Mobile in app advertising 2018: Playables, Safety, and GDPR.
The changes in the sphere of in app advertisement are never ceasing to happen and are not supposed to. Naturally, it is not easy to track each of them and keep the finger on the pulse of the mobile app advertising trends but it’s also not necessary for experienced app marketers, developers, and publishers who can separate the grain from the chaff.
We are thrilled to uncover the latest emerging mobile advertising tendencies and mobile ad formats that gained popularity in 2018. GDPR novelties, new safety measures, and other transformations that are here and ‘long to stay’ are also on the agenda.
Mobile in app advertising formats: all stars
2018 was a giant leap in terms of in app advertising effectiveness, and it could be fair to say, it was achieved due to a specific ad formats recognition such as video ads, native, native, and display ones.
Video ad format
By 2019, the mobile in-app ad spend is expected to reach the bar of 72% of all ads, with the video ad format being the greatest publisher’s contributor bringing in over 30% revenue share. In fact, video ad format shows 5 times higher effectiveness and stronger revenue bringing properties than already exhausted banner ad format.
While Facebook’s ad revenue mostly consists of video advertisements, experts point out, large companies are only willing to use video mobile app ads for promoting premium content because it takes more resources and design efforts. Yet, video ads continue to take leading place among mobile app ads when it comes to engagement rates.
Native ad format
Native advertising on apps brings only 5% revenue, still, 55% of users admit being ready to share the content of native ad format with others, when the average in app ads are taken as annoying and intrusive. That happens because native ad blends with page’s content so it can exist everywhere - social media feeds, in search listings, content recommendations, etc.
During the last couple of years, however, the users learned how to distinguish in-app ads from the rest of content. It didn’t affect much the effectiveness of this mobile ad format, still, the native ad should also deliver valuable content and have the ad marks inside and out, otherwise, it increases the user irritation along with a bounce rate.
Display ad format
Display in app mobile advertising that encapsulates the text, banner, audio, and video ad formats brings around 20% total revenues to advertisers.
Within a variety of display ad formats reach media is a one that stands out in the eyes of advertisers because the CTR of this ad outperforms the CTR of an average banner on 250%. According to Statista.com data, rich media in app ads spend in U.S will continue growing and in 2019 will reach whooping 12.91 billion dollars.
Hottest in app advertising trends
Obviously, in-app advertisements gain a momentum. As more and more publishers are ready to risk and embrace mobile web formats that advertising offers today it rewards them with a good portion of app campaign revenue. The better the publisher's website adapted for mobiles, the better selected mobile ad format will work.
At the same time, according to statistics, in app purchases remain to be best-performing on in-app advertising market in terms of revenue driving. They bring in no less than 40% of all publisher's mobile incomes and don’t harm the user experience as after loading an app the decision to purchase additional products appears naturally.
People are getting massively addicted not to their gadgets but to their favorite apps they use on the daily basis. That means the marketers and advertisers will have to shift their gaze at mobile apps that people use most of their time.
A remarkable mobile in-app ad innovation of 2018 became the ability to advertise in-app through offering the interactive demo version of the game, that Google once called "playables".
Playables already project 8 times better performance than previously leading interstitial ads. Such mobile in app ads give the user a chance to “safely” try the products without any strings attached and without going an extra mile for authorization.
Augmented and virtual realities
It’s estimated that in the nearest future the in app advertisement will be heavily affected by the virtual and augmented reality apps because they help to appeal to the people emotionally.
It’s hard not to stay inspired by the ad campaigns like one served by Taco Bell that merged the user’s face with a taco, creating funny buzz effect that with a help of social media got viral and reached 224 million views.
In-app advertising market based on AR and VR technologies is only rising so it’s still not overused and there’s a great chance for the publishers and app marketers to plunge into the opportunity. For instance, the business may use augmented reality ad types that use user’s GPS or AR in-app ads with a marker, that require holding a mobile towards the printed ad to see the augmented world around.
Mobile app advertising: the safety issues
Smart digital advertising technologies have brought to life a side-effect known as ad fraud which now successfully reached in app advertising and mobile ecosystem. Last year ad fraud has stripped advertisers and app marketers off millions of dollars.
This year, according to Adjust’s Fraud Prevention Suite ad fraud rate may double like it did last year with Click Spam 16% increasement and fake installs grown on 20%.
In-app advertisement is brimming not only with click bots but also bots that simulate installations and targeted actions that make advertisers and app marketers pay more.
In such circumstances, the brand safety will remain to be one of the most important concerns for mobile in app advertising. The advertisers, ad networks, publishers, and ad exchanges will have to work together more closely to solve this problem, increasing transparency with GDPR and shifting to white-label blockchain fraud-resistant ad solutions.
In-app advertising on new GDPR landscape
GDPR will affect in app mobile advertising same way it affects the whole digital advertising. Some marketers will have to find the new ways to target their audiences without collecting the personal data of EU residents, the others will shift to the Blockchain ad platforms.
Blockchain platforms can provide a solution to problems associated with automated in app advertising. Providing a full audit on every transaction or operation it ensures that every party gets access to the data and identifies every chain participant without the necessity to gather the personal data.
Theoretically, the result of GDPR standards implementation into in-app advertising market must be a transparent advertising space, equally beneficial to all participants, including end-users, sites and apps will have to be adapted with opt-ins and tools for personal data management.
How to make in-app advertising work?
Choosing the mobile in-app advertising format is only the part of your app campaign effectiveness equation.
Mobile in-app advertising might work out extremely well, a little less well or not well at all, all will depend on the additional circumstances such as targeting users, correctly picked for your platform ad format and size, ad placement, access to the right mobile ad network, and the bunch of other important factors.
Mobile app audience. Typically, banner ads cost will be measured in cost per mile. Therefore, it is important for the application developers, app marketers, and advertisers to assess the number of the mobile app downloads and currently active users (on the weekly/monthly basis).
Geography. It is important for the business to serve in-app ads to the relevant audiences which is also determined by such factors as language, country or city. Any mobile ad format can be more effective if the developer provides such information to advertiser.
Age, profession. Such information about your users will be valuable for in-app advertising as well. For instance, if the mobile app has been created for rating famous resorts, a hotelier or an advertiser who provides the yacht rentals will come to you.
Any information that can help boost in app advertising conversion is extremely important, the more ‘inside the app user experience’ information advertisers get - the higher could be the price for the ad placement.
There’re lots of mobile ad networks and ad exchanges, but working with them could be troublesome for the developer in terms of in-app advertisement optimization.
SmartyAds supply-side platform provides a specialized platforms that remove the problem with mobile advertising and targeting users. The universal access to various ad networks could be obtained in a single, convenient interface for running multiple ad campaigns where app marketers and developers can sell their inventory at the most competitive price provided by the real-time programmatic auction.
If you’re planning to monetize your mobile app with in app advertisement think about ad format and placement that can make the advertisement noticeable, (yet not annoying), learn who’s your user, and choose an effective supply-side platform that will connect your mobile app to the best advertisers worldwide.
Preparing your mobile app for advertising? Leave your request and let us help you to monetize your inventory effectively!
Also, review SmartyAds CPI advertising solution.
IRINA KOVALENKO, CMO OF SMARTYADS