The easy availability of fast internet and the growing use of smartphones and tablets are some of the key factors contributing to the in-app advertising market growth. In recent years, the amount of data used by apps installed on smartphones has increased dramatically. Manufacturers and service providers are developing their products with new video ads to reach a more customer base and produce quality leads.
In addition, the widespread use of mobile applications to access social media platforms, as well as the advent of online games, contributes to market growth. App advertisers use the ad space found in mobile-based games to promote their products while offering prizes, extra game time, and other benefits.
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Automation technology is emerging rapidly in the field of advertising. This is benefiting from the growth of the online advertising market as automated online advertising has provided benefits, such as efficiency, scale, and lower costs, in advertising. Increased acceptance of automated technology can be seen in various advertising platforms such as Google and Facebook. For example, Google has integrated automated advertising with automated bidding strategies, automatic ad copy, and automated PPC reporting.
On the other hand, Facebook’s default rules monitor users’ campaigns, ad sets, and ads and help them manage multiple ads at the same time. It is expected that, by the end of 2020, 80% of the online marketing process will be automated and the remaining 20% will have advertising materials that will require regular human interaction such as storytelling, product value, and other experience strategies. Therefore, the emerging trend of automated technology in online advertising is expected to provide many market opportunities.
However, technological concerns such as ad testing for in-app advertising for different smartphone software such as Android and iOS take a long time because both software show content differently, which could be a hurdle for the global in-app advertising business.
COVID-19 Scenario Analysis:
• The emergence of COVID-19 has severely affected almost all industries across the world. Further, lockdown restrictions on movement have disrupted the supply chain across the globe but gave opportunities to the advertising industry and have a positive impact on the growth of the In-app advertising market.
• In addition, the changes in consumer behavior and demand, purchasing patterns, re-routing of the supply chain, current market forces, and significant interventions of governments are noticeable.
• Furthermore, there are strong indications that the current decrease in demand for technology and digital solutions will be just a short-term phenomenon. In the medium-to-long run, the COVID-19 technology impact may be extremely positive. Everyone is forced to embrace new technologies and discover their benefits. Additional investments in digital infrastructure can be expected to improve the In-app advertising market growth in the future.
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