It’s becoming common knowledge that mobile web traffic is overtaking desktop web traffic. And since people are spending more time on apps than they are on the web, advertisers need to adapt if they wants to continue reaching their customers. It’s for this very reason that in-app advertising is the fastest growing sector in advertising.

In-app advertising allows you to reach your customers where they spend the most time, but it also increases click-through and conversion rates. We all know that online advertising is constantly changing and highly competitive, which is why it pays to keep up with the latest advertising trends.

How In-App Advertising Works

You simply devote a portion of your app’s screen real estate to an ad, or by  devoting a portion of the app’s installation or workflow to advertising. By pairing up with an advertising network that focuses on in-app advertising, you can ensure that only the most relevant ads reach your user base. This works in favor of both app developers and advertisers, since relevant, contextual content makes the end users happier than irrelevant, interruption advertising.

Why In-App Advertising Works Better than Interruption Advertising

The audience is already engaged with an app when they see an ad. Ads presented in the context of an app are more relevant, more contextual, and, therefore, more effective.

When done right, in-app ads can blend in seamlessly with the user experience. Users who are searching for recommendations, for example, want to see suggestions, not necessarily banners or blinking text. By integrating ads with the app experience, you can make ads seem less like ads and more like part of the app experience.

App users are more selective and more sophisticated. People using apps tend to be more focused on their interests, which makes them less susceptible to interruption advertising and more open to in-app ads. There are quite a few options available for those interested in this method of monetization, and it’s pretty easy to get started.

Using In-App Advertising to Monetize More Effectively

Putting the right ads in the right context means that users are getting a better experience that’s more relevant to their needs. As mentioned, this greatly increases click-through, engagement, and conversion rates. When you properly target your users and implement the right monetization solutions, you always get a return on investment. There are a few steps you need to take in order to monetize you app effectively.

First, pick the proper solution for your app. Do you want to display ads on the screen real estate? Banner blindness affects app users, too, so make sure that you choose ads that don’t turn off your users or drive them away from your product.

Ads that integrate into your app’s workflow or installation, however, may still put the most relevant ads in front of the target audience without detracting from the user experience. The less an ad seems like an ad, the better. Products such as MobileFuel present users with appropriate recommendations, exactly when users need them.

Second, find the right vendor that offers the right solution for your business. If you decide to go with ads that use up screen real estate, make sure to find an ad network that presents relevant content and can work with your platform. If you offer the same app on multiple platforms, you don’t want a company that only works with some of your platforms.

Larger networks are often a good choice, since they offer more robust networks and very specific targeting. But don’t shy away from smaller vendors if they are a better match for your product and your audience.

More Benefits of In-App Advertising

In addition to the benefits that increase click-throughs and conversions, such as relevant content and focused targeting, in-app advertising offers more benefits that make your job easier.

  • More effective targeting means more effective analytics. With a worldwide audience, you can pick apart your ad campaigns down to the tiniest detail, figure out what works and what doesn’t, and optimize your campaigns accordingly.
  • Better analytics means a higher ROI. It’s much easier to optimize and track your campaign, and a more effective campaign produces better results and a better ROI. Find out which ads are the most successful with your audience, pursue those, and your margins will increase accordingly.
  • Choose the types of ads that work. Different ads offer different compensation models, including CPC, CPM, and CPA. Choosing the right model for your app, your audience, and your budget can keep your audience engaged and your profits high.

The Takeaways

You want to make money from your apps, and advertising is one of the most common, most effective ways to do that. When using advertising, remember to blend the ads as seamlessly as possible into your app experience. Design custom ad experiences that give your users what they want, when they want it.

These days, app users are more marketing-savvy than ever, and they are more annoyed by interruption advertising. Using in-app advertising is one of the best ways to keep up with the advertising curve, keep your users happy, and make money from your apps.