In-App Advertising in 2025: Is It Still a Profitable Venture? - SocialPeta Webinar

Kinga Kruzmanowska, Director of Strategic Business Development,  participated in a webinar “In-App Advertising in 2025: Is It Still a Profitable Venture?” hosted by SocialPeta. Together with industry leaders from SocialPeta, Zorka Agency, Tactile Games and AppFollow, we discussed the current landscape, key challenges, and emerging trends shaping the future of IAA.

Due to the lower entry barrier and substantial revenue share, IAA remains a preferred choice for developers over IAP and paid subscriptions. In today’s saturated market, mobile app advertising monetization has become a high-stakes competition with rising costs. This raises a crucial question: In-App Advertising in 2025—Is It Still a Profitable Venture? This exclusive webinar brings together industry leaders for an in-depth discussion on IAA. 

Dominating IAA Formats Today

1. Rewarded Ads: These remain prevalent in casual gaming due to high engagement rates. Players are incentivized to watch ads in exchange for in-game rewards, making them non-intrusive and effective.
2. Playable Ads: These interactive formats allow users to experience a brief demo of a game or service, improving user engagement and conversion rates.
3. Hybrid Monetization Models: The industry is witnessing a shift toward a combination of in-app purchases (IAP) and ad monetization strategies. This approach allows developers to cater to both paying and non-paying users effectively.

Current Challenges and Opportunities in IAA

As the landscape changes, several challenges persist, including:

• Privacy Regulations: Stricter privacy laws affect user tracking and targeting, requiring marketers to adapt their strategies.
• Ad Fatigue: Overexposure to ads can lead to user fatigue, requiring careful balancing of ad frequency to maintain a positive user experience.
• Competition: The growing number of applications increases competition for ad placements, putting pressure on advertising prices and strategies.

Despite the challenges, opportunities abound:

• AI Integration: Leveraging AI for targeted advertising and creative production offers avenues for increased efficiency and improved ad performance.
• Emerging Markets: Developing regions represent a growth potential for advertisers as mobile gaming expands, providing the new audience for ads.

Key Insights From Different Perspectives

• The Evolving Role of Monetization Managers
  Kinga Kruzmanowska pointed out that monetization managers are no longer just focused on revenue—they now work closely with product teams to ensure a seamless balance between user experience and ad-driven monetization. This cross-functional collaboration is essential for sustainable growth.

• The Rise of Rewarded Ads and Hybrid Monetization Models
  Rewarded ads continue to play a crucial role in monetization strategies, while hybrid models—which combine various revenue streams—are gaining traction. These approaches help developers maximize revenue while maintaining a positive user experience.

• Market-Specific Ad Performance Variations
  Ad monetization effectiveness varies significantly across different regions due to economic factors, user behaviors, and local market dynamics. Understanding these differences is key to optimizing ad strategies and maximizing revenue potential.
  
• The Shift Toward Cost-Effective Ad Formats
  Rising costs associated with video ads are prompting a shift toward more budget-friendly formats, such as banners and interstitials. Advertisers are increasingly exploring cost-efficient alternatives that maintain engagement while optimizing ROI.

• The Transformative Impact of AI
  AI is transforming ad monetization by streamlining processes like quality control, fraud prevention, and analytics, freeing teams to focus on strategy. Its predictive capabilities enable advertisers to analyze user behavior and market trends, optimizing ad formats for better revenue forecasting. Additionally, AI-driven dynamic creative generation allows for real-time ad creation and optimization, maximizing engagement and performance.

Looking Ahead: Predictions for 2025

1. Increased Reliance on AI: The integration of AI in advertising strategies will continue to grow, enhancing everything from creative production to predictive analytics.
2. Hybrid Monetization: The blend of in-app ads and purchases will solidify as the norm, allowing applications to maximize revenue across diverse user segments.
3. Shift Toward Brand Advertising: As brands start to recognize the potential of in-app advertising, additional budgets will likely be allocated towards gaming, further diversifying revenue streams.
4. Focus on Zero-Party Data: Given the evolving privacy landscape, publishers will likely pursue zero-party data strategies, ensuring a secure and trustworthy environment while obtaining valuable user insights.

Conclusion

The future of in-app advertising in 2025 holds significant promise. As industry leaders continue to innovate and adapt to emerging challenges, opportunities abound for developers and advertisers alike.

The trends discussed during the panel, from hybrid monetization to AI integration, highlight the dynamic nature of the advertising ecosystem. For businesses to thrive, staying informed and agile in their strategies will be essential.