In-App Advertising Poised For Growth, Driven by Strong Demand by Brands, New Global Research Shows

By Danni White - Last Updated on October 30, 2018
In-App Advertising Poised For Growth, Driven by Strong Demand by Brands by Fyber

Citing better targeting capabilities, stronger user engagement, high ROI and reliability, 77% of brands instruct their media agencies to purchase in-app inventory

San Francisco, CA – October 16, 2018 – Fyber, a leading technology company creating solutions for smarter ad monetization, announced today the results of a global survey. Fyber commissioned Sapio Research to conduct a survey amongst media agencies and brands regarding their attitudes and plans for mobile ad campaigns. Overall, media agencies and buyers consider mobile to be the most effective channel to reach and engage users, with mobile in-app inventory delivering the best results across multiple metrics, including ROI. As a result, 77% of brands report they have asked their media agencies to invest in in-app inventory.

Media buyers in agencies say they invest in in-app advertising because it’s more reliable than mobile web browser advertising, with nearly a third of respondents citing better user engagement as the channel’s key benefit. Among brands, better targeting capabilities are the top benefit of in-app inventory, which, they report, exceeds that of mobile web, OTT and desktop. Going further, both media agencies and brands say that in-app ads can improve campaign ROI by an average of 41%.

“Mobile devices are the consumer’s primary means of access to the Internet, and close to 90% 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. 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,” said Yoni Argaman, SVP for Marketing and Corporate Strategy at Fyber.

Gaming apps are clearly viewed as solid investments, with 60% of all respondents citing scale and reach, and 59% citing high user engagement as reasons for investing in it. 78% of respondents said they’ve already placed ads in gaming apps, but that number will grow in the coming year: 91% of media agencies and 87% of brands say they plan them in. Playable, video and opt-in ads are viewed as the most effective in-app ad format.

The strong performance of in-app inventory will capture a greater share of the overall ad spend. According to survey respondents, in-app inventory will account for 43% of overall digital advertising budgets within the next five years, up from 34% currently. 68% of brands use in-app ads to build brand awareness, while 52% have used such ads to generate sales.

Although in-app is favored by all of the survey respondents, US-based buyers are the most enthusiastic of the channel. For instance, 32% of US-based buyers invest 50% or more of their ad budgets in in-app advertising (a full 10% higher than buyers in the UK, the second highest spenders of countries surveyed). Moreover, 39% of US-based buyers include in-app in their media plan 50% of the time or more.

Despite the higher engagement rate and ROI, in-app offers buyers, the mobile web still gets a bigger share of the US buyers’ budgets (47% mobile web vs. 29% in-app). This is likely to change, however, as 82% of US-based brands say they’ve asked their agencies to start buying in-app inventory specifically vs. mobile in general.

About Fyber

Fyber is a global technology company, developing a next-generation monetization platform for mobile publishers. Fyber combines proprietary technologies and expertise in mediation, RTB, video, and audience segmentation to create holistic solutions that shape the future of the app economy. Fyber recently fully merged its three previous acquisitions: Heyzap, Inneractive and Fyber RTB (formerly, Falk Realtime) and is now operating under one single brand. Fyber’s monetization SDK is directly integrated into over 10,000 mobile apps and together the Fyber group reaches over 1.2 billion unique monthly users. Fyber has six global offices in San Francisco, New York, London, Berlin, Tel Aviv, and Beijing. It is publicly traded on the Frankfurt Stock Exchange under the symbol FBEN.

Danni White | Danni White is the CEO of DW Creative Consulting Agency, a digital marketing firm specializing in elevating the visibility of small-to-midsize businesses and nonprofits. She is the author of 17 books and hosts the #Hashtags and Habits Podcast, which merges digital marketing, entrepreneurship, and personal growth.

Danni White |Danni White is the CEO of DW Creative Consulting Agency, a digital marketing firm specializing in elevating the visibility of small-to-midsize businesses and nonprofits. She is the author of 17 books and hosts the #Hashtags and Habits Podcast, which merges digital marketing, entrepreneurship, and personal growth.

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