What is In App Advertising (IAA)?

How Does In-app Advertising Work? 

Quick summary of how the IAA ecosystem works:

In-app advertising involves a network of players, such as app developers, advertisers, and ad networks, who work together to deliver ads to mobile app users. 

1. Advertisers: Agencies, app developers, or brands looking to buy the ad space to promote their product or service. 

2. Publishers: App developers and owners who build and maintain mobile apps. They integrate ad networks and SDKs to monetize their apps, typically through models such as CPM (cost per mille), eCPM (effective cost per mille), or CPA (cost per action).

3. DSPs: Demand-side platforms allow advertisers to access and bid on ad inventory from multiple ad exchanges.

4. SSPs: Supply-side platforms offer an ad tech platform that allows publishers to manage, sell, and optimize their ad inventory.

Different In-App Advertising Formats and Examples

• Banner ads: Rectangular ads displayed at the top or bottom of the screen.

• Interstitials: Full-screen ads shown during natural transitions within the app.

• Playable ads: Interactive mini-games allowing users to experience gameplay before downloading.

• Native ads: Ads that blend seamlessly with the app’s content and design.

• Interactive ads: Engage users with interactive elements like quizzes or surveys.

• Rich media ads: Incorporate videos, animations, and clickable elements for a dynamic experience.

• Rewarded video ads: Users watch a video in exchange for in-app rewards.

• Splash ads: Full-page ads are displayed immediately after the app is launched.

• Rewarded ads: Users gain in-app rewards for completing a task or engaging with the app. 

// Rewarded ads can include playables and other interactive formats, all offering users rewards for engagement.

What are the Benefits of In-App Advertising? 

1. Mobile App Monetization

Unlike mobile websites, apps give developers creative control, and in-app advertising offers clever ways to turn that into revenue. Think zero browser ad blockers and adopting relevant ad formats that actually boost engagement. 

Instead of charging users upfront, publishers show ads inside the app. It keeps the app free, attracts more users, and grows revenue incrementally. That’s why in-app ads are a successful app monetization strategy.

Adtech platforms like adjoe handle it all, from the right advertisers to engaging ad formats, making app monetization easy for publishers. 

2. Users Spend Most Time on Mobile Apps

Smartphone users spend an average of 3.5 hours daily on mobile apps in 2025 (iOS & Android). A record 4.2 trillion hours were spent on mobile apps, a 5.8% YoY growth.  

Research shows that 92% of mobile time is spent in Android apps, and only 8% is spent browsing the web, reflecting how mobile apps dominate when compared to mobile web usage.

More time spent in apps > more in-app ad opportunities > better ROI for advertisers & higher eCPMs for publishers. 

3. Higher User Engagement & CTR

As of 2025, in-app advertising continues outperforming mobile web ads in user engagement. In-app ads achieve an average click-through rate of 0.56%, compared to 0.23% CTR for mobile web ads. 

Which means in-app ads deliver 150% higher conversion rates than mobile web ads.

And the mobile app marketers agree. According to eMarketer, apps are projected to capture 82.3% of mobile ad spending, a dominant market share.

Higher engagement means ads inside apps reach users who are already active and interested. For advertisers, this translates to better conversion compared to web advertising. While publishers gain better engagement, revenue, and app retention.

4. Boost IAP Revenue 

IAA combined with in-app purchases is an effective hybrid monetization strategy. Users who engage with rewarded ads are 4.5x more likely to make an in-app purchase than those who don’t. 

Research shows that combining IAA with an IAP model, developers saw increased revenue and lifetime value. Over half of gaming companies surveyed saw an increase in ARPDAU, a 30% increase in IAP revenue, and a 33% boost in app lifetime value.

Respondents agreed that IAA outperformed their targets versus apps that relied only on IAP monetization.  

// Investigate: How adjoe’s rewarded format Playtime boost IAP revenue?

5. Better Ad Targeting   

An advantage of advertising in apps is rich user data collection for ad targeting. 

Unlike browser cookies, mobile apps have user device IDs and opt-ins for each user when they download the app. That is a goldmine of first-party data, otherwise unavailable on browser ads. 

It allows advertisers to deliver personalized ads based on user preferences and behavior, demographics, geo, and device types.  

And let’s not forget, people who’ve installed your app are already invested and more likely to enjoy relevant ads that match their interests. It’s a win-win for you, the advertisers, and the users. 

In-app-based mobile advertising also allows ad publishers to create personalized ads. Publishers want to ensure that the ads don’t disrupt the user’s experience. App publishers can identify their audience and have more control over the ad serving process.

Best In-App Advertising Networks in 2025?

adjoe

adjoe is a leading mobile ad network known for its engaging app monetization solutions like Playtime and Arcade. adjoe’s Playtime ad unit offers time and event-based rewards, increasing user engagement and retention. 

adjoe offers multiple ad formats like rewarded ads, interstitials, and in-app loyalty solutions. With a focus on fair competition and premium demand, adjoe enables developers to optimize ad revenue. It also allows advertisers to access high-quality users. 

adjoe is ranked as one of the best ad networks by Singular for user acquisition and retention. It’s an Appsflyer Premier Partner and a leading rewards-based mobile ad platform. 

Admob 

Google AdMob is a widely used in-app advertising network that supports multiple ad formats like rewarded video, interstitial, and banners. It works on both Android and iOS and connects with Google’s broader ad ecosystem. Developers can also use features like ad mediation and Google Analytics to manage and track performance.

Meta / Facebook 

Social media giants like Facebook help reach your target audience through a robust and programmatic advertising campaign. Meta’s Facebook Audience Network extends in-app ads beyond Facebook and Instagram, reaching additional users through partner mobile apps. 

It supports flexible ad formats like native, banner, and interstitial, and adjusts to different placements. It has relatively lower ad costs compared to other major networks. 

Google Ads 

Google Ad Exchange, now part of Google Ad Manager, is a premium ad network that connects app publishers with high-quality advertisers through real-time bidding. 

It supports in-app advertising and offers advanced tools for managing inventory, setting rules, and targeting users. While access typically requires high traffic, it offers strong monetization potential through preferred deals and access to Google demand.

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