In-App VS Mobile Web Ad Spend Conundrum

Did you know that most mobile internet time is spent in apps, but advertising spend between mobile web and in-app doesn’t line up?

With this in mind, recent data from eMarketer found some pretty interesting insights. Adults spend an average of over 4 hours daily with mobile internet – 88% of that time is spent in apps, while only 12% is spent on mobile web browsers. However, advertisers appear to be moving ad spend in stark contrast to this; another report from eMarketer found mobile web ad spending will reach $36.70 billion in 2024, and it is expected to increase to over $40 billion in 2025. This begs the question – why are marketers committing so much ad spend to a channel that isn’t where consumers spend the majority of their time?

Brands and advertisers have a strong opportunity to correct the apparent industry-wide misallocation of spend to ensure they have the best odds of reaching their business objectives. Here are a few reasons brands and advertisers should consider doubling down with in-app advertising.

Enhanced User Experiences

Tailored Content: Apps can provide personalized content and experiences based on user behavior and preferences. This personalization enhances user satisfaction and increases the likelihood of interaction with ads.

Native Ads: In-app ads can be seamlessly integrated into the app experience as native ads, making them less intrusive and more engaging for users. This integration results in higher engagement rates and better ad performance.
Interactive Formats: Apps support interactive ad formats, such as shoppable and playable ads, which provide a more engaging and enjoyable user experience.
Controlled Environment: The in-app environment is more controlled than the mobile web, reducing the risk of ad fraud and ensuring brand safety. Marketers can be confident that their ads are being displayed in a secure and appropriate context.
Guaranteed Viewability: In-app ads often guarantee viewability, meaning that ads are only shown when the app is in use, ensuring that the intended audience sees the message.

How to Stay Competitive

Despite the clear advantages of in-app advertising, advertisers continue to allocate a significant portion of their budgets to the mobile web. This may stem from traditional advertising strategies and a need for awareness about shifting consumer behaviors. However, as data increasingly highlights the dominance of in-app usage, brands and advertisers must reassess their ad spend choices.

A significant point to address is the outdated notion that marketers can’t track Return on Ad Spend (ROAS) in the in-app ecosystem. This stems from the reality that cookies don’t exist in apps; however, this doesn’t mean that ROAS and other key metrics are beyond reach. Many third-party measurement companies specialize in in-app environments, offering advanced tools for tracking sales conversions, visitation, brand lift, and more.

With that in mind, brands and advertisers should lean into data-driven insights to stay competitive and effectively reach key audiences. If your goal is to engage consumers where they spend time, then targeting consumers cross-device via apps is a no-brainer – like across streaming TV apps on a smartphone and via an actual smart TV. When you couple these strategies with the latest technology solutions, marketers can deploy hyper-personalized and engaging experiences.

As consumers favor mobile apps over the mobile web, in-app advertising presents a superior opportunity for engagement, personalization, and performance. Additionally, in-app should be more top-of-mind as marketers grapple with heavily reduced organic web traffic due to search platforms imposing AI-driven methods to keep users on their pages. Again, all signs point to in-app as a way to keep reaching campaign goals and meet consumers where they are.

Marketers can maximize their impact by aligning ad spend with consumer behavior and drive better results.