With Sensor Tower data projecting that revenue from consumer apps will outpace gaming apps by 2026, it’s never been more important for app publishers to ensure they have robust monetization strategies in place across the most relevant channels and platforms. But what are the markets and app categories showing the biggest signs of growth? Where should app publishers invest their time and ad placement to reach relevant, high-quality users? And which ad formats are proving the most effective at engaging these users?

To find out, we analyzed data from Liftoff’s Vungle Exchange, drawing insight from more than 159 billion ad impressions and 20 billion clicks to provide a snapshot of the key trends shaping ad monetization for consumer apps.

In-App Advertising is Becoming the New Norm

Historically, many consumer apps have relied on subscriptions as their primary revenue driver. But with more and more users opting for a free experience, apps that operate on a subscription-only model and don’t leverage in-app advertising are missing out on significant revenue potential.

As such, a growing number of consumer apps are now turning to in-app advertising (IAA) as a way to diversify their revenue streams. Ad revenue from app publishers on the Vungle Exchange grew by 116% between September 2023 and October 2024, and the IAA trend is only set to grow as consumers are spending more time on entertainment, productivity and utility apps, with entertainment publishers seeing revenue from their ad inventory triple year-over-year. The top non-gaming publisher categories (in ad revenue) in the US were Entertainment (grew 196% YoY), Music (grew 72% YoY), and Social (grew 289% YoY).

If you’re new to in-app advertising, our advice is to find an ad partner who can help you tap into this premium demand and achieve higher average revenue per daily active user (ARPDAU). And, if you’re one of the growing number of video streaming apps exploring ad-supported subscription tiers, you may find rewarded ads an effective way of bringing in new revenue streams while incentivizing your users to spend more time in-app.

Emerging Markets are Becoming More Important for App Publishers

Ad revenue is growing significantly in emerging markets such as Mexico and the Philippines, with the latest data from the Vungle Exchange showing growth of more than 200% year-on-year for both markets. There are clear opportunities here and in markets such as Brazil, Saudi Arabia, and South Africa. As subscription revenue here can take a while to grow, ad revenue is often an effective way of supplementing incomes.

Fintech apps, in particular, are experiencing notable growth, where eCPMs can be higher in emerging markets than in the US. When compared to the US over the last 12 months, finance publishers on the Vungle Exchange saw average eCPMs that were 123% higher for Mexico, 62% higher for Saudi Arabia, 20% higher for Brazil, and 9% higher for South Africa.

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Rewarded Ads Are Helping Publishers Maximize Ad Revenue

Rewarded ads have always been a popular and effective ad format for gaming apps, but a growing number of consumer apps are now embracing them, too. When rewarded ads are deployed correctly, they lead to higher ad revenue and even improve retention rates. The rewarded element of the ad can also provide a more satisfying ad experience than traditional in-app ads.

Utilities, entertainment, and music publishers stand to benefit the most from rewarded ads due to their significantly higher eCPMs compared to non-rewarded and interstitial ads. Rewarded ads post 28x higher for entertainment apps compared to banner ads. They are also a great fit for apps that encourage daily engagement, such as productivity, education, and health apps, as the rewarded elements lend themselves well to engagement mechanics like streak systems and daily tasks.

If you want your rewarded ads to deliver the best value for money, consider offering incentives that might motivate users to spend more time in your app or try a new feature that’s typically paywalled.

App Publishers are Embracing Non-Disruptive Ad Experiences for Higher CPMs

Having an ad display at the wrong time can be a make-or-break moment for some users, with some abandoning apps entirely if the ad they’re served is too frequent or disruptive. To counter this, we’ve seen an increase in the number of publishers using ad placement types that support video without disrupting the ad experience. Two ad formats available on the Vungle SDK include: ‘app open’ placements, where the ad is displayed at app launch or after a session is resumed, and ‘in-line’ placements, where publishers can similarly integrate video ads to a static native ad.

Average eCPMs for app open ads are 8x that of static ads, while in-line ads deliver eCPMs 2x that of native ads. App open ads have also been highly effective at engaging users in emerging markets. Data from Liftoff’s Vungle Exchange shows that in addition to performing well in US and Canadian markets, they drive more ad revenue from audiences in Brazil, Mexico, Russia, and Indonesia.

Are You Tapped Into the Right Demand Sources?

Getting the maximum value out of your monetisation strategy requires extensive campaign refining and constant testing to ensure your ads are delivering the best results in terms of revenue, user experience, and retention.

If you’re not getting the results you’re hoping for, make sure your SDK enables you to tap into the right demand sources and review your user journey to check ad placements are being deployed at the most effective times.

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