According to a report by Juniper Research, this amount is up dramatically from the $3.5 billion spent in 2013, and makes in-app advertising the fastest growing sector of the mobile advertising market. Juniper predicted in October that mobile advertising will grow over 300 percent to $40 billion over the next five years. Facebook has already gone from almost no mobile revenue, to 41% of its revenue coming from mobile apps, and a third of Google’s paid clicks are now on mobile devices.
In-app advertising is more effective as it enables advertisers to target people with the right ad at the right time — capturing their attention, encouraging interaction, giving them greater control over the situation. Juniper said advancements in rich media ad spend is expected to surpass display ad spend by 2018.
Finally, Juniper argues that tablets will “propel” spending on in-app ads. According to the report, smartphones currently account for around 70% of in-app adspend. Cost per 1,000 impressions are higher with tablets than smartphones, particularly for rich media ads, and by 2018, the tablet/smartphone adspend split will be 50/50.
Image by ilamont.com.