Retail is the biggest-spending industry when it comes to in-app advertising, with almost half of all spending coming from this segment on the Smaato Publisher Platform. Such high spending is almost to be expected, as mobile phones are the key to any omnichannel marketing strategy. Shoppers are using mobile devices both to purchase online and aid in the shopping process in-store. In-app advertising, when done right, boosts sales and increases brand awareness.
With e-commerce and traditional brick and mortar retailers fueling growth in in-app advertising spending, it’s important that they make the most of this medium. The Retailer’s Guide to In-App Advertising 2019, a new report from Smaato, gives insights that help retailers and their partners boost campaigns to drive sales.
Our research dives into the different types of ad formats deployed by retailers and their partners. We also looked at billions of ad impressions to see how ad spending differs between brick and mortar retailers and e-commerce retailers.
The Most Common Ad Formats for Retailers
Research shows that it only takes 400 milliseconds for a mobile ad to make an impression on a user. Well-known brands have an advantage here, as these brands triggered the fastest response in viewers. However, retailers of any size can make an impact if the creative is perfectly crafted for both the audience and the ad format being deployed. What follows are some of the most common ad formats used by retailers.
Banner ads might be a little old fashioned, but they’re still widely used thanks to the versatility and ease of creation. They’re also inexpensive and offer the potential for excellent ROI. In short, banner ads are reliable and easy to scale.
Native advertising (both display and video) is growing fast. Users appreciate the seamless, uninterrupted experience. Compared to banner ads, native display ads attract an 8X higher click-through rate.
Video takes up 14% of all digital ad spending during the holidays. The reason is that video works, with click-through rates 7.5X higher than display ads. Outstream video, which appears in non-video environments (e.g., social media feeds and news articles) is the most popular for retailers on the Smaato platform.
When done right, in-app advertising can be a powerful tool to drive sales. Combining the right ad format with the ideal creative makes an immediate impact on campaign success. For more insights, download The Retailer’s Guide to In-App Advertising