In-app advertising has shown itself to be useful, but there are strategies advertisers have to follow for maximum returns.
Video in-app ads are typically expensive compared to display, but they have a click-through rate 7.5 times higher.
The latest report by Smaato and Liftoff studied three trillion requests during the first quarter of 2019.
The report found banner ads to have low eCPM and CTR. Interstitial display ads were 4.6X more, in cost than banners. Native ads had CTRs 8.3 times higher than banner ads.
Liftoff measured post-install actions for native ads and found them to have the most conversion rates of all display formats. They fell short in terms of engagement. Banner ads registered more installations than interstitial.
Through video ads, advertisers can tell stories in engaging ways, and so such ads are effective compared to display.
Mobile video ad placements are more expensive than display, but they pay off in the engagement rates. They have a cost per install that is 40% higher than display.
The report also found post-install action rates to have gone up for video ads with 35.1% install-to-register rates. Install-to-purchase rates were at 4.8% for video.
In terms of performance, rewarded video formats received the best eCPMs but were 86% lower than the average video.
Since they have an opt-in nature, the majority of publishers prefer to look at the rewarded video in relation to the experience of the user. 70% of users said they prefer seeing such ads.
‘As in-app advertising grows, we want to have advertisers and app marketers know which ways to best use their budgets to improve their campaigns,’ said the marketing VP at Liftoff, Dennis Mink. ‘Video ads are more expensive than display, but if the report is anything to go by, and it is, they offer better returns in terms of performance. You can engage high-quality users.’
At the same time, rewarded video conversion rates compare to the average video ad but exceed the rates for display.
iOS ads are more expensive than Android ads and have higher CPMs.