficient and simple advertisements by online businesses. With ad-blocking technology on iOS applications, it is a challenging process to access and advertise through iOS platform.
Online shopping segment is expected to be a fast-growing
On the basis of applications, the in-app advertising market is divided into messaging, entertainment, gaming, online shopping, payment & ticketing, and others. In 2019 the market was dominated by the messaging segment. With comparing to other smartphone applications, messaging applications are widely used on a regular basis resulting into a rapid growth of the segment.
In addition to this, rising adoption of smartphones and freely available mobile messaging applications are projected to propel the segment growth. Moreover, wide adoption of mobile messaging applications in regions such as Asia Pacific and Latin America are anticipated to push the segment growth.
On the other hand, the online shopping segment is expected to be a fast-growing segment during the forecast period due to increasing consumers’ inclination towards online shopping over visiting offline stores. Companies present in E- commerce business using video ads on website, which helps the growth of the segment.
North America to account for a key share
In terms of regions, the in-app advertisement market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The presence of large number of well-established and key global retailers especially in the US present key driving factors for the market growth in North America. Moreover, availability of high-speed wireless internet connectivity, high adoption of smartphones, and high disposable income of consumers are other major factors responsible for the regional market growth.
On the other hand, the market in Asia Pacific is projected to be among the fastest-growing region over the forecast period. Increasing smartphone penetration, expansion of global businesses, rapid urbanization, growing preference for online shopping, and developing internet infrastructure are major drivers that fuel the in-app advertising market expansion in the region.
Segments
The global in-app advertising market has been segmented on the basis of
Types
- Banner Ads
- Interstitial Ads
- Rich Media Ads
- Video Ads
- Native Ads
Platforms
Applications
- Messaging
- Entertainment
- Gaming
- Online Shopping
- Payment & Ticketing
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Some of the key players competing in the global in- app advertising market include Tapjoy, Inc., Google AdMob, BYYD Inc., Flurry, Inc., Tune, Inc., Amobee, Inc., InMobi, Glispa GmbH, One by AOL, and Chartboost. These companies focuses on development and customization of integrated advertising solutions to enrich advertisement campaigns.
These key players are focusing on providing creative and interactive advertisement models for expanding portfolio, geographical presence, and customer base. With growing interest in the in-app technology, advertisers use several mobile marketing platforms to obtain design models and target customers effectively by optimizing advertisement campaigns. Real-time data is used by advertisers to improve impact of ad campaigns.
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