In-App Advertising:
How to Advertise in Apps and Mobile Apps for Maximum Incrementality

Mobile apps have become an integral part of our daily lives. We check them first thing in the morning and last thing at night. For advertisers, this presents a golden opportunity to reach engaged audiences where they spend most of their time. But here's the thing: not all in-app advertising is created equal. To truly succeed, you need to understand how to maximize incrementality—the real, measurable lift your ads create.

What Is In-App Advertising and Why Does It Matter?

In-app advertising refers to ads displayed within mobile applications. These aren't the ads you see on mobile websites; they're specifically designed to appear while users are actively engaged with an app. Think of the ads you see while playing a game, scrolling through a social media app, or reading the news on your phone.

The numbers speak for themselves. According to research from Statista, mobile app usage accounts for the majority of digital media time. This means your audience isn't just on mobile—they're specifically in apps. That's why mobile in-app advertising has become such a critical channel for marketers looking to drive real results.

Understanding Incrementality in Mobile Advertising

Before diving into tactics, let's talk about incrementality. It is the advertising effectiveness's most desirable outcome. Incrementality quantifies the conversions that your advertisements contributed, not only those that appeared coincidentally after the viewer had seen your ad.

Many advertisers make a costly mistake: they optimize for attributed conversions without asking whether those conversions would have happened anyway. With platforms like Incrmntal, you can measure true incremental lift and ensure your advertising dollars are working hard for you.

Types of In-App Ads That Drive Results

When learning how to advertise in apps, understanding your ad format options is crucial. Each format serves different goals and user experiences:

Banner Ads: These are small, usually rectangular forms of advertisements that pop either at the top or bottom of your screen. They don't engage as much but similarly are less intrusive. Best for brand awareness campaigns.

Interstitial Ads: Full-screen ads that appear at natural transition points in an app. These are hard to miss and work well for direct response campaigns.

Native Ads: These are the ones that work naturally in the content and design of the app. They feel less like ads and more like part of the natural content, so engagement rates are higher.

Video Ads: The short content of video ads, skippable or not, which is really effective for storytelling and demonstrating the products.

Rewarded Ads: These are videos that users actually opt to watch in return for rewards within the app, such as extra lives in some game or access to premium content. Because these are user-initiated, they generally have the highest engagement rate of all ad formats.

How to Advertise on Mobile Apps: A Strategic Approach

1. Choose the Right Ad Networks and Platforms

When figuring out how to advertise on mobile apps, your first decision is where to run your campaigns. Major players include:

2. Target the Right Audience

In-app ads work best when they reach the right people. Use these targeting strategies:

1. Demographic targeting: Age, gender, location, and language
2. Behavioral targeting: Based on app usage patterns and interests
3. Contextual targeting: Placing ads in apps related to your product
4. Lookalike audiences: Finding users similar to your best customers

For example, if you're advertising a fitness app, target users who frequently use health and wellness apps, visit gym locations, and show interest in healthy living content.

3. Optimize Your Creative for Mobile

Mobile screens are small, and attention spans are shorter. Your creative needs to:

1. Load quickly (ideally under 3 seconds)
2. Have a clear, single call-to-action
3. Use vertical or square formats that fit mobile screens
4. Include sound-off captions for video ads
5. Test multiple variations to find winners

4. Measure What Matters

This is where many advertisers fall short. They track clicks and installs without understanding true impact. A marketing data analyst can help you set up proper measurement frameworks that go beyond vanity metrics.

Focus on:

1. Incremental conversions (not just attributed ones)
2. Return on ad spend (ROAS)
3. Customer lifetime value (LTV)
4. Retention rates
5. Cost per incremental conversion

Advanced Strategies for Maximum Incrementality

Test Everything with Incrementality in Mind

Having an incrementality measurement mindset is to ensure that you differentiate what attribution reporting shows vs. what you actually gained by advertising. If you’re not already using a platform such as INCRMNTAL, your best chance to be mindful of incrementality is to test new channels and new campaigns sequentially - one by one, and try and isolate the enviorment while you test. 

Implement Frequency Capping

Showing the same ad too many times annoys users and wastes budget. Research from AppsFlyer shows that optimal frequency varies by industry, but generally, 3-5 impressions per user per day is a good starting point.

Use Sequential Messaging

Don't show the same ad repeatedly. Instead, craft a story that unfolds across multiple exposures. First ad: awareness. Second ad: consideration. Third ad: conversion push.

Optimize Day-Parting

Mobile in-app advertising performance varies throughout the day. Gaming apps see peak engagement in evenings, while productivity apps peak during work hours. Adjust your bidding and budgets accordingly.

Combine with Other Measurement Approaches

Combining multiple measurement methods gives you the complete picture. MMM Modeling for example, helps you understand how your in-app advertising works alongside other marketing channels to drive overall business results.

Common Pitfalls to Avoid

Even experienced marketers make these mistakes:

1. Disregarding app quality: Besides the fact that app quality is an important issue, still, among apps, there are those which have fake or very little user engagement. Be sure to pick the placements that have undergone proper vetting only.
2. Treating installs as the only metric: One might think an installation is great but if the individual never comes back to the application that individual would be worth nothing. Therefore, concentrate your marketing efforts on high-quality users rather than just increasing the number of users.
3. Not considering creative refresh: Prolonging the life of an ad is not a good practice. Plan on changing your creative every 2-4 weeks in order to keep up with performance.
4. Using last-click attribution as the only measure: This method gives too much credit to the last ads that the customer saw and hence reached the point of sale while completely ignoring the very first ads in the customer journey.

The Future of In-App Advertising

Privacy modifications such as iOS 14.5+ have added difficulties to mobile advertising but also led the industry towards adopting better practices. The future is for those advertisers who rely on incrementality, first-party data, and real user value exchange.

Rising above others in in-app advertising is not about discovering a magic bullet. It is about getting to know your audience, making systematic tests, having precise measurement, and doing unending optimization. By concentrating on real incrementality instead of attributed conversions, you are going to set up campaigns that really expand your business rather than just shifting the credit.

Initiate with small steps, find out what works, and then scale what actually produces a significant, measurable result. Your profits will appreciate it.

Frequently Asked Questions

How much does in-app advertising typically cost?

Costs vary widely depending on your industry, target audience, and ad format. CPM (cost per thousand impressions) can range from $1 to $20+, while CPI (cost per install) might be $2 to $10 or more for competitive categories. Gaming and finance apps typically have higher costs than utility apps.

What's the difference between in-app advertising and mobile web advertising?

In-app ads are displayed in mobile apps, and mobile web ads are delivered on websites when they are opened from a mobile browser. In-app advertising usually leads to a higher engagement level, enhanced targeting, and multiple formats. Additionally, users spend more time in apps than in mobile web.

How can I prevent ad fraud in my in-app campaigns?

Use trusted ad networks with anti-fraud systems in place, integrate install validation systems, watch for unusual behavior such as an unusually high install rate from a given source, and collaborate with third-party verification firms.

Should I use the same creative for in-app ads and other digital channels?

No. In-app advertising demands mobile-centric creative design optimized for smaller screens, smaller attention spans, and in-app contexts. Your creative asset will need to be vertical/square, quick-loading, sound-free, and have a single call to action optimized for thumb-touch interaction.

How long does it take to see results from in-app advertising campaigns?

You'll see immediate metrics like impressions and clicks within hours, but meaningful performance data usually requires 7-14 days to account for conversion windows and gather sufficient data. For accurate incrementality testing, plan for 4-6 weeks to ensure statistical significance and account for variables like seasonality.