Banner Ads are typically located at the top or bottom of an app and can often be ineffective because they are more distracting than other ad formats. They can also frustrate your users so consider the user experience before taking this approach.
Interstitial Ads are inserted at transition points in an app. They appear to be more like a tv commercial and are typically a video. It is popular mostly among games apps, often performing pretty good results if implemented appropriately.
Rewards Ads are triggered by an event in the app like acquiring a prize or achievement. The user will see a pop up where they will get a discount, gift card, coupon, etc. The owner of the app will also get compensated too. The user wins and so does the app publisher.
Notification Ads: These pop up in the mobile device’s status bar and make users more aware of the ad’s presence. These ads are a little more invasive and could damage your brands reputation so use them sparingly.
Native Advertising is used for apps that are content based and typically show up in the apps’ news feed. For example, Facebook adopted native advertising and has done exceptionally well. Native ad formats match the form, function, and feel of the app, therefore it is not interrupting user experience. That‘s why it is preferred both by publishers and advertisers.