There’s no doubt that mobile apps have become a necessity today, considering the whopping 2.71 billion smartphone users. According to research, smartphone users spend nearly 87% of their time browsing through different apps. This has led to business professionals actively investing in in-app advertisements to promote their brand and leverage sales.
Several adverts reckon that mobile app advertising is growing fast in terms of marketing methodologies. Further, a BI Intelligence report estimates that the revenue earned from in-app ads in the US will be $7 billion by the end of 2020. Now, this might come across as a shock to some, but it is no news to most mobile app developers, who have been using in-app ads to not only monetize their app but to also highlight information on potential products. Read on to learn about the various advantages of in-app ads.
The Benefits Of In-App Advertising
Needless to say that mobile app marketing has a better future and greater potential to target customers as compared to traditional forms of marketing. And in-app advertising is one of the most efficient mobile app advertising strategies.
500 companies were asked why they wanted to invest in in-app advertising. Here’s what they said.
1. Reach Users Without Cookies
In case you have ever used web-based marketing methods, you would know that the data available to the adverts are mostly from cookies. Now, cookies have a smaller shelf life, are device-specific, and are incapable of gathering user data. This renders them inefficient and unworthy. On the other hand, in-app ads are tailored to gain specific insights about the user opening doors for future communication.
2. Track App Usage
Each mobile device has a unique identification number. There are some apps that are friendly to these IDs. Once an advertiser gets hold of them, they can use it further to track app usage by an individual. If a user, while using an app, clicks an ad landing on a different app, the journey can be traced by the advertiser. Knowing what interests the user is helpful as you can target desired ads, improving revenue generation.
3. Outreach a Larger Target User Base
Earlier advertisements were chosen randomly, with no relation to the user. This method had a lower probability of converting users to customers. However, with the advent of deterministic data, marketers can track user data and analyze which segment of the society would prefer a particular ad. Targeting ads towards a particular section enhances the conversion rate. Further, deterministic data gives insightful information on what pleases a user and then similar ads can be targeted.
4. Higher Degree Of Precision
Another aspect where mobile devices emerge victoriously is the presence of GPS signals. Advertisers who can gain information on the location of users can further use it to target region-specific ads. For instance, if an advertiser needs to promote a sports item, he would target ads to people in or around a stadium. Similarly, gym pieces of equipment are targeted to users in the vicinity of a gym.
5. One Ad at a Time
In-app ads are displayed one at a time. Now, take a look at a newspaper or a webpage; you can see multiple ads displayed on a single page. Right? This can be very distracting and the probability of a user seeing your ad is far lower. Here is where in-app advertising is extremely helpful. It doesn’t matter whether you use the full-screen display or half or just a quarter, there will always only be one ad displayed on the entire screen. So the user is left with only one ad to see and so, they can pay full attention to it.
6. Greater Click-Through Rate
What is the use of placing an ad when its view rate is very less? In-app ads, when compared to web-based ads, have a higher click rate, somewhere near double. As per Medialets, the click-through rate (CTR) of in-app ads is around 0.58 percent, which is pretty higher than that of web ads, having a mere 0.23 percent CTR. Another study shows that the efficiency of in-app ads is 11.4 times higher than that of the banner ads.
7. Effective Targeting
In most cases, the ads targeted in apps are in line with the app’s context and hence, are far more appropriate. On the other hand, website ads are vague and more like an interruption. Further, in-app ads are designed to maintain the flow of app usage.
Final Thoughts
In-app advertising lays tremendous opportunities for all businesses to grow. They can leverage the brand name and, at the same time, target the desired group of users, creating brand trust. All you need to do is use them right! I hope you had fun reading this and as always, stay tuned with AppMystery to get your daily dose of information.