In-app Advertising Market Size, Share & Trends Analysis Report By Type, By Platform, By Application (Messaging, Entertainment, Gaming, Online Shopping, Payment & Ticketing), By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global in-app advertising market size was valued at USD 67,731.4 million in 2018, registering a CAGR of 19.4% from 2019 to 2025. In today’s internet-driven market, mobile advertising has become a prominent and preferred mode of promotion for marketers. Mobile advertising includes video advertisements, banner advertisements, and interstitials, which are used to promote various brands and products. Advertisers are also leveraging in-app Private Marketplaces (PMPs) to improve campaign Return-on-Investment (ROI) and provide protection against fraudulent practices.

In-app advertisements are capable of generating greater user engagement compared to mobile web advertising. It also enables marketers in effective audience targeting based on multiple attributes concerning usage patterns, interests, age, and location. The higher click-through rate is a major factor driving the demand for in-app advertising. The increasing advent of mobile applications is another driving factor for the market growth.

The increasing popularity of e-commerce websites and the rapidly growing trend of online gaming are further propelling the market growth. These factors, combined with the growing popularity of in-app advertising, have compelled marketers to significantly increase their spending on in-app advertisements. Besides, in-app advertising is also an effective revenue generation strategy for mobile application developers. Application developers get paid to display advertisements on their mobile applications.

Compared to the mobile web, mobile applications prove to be an ideal place for marketers to create effective and personal advertising touchpoints. These apps offer a more dynamic, engaging, and effective medium for advertisers to capture consumers’ attention and encourage them to view and interact with the advertisements. According to eMarketer, in 2018, mobile applications captured over 25% of consumers’ total media time, of which 89% of the mobile time was spent on applications.

In-app advertising has become a dynamic marketing channel for various companies and advertisement agencies. One of the major advantages of in-app advertisements is that it allows enterprises to customize ads based on customer requirements with higher accuracy. In addition, the growth of the market is favored by the browsing habits of users, which makes it easier for advertisers to target the users.

Type Insights

Based on type, the market has been classified into banner ads, interstitial ads, rich media ads, video ads, and native ads. The banner ads segment dominated the market in 2018. However, the interstitial ads segment is expected to emerge as the fastest-growing segment over the forecast period. Interstitial ads are full-screen ads consisting of an image, video, or text that appears during transitions in a mobile application. As these ads are aligned with pauses or breaks in the content, they become less intrusive and offer a more immersive experience.

In-app advertising offers a unique opportunity for marketers to reach users that are difficult to reach through conventional advertising channels. Banner ads are the most common type of in-app advertising and consist of static or animated images or media usually placed in high-visibility areas on high-traffic applications. The main objective of banner advertising is to promote a brand and/or to lure visitors to the advertiser’s website simply and cost-effectively. However, marketers are now shifting to video ads and native ads to enhance advertising quality and increase their impact.

Platform Insights

Based on platform, the market has been classified into Android, iOS, and others. The Android segment constituted a major market share in 2018 and is projected to witness the highest CAGR over the forecast period. The rapid increase in the use of smartphones and tablets is expected to emerge as a major growth driver over the forecast period. The market share of other platforms such as Windows, BlackBerry, and Java is anticipated to grow at a slower rate due to the lower penetration rate of supported devices.

Moreover, an increase in the number of smartphone application downloads from Google Play and iOS stores is also likely to boost the demand for in-app advertising globally. The growing demand for cost-efficient advertisements by online businesses is another major factor responsible for driving the growth of the in-app advertising market. Enterprises find it challenging to advertise through the iOS platform as the ad-blocking technology has advanced for iOS applications.

Application Insights

Based on application, the market has been bifurcated into messaging, entertainment, gaming, online shopping, payment & ticketing, and others. The messaging application segment dominated the market in 2018. The growth of the messaging segment can be attributed to the regular use of messaging applications in comparison to other smartphone applications. In addition, the increasing number of freely available mobile messaging applications and the growing adoption of smartphones is also expected to contribute to the segment growth. Moreover, the higher use of mobile messaging applications in emerging regions such as Asia Pacific and Latin America is, in turn, expected to drive the demand for in-app advertising over the forecast period.

The online shopping segment is anticipated to emerge as the fastest-growing segment over the forecast period owing to increased consumer preference for application-based shopping. The growth of this segment can be attributed to the increasing initiatives by companies operating in the e-commerce business to introduce video ads on the website of the app. For instance, in March 2019, Amazon.com, Inc. started the roll-out of video advertisements on its mobile app.

Regional Insights

North America is currently the leading market for in-app advertising due to factors such as high disposable income, high-speed wireless internet connectivity, high adoption of smartphones & tablets, and the presence of a large number of key global retailers and well-established corporations. The U.S. and U.K. markets are relatively mature and consumers in these countries tend to be the early adopters for emerging solutions and technologies.

The market growth can also be attributed to the increasing demand for mobile-based advertisements across various industries owing to the popularity of online shopping, gaming, messaging, and other applications. Companies situated in North America and Europe also have higher advertisement budgets, owing to which the demand for in-app advertising is anticipated to be higher in these countries.

However, the Asia Pacific region is expected to emerge as the fastest-growing region for in-app advertising over the forecast period. The rapidly increasing smartphone penetration combined with developing internet infrastructure, expansion of global businesses in developing markets due to rapid urbanization, and growing preference for online shopping in developing economies in the Asia Pacific region are expected to be the major growth drivers for the market.

Key Companies & Market Share Insights

Key players operating in the market include Tapjoy, Inc.; Google AdMob; BYYD Inc.; Flurry, Inc.; Tune, Inc.; Amobee, Inc.; InMobi; Glispa GmbH; One by AOL; and Chartboost. These companies are focusing on the customization and development of integrated advertising solutions consisting of different types of in-app ads to enhance the reach of advertisement campaigns.

The market is currently in the growth phase and existing industry players are focusing on providing interactive and creative advertisement models to expand their product portfolio, customer base, and geographical presence. As interest in the in-app technology is growing, mobile marketing platforms and advertisers are partnering to determine and design models to best target consumers and effectively measure and optimize advertisement campaigns. Advertisers are also using real-time data to enhance the impact of their ad campaigns.

In-app Advertising Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global in-app advertising market report based on type, platform, application, and region:

• Type Outlook (Revenue, USD Million, 2014 - 2025)

  • Banner Ads

  • Interstitial Ads

  • Rich Media Ads

  • Video Ads

  • Native Ads

• Platform Outlook (Revenue, USD Million, 2014 - 2025)

  • Android

  • iOS

  • Others

• Application Outlook (Revenue, USD Million, 2014 - 2025)

  • Messaging

  • Entertainment

  • Gaming

  • Online Shopping

  • Payment & Ticketing

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa