PUBLISHER: The Business Research Company | PRODUCT CODE: 1811093
PUBLISHER: The Business Research Company | PRODUCT CODE: 1811093
In-app advertising involves the utilization of mobile applications by companies to showcase their advertisements. These advertisements are seamlessly incorporated into the app and are accessible to all its users. The objective is to captivate users through animations and interactive features.
The primary categories of in-app advertising encompass banner ads, interstitial ads, rich media ads, video ads, and native ads. Banner ads, for instance, appear as small rectangles at the top or bottom of the mobile screen. Various platforms such as iOS and Android facilitate these ads, catering to online shopping, messaging, entertainment, gaming, and ticketing.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid surge in U.S. tariffs and the resulting trade tensions in spring 2025 are heavily affecting the media sector, particularly in areas such as content creation, broadcasting, and digital streaming. Increased tariffs on imported audiovisual gear, editing tools, and broadcasting technologies have driven up both production and operational costs for media companies. Film and TV studios are incurring higher expenses for sourcing foreign-made cameras, lighting, and post-production equipment, while news and broadcast outlets are facing steeper costs for satellite services and transmission hardware. Additionally, retaliatory tariffs imposed by other countries are hindering the export of U.S.-based media content, curbing international revenue growth. To navigate these challenges, media firms are increasingly sourcing domestically, accelerating digital transformation, and adopting AI-powered production tools to reduce costs and sustain their global competitiveness amid ongoing trade disruptions.
The in-app advertising market research report is one of a series of new reports from The Business Research Company that provides in-app advertising market statistics, including in-app advertising industry global market size, regional shares, competitors with an in-app advertising market share, detailed in-app advertising market segments, market trends and opportunities, and any further data you may need to thrive in the in-app advertising industry. This in-app advertising market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The in-app advertising market size has grown rapidly in recent years. It will grow from $144.55 billion in 2024 to $173.35 billion in 2025 at a compound annual growth rate (CAGR) of 19.9%. The growth in the historic period can be attributed to rise of mobile devices, shift in user behavior, monetization opportunities for app developer, app store evolution, growing app ecosystems.
The in-app advertising market size is expected to see exponential growth in the next few years. It will grow to $361.66 billion in 2029 at a compound annual growth rate (CAGR) of 20.2%. The growth in the forecast period can be attributed to global app market expansion, ad fraud mitigation, user experience enhancement, emerging app categories, data-driven targeting and analytics. Major trends in the forecast period include mobile dominance, app monetization strategies, programmatic advertising, ad formats and creativity, data analytics and targeting.
The forecast of 20.2% growth over the next five years reflects a slight reduction of 0.2% from the previous projection. This reduction is primarily due to the impact of tariffs between the US and other countries. Higher costs of mobile development tools and analytics SDKs due to tariffs may lead to slower innovation in in-app monetization strategies. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The rising use of smartphones and tablets is propelling the in-app advertising market forward. Smartphones are mobile devices capable of performing a wider array of functions beyond voice calls and messaging, while tablets feature a larger touchscreen interface than smartphones. The increased adoption of these devices boosts mobile application usage, which in turn hosts in-app advertisements. Ad publishers create highly targeted and personalized ads through in-app mobile advertising, enhancing the chances that users will find them appealing and engage with them. For example, in April 2023, the International Telecommunication Union (ITU), a Switzerland-based United Nations specialized agency for information and communication technologies, reported that there were over 8.58 billion mobile subscriptions globally in 2022, with a projected increase to 8.9 billion in 2023, amidst a global population of 7.95 billion halfway through the year. Thus, the expansion of mobile devices and connectivity is driving the growth of the field service management market.
The expanding e-commerce sector is anticipated to further enhance the growth of the in-app advertising market in the future. E-commerce involves the buying and selling of goods and services over the Internet or other electronic networks. The rapid expansion of the e-commerce industry amplifies the significance and influence of in-app advertising by providing an ideal environment for targeted ads, direct purchasing opportunities, and seamless integration into the user's shopping experience. For instance, in August 2024, the United States Census Bureau, a government agency in the U.S., reported that U.S. retail e-commerce sales for the second quarter of 2024 reached approximately $282.3 billion, reflecting a 5.3% increase compared to the first quarter of 2023. Consequently, the burgeoning e-commerce industry is driving the growth of the in-app advertising market.
Leading companies in the in-app advertising market are concentrating on advanced data analytics and personalized marketing strategies to improve user engagement and maximize advertising effectiveness, thus transforming the mobile app ecosystem into a profitable platform for advertisers. Adobe's AI-driven mobile application, Adobe Express, serves as a creative tool designed to simplify content creation by providing features for producing social media posts, videos, flyers, and logos, all supported by Adobe Firefly generative AI technology. For example, in April 2024, Adobe Inc., a US-based software company, introduced the AI-powered mobile app Adobe Express, which incorporates Adobe Firefly, a generative artificial intelligence (GenAI) tool. This application aims to streamline the creative workflow for content creators by offering functionalities that assist users in making social media posts, videos, flyers, logos, and more, thereby making high-quality content more accessible to a wider audience.
Key players in the in-app advertising market are prioritizing innovative solutions, such as shoppable ads and improved targeting capabilities, to enhance user engagement and drive revenue growth within the dynamic digital landscape. In-app shopping integration allows users to purchase products directly through the app, making the shopping experience more seamless and potentially revolutionizing social commerce strategies. For instance, in September 2024, Amazon.com Inc., a US-based e-commerce firm, formed a partnership with TikTok, a Singapore-based social media platform. Through this collaboration, Amazon aims to strengthen its e-commerce capabilities by incorporating its 'Buy with Prime' feature into TikTok's platform, thereby facilitating effortless shopping experiences for users while leveraging the impulsive buying behavior characteristic of TikTok, which is expected to increase TikTok's gross merchandise volume (GMV) and further establish it as a key player in the social commerce sector.
In January 2022, ironSource Ltd., an Israel-based business platform for the app economy, acquired Tapjoy, Inc. for an undisclosed sum. This acquisition is expected to enhance the offerings of the ironSource platform for mobile app and game developers by leveraging various synergies. Tapjoy, Inc. is a US-based company specializing in mobile advertising and app monetization.
Major companies operating in the in-app advertising market include Amobee Inc., Apple Inc., BYYD Inc., Chartboost, Meta Platforms Inc., Flurry, Google AdMob, InMobi Pte Ltd., Tapjoy Inc., Glispa GmbH, Microsoft Corporation, Zoomd Technologies Ltd., AdColony, Amazon.com Inc., AppLovin, Appodeal, Epom Apps, Fyber, IronSource, Media.net, StartApp, Unity Technologies, Liftoff, Mintegral
North America was the largest region in the in-app advertising market in 2024. Asia-Pacific is expected to be the fastest-growing region in the in-app advertising market share during the forecast period. The regions covered in the in-app advertising market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the in-app advertising market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The in-app advertising market includes revenues earned by entities by providing playable ads, rewarded ads, and cross-promotional ads services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
In-App Advertising Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on in-app advertising market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for in-app advertising ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The in-app advertising market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.