A majority of 77% of brands have now asked their media agencies to invest in in-app advertising, according to a survey by advertising monetisation company Fyber.
Agencies and buyers also found mobile to be most effective channel to reach and engage users whilst mobile in-app inventory provided better results across metrics such as ROI. Indeed, the research noted that in-app ads could improve ROI an average 41%.
The study also found that in-app advertising was being seen as more reliable compared to mobile browser ads. A third of respondents said that user engagement was improved in in-app advertising.
Meanwhile, brands said that targeting was a key advantage of in-app ads, outperforming mobile web, video and desktop.
The reasons for using in-app advertising are diverse, but range of driving brand awareness (68%) to generating sales (52%).
“Mobile devices are the consumer’s primary means of access to the Internet, and close to 90 percent of time on mobile devices is spent in apps, so it’s no surprise that the mobile in-app inventory is of growing interest to media buyers and brands,” explained Yoni Argaman, senior vice president of marketing and corporate strategy at Fyber, in a statement. “It’s gratifying that agencies and brands are reporting better targeting capabilities, an issue that has long stymied ad spend in the channel. And with higher ROI and engagement levels, media buyers now regard in-app inventory as a key conduit to their target audience.”
Meanwhile, gaming apps scored high for reach (60%) and user engagement (59%). 91% of media agencies and 87% of brands said they planned to advertise in-games in the near future.
In terms of the best-performing formats, playables, video and opt-in formats scored top.
Highlighting the success of in-app ads, respondents also believe that in-app ad inventory will account for 43% of total digital advertising over the next five years (34% currently).