In-app advertising
Ads shown inside mobile applications, in formats such as banner, interstitial, native and rewarded video.
What is in-app advertising?
In-app advertising is the delivery of ads within mobile, tablet and connected-TV applications rather than on websites. Common formats include banners, interstitials, native units, playable ads and rewarded video. Developers integrate an advertising SDK, often through a mediation platform that manages multiple demand sources, and increasingly use in-app bidding so partners compete in a single unified auction. Targeting relies on app context, device signals and, where permitted, advertising identifiers subject to user consent. It is a primary monetization model for free apps and a core channel for app-install and engagement campaigns.
How in-app advertising works
The app requests ads through an SDK and a mediation or exchange layer, and demand sources compete to fill each request.
- The developer integrates an ad SDK or mediation platform and defines ad placements in the app.
- When a placement is triggered, the SDK sends an ad request with app, device and consent signals.
- Demand sources respond through bidding or a prioritized waterfall.
- The winning ad is loaded, often in advance, and displayed at the natural break in the app.
- Impressions, clicks and any reward events are reported back to the developer and buyers.
Why it matters
App users are engaged and addressable. For developers, advertising funds free apps; the challenge is balancing revenue with retention.
For advertisers
Apps offer engaged, full-screen moments and are central to driving installs and in-app actions.
For publishers
Advertising lets developers keep apps free, and combining formats can grow revenue without relying solely on purchases.
Practical example
A puzzle game shows an interstitial between levels and offers a rewarded video for extra moves.
Key considerations
- Poorly placed or too frequent ads can harm retention, so placement and frequency should be tested.
- Platform privacy rules limit access to advertising identifiers without user consent.
- app-ads.txt and SDK hygiene help buyers trust that inventory is authorized and genuine.
- Ad loading and caching affect latency and the user experience.
More Mobile Advertising terms
Frequently asked questions
What is mediation?
Mediation is a layer in the app that manages several ad networks and decides which one fills each ad request.
What is in-app bidding?
It is an auction method where demand partners bid simultaneously for each impression, similar to header bidding on the web.
Which in-app formats earn the most?
Full-screen formats such as interstitials and rewarded video usually command higher prices than banners, though results depend on the app and audience.