While app installs are showing signs of a slowdown, the latest data reveals time spent in-app is rising into the stratosphere and set to eclipse TV in 2019. Audiences are clearly addicted to using the apps they love, which would suggest they are also easier to monetize with established models such as advertising. But, in reality, the opposite is true.
Studies show users are increasingly bored by the ads delivered to their smartphones and increasingly annoyed by ads that are irrelevant or keep them from doing what they set out to do in the first place. Unfortunately, bad ad experiences don’t only alienate and frustrate users; they also deprive app owners and marketers of an important chance to monetize their assets and audiences.
It’s a dynamic that threatens to bankrupt the entire digital ecosystem, forcing companies to rethink app advertising. Some are doubling down on ad creatives, such as mobile video ads and rewarded video, to monetize their app. But there’s a catch. While rewarded video can increase session lengths and boost retention, it’s a performance gain that comes at a price since producing effective video isn’t always cheap.