AdTech 101: The Role of In-App Advertising in Modern Marketing
Smartphones have become an integral part of daily life, with people spending more time and money on mobile apps. According to Publift, global consumer spending on mobile apps reached $150 billion in 2024, marking a 13% increase from the previous year. Additionally, time spent on apps globally grew by 5.8% year-over-year, highlighting the increasing reliance on mobile apps for various activities.
This trend shows that users are not just casually browsing — they are actively engaged with apps.
A Shift Toward App-Centric Engagement
Previously, social media platforms like Facebook and Twitter dominated mobile usage. However, today’s digital landscape is more diversified. Mobile users now engage with a wide range of apps across different categories, reducing their reliance on traditional web browsing.
According to Smart Insights, apps account for 89% of mobile media time, with the other 11% spent on websites. This shift presents a valuable opportunity for advertisers to capture attention in-app, where users are more engaged.
The Advantages of In-App Advertising
Better Targeting & Personalization: Unlike ads that disrupt a browsing experience, in-app ads are designed to integrate naturally into the app’s content, making them feel less intrusive. Many apps use interactive ads that align with the user’s activity, minimizing disruption and enhancing engagement.
Beyond improving the user experience, in-app advertising allows for precise audience targeting. Apps can collect demographic and geo-location data, enabling advertisers to deliver highly relevant ads to the right users. This level of targeting leads to higher engagement rates and better ROI.
Higher Engagement & Conversion Rates: In-app advertising provides advertisers with a more focused approach, helping them reach users who are more likely to engage, click, and convert. By leveraging in-app insights, marketers can reduce wasted ad spend on uninterested audiences and allocate their budget to high-intent users.
Additionally, interactive ad formats, such as rewarded video ads, playable ads, rich media, and immersive experiences (such as expandable banners), tend to generate higher engagement than traditional web-based ad formats. These interactive formats encourage user participation, increasing brand awareness and boosting conversion rates. You can check out some examples in our creative showcase.
The Future of Digital Advertising is In-App
As mobile app usage grows and social media dynamics shift, in-app advertising is becoming a vital part of digital marketing. Brands that fail to embrace this change risk missing out on a highly engaged, mobile-first audience. To stay ahead, advertisers should use AI-powered ad placements, programmatic advertising, and interactive formats to improve engagement and maximize ROI.
If you’re an advertiser or brand looking to capitalize on this growing trend, now is the time to invest in in-app advertising and connect with users where they spend most of their time — inside mobile apps.
Want to learn more about in-app advertising? Reach out to us and discover how it can enhance your marketing strategy!
