In-app Advertising Market Analysis Report By Type, By Platform, By Application, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global in-app advertising market size was valued at USD 67,731.4 million in 2018 and is expected to grow with a CAGR of 19.4% over the forecast period, from 2019 to 2025. Due to an increase in the number of internet users, mobile advertising is a highly preferred mode for brand promotion among marketers. Mobile advertising includes banner advertisements, video advertisements, and interstitials which are used to promote many brands and products. In addition, advertisers are investing in-app Private Marketplaces (PMPs) to enhance campaigns Return-on-Investment (ROI) and offer protection against fraudulent activities.

In-app ads can engage customers more as compared to mobile web ads. In addition, in-app advertising helps marketers to attract customers based on some attributes such as location, interest, age, and shopping patterns. The increasing number of advanced applications is another factor expected to drive market growth.

The rapidly increasing popularity of online gaming and e-commerce portals are encouraging marketers to adopt in-app advertisements, thereby expected to further propel the in-app advertising market growth. Moreover, for mobile application developers, in-app advertising is one of the best strategies for revenue generation, as app developers get payment to displays ads on their mobile apps.

Mobile application is a better option for marketers than the mobile web to make effective as well as personal advertising touchpoints. Additionally, these apps are more engaging, effective, and dynamic mediums to attract consumers for watching advertisements.

The market is gaining traction among various advertisement agencies and companies, as in-app advertising allows them to customize ads as per customers’ needs along with high accuracy. Additionally, the growth of the market is characterized by the browsing habits of users which make it easier for advertisers to target the customers.

Type Insights

Based on types, the market is segmented into banner ads, rich media ads, interstitial ads, native ads, and video ads. In 2018, the banner ads led the market while the interstitial ads segment is projected to grow with the highest CAGR over the forecast period, from 2019 to 2025. Interstitial ads are visible with full-screen ads and comprise text, video, and image during a transition in the application. Moreover, these ads are aligned with breaks or pauses in the content thus; they are offering a better immersive experience.

In-app advertising plays an important role for marketers to reach customers which was difficult earlier through traditional advertising channels. Banner ads are the most common type of in-app advertising that consists of animated or static images and are presented in high-visibility areas. The main aim of these banner ads is to promote brands and attract visitors for visiting the advertiser's website. However, several marketers are shifting towards native ads and video ads to improve their impact and advertising quality.

Platform Insights

Based on the platform, the in-app advertising market is fragmented into iOS, Android, and others. In 2018, the Android segment held the largest market share and expected to grow with the highest CAGR over the forecast period. The growing number of Android-based smartphone & tablet users is expected to drive the segment growth. However, the market share of platforms like Java, BlackBerry, and Windows is expected to witness slower growth due to the low penetration of compatible devices.

Moreover, the increasing rate of downloading mobile applications from iOS and Google Play is also expected to surge the market growth in the next few years. Moreover, online businesses are looking for cost-effective advertisement which is expected to drive the growth of this market. 

Application Insights

Based on application, the market is segmented into gaming, messaging, payment & ticketing, entertainment, online shopping, and others. In 2018, the messaging segment dominated the global market due to the high usage of messaging applications as compared to other applications. In addition, the growing adoption of smartphones and the availability of free messaging apps are also expected to propel the segment growth. Further, the growing usage of mobile messaging applications in emerging regions such as the Asia Pacific and Latin America is expected to fuel the demand for in-app advertisements in the next few years.

The online shopping segment is projected to emerge as the fastest-growing segment during the forecast period. This growth is attributed to the rising preference of customers for application-based online shopping. In addition, some initiatives are taken by key players operating in the e-commerce industry to introduce video ads on the apps that will attract more customers, thereby expected to drive the market growth. For example, in 2019, Amazon.com, Inc. introduced the roll-out of video ads on its mobile app. 

Regional Insights

North America is leading the global in-app advertising market due to seamless internet connectivity, a high number of smartphones and tablet users, and the presence of a large number of retailers and well-established corporate sectors. Growing demand for mobile-based advertisements in several end-use industries owing to the popularity of gaming, messaging, online shopping, and others is another factor expected to drive the market growth in this region. Companies located in North America and Europe have a higher budget for advertisement, which is expected to boost the demand for in-app advertising in these regions.

The Asia Pacific is estimated to emerge as the fastest-growing region over the forecast period. Factors like the rising preference for online shopping, rapid penetration of smartphone users, and significant development in internet infrastructure in this region are expected to drive market growth over the forecast period.

Impact of COVID-19

The outbreak of COVID-19 has positively impacted market growth. Due to lockdowns across the globe, app downloads increased for industries such as education, e-commerce, and remote work. Thus, an increase in the rate of downloading mobile apps is expected to drive market growth in the current situation. In-app advertising is getting more affordable and can provide a broad reach across the various audiences in the lockdown. In addition, the high installation of health and fitness app is expected to drive market growth during pandemic situations.

In-app Advertising Market Share Insights

Key players included in this market are Chartboost Google AdMob; BYYD Inc.; Flurry, Inc.; Tapjoy, Inc.; Tune, Inc.; InMobi; Glispa GmbH; Amobee, Inc.; and One by AOL. These market players are focusing on the customized services and development of integrated advertising solutions that consist of a wide range of in-app ads to improve the reach of advertisement campaigns.

The market is currently in the growth phase and existing key players are concentrating on offering creative and interactive models to spread their product folio, geographical presence, and customer base. In addition, advertisers and mobiles marketing platforms are focusing on partnerships to optimize advertisement campaigns and design models for targeted consumers. Advertisers are accessing real-time data to improve the impact of ad campaigns. 

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the 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 this study, Million Insights 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
    • The Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
    • Middle East & Africa