In-app advertising is a form of advertising through smartphones wherein the advertisements are integrated into the mobile applications. With adaption of digital marketing and smartphones penetration worldwide, there are lucrative opportunities for in-app advertising worldwide. Currently, most of the population spend a colossal amount of time using their smartphones or other gadgets like iPad and are constantly using various smartphone applications for messaging, ticketing and gaming among others. In-app advertising can be integrated with these applications where consumers spend most of their time. The in-app advertising proves to be most effective form of advertising as compared to other forms of advertising such as out of home advertising, T.V among others, as the in-app advertising is a two-way communication among consumers and advertisers. The in-app advertising accounts for a major share of global advertising revenue and the global in-app advertising market is expected to grow significantly by the end of forecast period to register a healthy double digit CAGR.
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The global in-app advertising market is primarily driven by the increasing smartphone penetration and increased use of various smart phone applications, which the consumers use regularly such as Facebook, WhatsApp among others. Among various smart phone applications, the messaging applications will have a significant effect on the in-app advertising market as the consumers use the messaging applications on a regular basis compared to other smartphone applications. It is expected that the smartphone messaging applications will gain a billion new users in the next few years, which in turn will drive the market for in-app advertising market globally. Moreover, the increase in the number of smart phone applications downloads from google play store, iOS store will also drive the market for in-app advertising market globally. However, the technicality issues like the testing of advertisements for in-app advertising for different smartphone software’s like android and iOS are time-consuming as both software’s display contents differently which might pose as a restraint to the in-app advertising market globally.
Global In-app Advertising Market: Market Segmentation
Based on in-app mobile advertising types, the global in-app advertising market can be segmented into:
- Standard Banner Ads
- Interstitial Ads
- Hyper-local Targeted Ads
- Rich Media Ads
- Video Ads
- Native Ads
Based on the smartphone applications, the global in-app advertising market can be segmented into:
- Online Shopping
Based on the geographic regions, global In-app Advertising Market is segmented into seven key market segments namely North America, Latin America, Western Europe, Eastern Europe, Asia-Pacific, Japan, and the Middle East & Africa. Among the aforementioned regions, North America market for in-app advertising market currently holds the largest market share due to the spending on smartphones surpassing the desktops and laptops. The Asia-Pacific market for in-app advertising is followed by the North American market, India currently holds the second position in use of smart phones worldwide which is a provide lucrative opportunity for in-app advertising in the region. Western Europe market for in-app advertising trail behind the Asia-Pacific market, which is followed by Latin America, Eastern Europe, and MEA regions.
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Some of the major players identified in the global In-app Advertising Market include, Facebook, Inc., Apple, Groupo Mobile, Phone Valley, Google, and Mobile Dream Factory among others.
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