The global in-app advertising market is on an upward tear—and it’s not slowing down anytime soon. According to a new report by Allied Market Research, the market is projected to skyrocket from $390.5 billion in 2024 to a staggering $952 billion by 2034, riding a robust 9.2% CAGR. The takeaway? Ads embedded inside mobile apps aren’t just filler—they’re fast becoming foundational to digital marketing strategies worldwide.
Why It Matters
With consumers glued to smartphones and mobile apps dominating screen time, in-app advertising has become prime real estate for brand engagement. Whether you’re swiping through TikTok, grinding through a mobile game, or scrolling social feeds, chances are you’re seeing personalized, high-impact ads tailored to your behavior. For marketers, the format offers a powerful blend of reach, relevance, and ROI.
Asia-Pacific Leads, But Growth Is Everywhere
In 2024, Asia-Pacific led the global charge—and it’s showing no signs of slowing down. With countries like China, India, and Indonesia boasting massive mobile user bases and rapid smartphone adoption, the region offers advertisers unparalleled scale and engagement. Meanwhile, the LAMEA region (Latin America, Middle East, and Africa) is catching up fast, expected to post the highest growth rate thanks to expanding internet access and investments in digital infrastructure.
Social Media Dominates, Gaming Gains Ground
Social media remains the heavy hitter, accounting for the largest share of in-app ad spend in 2024. Platforms like Instagram, Facebook, and TikTok have become ad ecosystems in their own right—backed by deep user data and high daily usage. However, gaming is the rising star, projected to post the fastest growth rate through 2034. Rewarded video ads and seamless in-game ad integrations are proving especially effective in driving engagement and ad recall.
Formats in Focus: Banner vs. Rewarded Video
Banner ads still dominate the market due to their simplicity and wide compatibility, especially in cost-sensitive campaigns. But it’s rewarded video ads that are winning hearts and high engagement rates. These short, opt-in videos exchange user attention for in-app perks—a win-win that advertisers are increasingly leveraging for deeper interaction and brand favorability.
Competitive Landscape: Who’s Leading?
The ecosystem is buzzing with major players, including:
- Alphabet (Google)
- Apple
- Meta Platforms
- Unity Technologies
- AppLovin
- InMobi
- PubMatic
- Digital Turbine
- AppsFlyer
- Mintegral
These companies are investing heavily in targeting, attribution, and AI-driven personalization to maximize ad efficiency within apps. The recent acquisition of Vistar Media by T-Mobile in January 2025 is another signal that telecoms, adtech, and martech are converging in a bid to own more of the ad value chain—especially as digital-out-of-home (DOOH) and mobile ads become increasingly interconnected.
