30 May 2016 In-App Advertising and Ad Formats
Today, there is a clear fact that app developers provide free app and then make money thanks to advertising. Most people don’t want to pay for installing apps, and this is the main reason for this situation. When we check out the statistics of rapid growing Mobile Apps rather than Mobile Web nowadays, the power of in-app advertising can make sense more. In-app advertising is a means of making money through free apps for developers, and it offers marketers a better opportunity to target the right audience at the right time as well.
Mobile ad spending, especially in the U.S, surpassed desktop advertising in 2015 and China, which is the other huge mobile market, is one of the fastest growing markets in ad spending. Meanwhile, all app developers should recognize the importance of in-app advertising and decide the ad format which is the most suitable for their app. But how?
Choosing the Best Ad Format
When the app developer decides which ad format will be used, some important aspects should be considered. The first one is unstable consumer behaviors when they access an app and see the ads in the app. The another one is needless to say your goals. Therefore, it is difficult to say which ad format works best. For instance, if your app is new and you want to show what the brand is doing and create brand recognition for the first time, the video could be more effective. You have to take into consideration the mobile industry dynamics. As the industry evolves, mobile ad formats will get strong. Above all, testing them and tracking the results will bring success. Now, you can find the key three ad formats below.
Banner is an old advertising format which is generally exposed to ad blockers or filters nowadays. People don’t want to see it. According to the research, 54% of users don’t click banner ads because they don’t trust them. However, positioned in the proper context, these days, banner ads can still be effective. You should experience it for your app because each app differs from each other regarding its target audiences, features, goals, etc.
We can say that the native advertising is the new black! It is similar to banner ads regarding its size and form. Both don’t take up the full screen. Users still engage in the content while viewing an app, but there is a significant difference between a banner and native ads. Native ads are less disruptive of the user’s experience thanks to being contextually appropriate. Native advertising is a form of paid media where the ad experience follows the natural form and function of the user experience in which it is placed. This advertising matches the visual design of the page like natural content. Native mobile advertising is effective and available for more accurate targeting. Compared to other ad formats, native ads require the Publisher to determine the display. There is an effort for choosing the content and matching the native and content accurately.
Thanks to native ads;
- 25% consumers were measured to look at in-feed rather than standard banners.
- 2% more consumers were measured to look at native ads than editorial content.
- 18% more registered were measured regarding purchase intent than standard banners.
Video is also growing quickly as an ad format on mobile and, together with native advertising, will be the near future of mobile advertising. Video advertising format is more dynamic and can convey the information or message easily to the users. Having looked at the high engagement rates, it is suitable for advertising game or well-established brands.
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According to VentureBeat, mobile video ad spending tripled in 2015, whereas the global spend on video rose from 20 percent of ad spend in Q1 to an astonishing 71 percent of total mobile ad spend in Q3.
Both developers and publishers should think about what works best for the user experience and take action from here in mobile advertising platform when they decide on the ad format. UX is the main trick of this task. The ad content must relate to your app users. When the users see irrelevant ads on mobile, they find it so annoying and it brings along failure.
Finally, don’t forget that gathering data and analyzing your app are the most important pieces of the puzzle in every phase. Herewith, you can reach the most effective mixes of ad formats, frequency, and placement.