U.S. In-app Advertising Market Summary

The U.S. in-app advertising market size was valued at USD 49.6 billion in 2023 and is expected to grow at a CAGR of 11.8% from 2024 to 2030. The increasing penetration of smartphones, coupled with the growing amount of time users spend on mobile applications, is fueling market expansion. Companies are increasingly focusing on mobile advertisements for brand promotion and product sales through banners, short videos, interstitials, and other innovative formats. In-app advertisements provide marketers with a wider user base compared to mobile web advertising by enabling advanced targeting options through usage patterns, age groups, user interests, and location-based analytics.

In 2023, the U.S. accounted for over 27% of the global in-app advertising market. The rapid growth of online gaming and e-commerce industries is directly influencing this expansion. Businesses are investing more in in-app advertisements due to their higher click-through rate compared to mobile web ads. Additionally, in-app advertising supports app developers by creating a strong revenue generation model through strategically displayed advertisements. This has encouraged developers to adopt various ad formats that not only enhance user engagement but also provide a steady income stream.

Key Market Trends & Insights

• Based on type, the banner ads segment dominated the market with the largest revenue share of around 36.0% in 2023. Banner ads are a preferred choice among marketers due to their affordability, simple implementation, and ability to run seamlessly across all types of applications and mobile devices. They help drive traffic, increase brand awareness, and improve product sales while offering good returns on investment. Banner ads continue to be an integral part of mobile advertising strategies, particularly for small and medium businesses that prioritize cost efficiency alongside broad audience reach.
• The entertainment segment dominated the U.S. in-app advertising market in 2023 with the largest revenue share and is expected to maintain its dominance throughout the forecast period. Entertainment applications, including streaming platforms, gaming apps, and video-sharing platforms, are widely used by consumers, making them ideal avenues for advertisers. Advertisers utilize user-specific data such as viewing habits, demographics, age, location, and interests to create targeted campaigns, thereby improving ad performance. This trend has led to the rising popularity of entertainment platforms as an effective tool for brand visibility and customer engagement.
• Based on platforms, the market is segmented into android, iOS, and others. The android segment held the largest revenue share in 2023 due to its widespread adoption, open-source framework, and compatibility across a variety of devices. Marketers often focus on high-end android devices to reach premium users and optimize campaign effectiveness. Meanwhile, the iOS segment captured the second largest share in 2023. This is attributed to the fact that iOS users tend to spend more on app purchases compared to android users. Additionally, iOS devices are known for reliability, a superior user interface, enhanced features, and multitasking capabilities, which make them attractive to advertisers.

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Market Size & Forecast

• 2023 Market Size: USD 49.6 billion
• 2030 Projected Market Size: USD 110.2 billion
• CAGR (2024 - 2030): 11.8%

Key Companies & Market Share Insights

Some of the leading companies operating in the U.S. in-app advertising market include Google AdMob (Google LLC), BYYD Inc., Facebook, Flurry (Yahoo Inc.), and Verizon Media. These companies are actively investing in new technologies and partnerships to enhance targeting efficiency, user engagement, and campaign ROI.

BYYD functions as an integrated mobile Demand-Side Platform (DSP) provider, enabling advertisers to connect with clients worldwide. Its platform is supported by Real Time Bidding (RTB) technology, allowing advertisers to purchase mobile inventory across apps, games, and mobile websites globally. The company manages operations across advertising, app marketing, and mobile solutions, offering a strong service portfolio to brands seeking digital visibility.

Flurry operates within analytics, mobile monetization, and in-app advertising, serving diverse industries such as IT, iOS, analytics, and software. Its solutions empower businesses with analytical insights to monitor mobile user preferences, behavior trends, and habits across multiple apps. By integrating advertising with analytics, Flurry helps brands improve customer targeting while providing developers with new monetization avenues.

Emerging companies such as Amobee, Inc., Glispa GmbH, AppLovin, Chartboost, Inc., and Verizon Media are also contributing to the competitive landscape. Verizon Media provides advertising solutions for publishers, enterprises, and global partners. Its extensive portfolio includes Microsoft News, MSN, Outlook, and Xbox, along with subsidiaries such as AOL, Yahoo!, EdgeCast, and BrightRoll, which collectively strengthen its global presence.

Chartboost operates as a programmatic in-app advertising and monetization platform, particularly strong in gaming and entertainment industries. It offers formats such as statics, videos, and playables to drive engagement. The Chartboost SDK, compatible with both iOS and Android, enables developers to monetize mobile apps efficiently while connecting advertisers to high-value in-app inventory.

Key Players

• ironSource (Unity Software Inc.)
• Google AdMob (Google LLC)
• BYYD Inc
• Flurry (Yahoo Inc.)
• Verizon Media
• Tune Inc.
• Tapjoy
• Amobee, Inc.
• Glispa GmbH
• AppLovin
• Chartboost, Inc
• Smaato, Inc.
• Leadbolt

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Conclusion

The U.S. in-app advertising market is poised for sustained growth, supported by the increasing adoption of mobile applications, rising smartphone penetration, and the growing importance of targeted advertising strategies. The market benefits from strong investment in analytics, demand-side platforms, and AI-driven personalization, which enhance the effectiveness of campaigns. The dominance of entertainment apps, alongside the rising popularity of gaming and e-commerce platforms, further amplifies market demand. With established players and emerging companies alike adopting innovative solutions, the industry is expected to witness significant transformation. Over the forecast period, in-app advertising will remain a vital component of digital marketing strategies across industries.