In-app Advertising Market to Exceed USD 561.24 Billion by 2032 Due to Growing Mobile Engagement & AI-driven Ads

The In-app Advertising Market, valued at USD 168.40 Bn in 2023, is expected to reach USD 561.24 Bm by 2032, growing at a 14.4% CAGR from 2024 to 2032.

AUSTIN, TX, UNITED STATES, February 25, 2025 /EINPresswire.com/ -- The In-app Advertising Market size was USD 168.40 Billion in 2023 and is expected to reach USD 561.24 Billion by 2032, growing at a CAGR of 14.4% over the forecast period of 2024-2032.

The In-app Advertising Market is growing rapidly due to rising mobile app usage, AI-powered ads, and demand for personalization.

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Some of Major Keyplayers:

- ironSource (Unity Software Inc.) (ironSource Aura, ironSource LevelPlay)
- Google AdMob (Google LLC) (AdMob Mobile Ads Platform, Google Ads for Apps)
- BYYD Inc. (BYYD Programmatic In-App Advertising, BYYD Mobile DSP)
- Flurry (Yahoo Inc.) (Flurry Analytics, Flurry Ad Monetization)
- TUNE, Inc. (TUNE Partner Marketing Platform, TUNE Attribution Analytics)
- Amobee, Inc. (Amobee In-App Advertising, Amobee Advanced AI Targeting)
- InMobi (InMobi Exchange, InMobi Audiences)
- Glispa GmbH (Glispa Performance Platform, Glispa Connect)
- AppLovin (AppLovin MAX, AppLovin AXON AI)
- Chartboost, Inc. (Chartboost Mediation, Chartboost DSP)
- Smaato, Inc. (Smaato Publisher Platform, Smaato Demand Platform)
- Leadbolt (Leadbolt App Discovery, Leadbolt Mobile Advertising)
- Apple Inc. (Apple Search Ads, SKAdNetwork)
- Facebook Inc. (Meta Audience Network, Facebook App Ads)
- MoPub Inc. (Twitter) (MoPub Marketplace, MoPub Mediation)
- One by AOL (AOL) (One Mobile, One Display)
- Tapjoy Inc. (Tapjoy Offerwall, Tapjoy Interplay)

By Type, Banner Ads Dominate the In-app Advertising Market, While Interstitial ads are set for Fastest Growth at 15.7% CAGR

In 2023, the Banner Ads segment dominated the market, with a 38% share, as a result of its cost-effectiveness, simplicity in use, and extensive scope. Google AdMob grants advertisers access to powerful machine-learning algorithms that improve ad relevance and interaction, effectively increasing click-through rates (CTR) for advertisers. Apple’s SKAdNetwork updates have also allowed for better performance measurement in a privacy-friendly way.

The Interstitial Ads sub-segment is expected to register the highest CAGR of 15.7% during the forecast period as it provides a full-screen immersive experience for the users which results in higher engagement rates. Leading ad networks such as AppLovin, Unity Ads and AdMob are enhancing interstitial ad formats to boost user engagement and fight against ad fatigue. The launch of interactive and gamified interstitial ads by Unity Ads in 2023 helped to push this segment into overdrive.

By Platform, Android Dominates In-app Advertising Market with 70% Share, While iOS Poised for Fastest Growth with Privacy-focused Ads

In 2023, the Android category held the highest revenue share, accounting for over 70 percent of the global smartphone market. And the ad customization options, combined with its large app ecosystem, make it the leading platform for in-app advertising. IronSource rolled out new monetization solutions for Android developers in a bid to boost ad engagement through interactive and rewarded ads.

The iOS segment is estimated to experience the highest compound annual growth (CAGR), primarily due to a premium user base and an increase in advertising revenue per user. Where Apple's SKAdNetwork 4.0 2023 introduced privacy-oriented ad targeting solutions that did not compromise ad results while also meeting user privacy mandates.

By Application, Entertainment Dominates In-app Advertising with a 27% Share, While the Gaming Segment Set for the Fastest 16.1% CAGR Growth

The Entertainment segment at 27% in 2023 was the leading market, driven by the expansion of streaming services, social media applications, and video content consumption. Revenue in this segment was spurred by Google’s AI-driven ad targeting for YouTube and new interactive ad formats on TikTok.

The gaming segment is expected to grow at the highest CAGR of 16.1%, due to in-game ad monetization and the growing popularity of rewarded ads. The rising popularity of hyper-casual and multiplayer games has led to a more significant investment in immersive ad formats, propelling this segment even more.

In-app Advertising Market Segmentation:

By Type
- Banner Ads
- Interstitial Ads
- Rich Media Ads
- Video Ads
- Native Ads

By Platform
- Android
- iOS
- Others

By Application
- Entertainment
- Gaming
- Social
- Online Shopping
- Payment & Ticketing
- News
- Others

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Asia Pacific Dominates In-app Advertising with 42% Share, While North America Emerges as Fastest-Growing Market at 14.6% CAGR

Asia Pacific dominated the In-app Advertising Market Share in 2023, with 42 % market share, owing to rapid expansion in mobile internet, increase in smartphone penetration, and high penetration of mobile apps. It has been the case with China, India, and Japan, which have used in-app payments for monetization for apps such as TikTok, WeChat, and Flipkart. TikTok revenue through immersive ad experiences Bytedance best ad capabilities.

North America was the quickest-growing market at a 2023 CAGR of 14.6%, fueled by growth in programmatic ad investment and AI-fueled ad targeting. Both the United States and Canada witnessed massive digital advertising revenue growth with top platforms being Facebook, Instagram, and Snapchat. Google ramped up AI-fueled ad features on AdMob that increased ad relevance within mobile applications.

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