Best Ad Formats for Mobile Apps in 2025

Ad format determines 30-40% of your campaign performance before creative or targeting decisions come into play.

The format you choose shapes user experience, engagement depth, and conversion likelihood in ways that even excellent creative can't overcome if the format itself is misaligned with user expectations.

In 2025, three formats consistently outperform others: rewarded video, interactive playables, and native in-feed. Here's when and how to use each.

Top-Performing Formats in 2025

1. Rewarded Video Ads

What they are: Users watch a video ad in exchange for in-app rewards (currency, power-ups, content unlocks).

Why they work: Incentivized attention. Users opt in, which means they actually watch rather than immediately skip.

Performance benchmarks:

• Engagement rate: 70-90% (users watch to completion for reward)
• Average CTR: 2-5%
• User quality: Moderate to high (users are pre-qualified by willingness to engage)
• Best for: Gaming apps, freemium models, content apps

Platforms:

• In-app placements (within other apps)
• Ad networks: Unity Ads, AdMob, AppLovin, ironSource

Cost:

• CPM: $8-15
• CPI: $2-6 depending on geo and category

When to use: When you're advertising within other apps (not social feeds) and your app has a freemium or gaming component that aligns with rewarded mechanics.

Limitations: Only works in in-app environments, not on social platforms. User intent is driven by reward, not inherent product interest, which can impact retention.

2. Interactive Playable Ads

What they are: Miniature interactive demos of your app that users can engage with before installing.

Why they work: Users experience core functionality before committing. This pre-qualifies installs and dramatically improves retention.

Performance benchmarks:

• Engagement: 7x higher than standard video ads
• Retention: 3-5x better Day 1 and Day 7 retention
• Average interaction time: 30-60 seconds
• Best for: Gaming, puzzle apps, interactive tools, simulation apps

Platforms:

• Google UAC
• Meta (limited)
• In-app networks: Unity, AppLovin, Vungle

Cost:

• Production: $2,000-15,000+ per playable
• CPM: $10-20
• CPI: $3-8 (higher initial cost, but better LTV)

When to use: When your app has clear interactive mechanics that can be demonstrated in 30-60 seconds. Works exceptionally well for gaming and apps with "try before you buy" value.

Limitations: High production cost. Not suitable for apps without obvious interactive elements (e.g., content consumption, passive tracking apps).

3. Native In-Feed Ads

What they are: Ads that blend into the platform's organic content feed (Facebook Feed, Instagram Feed, TikTok For You page).

Why they work: Pattern interruption is minimal. Users process these as content rather than advertisements, granting more attention.

Performance benchmarks:

• Average CTR: 2.5-4%
• CPI: $1.50-4.50 (often lowest CPI of all formats)
• Creative fatigue: Faster than other formats (7-10 days)
• Best for: All app categories, especially consumer-facing

Platforms:

• Meta (Facebook/Instagram Feed)
• TikTok (For You page)
• Twitter/X
• LinkedIn (for B2B apps)

Cost:

• Production: $100-1,500 per creative (lower than playables)
• CPM: $6-12
• CPI: $1.50-4.50

When to use: For most app categories on social platforms. The format's versatility and lower CPI make it the default choice for broad testing.

Limitations: Higher creative fatigue requires constant refresh. Performance depends heavily on creative quality since you're competing with organic content.

4. Stories/Reels (Vertical Full-Screen)

What they are: Vertical video ads that take over the full screen between organic Stories or Reels.

Why they work: Immersive format with fewer distractions. Users are already in a lean-back, content-consumption mode.

Performance benchmarks:

• Average CTR: 1.5-3%
• Completion rate: 60-75% (higher than feed)
• CPI: $2-5
• Best for: Visual apps, lifestyle apps, entertainment

Platforms:

• Instagram Stories/Reels
• Snapchat
• TikTok
• Facebook Stories

Cost:

• Production: Same as standard video ($100-500 UGC, $3K+ professional)
• CPM: $7-14
• CPI: $2-5

When to use: When you have strong visual creative and your app benefits from immersive storytelling. Works especially well for younger demographics.

Limitations: Requires vertical-optimized creative. Users skip faster if content isn't immediately engaging.

5. Banner Ads (Legacy but Still Functional)

What they are: Small static or animated banners at the top or bottom of apps and mobile websites.

Why they (sometimes) work: Low cost, persistent presence, background visibility.

Performance benchmarks:

• Average CTR: 0.5-1% (lowest of all formats)
• CPI: $1-3 (cheap but low quality)
• User quality: Lower than other formats
• Best for: Brand awareness, retargeting

Platforms:

• Google Display Network
• In-app ad networks
• Mobile web placements

Cost:

• Production: $50-300
• CPM: $2-5
• CPI: $1-3

When to use: Retargeting campaigns or extremely budget-constrained scenarios. Not recommended for primary acquisition.

Limitations: Banner blindness is real. Most users don't even register these ads consciously.

6. Interstitial Ads

What they are: Full-screen ads that appear at natural transition points in apps (between game levels, after articles).

Why they work: Full attention capture at moments when users are already pausing.

Performance benchmarks:

• Average CTR: 2-4%
• CPI: $2-5
• User quality: Moderate
• Best for: Gaming, news apps, content platforms

Platforms:

• Google AdMob
• Unity Ads
• AppLovin

Cost:

• Production: Same as standard video/static
• CPM: $8-15
• CPI: $2-5

When to use: When advertising within other apps at natural break points. Less suitable for social platform advertising.

Limitations: Can feel intrusive if not placed at appropriate moments. Best for in-app placements, not social feeds.

Platform-Specific Recommendations

Meta (Facebook/Instagram)

Best formats:

1. Native in-feed (Feed placements)
2. Stories/Reels (vertical video)
3. Collection ads (for e-commerce-adjacent apps)

What works: UGC-style content, 4:5 vertical format for Feed, clear value props in first 3 seconds.

What doesn't: Heavily branded content, horizontal video, slow-paced storytelling.

TikTok

Best formats:

1. In-feed video (For You page)
2. Spark Ads (promoting organic content as ads)
3. TopView (premium placement)

What works: Platform-native UGC, trending sounds, fast cuts, text overlays.

What doesn't: Polished commercial-style ads, horizontal format, non-mobile-optimized content.

Google UAC (Universal App Campaigns)

Best formats:

1. Playable ads (if applicable)
2. Video ads (YouTube and Display)
3. HTML5 ads
4. Static images

What works: Variety—provide multiple asset types and let the algorithm optimize. Clear UI demonstration, direct CTAs.

What doesn't: Limited asset variety, vague value props, slow-loading creatives.

Snapchat

Best formats:

1. Full-screen vertical video
2. Lens/AR ads (if budget allows)
3. Story ads

What works: Young-skewing content, fast-paced, entertainment value, AR try-ons for applicable apps.

What doesn't: Corporate tone, slow storytelling, horizontal video.

Format Selection Framework

Choose based on:

App Category

Gaming: Playable ads > Rewarded video > In-feed video

Productivity/Utility: In-feed native > Static > Video

Social/Dating: Stories/Reels > In-feed > Video

Finance/B2B: In-feed native > LinkedIn sponsored > Video

Budget Level

<$5K/month: Stick to native in-feed and static. Avoid playables.

$5K-20K/month: Mix in-feed, Stories, and UGC video. Test playables if gaming.

$20K+/month: Full format mix including playables, custom formats, and premium placements.

Testing vs. Scaling

Testing phase: Native in-feed and static for rapid iteration.

Scaling phase: Add video, Stories, playables once you've validated messaging.

Creative Production by Format

Static/Native in-feed: $50-500, 1-3 days production

UGC Video: $100-500, 5-7 days

Professional Video: $3K-25K+, 14-30 days

Playable Ads: $2K-15K+, 30-60 days

AR/Lens Ads: $10K-50K+, 60-90 days

Format Fatigue Rates

Fastest fatigue (3-7 days):

• Static in-feed
• Banner ads

Moderate fatigue (7-14 days):

• Video in-feed
• Stories/Reels

Slowest fatigue (14-21 days):

• Playable ads
• Rewarded video

2025 Trends

Rising:

• AI-generated playables (reducing production cost and time)
• Interactive Stories with swipe-up elements
• Shoppable video formats adapted for app installs
• Short-form vertical (<15 seconds) dominating

Declining:

• Traditional banner ads
• Horizontal video
• Text-heavy static ads

Key Checklist

When selecting ad formats:

• Does the format align with where your audience spends time?
• Can you produce creative at the required volume for this format?
• Does your app's functionality suit the format (e.g., playables need interactive elements)?
• What's your budget for production and media spend?
• Are you testing or scaling?

FAQs

What are the best-performing ad formats for app installs in 2025?

Rewarded video ads, interactive playable ads, and native in-feed placements are the top performers. Rewarded video sees highest engagement due to incentivized interaction. Playables achieve 7x higher engagement than standard video. Native in-feed blends with organic content for lower CPIs.

Are playable ads worth the production cost?

Yes, for certain categories. Playable ads deliver 7x higher engagement and 3-5x better retention than standard video, but cost $2,000-15,000+ to produce. They work best for gaming, puzzle apps, and interactive tools where gameplay can be demonstrated.

Which format has the lowest CPI in 2025?

Native in-feed ads typically achieve the lowest CPI ($1.50-3.50) because they blend with organic content and feel less intrusive. However, rewarded video often delivers better long-term user quality despite higher initial CPI.

Should I use different formats for iOS vs. Android?

Not necessarily different formats, but optimization emphasis varies. iOS users respond better to Stories and premium placements. Android campaigns often perform better with in-feed and lower-cost formats due to broader user base.

How many formats should I test simultaneously?

Start with 2-3 formats (typically in-feed native + video + one other) to understand relative performance. Expand once you have sufficient data and budget to support additional testing.

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Format selection isn't about choosing the newest or most expensive option. It's about aligning format capabilities with your app's strengths, your budget constraints, and where your target users spend their time.