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The Evolution of Digital Advertising: Why Mobile App Ads Are King


Over the past decade, digital advertising has undergone rapid evolution. What started as simple banner ads on websites has transformed into a complex ecosystem that relies on data, targeting, and omnichannel distribution. Mobile app advertising has emerged as the dominant format, outpacing other digital channels. Several key factors have contributed to the rise of mobile app ads as an integral part of modern digital advertising.


The significant factor that has emerged in recent years is the remarkable increase in the usage of mobile devices as compared to desktop computers. Mobile devices now account for more than 55% of website traffic. Almost 92.3% of internet users prefer to access the internet via mobile phones. With around 4.32 billion active mobile internet users, this number is expected to grow in the coming years. (Source by: Exploding Topics) People browse websites and access digital content on their smartphones and tablets more frequently than on desktop computers. This trend has led to mobile apps becoming an ideal platform for deploying ads to target engaged users.


Ad platforms have come a long way from simply inserting ads into mobile apps. Xtend is a cutting-edge platform that offers advanced tools to enhance targeting and performance. It leverages various mobile device sensors and uses real-time signals like weather and store traffic to personalize ads dynamically based on context and interest. With Xtend, you get A/B testing and creative optimization, automated frequency capping, maximized audience size via constructed audiences, and higher DAU targeting limits than other platforms. These advanced capabilities ensure that mobile ads shown in apps through Xtend are more highly attuned to each consumer.


The increasing popularity of mobile applications has resulted in a shift from mobile web browsing to app usage. Although mobile browsers are still used to access content, social media, messaging, entertainment, gaming, and other activities are predominantly performed through apps. This has provided advertisers with valuable data while enabling them to utilize native formats for less intrusive ads. According to reports, users spend 87% of their mobile time using apps, whereas only 13% is spent on mobile browsers.


With the recent advancements in mobile app advertising, data utilization, and targeting capabilities have significantly improved. Sophisticated audience targeting, relevance mapping, attribution models, and impact measurement have increased spending on mobile apps. Additionally, location signals and user engagement metrics provide additional datasets to influence consumers effectively. This level of precision is still not attainable through most traditional channels.


Mobile in-app ad formats have become more intuitive and less intrusive.

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