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In-App Advertising From a Publisher Perspective
AdTech Industry Definitions
August 19, 2025 | by Aleesha Jacob
This definitive, publisher‑focused guide shows exactly how in‑app advertising works in 2025 and how to maximize revenue without sacrificing user experience. It covers ad formats, pricing models, programmatic deal types, viewability standards, frequency/UX guardrails, privacy and consent, tech stack selection, header bidding vs Open Bidding vs waterfall, optimization playbooks by app category, KPIs, and common pitfalls, plus how MonetizeMore helps apps 10x revenue with premium demand and hands‑on optimization.
What Is In‑App Advertising? How It Works
In‑app advertising (IAA) serves ads inside mobile applications via SDKs and mediation/ad server connections to exchanges and demand partners. A typical flow:
User opens app and triggers an ad placement opportunity.
App SDK requests an ad through mediation/ad server.
Demand sources (open auction, PMP, preferred) bid via SSPs/exchanges/DSPs.
Highest eligible bid wins; creative is returned and rendered.
Measurement SDKs log viewability, clicks, and completion events; revenues are reported.
The modern stack includes:
SDKs for mediation/ad serving and measurement.
Server‑to‑server (S2S) pipes and in‑app header bidding or Open Bidding to increase real‑time competition.
Direct deals (PMP, preferred) alongside open auction for coverage and CPM stability.
Ad Formats: Pros, Cons, UX Guidance
Use formats aligned to session flow, user intent, and engagement depth. Add strict placement rules and frequency caps to protect retention and ratings.
Banner (static or adaptive)
Pros: Simple, predictable fill, low disruption.
Cons: Lower eCPM; risk of accidental clicks if poorly placed.
Best practices: Use adaptive anchored banners; avoid near critical UI; refresh sensibly (e.g., 30–60s) and track viewability.
Interstitial
Pros: High visibility; strong eCPM.
Cons: Intrusive if mistimed; can hurt retention and ratings.
Best practices: Show only at natural breaks (level end, task completion); cap frequency (e.g., 1–2 per session in casual apps); disallow back‑to‑back impressions.
Native
Pros: Seamlessly blends into feeds/UX; better engagement than banners; flexible for content-heavy apps.
Utilities/tools: Light interstitials at task boundaries + native placements.
Content/feed apps: Native + short video units, with restrained interstitials at pagination.
Pricing Models Explained
CPM (cost per thousand impressions): Primary for display/video; scales with competition and placement quality.
CPC (cost per click): Out‑of‑favor for brand buyers in apps; used selectively where click intent is high.
CPA/Action/ROAS: Performance‑driven advertisers optimize to conversions or return; often via DSP targets and postbacks.
Hybrid: Floor CPM with performance bonuses; common in direct/PMP setups.
Tip: Segment floors by geo, format, OS, and inventory quality; maintain soft vs hard floors to balance fill vs price.
Programmatic Deal Types and When to Use Them
Open Auction
Scale and liquidity; less control; CPM variability.
Use for broad coverage, mid‑tier placements, and backfill.
PMP (Private Marketplace)
Curated buyers; higher CPMs; greater brand safety and creative control.
Use for premium placements, home screens, first‑session surfaces, and brand-sensitive categories.
Preferred Deals
Fixed CPM with first look (no guarantee); control without full direct‑sell overhead.
Use to stabilize revenue on signature placements while retaining fallback to open auction.
Strategy: Map each placement to a primary deal type, then chain fallback: Preferred/PMP → Open Auction with strong floors and competitive bid density.
Viewability, Measurement & Brand Safety
Aim to meet or exceed recognized standards for mobile display and video viewability. Practical steps:
Placement tuning: Keep display units fully on-screen and avoid cramped UI regions; anchor banners with safe margins; for native, ensure sufficient viewport height.
Lazy load and render rules: Trigger only when likely to be viewable; defer heavy scripts; use viewability measurement SDKs consistently.
Video quality: Ensure 50%+ pixels in view, sustained for the required duration; preload responsibly; avoid stuttering that kills completion rates.
Brand safety: Adopt blocklists, category filters, and creative QA; prefer curated demand (PMP) in sensitive apps; enforce ad density and disclosure rules.
Quick wins:
Move low‑viewability banners to sticky/adaptive positions.
Increase native item spacing for better in‑view time.
Use session depth to decide when to show high-impact units.
UX & Frequency Controls (Retention‑First)
Frequency caps: Start conservative and test (e.g., interstitials 1–2 per session, rewarded 2–4 opt‑ins depending on session length, banners static refresh 30–60s).
Natural breaks: Never insert interstitials mid‑action; align with completion moments.
Cooldowns: Enforce time gaps between interstitials and rewarded offers.
Fatigue management: Rotate creatives and formats; avoid multiple high‑impact units in the same minute.
Crash/latency safeguards: Prioritize SDK stability; fail gracefully (no blocking UI).
Monitor:
Day‑1/Day‑7 retention vs ad exposure.
Ratings/reviews mentioning “too many ads.”
Session length and level completion rates post‑changes.
Privacy & Consent in 2025
Consent flows: Clear, localized opt‑in prompts; allow adjustments in settings; log consent state changes.
Regulatory coverage: GDPR/EEA consent, CCPA/CPRA opt‑out handling, and children’s data rules where applicable.
Platform/store compliance: Align with Google Play and App Store policies; avoid deceptive UX; document SDK data usage.
Signal loss readiness: Use contextual signals, on‑device segmentation, and creative relevance where device IDs are restricted.
Data minimization: Keep only necessary SDKs; disable unneeded data collection; maintain a public SDK/data usage inventory.
Choosing Ad Networks, Mediation, and SDKs
Selection criteria:
Demand density by geo and format (especially rewarded/playables).
Support for PMP/preferred deals and direct IOs.
Reporting transparency and real‑time troubleshooting.
SDK stability, size, and latency impact.
Strong policies/compliance support and responsive technical support.
Mediation logic:
Prefer server‑side competition to reduce device load.
Consolidate to minimize SDK sprawl; use adapters where possible.
Keep an escalation path: premium demand via PMP/preferred + open auction via multiple SSPs.
Implementation tips:
Stagger SDK updates; A/B new adapters; rollback plan ready.
Monitor crash-free sessions, ANR rates, and ad load time alongside eCPM.
Header Bidding vs Open Bidding vs Waterfall
Waterfall
Sequential calls; simple but leaves money on the table; adds latency.
Suitable only as legacy fallback or for niche demand.
Header Bidding (in‑app)
Parallelized competition; higher yield; requires integration and QA.
Works with Prebid-style or mediation partner bidding.
Open Bidding (server-side auctions via ad server)
Server‑side competition with reduced client overhead; simpler ops; good for SDK minimization.
Complements header bidding; both can run with clear auction rules to prevent conflicts.
Recommended approach:
Use Open Bidding for baseline server-side competition and SDK consolidation.
Add header bidding for incremental demand partners that materially increase bid density without harming latency.
Keep strict auction timeouts, creative QA, and priority rules to protect UX.
Tactics: Balance reward value and frequency; test cooldowns; preload video during low CPU usage; use PMP for brand placements on home and store screens.
Utilities/Tools
Core stack: Native + light interstitials at task completion; adaptive banners for persistent monetization.
Tactics: Avoid mid‑task interruptions; contextual creatives; focus on viewability and low latency.
Content/Media/News
Core stack: Native in feed + short video units; restrained interstitials on pagination or after article completion.
Tactics: Tight ad-to-content ratio; high disclosure; optimize for scroll depth and in‑view time.
With over ten years at the forefront of programmatic advertising, Aleesha Jacob is a renowned Ad-Tech expert, blending innovative strategies with cutting-edge technology. Her insights have reshaped programmatic advertising, leading to groundbreaking campaigns and 10X ROI increases for publishers and global brands. She believes in setting new standards in dynamic ad targeting and optimization.
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