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The Move Towards In-App Advertising

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[/vc_raw_html][text_output]Apple’s launch of iOS 9 saw ad blocking software shoot to the top of app stores worldwide. Content blocking apps jumped up to the top 5 most downloaded paid apps in the UK and US less than a day after iOS 9 was released. Despite this, mobile advertising is still a very effective advertising medium, and ad blocking does not necessarily mean an ad free internet.

 

IMPACT ON ADVERTISERS

For advertisers, Apple’s new ad blocking feature could be turned into an opportunity, as ad blocking will not affect in-app advertising. Around 90% of mobile traffic is in-app, opening up the opportunity for advertisers to get around ad-blockers. Using this format, it is possible to take advantage of specific user information (e.g. real-time geolocation) to create precisely targeted and personalised adverts. It is also still possible to implement existing mobile strategies such as conversion funnel tracking and retargeting with in-app advertising. This allows for more specific targeting offers and a more personal experience, particularly if it can be linked to social media as well. More and more consumers are using social media to interact with brand websites and surveys show they are becoming increasingly receptive to a positive mobile experience. This means content for social media apps could be an exciting opportunity for advertisers to explore.

The move toward in-app advertising

In 2014, 87% of consumers logged into a brand page with social media, 91% said the experience was positive.

 

IMPACT ON PUBLISHERS

Ad blocking could negatively impact publishers as they are more dependent on display advertising for revenue. In fact, four major German broadcasters have made court cases against the ad blocking giant Eyeo (and failed).

As it stands, it seems that publishers will need to push into the app marketplace to remain competitive by offering in-app advertising solutions. Interestingly, in doing this, Apple will continue to cultivate and dominate the app market that they set up themselves.

 

IMPACT ON OTHER PLAYERS

Companies already providing solid in-app advertising solutions such as Facebook and Apple News already generate large profits from this advertising format, and stand to take further advantage of the push towards in-app advertising. The opportunity is there for app publishers and other companies to adapt, and we should expect to see more and more in-app advertising as the app market continues to grow.

 

Ultimately, Apple’s focus is its customers, not advertisers, and they will continue to strive for a better user experience even if it is detrimental to advertisers. (The user benefits of ad-blocking have been discussed very well here.) Despite this, ad-blocking in Safari doesn’t have to mean trouble for anyone relying on browser-based advertising, the mobile advertising environment could improve considerably through higher quality in-app advertising.[/text_output][/vc_column][vc_column width=”1/4″][visibility type=”hidden-desktop”][gap size=”20px”][/visibility][vc_widget_sidebar sidebar_id=”ups-sidebar-2″][/vc_column][/vc_row]