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Mobile App Advertising

Within the world of digital marketing and advertising, in-app advertising is one of the biggest players. With digital advertising revenue now surpassing even television, mobile app advertising has to be at the top of the list for every business out there that needs to advertise. In this article, we will be discussing advertising with mobile apps, including how it is done, why businesses should be paying attention and much more.

What is Mobile App Advertising?

If you have a smartphone, tablet or other mobile device, you are undoubtedly familiar with mobile applications. Mobile app advertising is simply the process of promoting a product or service via the advertising space that is sold on those mobile apps. This is a little different than the overall term mobile advertising, because it does not incorporate SMS or MMS advertising, ads that are placed on mobile websites that are reachable by any search engine or any of the other mobile advertising methods. Mobile app advertising is specifically advertising somewhere within the mobile app, with the advertising space offered by the application publisher.

Why Should You Advertise on Mobile Applications?

So, why should you advertise on mobile apps? The obvious answer is because everyone uses apps. The average mobile device user has between 25 and 50 apps installed on their smartphone or tablet. Many of these apps are used daily, and the most popular applications out there are often used several times a day – as in the case of Facebook. If you advertise on a mobile app that is being installed and used, then you are definitely going to be seen. According to BI intelligence, mobile app installation in the United States will reach nearly $7 billion by the end of 2019. This revenue has been growing by about 15% for several years now. Experts are predicting that many of the things that people use their laptop or desktop computer for now will be able to be performed by an app in the near future.

The Mobile Ad Networks

The way that mobile advertising is done is through platforms called mobile ad networks. There are a lot of ad networks out there, and there isn’t one that is the best, because they all work a little differently. You access these ad networks through what is called a demand-side platform, which allows the advertiser access to all of the various advertising spaces that are currently available, giving them tools to bid on them and start a campaign right away. You will have to research mobile ad networks and demand-side platforms to determine which one will work for the product or service you are trying to promote, or for the specific type of advertising you have in mind.

Statistic: Worldwide in-app advertising and app store revenues of mobile apps and games in 2015 and 2020 (in billion U.S. dollars) | Statista

Find more statistics at Statista

In-App Advertising Models

There are several business models that in-app advertising follows. You can choose to advertise with any of these available models including CPM, which stands for cost-per-mille; this model charges you a specific amount for each set of a thousand eyeballs that see your ad on the mobile app.

Another advertising model that issues with mobile apps is the cost-per-click model, although it is more common with paid search advertising. The nice thing about this model is that you know that someone is going to see your landing page or website if you get charged, but if you are unable to convert them when they arrive, you may be paying a lot of money for nothing.

Generally, in-app advertising models will display the ad at random intervals that disrupt the customer experience. Because of this, the CPM model is preferable due to the fact that some apps make it difficult to find the button to close the ad, which causes some users to click just to get rid of it. With the CPC model, you are charged for each of those clicks, even if the user had no interest in your product or service.

Where to Start with Mobile App Advertising

Many people who are new to mobile app advertising wonder where they should start. There are so many apps out there that can make it hard to know which ones are going to be worth the money, especially since there is somewhat of a learning curve when it comes to advertising on a new medium. One of the best places to start is with an advertising medium that you’re probably already familiar with: social media. Social media apps like Facebook, Twitter and Instagram all have advertising programs and they can help you get started in the world of in-app advertising because they are already familiar to you. However, using a demand-side platform actually makes it pretty easy to get started even if you aren’t familiar with the apps where your ad will be shown. The nice thing about these platforms is that they are designed to give you a great deal of control over your ads, and especially how much money you spend.

The Importance of Analytics
However, no matter what apps you decide to advertise on or what platform you use, one of the tools that you must use his analytics. Being able to analyze your advertising reach, conversions and return ratios will allow you to make smarter decisions in the future and improve every time you start a new campaign. Many of the demand-side platforms out there will have some form of analytics integrated into them, but there are third-party tools that you can use as well that will give you a lot more insight.

Mobile app advertising is definitely one of the things that you should be doing if you have a product or service to promote. Because of how mobile apps are marketed, you are able to get a lot of advertising without spending a huge amount of money if you are careful. Since mobile app developers either offer their application for free or have a free version available, they need your ads to display if they want to make any money. That means that you can usually get a really good deal.

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