Time to rethink your ad campaign? Revenue from in-app ads up

If you want to make sure your ads reach the right audience, you should consider placing it inside an app.

To be more precise, inside a mobile game.

Leader in app analytics App Annie, together with global analyst house IDC today issued a report on app monetisation, which has shown that mobile app stores (iOS and Google Play combined) and mobile in-app ads each grew revenue by 1.7x from 2013 to 2014.

The report, called "Mobile App Advertising and Monetisation Trends 2013-2018: Freemium and In-App Ads Expand Their Lead,“ has also shown that mobile apps continue to outpace PC web and mobile web-based ads, which grew revenue by about 1.0x and 1.5x, respectively.

An interesting fact is that the top three apps on the App store and Google Play store in terms of revenue in 2014 for every business model were all games.

Clash of Clans, Puzzle and Dragons and Candy Crush saga dominate the Freemium model, Minecraft – Pocket Edition, Grand Theft Auto: San Andreas and Terraria the Paid model, and the top three for the Paidmium model are Card Wars, Order & Chaos Online and Plague Inc.

When it comes to looking ahead, mobile in-app advertising revenue is projected to pass each type of PC and mobile web-based ad by 2018 when looking at combined revenue across key countries, the report shows.

In terms of countries' monetisation potential, the USA is on top, and is expected to significantly widen its lead for mobile app-related revenue, with 2.7x growth from 2014 to 2018.

United States and Japan had the largest absolute mobile app revenue among the 10 key countries, but all experienced significant growth, the report says.

App downloads in Russia, Brazil and India have exhibited impressive growth, but overall revenue volume lags behind developed markets.