The 7-minute Guide to In-app Advertising

Are you looking to monetize your mobile app and increase user engagement? In-app advertising might be the solution you’ve been searching for. This powerful marketing strategy allows you to generate ad revenue, target specific audiences, and promote your app effectively. But how does it work, and what are the benefits? Let’s explore the world of in-app advertising and uncover the secrets to app monetization.

Benefits of In-app Advertising

In-app advertising offers numerous benefits for both app publishers and advertisers. By incorporating in-app ads, publishers can effectively monetize their apps and generate substantial ad revenue. Compared to web ads, in-app ads tend to have higher user engagement, resulting in better conversion rates.

One of the key advantages of in-app advertising is its ability to provide a better user experience. Since these ads are designed specifically for mobile apps, they seamlessly integrate with the app’s interface and content, ensuring a more cohesive and enjoyable user experience. This, in turn, leads to increased app usage and longer session times, benefiting both publishers and advertisers.

Another significant benefit of in-app advertising is its capability for targeted advertising. Through detailed user data and segmentation, in-app ads can be tailored to reach specific audiences. This ensures that ads are more relevant and engaging, increasing the likelihood of user interaction and conversions. Targeted advertising also enables advertisers to effectively allocate their resources and maximize their return on investment (ROI).

Overall, the benefits of in-app advertising extend to app publishers by providing a reliable avenue for app monetization and generating ad revenue. At the same time, advertisers benefit from higher user engagement, a better user experience, and the opportunity to deliver targeted and impactful advertising.

Types of In-app Ad Formats

In-app advertising offers a variety of ad formats to suit different app experiences and user preferences. Understanding these formats can help app publishers maximize their ad revenue and create engaging experiences for their users. Here are the different types of in-app ad formats to consider:

Banner ads

Banner ads are the most common and familiar type of in-app ads. They are typically displayed as a bar, column, or box at the top, bottom, or sides of the app interface. Banner ads usually contain a combination of text and images and are designed to be non-intrusive while still capturing the user’s attention.

Interstitial ads

Interstitial ads are full-page ad units that appear in between screens or activities of the app. These ads offer high user engagement as they cover the entire screen, allowing advertisers to deliver their message in a visually impactful way. Interstitial ads are often used during natural breaks in the app’s flow, such as when transitioning from one level to another in a game or when loading new content.

Native ads

Native ads seamlessly blend with the app’s content, creating a more native and cohesive user experience. These ads match the look and feel of the app’s design and layout, making them appear less intrusive and more relevant. Native ads can be integrated into various app components, such as news feeds, article pages, or product listings.

In-stream ads

In-stream ads are video ads that are played while users are watching video content within the app. These ads are placed at natural breaks in the video, such as before or after the video or during intermissions. In-stream ads offer high engagement and impact, as users are already in a video-watching mindset and more receptive to the content.

Rewarded video ads

Rewarded video ads provide users with an incentive to engage with the ad. Users can choose to watch a video ad voluntarily in exchange for in-app rewards such as additional lives, virtual currency, or exclusive content. By offering a value exchange, rewarded video ads increase user engagement and ad revenue for app publishers.

App open ads

App open ads are displayed when a user opens or switches back to an app. These ads provide additional opportunities for monetization and are often used to promote new app features, cross-promote other apps, or deliver brand messages upon app launch. App open ads can be displayed in the form of interstitials or as part of the app’s splash screen.

Comparison of In-app Ad Formats

Ad Format Main Characteristics User Engagement Ad Impact Relevance
Banner ads Displayed as a bar, column, or box in the app interface Low to moderate Moderate Can vary based on ad placement
Interstitial ads Full-page ad units displayed in between screens or activities High High Can be timed for maximum impact
Native ads Seamlessly integrated into the app’s design and layout Moderate High Blend with app content for better relevance
In-stream ads Video ads played during video content High High Timed with video breaks for better engagement
Rewarded video ads Users choose to watch ads in exchange for rewards High High Value exchange increases relevance
App open ads Displayed when user opens or switches back to an app Low to moderate Moderate Can be personalized based on user behavior

By leveraging the different in-app ad formats, app publishers can optimize their ad placements and create a more engaging and rewarding experience for their users.

In-app Advertising Networks

When it comes to in-app advertising, there are several popular ad networks available to help app publishers maximize their revenue and target the right audience. Let’s take a closer look at some of the top in-app ad networks:


Mobfox is a renowned ad network that specializes in the Health and Beauty vertical. With its vast network of publishers and advertisers, Mobfox offers access to high-quality in-app inventory and advanced targeting options, ensuring that your ads reach the right users.


Mopub is a leading mobile ad platform that caters to a wide range of app categories. With Mopub, app publishers can enjoy access to top-quality native ads that seamlessly blend with the app’s content, enhancing the user experience and maximizing engagement.


Pubnative focuses primarily on game apps but also offers inventory for popular dating apps and messengers. This network provides a variety of ad formats to choose from, including native ads that seamlessly integrate into the app’s interface, ensuring a non-disruptive user experience.


Smaato is a trusted ad network that provides high-quality native traffic and supports viewable impressions. With Smaato’s advanced targeting capabilities and extensive network of publishers, app publishers can optimize their in-app advertising campaigns for maximum effectiveness and revenue generation.

These in-app ad networks offer a wide range of features and targeting options, allowing app publishers to monetize their apps effectively and reach their desired audience. Take advantage of the opportunities they provide to boost your in-app advertising revenue and enhance user engagement.

Ad Network Specialization
Mobfox Health and Beauty vertical
Mopub Wide range of app categories
Pubnative Game apps, dating apps, messengers
Smaato High-quality native traffic, viewable impressions

Monetization Strategies for In-app Advertising

Monetizing your app through in-app advertising offers a range of opportunities to generate revenue. In addition to displaying in-app ads, you can explore other strategies such as offering in-app purchases or subscriptions to maximize your earnings.

One popular monetization strategy is implementing in-app purchases. With this approach, users have the option to unlock additional features or access exclusive content within the app by making purchases. This not only enhances user experience but also provides a direct source of revenue.

Another effective strategy is offering subscriptions. By offering users ongoing access to premium content or services for a recurring fee, you can establish a consistent revenue stream. Subscriptions provide users with exclusive benefits and create a sense of loyalty, leading to long-term monetization opportunities.

Lastly, in-app ad revenue is a proven method of monetizing your app. By serving targeted ads within your app, you can earn revenue based on the impressions or clicks generated. In-app ad revenue is particularly beneficial for apps with high user engagement, as it allows you to capitalize on the time users spend within your app.

When implementing these monetization strategies, it’s important to strike a balance between user experience and revenue generation. By offering valuable features through in-app purchases and subscriptions, you can ensure that users find value in spending money on your app. At the same time, implementing ads in a non-intrusive manner ensures a seamless user experience while still generating revenue.

Maximizing Monetization Potential

To optimize your monetization strategies, consider a combination of in-app purchases, subscriptions, and in-app ad revenue. This allows you to diversify your revenue streams and cater to different user preferences. Additionally, leveraging user data and analytics can help you gain insights into user behavior and preferences, enabling you to refine your monetization strategies for better results.

Remember, successful monetization goes hand in hand with providing value to your users. Ensuring that your app delivers a high-quality experience and valuable content will ultimately drive user engagement and maximize your revenue potential.

In-app Advertising Monetization Comparison

Monetization Strategy Pros Cons
In-App Purchases
  • Direct source of revenue
  • Enhanced user experience
  • Opportunity for upselling
  • Requires development of additional features
  • May limit access to certain users
  • Reliance on users making purchases
  • Consistent and recurring revenue
  • Establishes a loyal user base
  • Provides ongoing value
  • Requires regular updates and content creation
  • Dependency on user retention
  • Pricing and value proposition challenges
In-App Ad Revenue
  • Passive revenue stream
  • Opportunity for high volume impressions
  • Can leverage user engagement
  • Need for effective ad placement and targeting
  • Potential impact on user experience
  • Reliant on user traffic and engagement

Optimization Techniques for In-app Advertising

To maximize the effectiveness of your in-app advertising campaigns, there are several key optimization techniques you can employ. These techniques will help you improve engagement rates, identify high-performing ad creatives, and enhance overall campaign performance.

A/B Split Testing

A/B split testing is a valuable technique that allows you to test different ad creatives and headlines to determine which performs best for different app categories. By conducting controlled experiments and comparing the performance of various elements, you can make data-driven decisions to optimize your ad campaigns.

Monitoring User Diversification

Monitoring user diversification involves analyzing user behavior and adjusting your ad creatives accordingly. By understanding your target audience and their preferences, you can tailor your ad content to improve engagement rates.

Bid Optimization

Gradually increasing your campaign bids can help you secure better ad positions and improve overall campaign performance. By strategically optimizing your bids over time, you can maximize the visibility and effectiveness of your in-app ads.

Ad Optimization Based on Ad Space ID

Ad optimization based on ad space ID allows you to identify high-performing ad placements within your app. By analyzing the performance of different ad spaces, you can allocate resources to the most effective placements and maximize your ad revenue.

Regularly Updating Ad Creatives and Headlines

To keep your in-app advertising campaigns fresh and engaging, it’s important to regularly update your ad creatives and headlines. By testing and refreshing your content, you can enhance key metrics such as click-through rates and conversion rates, resulting in improved campaign performance.

Implementing these optimization techniques will help you unlock the full potential of in-app advertising, driving better results and maximizing your app monetization efforts.

Tracking and Analytics for In-app Advertising

Tracking and analytics play a crucial role in optimizing your in-app advertising campaigns. By leveraging dedicated trackers like Voluum, you gain access to in-depth reporting and analytics that help you make data-driven decisions and boost the performance of your campaigns.

With A/B split testing, you can experiment with different ad creatives, placements, and apps to identify the ones that generate the best results. This allows you to refine your campaign strategy and ensure that you’re delivering the most effective ads to your target audience.

Granular reporting further enhances your understanding of campaign performance by providing detailed insights into key metrics such as click-through rates, conversion rates, and user engagement. This level of visibility enables you to identify any underperforming ad placements and take necessary actions to improve overall campaign performance.

To illustrate the importance of tracking and analytics, let’s take a look at the following example:

Key Metric Ad Creative A Ad Creative B
Click-through Rate 3% 5%
Conversion Rate 1% 2%
User Engagement 30 seconds 45 seconds

In this scenario, Ad Creative B outperforms Ad Creative A in all key metrics. By analyzing these insights, you can confidently make data-backed decisions about which ad creatives to focus on, allocating your resources more effectively and driving better results for your campaigns.

In addition to tracking and analytics, Voluum and other tracking platforms offer a range of features to help monitor app metrics, analyze user behavior, and optimize your campaigns in real-time. These tools enable you to stay agile and make timely adjustments to maximize your campaign’s effectiveness.

Remember, tracking and analytics provide the foundation for campaign optimization and granular reporting gives you the insights needed to refine your strategy. Leverage these resources to unlock the full potential of your in-app advertising efforts.

Granular Reporting

Granular reporting provides detailed insights into the performance of your in-app advertising campaigns. It allows you to dive deep into key metrics such as click-through rates, conversion rates, and user engagement, giving you a comprehensive understanding of campaign effectiveness.

By analyzing granular reports, you can identify trends, spot areas of improvement, and make data-driven decisions to optimize your campaigns. Pausing underperforming placements, refining ad creatives, and adjusting targeting options are just a few examples of the actions you can take based on the insights provided by granular reporting.

With granular reporting, you can have a clear overview of how your in-app advertising efforts are impacting your overall marketing goals and make informed decisions to drive better results.

In-app Advertising Trends and Future Outlook

The world of in-app advertising is constantly evolving, and staying informed about the latest trends and future prospects is essential for success in the mobile app industry. Let’s explore some of the key trends shaping the future of in-app advertising.

1. Ad Viewability and Measurement

Ad viewability, or the extent to which an ad is actually seen by users, has become a critical aspect of in-app advertising. Advertisers are seeking more transparency and accountability regarding the viewability of their ads. With the increasing emphasis on ad viewability in apps, advertisers can ensure that their ads are being seen by their target audience.

2. Utilizing First-Party Data

First-party data refers to the information collected directly from app users. Leveraging first-party data allows advertisers to better understand their audience and deliver personalized, targeted advertising. By utilizing this valuable data, advertisers can create more relevant and engaging ad experiences for app users.

3. Rise of Programmatic Advertising

Programmatic advertising is gaining significant traction in the in-app advertising landscape. It offers automation and efficiency in ad buying, allowing advertisers to reach the right audience at the right time. Programmatic advertising enables real-time bidding and optimization, resulting in improved ad performance and campaign ROI.

4. App Bidding

App bidding is an emerging trend that simplifies the process of selling in-app ad inventory. It allows multiple demand sources to compete in real-time for ad impressions within the app. This competitive bidding environment maximizes revenue potential for app publishers and provides advertisers with more opportunities to reach their target audience.

These trends reflect the ongoing evolution of in-app advertising, presenting exciting opportunities for app publishers and advertisers. By staying up to date with these trends, you can make informed decisions and stay ahead of the competition in the dynamic world of in-app advertising.


In-app advertising provides a wealth of opportunities for mobile app monetization. With its ability to increase ad revenue, enhance user engagement, and deliver targeted advertising, in-app advertising has become a preferred choice for app publishers and advertisers alike.

By leveraging various ad formats and networks, app publishers can optimize their monetization strategies and maximize their potential for success. Whether it’s banner ads, interstitial ads, native ads, or rewarded video ads, there is a format that suits every app and target audience.

Furthermore, implementing optimization techniques, tracking, and analytics can significantly improve campaign performance. With A/B split testing, user diversification, and ad creative updates, app publishers can continually refine their in-app advertising efforts to achieve better results and higher returns.

As the world of in-app advertising continues to evolve, the future looks bright for app publishers and advertisers seeking effective monetization and user engagement strategies. With advancements in ad viewability, first-party data utilization, programmatic advertising, and app bidding, the possibilities for success are endless. Embracing these trends will undoubtedly pave the way for app publishers to unlock the full potential of their mobile apps and drive revenue like never before.


What is in-app advertising?

In-app advertising refers to the placement of ads within mobile applications to monetize the apps and generate ad revenue.

Why is in-app advertising beneficial?

In-app advertising offers several benefits, including increased ad revenue, higher user engagement, and targeted advertising for better conversion rates.

What are the different types of in-app ad formats?

The different types of in-app ad formats include banner ads, interstitial ads, native ads, in-stream ads, rewarded video ads, and app open ads.

What are some popular in-app advertising networks?

Some popular in-app advertising networks include Mobfox, Mopub, Pubnative, and Smaato.

How can app publishers monetize their apps through in-app advertising?

App publishers can monetize their apps through in-app advertising by serving ads within their apps, offering in-app purchases, or providing subscriptions for premium content or services.

What techniques can app publishers use to optimize their in-app advertising campaigns?

App publishers can optimize their in-app advertising campaigns through A/B split testing, monitoring user diversification, adjusting ad creatives, and gradually increasing campaign bids.

What are the tracking and analytic tools available for in-app advertising?

Dedicated trackers such as Voluum provide in-depth reporting and analytics to optimize in-app advertising campaigns, including A/B split testing and granular reporting.

What are the trends and future prospects of in-app advertising?

The trends in in-app advertising include a shift towards ad viewability and measurement, utilizing first-party data for targeted advertising, programmatic advertising, and app bidding for real-time auctions within the app.