In-App Advertising Market Expected to Reach $952 Billion by 2034

According to a new report published by Allied Market Research, titled, “In-App Advertising Market," The in-app advertising market was valued at $390.5 billion in 2024, and is estimated to reach $952 billion by 2034, growing at a CAGR of 9.2% from 2025 to 2034.

The in-app advertising market represents a rapidly expanding segment of the digital advertising industry, driven by surge in mobile device usage and increasing reliance on mobile applications for everyday tasks. As users transition from desktop to mobile platforms, advertisers are adapting strategies by embedding ads within mobile apps to capture consumer attention in a more targeted and contextually relevant environment.

In-app advertising enables marketers to deliver tailored messages within a controlled app ecosystem, often resulting in higher engagement and improved brand visibility. In contrast to traditional advertising, this format leverages more detailed data, enabling accurate audience segmentation based on factors like user behavior, device usage, and app activity. Such detailed targeting improves campaign effectiveness and leads to higher conversion rates across various industries, including gaming, retail, finance, and entertainment. The market is supported by a robust technology infrastructure involving mobile ad networks, demand- and supply-side platforms, and programmatic buying tools. These systems allow real-time transactions and dynamic ad placements, ensuring that the right users see the right ads at the right time. In addition, innovative ad formats such as playable ads and interactive video have elevated the user experience, making advertising less intrusive and more engaging.

While the industry faces challenges related to privacy regulations and ad fraud, ongoing investments in transparency, data protection, and machine learning are helping to mitigate risks. As mobile usage continues to dominate digital interactions, in-app advertising is set to play a central role in shaping the future of personalized, performance-driven marketing strategies.

On the basis of application type, the social media segment dominated the global in-app advertising market in 2024 and is expected to maintain its dominance in the upcoming years, as social media apps have massive user bases and high daily usage. People spend a lot of time scrolling through platforms like Facebook, Instagram, and TikTok, giving advertisers plenty of chances to display targeted ads. These platforms also collect user data, which helps deliver personalized ads that perform better. However, the gaming segment is expected to register the highest CAGR during the in-app advertising market forecast period, as mobile games are becoming more popular across all age groups. Many games use in-app ads like rewarded videos or interactive ads that fit naturally into the gaming experience, leading to high engagement and better ad results. This makes the gaming segment a strong area for future growth in in-app advertising.

The global in-app advertising market is undergoing a rapid transformation driven by emerging technologies that are reshaping how brands engage with mobile users. One of the most significant trends is the integration of artificial intelligence (AI) and machine learning (ML) into ad delivery systems. These technologies allow advertisers to analyze user behavior in real time, enabling highly personalized ad targeting and improved campaign optimization. AI also plays a key role in predictive analytics, helping marketers anticipate user needs and deliver relevant content at the right moment, which significantly boosts user engagement and conversion rates.

Another major technological trend is the rise of programmatic advertising, where ad placements are bought and sold in real time through automated bidding platforms. This has made in-app advertising more efficient and scalable, especially for advertisers aiming to reach specific user segments across diverse app categories. At the same time, augmented reality (AR) and interactive ad formats such as rewarded video ads and playable ads are gaining popularity, particularly within mobile games and social apps. These immersive formats not only increase user interaction but also create more memorable brand experiences. With increasing privacy concerns and regulations such as Apple’s App Tracking Transparency (ATT) and the shift toward cookieless advertising, the in-app advertising industry is also seeing a return to contextual advertising. Instead of relying on personal user data, contextual ads focus on the content of the app or user environment, offering a privacy-friendly alternative that still achieves effective targeting. Additionally, the rollout of 5G technology is enhancing ad performance by enabling quicker load times and supporting richer ad formats like video and AR without disrupting the user experience.

Key Takeaways:

• By type, the banned ads segment accounted for the largest in-app advertising market size in 2024.

• By platform type, the android segment accounted for the largest in-app advertising market share in 2024.

• By application type, the social media segment accounted for the largest in-app advertising market size in 2024.

• Region wise, Asia-Pacific generated the highest revenue in 2024.

The key players profiled in the in-app advertising market analysis Unity Technologies, Alphabet (Google Inc.), AppLovin Corporation, Amobee Inc.(Nexxen International Ltd.), InMobi, Chartboost, Inc. (LoopMe), Smaato Inc. (Verve), Leadbolt Pty Ltd., Liftoff, Inc., PubMatic, Inc., Mintegral, Digital Turbine, Inc., RevX Affle, Entravision Comunications Corporation, AppsFlyer Ltd., Start.io, triplelift, BYYD Inc., Apple Inc., Meta Platforms, Inc.. These players have adopted various strategies to increase their market penetration and strengthen their position in the in-app advertising industry.