Tapjoy & Forrester report on the current state of in-app ads

40% of smartphone owners feel negatively about brands that provide in-app ads

Forrester and Tapjoy are issuing a research paper on the current state of in-app mobile advertising. The report shows that whilst the opportunity is huge, the most common types of in-app ads are ineffective. That’s even more so than web ads or online video ads – especially in terms of driving action, engagement and brand perceptions. The rewarded ad model, which offers in-app rewards such as premium content or feature upgrades in exchange for consumers’ participation, causes consumers to engage more frequently. Plus they feel twice as positively about the brands that offer them.

Some key stats from the study include: -

  • 93 per cent of smartphone owners use apps daily, averaging three hours of captive attention
  • Automatically served in-app ads are viewed as more annoying (74 per cent), interruptive (65 per cent) and boring (51 per cent) than even banner ads on web pages (65 per cent, 62 per cent and 45 per cent, respectively) and ads during online videos (65 per cent, 61 per cent and 38 per cent)
  • Consumers prefer to see static ads (53 per cent would most like to see) over video ads (27 per cent would most like to see) or rich media ads (20 per cent would most like to see) in mobile apps
  • 40 per cent of smartphone owners feel “extremely negatively” or “negatively” about brands that provide in-app ads, but that percentage drops to 26 per cent when brands help unlock experiences in the app and to just 18 per cent when the brand provides content to the app
  • 67 per cent indicated they wanted to be offered a reward, such as premium content or virtual currency, in exchange for engaging with an ad
  • 74 per cent of consumers say they will share digital contact information for rewards, and more than half will share basic demographics including gender, age and ethnicity

About Tony Dennis

Tony is currently Editor of GoMobile News. He's a veteran telecoms journalist who has previously worked for major printed and online titles. Follow him on Twitter @GoMoTweet.
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