Everything You Should Know About App Advertising

| Updated on March 26, 2024

People have made free apps an inseparable part of their life. Many developers have decided to go with in-app advertising since it is a guaranteed constant income source. In this article, we will take on the subject of app advertising and dissect it so that you know all the necessary stuff about it. 

Points to Consider

You need to keep in mind a few things before you begin this long journey. 

Life-Time Value or LTV is Crucial

A wide range of metrics is at the disposal of app marketers to gauge how successful their campaign is. You need to pick a model which can bring high quality and relevant traffic. This can be accomplished only when you give importance to LTV. 

LTV is the projection of the revenue that a customer might provide from the time of installing the app to the time he uses it for the last time. It is not possible to get a good LTV value with the help of conventional models such as CPI or Cost Per Install. Improved models like CPA or Cost Per Action can provide better results. This model only considers the actions performed by users after the app installation phase.

There are Several Mobile Ad Formats

We can divide mobile ads into the following four categories:

  • Interstitial
  • Native
  • Video
  • Banner

You need to choose one format depending upon your brand requirements and start working on it. Try devoting some time to looking up ways that you can employ to make these ads work well for your app. Give special attention to video app advertising since this method effectively conveys your brand’s message to the user. 

Do Not Neglect Data Privacy

Even though the ad industry has evolved and has better security measures, it is a sad reality that ad fraud is still a relevant issue. We need to prevent such activities from happening since it can harm our investment in ads in the long term. 

One way to fight against ad fraud is to use deep learning algorithms with a detection mechanism for predicting any fraudulent audience. Another way is to seek the services of respected ad agencies with the necessary tools for countering fraud. 

How Do Apps Earn Revenue from Advertising?

Let us take the example of an offline clothing store. Many people visit the store to shop for clothes or simply have a look at the designs on display. The store owner might want to earn some extra cash by offering the space on his window and walls for sale to third parties. This space is also called inventory. 

Different companies might wish to buy this inventory space to advertise their brand and divert some crowd from your store to their shop. Similarly, you can get in touch with other app developers who wish to advertise on your app. They can pay you some amount in return, and it is a win-win situation for both of you. 

However, apps being a digital medium, have an advantage over their offline counterparts since they can measure the total views of the ad, which is not possible for retail space. Developers can also customize ads individually for different sectors, and several formats are available to cater to varying niches of audiences. 

What is Meant by an Ad Network?

Ad networks add automation to the entire procedure of selling and buying ads. These networks develop relationships with companies that wish to advertise and apps that want to earn additional revenue by selling their unused ad inventory. 

Advertisers can get their hands on various inventory in apps at a large scale, and app developers don’t face any trouble while looking for advertisers. If you are an app owner, you won’t have to spend a lot of time marketing your ad inventory with the help of ad networks. Instead, you can devote that time to work on your app design and improve it. 

What Should Beginners Do?

If you are new to the game of mobile advertising, you should follow these steps:

Understand the Jargons

All new industries going through the phase of evolution have several complex acronyms that might seem difficult at first. However, once you learn them, the entire procedure will appear much more simplified and accessible to you. Once you know the differences between CPA, CPI, CPS, and CPL, all of it will be a piece of cake for you. 

Take Things Slowly and Then Begin the Optimization

Do not rush the process before you have understood all the bits and pieces of app advertising. Mobile advertising is a blessing since it lets you know your budget beforehand. You can enjoy this benefit by measuring actions, downloads, and clicks in separated intervals. Review the results and use them to improve your campaign. After you are sure that your efforts will have some value addition, then you can choose to increase your revenue. 


We hope that all your confusion related to app advertising has been resolved. All the essential app advertising concepts and terminologies have been discussed and broken down in an easy manner for everyone to understand. 

Leena Ray

Digital Marketing Writer and Editor

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