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In-app advertising set to hit $7 billion by 2015

According to a new study from research firm Juniper Research, in-app advertising will reach $2.4 billion this year.

An in-app ad, courtesy of iAd.
An in-app ad, courtesy of iAd.
James Martin/CNET

Mobile applications will drive serious growth in mobile advertising in the coming years, according to a new study.

Juniper Research reported today that in-app advertising will hit $2.4 billion by the end of the year. By 2015, that figure will soar to $7.1 billion.

In-app advertising is widely viewed as the key to success for developers in the coming years. Mobile users are becoming increasingly loath to pay too much for applications, driving prices down. In-app advertising can help soften the blow of charging so little for an expensive app.

"In 2012, it will become increasingly difficult for app stores and developers to justify charging an upfront fee for their products when faced with competition from a plethora of free content," Jack Kent, an analyst at IHS, said in a statement earlier this year. "Instead, the apps industry must fully embrace the freemium model and monetize content through in-app purchases."

Kent's comments accompanied a report that found that in-app purchases accounted for $970 million in mobile advertising revenue last year. His company believes the figure will grow to $5.6 billion by 2015.

But spending and effectiveness are two very different things. So, according to Juniper's Charlotte Miller, advertisers will need to do certain things to improve the quality of their ads.

"Mobile advertising gives marketers the chance to reach consumers on a more personal level than any other type of advertising," Miller said. "Creating immersive and entertaining experiences to attract the attention of the consumer is essential for marketers wanting to take advantage of the massive increase in app usage."