According to a recent research report by Juniper Research, In-app mobile adspend is expected to reach $16.9 billion by 2018, up from $3.5 billion last year. As per the report, the growth will be driven by several key factors including improved targeting capabilities, as well as a trend for more effective interactive rich media ads to be deployed in preference to traditional static display advertising.
The report revealed that while smartphones currently account for approximately 70% of in app adspend, the growth in tablet users and usage would propel greater medium-term spend. It observed that tablet in-app adspend would be further fuelled by the fact that CPMs (Cost per 1,000 impressions) are significantly higher than those for smartphones, particularly for rich media ads, which also have higher CPMs than static display ads. By 2018, the tablet/smartphone adspend split is expected to be almost 50/50.
The report also observed that although app downloads will increase exponentially to 2018, the majority of in-app advertising expenditure is likely to be spent on advertising with social mobile giants such as Facebook and Twitter.
According to the report, by 2018, the Global mobile ad-spend will surpass $39 billion, up from $13 billion in 2013. Rich media ad spend is expected to surpass display ad spend in apps by 2018, as more engaging ad formats see huge uptake. The report also found that, advertisers can increase conversions by simply adding mobile optimised features, for instance a ‘click to call’ button, or by linking to the relevant app store.