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The market share growth by the messaging segment will be significant during the forecast period. The messaging segment in the 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 19.60 billion in 2018. 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 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 41% 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 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 market in North America. Mobile gaming and in-game advertising 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 market in North America is expected to continue to grow during the forecast period.
The growing use of smartphones is the key factor driving the development of the market. The increasing popularity of smartphones has led to a rise in downloadable mobile applications and expanded opportunities for entertainment and in-app advertising. The global number of smartphone users 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 adoption has created a significant opportunity for companies to engage with consumers through in-app advertising, which has become the predominant form of mobile advertising. eMarketer estimates that this will make up 69% of all mobile advertising spending in the US in 2021. This trend is driven by the increasing number of smartphone users, particularly in emerging markets, as well as the popularity of online gaming and e-commerce platforms.
Furthermore, application developers are also focusing on improving the click-through rate of in-app ads as part of their revenue generation strategy. The average daily smartphone usage per person increased to 4.2 hours in 2020, up from 3.7 hours in 2019. This rise in screen time has provided companies with more avenues to connect with consumers through in-app advertising. Therefore, the increasing reliance on smartphones has generated a substantial opportunity for in-app advertising and is expected to propel the market in the forecast period.
Growing in-app purchases are the primary trend in the market. The growing popularity of in-app purchases has been a major driver of the 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 market during the forecast period.
Growth in ad-blocking software is a major challenge to the 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. Around 650 million devices were 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 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 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 Market Customer Landscape
Companies 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 In-app Advertising services and also 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 companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The market is witnessing rapid growth, driven by the increasing popularity of mobile-oriented services and the rise in mobile streaming services and the gaming market. Advertisers are focusing on delivering relevant advertisements to potential customers based on their usage patterns and viewing habits to enhance the advertising experience. The market is leveraging advanced analytics solutions, machine learning, and artificial intelligence to target specific audience segments more effectively. This approach improves consumer behavior understanding and enhances revenue share for app developers through more engaging creatives. With the growth of mobile shopping and the importance of a seamless shopping experience, in-app advertising is becoming a crucial component of digital marketing technology strategies, increasing its market presence. Further, the market is expanding with increased internet penetration and the growth of mobile advertisements. Mobile web advertising, media ads and marketing leverage age and location data to reach a targeted audience, enhancing ad effectiveness.
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Market Scope |
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Report Coverage |
Details |
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Page number |
163 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 26.06% |
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Market Growth 2024-2028 |
USD 338.3 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
21.63 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 41% |
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Key countries |
US, China, India, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Adscompass, Alphabet Inc., Amazon.com Inc., Azerion Group N.V, 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., Yahoo, and zoomd technologies Ltd. |
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Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
View Market Forecast Report PDF Sample
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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