Better targeting capabilities, stronger user engagement, high ROI and reliability are all contributing to a rise in brands investing in in-app inventory, according to app monetisation firm Fyber, which has just revealed the results of a global survey showing that 77 per cent of brands have asked their media agencies to invest in in-app advertising.
The strong performance of in-app inventory will see it capturing a greater share of the overall ad spend in the years ahead, with survey respondents predicting that in-app inventory will account for 43 per cent of overall digital ad budgets within the next five years, up from 34 per cent currently. 68 per cent of brands are using in-app ads to build brand awareness, while 52 per cent have used such ads to generate sales.
Gaming is a popular category for brands, with 60 per cent of all respondents citing the scale and reach it can achieve, and 59 per cent citing high user engagement. 78 per cent had already placed ads in gaming apps, and 91 per cent of media agencies and 87 per cent of brands had plans to use them in the future. Playable, video and opt-in ads were viewed as the most effective in-app ad formats.
"Mobile devices are the consumer's primary means of access to the internet, and close to 90 per cent 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," said Yoni Argaman, senior vice president for marketing and corporate strategy at Fyber. "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."
The survey found that US-based buyers were most enthusiastic about in-app, with 32 per cent investing 50 per cent or more of their ad budget in in-app advertising. In the UK, the second highest spending country of those surveyed, that figure was 22 per cent. In addition, 39 per cent of US-based buyers include in-app in their media plan 50 per cent of the time or more. 82 per cent of US-based brands say they've asked their agencies to start buying in-app inventory specifically, as opposed to mobile in general.