How Does In-App Advertising Work?
With in-app advertising, app owners have the opportunity to sell advertising spaces to advertisers or publishers and make a profit with their app. Mainly, the real-time-bidding market controls and determines this whole process. This means, that every time the app is loading, the highest bidder of an real-time auction can place his ad within the sold advertising space of the app. You can provide your own advertising spaces for advertisers through ad networks or ad exchanges. The biggest advantage of in-app advertising is the direct interaction of the user with the app as the ad is displayed. This is why most people will react to the ad as opposed to traditional display advertising where it might even be overseen. Although there is reason to be careful: you have to balance the amount of advertising and content! If the user feels cramped by it, he might react annoyed and abandon the app immediately. Since most mobile users spend their time within mobile apps, the in-app advertisements will most likely reach great audiences. A good example for effective in-app advertising is Facebook: as of April 2015, the company made over 70% of their advertising revenue through mobile devices. If done right, it will definitely pay off!