The Fall of Web Advertising and the Rise of In-App

There is no shortage of challenges right now for marketers. In fact, due to several compounding factors, we may be facing one of the biggest industry shake-ups. But, what isn't widely known is that many of these challenges can be overcome by focusing on in-app mobile.

“In-app mobile” advertising refers to advertisements that are displayed within a mobile application. Unlike web-based advertising, which appears on websites accessed through a mobile browser, in-app ads are integrated directly into the user interface and experience of a mobile app.

Overall, while both in-app mobile advertising and web/mobile-web advertising share some similarities in terms of ad formats and objectives, they differ significantly in terms of integration, engagement, targeting, and the specific platforms they are designed for.

Below are some examples of challenges marketers are facing on web and mobile-web, along with how they can be overcome, or avoided, by focusing on in-app mobile.

Google finally started deprecating third-party cookies for one percent of Chrome users this January, and it is ramping up third-party cookie restrictions for everyone by Q3. While this is something almost all advertisers have been preparing for, much of the industry is still worried about how they will meet critical campaign objectives at scale.

With this change, all major web browsers will no longer support third party cookies - long-used for tracking and targeting users in order to display the most relevant ads to them.

However, mobile apps don't rely on third-party cookies. And ad networks have a number of signals and information about users in mobile apps to show targeted ads to them. Put simply: brands and advertisers can still utilize deterministic signals for targeting and measurement at large scale with a mobile in-app focus.

It is increasingly apparent that web referral traffic from Google, Meta, and X. Corp is rapidly deteriorating. In fact, analysis from Axios describes how Facebook referrals were reduced by almost 80% and X. Corp traffic decreased by about 60% since September 2020.

Further, Google's search algorithm prioritizes displaying content directly on its platform, like quick answer boxes and insights that give audiences fast answers - rather than push them to other sources. Meta optimizes engagement within its four walls, encouraging users to look at native content and resources, and X.Corp focuses on short-form video and user-generated content and embedding content in tweets. So, while there is value in marketers continuing to invest in walled garden platforms, smart marketers understand that it is important to also diversify and invest in traffic outside of these walled gardens. And accessing inventory outside those walled gardens is starting to get difficult.

In addition, the introduction of AI for search is adding another layer of complexity in this area. Browsers such as Chrome and Bing offer AI solutions for users to get responses to questions without the user needing to visit any other site. We are just seeing the beginning stages of these solutions, and they will surely grow in popularity and usage in the near future.

Again, here is an area where an in-app strategy shines.

A report from Insider Intelligence found that mobile users spent 88% of their time across apps, and only 12% on mobile websites. This data paints a picture that the largest consumer audiences can be found using, and spending time in, apps. And, mobile in-app traffic isn't highly impacted by changes to search algorithms or referral traffic.

Ultimately, the most important aspect of all engagement strategies is how consumers perceive their experience. Historically, the open web enabled extensive reach opportunities for marketing. However, it lacks any real governing body to help ensure rules and policies are upheld. This is the largest factor in both the beauty and detriment of the web - it's plenty diverse, and plenty chaotic. Because of this, consumers constantly need to rely on their own judgment to avoid nefarious situations, misinformation or questionable content. The web environment also causes the prolonged prevalence of ad blockers, which obviously serve as a consumer's front-line defense against unwanted experiences. Along with this is the fact that brand safety and suitability are constantly in the crosshairs.

In contrast, apps have evolved tremendously over the past few years, and today they offer some of the most consistent and immersive experiences available. This change is largely due to how app stores regulate developers - they ensure that content, functionality, privacy and security standards are upheld. Additionally, they constantly screen for low quality-apps, malware, and potential fraud situations, which results in a safer and cleaner experience for everyone.

So, the big changes happening in the wider open-web aren't affecting in-app mobile, especially outside of the walled-garden apps. And, the diversity and quality of users (and the deterministic identifiers to target them) is richer in-app than with web/mobile web - with the disparity growing with these big changes.

With the ongoing evolution of how brands and advertisers can engage consumers, it's critical they double down on in-app advertising solutions - especially if specific targeting and measurement and great consumer environments are important. As the dust settles, it's apparent in-app is becoming the best suited solution for tracking and targeting specific users, when compared to the wild-west nature of the web.