Advertisers turn to in-app advertising for incremental revenue

DUBLIN, IRELAND: The growing number of smartphone and feature phone users along with an increase in the average time spent in browsing the internet on mobile devices has currently led to the increase in in-app advertising, says the recent Research and Markets report.

For instance, mobile games providers opted to use in-game advertising by showcasing floating advertisements by providing free download of their applications. Further, there has been increasing in-app advertising for iPhone and Android users because of an overwhelming increase in the user base across these platforms. Advertisers have been increasingly using mobile applications for in-app advertising to generate additional revenue.

One of the main factors driving the mobile advertising spending market is the growing number of smartphone users. The mobile ad network vendors have currently been experiencing a majority of ad impressions in smartphones, and an overwhelming amount of these ad impressions is from in-app advertising in smartphones.

For instance, Android-based smartphone and iPhone users are spending more time browsing the internet, contributing major revenue to display and search-related advertising.

Further, the report states that one of the main challenges is growing privacy concerns. Since mobile advertising requires customization of advertising messages to reach out to the target audience, it involves gathering behavioral personal data, customer profiling, data mining, and other behavior targeting tools to gather insights about the consumer. Robust use of such data can cause privacy infringements.

The key vendors dominating this space include: Apple Inc., Facebook Inc., Google Inc. and Pandora Media Inc. The other vendors mentioned in the report are: Millennial Media Inc. and Twitter Inc.