The future of in-app advertising

The tense wait for Apple’s App Tracking Transparency (ATT) feature to finally go live is over. This means that app publishers and advertisers can stop fearing what the novel privacy feature will mean for the future and start finding creative solutions to deal with the industry-estimated ATT user acceptance rate of roughly 10. %.

The future of in-app advertising

The following are some of the ways that publishers and advertisers can think about changing their strategy, so that they are not as affected by the impending IOS user data drought.

Rewarded video will be the next creative frontier

By the end of 2022, 79% of advertising will be consumed through video, so much attention needs to be paid to increasing the deployment of rewarded videos in non-gamified apps.

Video rewarded

The rewarded video gets the highest cost per thousand impressions (CPM) because the ad is viewed for its entire duration in exchange for specific compensation. Right now, rewarded video is something almost specifically associated with gaming apps, but a sea change is about to happen.

The most famous use of video rewarded by a non-gaming app could be Spotify, which has been using it during years to provide half an hour of ad-free music to its non-premium users in exchange for watching a short video.

Video ads

It is foreseeable that applications providing live streaming coverage of time-limited events will be able to quickly apply this interactive model of video ad execution. Users live streaming a sporting event, for example, may be offered the opportunity to view a set of ads from a major sponsor before starting their streaming service to unlock access to better camera angles of the event, such as a camera mounted to the end of a surfboard or a drone view of a soccer game.

Application catalog for companies like IKEA

Another application could involve catalog applications for companies like IKEA. For example, large multinational consumer goods retailers like IKEA could partner with a grocer like Lidl around rewarded video so that when browsing an app, you can watch a video and be rewarded with a digital coupon for your next purchase at the associated business.

These types of partnerships will become extremely lucrative ways for publishers to collect additional customer data by integrating a short survey or by adding an option for consumers to receive an additional discount by providing their email address.

Adspace will be shaped to fit user habits

The pandemic shaped the way users consume information on their mobile devices forever creating the first global remote economy. In addition, it accelerated the trend towards a world lived through our mobile devices. This is the forward-thinking that publishers should focus on when they start to innovate new format products where ads can be placed.

Many new products will be designed and implemented to take advantage of trends such as the way the average Indian millennial spends about a third of their waking hours (1800 hours per year) glued to their smartphone.

One way publishers can capitalize on this statistic, in particular, is by including ads like “open” and “close.” These types of ads would display on the loading screen as the application loads, or they would be attached to a “Are you sure you want to exit?” message when closing.

Build for Android, sell to the world

Editors should note a comprehensive report recently released by FinancesOnline, which estimates that three billion Android users outnumber iPhone users by more than three to one globally. Therefore, if ATT solidifies IOS as the exclusive and privacy operating system, it also solidifies Android as the most widely accessible operating system in the market.

All the companies that make smartphones have released options that are less expensive than even the cheapest iPhone. However, in an attempt to secure a growing global audience and snatch future iOS users by building brand loyalty while offering increasingly expensive innovative models like Samsung’s Galaxy Fold, Apple’s competitors have established themselves well in the market. developing world. Publishers and advertisers should be aware of this and consider shifting their efforts to target users of the most popular operating system on a larger scale.

Sale of smartphones in developing countries.

Developers and advertisers can capitalize on the growing adoption of smartphones in Sub-Saharan Africa and pay particular attention to regional trends, such as the widespread popularity of educational technology applications. According to a Google report, another thing to consider is the use of mobile devices in Southeast Asia, which is the highest in the world.

The cheapest iPhone that Apple offers today, the iPhone SE, is still too expensive to compete with the types of phones that companies like Nokia, Samsung and Google sell to consumers in developing countries. With this in mind, developers should research what kinds of apps are popular in places where smartphones are just starting to make a big splash.

This especially applies to app companies whose efforts to monetize their products for iOS have now been thwarted by ATT, like hyper-casual game developers, for example.

“Login to unlock exclusive features”

Only in the coming months will developers and advertisers be able to assess the full scope of the changes that IOS14 will make to their marketing strategies, how they will track users, and how much data is still available to them from people using Apple products.

Until then, publishers will start looking for ways to acquire user data on their own, possibly by creating their own first-party identifier, similar to website cookies. Premium apps are also likely to start implementing ways to get users’ email addresses when they download the app so publishers have a database of users that they can then sell to advertisers.

Of course, not all users will be interested in giving away their personal email addresses without some kind of incentive, so a reward system that offers users premium services or exclusive content that they would normally have to pay for it could prompt them to choose. -on.

Consumer tracking

If users can be incentivized to provide their email address, publishers can keep track of how many times the user opens the app, what they spend their time doing in the app, and how much time they spend doing certain things in the app. . This data can then be presented as a set of information and offered to advertisers accordingly.

An application that sells used cars, for example, could sell a set of information about users who spend most of their time on the application looking at the appropriate Mercedes-Benz car dealers located within a certain radius of the location. geotagging of the user.

A new chapter begins

Apple users represent the kind of premium user publishers want to draw attention to, so it makes sense that the death of personalized ads on iOS represents a gruesome prospect. However, the money spent on advertising that was once spent on creating personalized and targeted ads will not evaporate but will shift to new ways of working until the best solution is found.

This will likely include ads that use incentives for users to view content or provide their email addresses. Developers will draw on valuable insights from large-scale user trends to realize new formatting products for advertisers, such as open and closed ads.

The big change for advertisers

The next big change for web and in-app advertising will involve emerging markets and a possible turn for publishers to spend more to target Android users. And as developing countries gain access to better phones that can display ‘rich media’ (video), publishers’ monetization options are set to grow.

Last, and most importantly, most of the time Americans spend on their mobile devices is spent in apps, and that’s where we see the future very bright.

Image credit: michael burrows; pexels; Thank you!

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