SUMMARY
The uses of mobile advertisements are increasing their popularity across the world. Companies can gather information about the mobile users based on their locations, lifestyle, and preferences via GPS, cookies and browsing history and embed highly personalized banner ads in mobile applications. However, in the literature there is hardly any work on the effectiveness of these highly personalized in-app banner ads. The aim of the study is to reveal which factors affect the effectiveness of in-app banner ads. An experimental study was designed and 209 subjects participated. The results of Ordinal Logistic Regression indicated that prior brand attitude and attitude towards application have a positive effect, while brand engagement with self-concept has a negative effect on the recall of in-app banner ads. Moreover, in-app banner ads are recalled more when they are located in landscape applications and positioned at the top part of the screen. This research provides some implications for future studies and practitioners.