Nearly 20 years into mobile advertising, banner ads continue to earn their keep. Despite rumours of banner blindness that have persisted for a quarter of a century, and even in the shadow of flashier siblings like playables and video ads, banner ads are still a staple in mobile advertising. What’s more, they continue to grow steadily as the industry expands.
Mobile advertising spending in the United States from 2017 to 2028, by format (in billion U.S. dollars)
Source: Statista
Why are mobile banner ads still around?
One big reason is real estate. As screens shrink—from desktops to laptops, tablets, and smartphones—ad space increases in value. That may explain why mobile banner ads actually perform better than desktop banners do. Research shows that message recall and ad recognition improve as screens get smaller.
Even though more engaging, full-screen video and playable ads drive conversions, the top of the funnel still needs to be filled. That’s where banners can play a role: They can support awareness. A good campaign addresses the full funnel, and banners deliver quick, digestible info—at a fraction of the cost of a full-screen ad.
Moreover, banners can work particularly well for brands with easily recognizable logos and images, since the limited real estate doesn’t leave a ton of room for messaging.
Why banners still work
Even with attention-grabbing, full-screen formats, banners offer considerable benefits for both advertisers and ad-supported apps:
They don’t interrupt gameplay. For developers, banners provide a non-intrusive monetization option that keeps players engaged. For advertisers, they provide visibility, especially when placed on an app’s primary screen, making them an effective awareness tool. They’re also an effective way to drive clicks to a landing page or website.
Banners are cost-effective. With mobile ad spend topping $362 billion worldwide in 2023, advertisers are clearly bullish on mobile, and costs will rise as the competition for inventory grows. Banners cost far less than other ad formats while delivering a ton of impressions. For developers, they provide a steady revenue stream without requiring expensive in-app placements
Users are familiar with them. Banners have been around forever, and app users recognize and are comfortable with them. They’re unobtrusive, but can still attract attention and action.
They drive in-app actions. While perhaps not as effective for sales and downloads as larger, more engaging formats, banners outperform when it comes to in-app actions. For advertisers, they’re well worth testing to encourage mid-funnel activity.
They’re more creative than ever. Banners don’t have to be boring. With new creative options, advertisers can make banners engaging and visually interesting. Even the humble banner can be animated and interactive – and AI tools make it easier than ever to create high-performing ads based on what your target users have engaged with in the past.
They’re perfect for A/B testing. Want to test different messages? Banners make it incredibly easy to experiment and see which creative or placement works best. Advertisers can test to refine their messaging, while developers can optimize placements for the highest revenue potential.
They boost revenue. For developers, banners provide a consistent revenue stream that complements other ad formats like interstitials and rewarded ads. For advertisers, banners offer a cost-effective way to scale campaigns and increase brand visibility.
Final thoughts
Banner ads aren’t the best choice for every campaign, but they still have a solid place in mobile marketing. They deliver clear messaging, cost-effective impressions, and strong in-app engagement, making them a great option—even in a world dominated by video and playables. Smart advertisers and app developers don’t overlook banners—they use them strategically for maximum impact.
