Consumers' acceptance of mobile in-app ads - a somewhat dicey proposition in the beginning given the central role most cell phones play in people's lives – is likely to grow as they become more dependent on mobile applications. So said Park Associates, which forecasts that that in-app mobile ad revenue will surpass $860 million in 2014 and paid mobile app profits will exceed $4 billion.
"As appetites for mobile apps grow, consumers will become more accepting of in-app ads," said Heather Way, research analyst, Parks Associates.
"Our latest report shows 46% of adults 18-34 are either indifferent to in-app ads or willing to endure ads in free mobile apps."
Parks Associates dovetails on similar findings about consumers and their attitudes towards ads - most view them as "annoying but necessary" in the words of one survey, and many like the trade-offs they get from the targeted approach. For instance, a survey by PreferenceCentral found that most consumers don't mind targeted ads if they lead to freebies or discounts. (via MarketingCharts).
The research also found that attitudes and preferences significantly shift when consumers are educated about behavioral targeting or when they are offered ways to control their exposure to these ads.
Another survey, by Unicast, found that mothers active online are not adverse to ads, with 35% seeing them as sometimes helpful or really liking them. Twenty-seven percent of the 1,700 mothers surveyed by Unicast don’t care about online ads and 31% see them as "annoying but inevitable." Less 6% really hate them.
$2.2 Billion and Counting
In-app ads have a huge growth potential, given the way this platform is expanding. According to new figures from research2guidance, the worldwide smartphone applications market grew more than $2.2 billion within the first six months of 2010. Mobile application download numbers reached a total of 3.8 billion in only 6 months, compared to 3.1 billion in 2009. One driver behind this growth, the report finds, is that the app stores that were founded in 2009 have finally managed to increase application numbers and are growing their app business.
"Apple's competitors like Nokia and BlackBerry started to leverage their global reach and increased the traffic on their app stores. This trend will continue in the next several months and years." The next wave of new app stores will be niche stores specializing in business or mobile health apps, it predicts.
Read MarketingVOX's related story: What Annoys Consumers the Most About Online Ads
