Monetization - 2 min read  - December 12, 2018

AppAnnie Projects In-App Advertising to Grow by 60% in 2019

Consumers are becoming more comfortable with mobile ads -- especially if it means they can download their favorite apps for free.

A new report by AppAnnie finds that in 2019 the number of apps using in-app advertising will grow by 60 percent.

That is a significant growth, considering how resistant many app publishers have been to using ads to monetize their apps. But as global spending on apps and in-app purchases grows (surpassing $122 billion in 2019), consumers are becoming more comfortable with mobile ads — especially if it means they can download their favorite apps for free.

This shift in consumer behaviour is giving publishers the opportunity to evaluate and implement different in-app ad tactics to achieve steady and consistent revenue.

If you dig deeper into the AppAnnie report, you’ll find that successful iOS apps in the U.S. advertised across 35% more ad platforms than in 2017, and used more diverse and creative ad strategies. You’ll also see that the top downloaded iOS games in the U.S. used 10% more ad platforms and 20% more creatives.

These findings point to three industry shifts that will impact your ad monetization strategy:

Proven results are driving in-app ad adoption

Successful app publishers are shedding their unease of using in-app ads in favor of the results they see in terms of earnings and user engagement. They are experimenting with different strategies, testing results, and fine-tuning their approach. Our own data points to significant monetary gains due to worldwide rise in ad formats such as rewarded videos and interstitials.

Publishers are taking some of the power away from advertisers

The rise in in-app ads is shifting some of the power away from advertisers towards publishers. Publishers today have a multitude of ad network partners to choose from and access to various performance metrics that help them evaluate the value of each potential partner. Transparency in information such as eCPM and user engagement trends is allowing publishers to demand better results. They want highly targeted and customized ads that offer the modern digital experiences users expect across all their devices.

Mobile games are leading the way towards more creative and engaging solutions

Mobile game developers have traditionally been more open to experimenting with various ad formats. This has led to the rise of more creative solutions such as rewarded videos and playable ads that focus on increasing user engagement. Mobile games, in essence, have benefited other app categories like social network, utility, and education through their experimentations and deep understanding of how to use in-app ads to grow revenue while keeping user satisfaction intact.

Find out which ad formats drive the most revenue in your target market regions: trends.appodeal.com

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