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The Global In-app Advertising Market size is estimated to grow at a CAGR of 20.5% between 2022 and 2027. The market size is forecast to increase by USD 199.21 billion. The growth of the market depends on several factors, including the growing use of smartphones, the increasing app usage, and the high engagement rates in advertising.
This in-app advertising market report extensively covers market segmentation by application (messaging, online shopping, gaming, entertainment, and others), type (banner ads, interstitial ads, rich media ads, video ads, and native ads), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing use of smartphones is notably driving the market growth, although factors such as the growth in ad-blocking software may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing use of smartphones is the key factor driving the growth of the global in-app advertising market. The growing popularity of smartphones has increased the number of downloadable mobile applications and increased opportunities for in-app advertising. The number of smartphone users worldwide is expected to reach 3.8 billion in 2021 and is projected to grow to 4.3 billion by 2023. This rapid growth in smartphone usage has created a huge opportunity for companies to reach consumers through in-app advertising. In fact, in-app advertising has become the dominant form of mobile advertising, with eMarketer estimating that it will account for 69% of all mobile advertising spending in the US in 2021.
Moreover, the average person spent 4.2 hours per day on their smartphone in 2020, up from 3.7 hours in 2019. This increase in screen time has created more opportunities for companies to reach consumers through in-app advertising. Therefore, the growing use of smartphones has created a massive opportunity for in-app advertising and will drive the growth of the global in-app advertising market during the forecast period.
Growing in-app purchases are the primary trend in the global in-app advertising market growth. The growing popularity of in-app purchases has been a major driver of the growth of the global in-app advertising market. In-app purchases allow users to purchase digital goods and services within your app such as virtual articles, premium content, or subscription services. This has created new revenue streams for mobile app developers and increased opportunities for in-app advertising.
Consumer spending on in-app purchases is expected to reach USD 270 billion by 2025, up from USD 120 billion in 2019. This rapid growth of in-app purchases has created a huge opportunity for companies to reach consumers through in-app advertising. By advertising within mobile apps, companies can target users who are already engaged with the app and are more likely to make in-app purchases. With the continued growth of in-app purchases, it is likely that in-app advertising will continue to be a significant part of the mobile advertising landscape and will boost the growth of the global in-app advertising market during the forecast period.
Growth in ad-blocking software is a major challenge to the growth of the global in-app advertising market. Ad-blocking software is designed to prevent ads from being displayed on websites and mobile applications, which has led to a decrease in the effectiveness of in-app advertising. There were around 650 million devices using ad-blocking software worldwide in 2018, and that number grew to more than 780 million in 2021. This rapid growth in the use of ad-blocking software has had a significant impact on the advertising industry, including the in-app advertising market.
Ad-blocking software is often integrated into mobile web browsers, which makes it difficult for advertisers to reach their target audiences. In addition, many mobile users have installed ad-blocking software on their devices, which means that they are not seeing the ads that are being displayed in mobile applications. In conclusion, the growth of ad-blocking software will have a significant impact on the growth of the global in-app advertising market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global In-app Advertising Market Customer Landscape
The market share growth by the messaging segment will be significant during the forecast period. The messaging segment in the global in-app advertising market includes all forms of messaging apps, such as social messaging, business messaging, and chat apps, that allow users to communicate with each other through text, voice, or video.
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The messaging segment was valued at USD 16.58 billion in 2017 and continue to grow by 2021. In-app advertising in messaging apps has become increasingly popular in recent years due to the large user base and high engagement rates of these apps. Many in-app advertising strategies and messaging apps are used such as sponsored messages, chatbots, and influencer marketing. Sponsored Messages is a type of in-app advertising, where advertisers pay to display their messages in a user's Messages app. For example, companies can pay to have messages appear at the top of a user's WhatsApp or Facebook Messenger conversation list. Sponsored Messages can be targeted based on demographics, interests, and behavior, allowing advertisers to reach their intended audience more effectively. Such factors will increase the market growth during the forecast period.
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North America is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The main factor driving the growth of the North American in-app advertising market is the high engagement rate of mobile apps. App Annie reports that the average North American user spends more than 3 hours a day on their mobile device, and spends 90% of that time on their mobile app. This is a great opportunity for advertisers to reach their target audience through in-app advertising. Moreover, the gaming industry is one of the major segments driving the growth of the in-app advertising market in North America. Mobile gaming has become increasingly popular in recent years, and the pandemic has further accelerated this trend. With the continued growth of mobile app usage and the increasing demand for personalized and engaging advertising, the in-app advertising market in North America is expected to continue to grow during the forecast period.
The outbreak of COVID-19 had a mixed impact on the in-app advertising market in North America in 2020. However, in 2021, due to the large-scale vaccination drive, several business and industrial activities resumed, such as the resumption of tour and travel activities, online shopping, event, and shows, etc., which increased the demand for in-app advertising across the region. Furthermore, the rising adoption of location-based enhanced customer service offerings, is further expected to boost the growth of the regional market during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Adscompass: The company offers advertisers various effective and compelling ad options that are suitable for both brand and performance marketing. The company offers mutually beneficial cooperation for webmasters, advertisers, media buyers, and ad networks.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The in-app advertising market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
In-app Advertising Market Scope |
|
Report Coverage |
Details |
Page number |
158 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 20.5% |
Market growth 2023-2027 |
USD 199.21 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
19.77 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 42% |
Key countries |
US, China, India, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Adscompass, Alphabet Inc., Amazon.com Inc., Bidease inc., BYYD Inc, Coalition Technologies LLC, Digital Hamster SL, Dot Com Infoway, Flatline Agency, Hitapps , IDS Logic, InMobi Pte. Ltd., Mobio Global Ltd., PubMatic Inc., RevX , Tremor International Ltd, TUNE Inc., Azerion Group N.V, Yahoo, and zoomd technologies Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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