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Performance Marketing5 min read18 May 2023

In-app advertising in India: how it works and when to use it

In-app advertising reaches Indian users while they are engaged with mobile apps. Here is how the channel works, what formats perform, and when it fits into your media plan.

In-app advertising in India: how it works and when to use it

Indian mobile users spend an enormous amount of time in apps. Gaming, entertainment, UPI, and social media apps together account for hours of daily screen time for millions of Indians. In-app advertising reaches people in these moments, often more affordably than comparable inventory on the open web. For Indian advertisers, understanding how in-app advertising works is increasingly important as more audience time shifts from desktop to mobile apps.

How in-app advertising is bought

Most in-app advertising in India is bought programmatically. App developers integrate a mobile ad SDK from networks like Google AdMob, Meta Audience Network, InMobi, or ironSource. When a user opens the app, the SDK requests an ad from an ad exchange. Advertisers bid for the impression through DSPs or directly through platforms like Google Ads (which includes AdMob inventory in Display and App campaigns).

The key difference from web display advertising: in-app ads often cannot use browser cookies because apps do not use browsers. Instead, user targeting uses device identifiers (GAID for Android, IDFA for iOS) and contextual signals (app category, content type). This has become more complicated with Apple's AppTrackingTransparency framework on iOS, which requires users to opt in to cross-app tracking.

In-app ad formats in India

Banner ads are the most common format: small rectangular ads that appear within the app interface. They are cheap (CPMs of ₹10 to ₹40 for Indian traffic) but have low engagement rates. They are best for broad reach campaigns where frequency matters.

Interstitial ads are full-screen ads that appear at natural breakpoints, between game levels or when switching sections of an app. CPMs are higher (₹50 to ₹200) and engagement is better. They work well for direct-response offers with a clear visual and CTA.

Rewarded video ads show users a video in exchange for in-app currency, extra lives, or unlocking content. The user explicitly opts in to watch. These have the highest engagement rates of all in-app formats. For Indian gaming apps, rewarded video CPMs range from ₹100 to ₹400 and the opt-in nature means view completion rates are high.

Native ads match the look and feel of the app they appear in. They appear as content recommendations, sponsored cards, or story inserts. They perform well in content apps and news apps. InMobi and Google's native ad formats offer these for Indian inventory.

When in-app advertising makes sense for Indian campaigns

In-app advertising is particularly effective for: mobile app install campaigns (reaching mobile users who are clearly comfortable with apps), gaming and entertainment categories (where app audiences index well), and mass-market consumer campaigns where broad reach at low CPM is the goal.

It is less effective for: high-intent B2B lead generation (professional decision-makers are less reliably reached through in-app inventory), and campaigns requiring complex creative that needs a large viewing area (small banner formats do not communicate complex messages well).

For Indian fintech, edtech, and consumer goods brands doing user acquisition, in-app video ads are a standard part of the media mix. Platforms like InMobi, which has significant India-focused inventory, and ironSource (gaming-heavy) are worth including alongside Google App campaigns.

Measuring in-app ad effectiveness

Mobile Measurement Partners (MMPs) like AppsFlyer, Adjust, and Branch are essential for attributing installs and in-app events to specific in-app ad campaigns. Without an MMP, you cannot accurately measure which campaigns are driving quality installs versus low-quality or fraudulent ones.

Ad fraud is a real concern in Indian in-app advertising. Click spam, click injection, and SDK spoofing are more common in this channel than in search or social. Using an MMP with fraud detection enabled and working with quality networks significantly reduces this risk.

For brand campaigns (not install-focused), viewability standards from MRC apply to in-app video. Track completion rates, viewable impressions, and click-through rates alongside any downstream conversion metrics.

Frequently asked questions

Is in-app advertising expensive in India?

By global standards, Indian in-app inventory is affordable. Banner CPMs start around ₹10. Video CPMs range from ₹80 to ₹300 depending on format and inventory quality. Rewarded video is at the higher end but delivers strong engagement. Compared to Meta or Google search CPMs, in-app display is often cheaper for broad reach.

Which mobile ad network is best for Indian campaigns?

Google AdMob has the largest Indian inventory. InMobi was founded in India and has strong relationships with Indian publishers. Meta Audience Network has good reach but has faced inventory quality issues. For gaming-heavy campaigns, ironSource and Unity Ads have relevant inventory. Testing multiple networks and measuring by post-install quality is recommended.

How do I reach users on specific Indian apps with advertising?

You generally cannot target a specific app unless you are running a direct media buy with that publisher. Programmatic in-app buying lets you target by app category, audience segment, or device type, but not usually by specific app name. For advertising specifically within popular Indian apps like Hotstar, MX Player, or Jio Cinema, direct deals with those publishers are required.

Published 18 May 2023
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