You just started off with the idea of app development for your business. Before initiating the actual plan of action, you are wondering if the app will be able to generate the revenue your team is expecting or if the investment will not be worth it. To be concise, your app does not have to be necessarily paid in order to generate income from app development. 

There are numerous mobile app monetization strategies that can generate far more profit than simply covering your investments. We’ve got you all covered with all the top mobile monetizing strategies that your business may consider for generating a bit extra income!

What is App Monetization?

Mobile app monetization is the way of transforming or technically saying “converting” your user base into revenue. Several strategies are used in this process. Some app categories are better suited to certain app monetization frameworks than others. Some apps concentrate on a single aspect of app monetization, while others incorporate multifold.

You will need to generate income from your app. It can be difficult to stay financially viable in this app economy without appropriate planning and analysis of mobile app monetization models. Unless you have infinite sources of funding, it is critical to have some good ideas for app monetization.

What is the significance of App Monetization?

App monetization is absolutely essential because it is becoming more usual to find apps that are free at the time of installation or download. As a result, the app’s business model must be modified to compensate for this. To raise money after download, app developers must change their revenue model. This is where your plan comes into play. It is critical to take the time to create one that ensures the following two outcomes:

  • Increase in App Revenue
  • Maintenance of User Experience

Now your app’s revenue is increasing. But your users are getting frustrated with the same interruptions. This brings in the role of optimization and appropriate planning for user experience and implementation of app monetization strategies

You should manage to keep your consumers and the user experience largely unaffected with these app monetization models and avoid deterioration of user experience. Many people overlook the second point. It is equally important to consider how mobile monetization affects user experience as it is to maximize revenue.

App Monetization Trends

According to statistics, 3.5 Billion+ people are actively using smartphones to keep themselves hooked on the outer world. More than 95% of our screen time comprises mobile apps being scrolled either for entertainment purposes or for finding solutions to our daily problems/daily routines. These data figures themselves imply how crucial the mobile app integration for your business is to target your customers from every point you can access them. And how appropriate app monetization models can ace up your game in the business.

Smartphone Users in Billions

App Monetization Strategies

Let’s hover over the top app monetization models and what can be their pros and cons to find out what is the most appropriate model for your business.

The most common and talked about app monetization strategy is paid downloads. You can put a minimal price tag on your app if you don’t want to offer it for free. As the number of downloads for popular apps can rise to hundreds of millions, providing your app even for just around $1 can help you make a notable amount of revenue.

Paid Downloads
Paid Downloads
1. Your revenue is directly linked to downloads
2. Develops quality leads and user base for potential products
1. Top ranking of the app is a must
2. The solution you are offering must be WORTH the money you’re charging
3. The paid users aren’t easily attracted

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In-App Purchases

You can monetize your app through an in-app purchases model if you want to give the app for free. You can offer purchasable services, features, or other content from your expertise. This model has been most successful for the game applications because the game addicts can be convinced easily to purchase elements necessary for leveling up their game. 

In-App Purchases
In-App Purchases

If we look around the collection, PubG mobile gaming app has collected more than $1 billion solely from in-app purchases in 2020 alone. After downloading it for free, the game, as you progress, allows you to purchase several crates that offer various outfits and weapon skins for your character.

So, if you want to increase your downloads by giving your app for free then you can incorporate in-app purchases monetization revenue model.

1. Access to all users for free
2. No ad disturbances for the users 
3. Interested users can access their favorite features for an amount they are ready to pay
1. Revenue generation isn’t easy until your concept is addictive
2. Bad implementation can trigger negative reviews


The most popular way to monetize a mobile app is the Subscription model. Giving mobile app subscriptions is an excellent way to generate a substantial revenue stream if you are offering Software as a Service (SaaS) on mobile.


Under this model, although all users can download it for free but only for a certain period. This trial period usually ranges from 7 days to 30 days. And after the completion of this trial period, either your subscription amount is already debited from your account or your access to the app is interrupted and you need to purchase the subscription.

Optional Subscriptions
Under this, you dispose of a freemium model, in which you can give a version of your app with limited features for free. And if your consumers want access to more features, they can subscribe to a premium plan and get added functionalities. Amazon Prime and Netflix are among the popular examples of subscription-based app monetization.

1. App gets a more extensive user base through a free trial
2. Subscription fees act as the recurring source
1. Getting subscriptions is not at all smooth and easy
2. Users can keep using the app trial through different ids

Also Read – Top 10 Flutter App Development Tools That You Can’t Deny Using in 2022!

In-App Advertising

Many apps don’t have a product or service to sell, however, they still monetize their app through ad display. The In-app advertisement works similarly to we display ads on a website. One can sign up for an ad network like Google Ads, and in return, the ad network displays ads on your app, and you get paid if the visitor sees or clicks the ad.

Several mobile app providers offer a premium ad-free upgrade. One can give a free app integrated with ads, along with a choice to upgrade to an ad-free version.


But this monetization model has the biggest drawback too. App users really frown upon ads while scrolling down the

Types of In-App Advertising Models

  • Banner Ads

Small ads that show up on specific sides of users’ panels (e.g., top or bottom). They are typically static (e.g., text and image banners), but can be dynamic as well such as videos, GIFs, dynamic CTAs, and much more.

  • Interstitial Ads

Ads that take up the entire screen of the user.  They can be video interstitial ads, gameplay ads, or static ads. Users could even exit these advertisements after a certain amount of time has passed using a skip option. This ad format is displayed during content breaks such as after completing an action or after finishing a level.

  • Rewarded Video Ads

Users will earn rewards from the app in return for watching a video ad.  Unlocking an in-app element or earning in-game currency can be considered relevant instances. In mobile games, rewarded online advertisements are especially effective because they are user-based and can be skipped if the user does not want to avail the benefit of the extended feature.

  • Native Ads

Ad format was created to blend in with the app’s visual style. As a result, this ad format has little impact on the user experience.

1. Easy Implementation
2. High Potential of Income
3. Least maintenance required
4. Personalization of Ads according to user interests
5. The app can still be accessed for free
1. Continuous Ads seem frustrating 
2. Non-contextual ads destroy the user experience


If your business has a wider user base and the creation of a well-established app can help you access a much wider user range, then you should try the partnership model for app monetization. Under this, due to your reputable presence as well as brand recognition, you can easily attract other brands ready to collaborate.

This will include asking the users to complete a particular action associated with your app and in exchange, they’ll be receiving a reward either in the form of a discount or a voucher from your associated partners.

1. Collaborators offer lucrative benefits for your business as well as your users
2. Users are getting free aids
1. Getting collaborations is not at all smooth and easy
2. Many times the rewards may not entice the users

Hybrid Strategy

It is tough to choose a single app monetization strategy when you have so many options in front of you. Instead, you can use an optimum combination for a range of strategies. This benefits you with the advantages of all and in fact, the disadvantages also get set off to a great extent. This model is simply based on the fact that no user like the same things. Thus, you are offering different solutions.

Optimum combinations may include:

  • In-App Purchases and ads
  • In-App Purchases and subscriptions
  • In-app ads and subscriptions
  • In-App Purchases, in-app ads, and subscriptions
1. Users are getting what they want
2. The user experience is improved
3. Advantages of all the strategies can be availed
1. Irrelevant combinations may lead to a total loss of revenue

Final Thoughts

The online advertisement market has gained a tremendous boost since the pandemic. Mobile app monetization has yielded enormous revenue to several apps in the market. This is a good time and opportunity to give a boost to your app through the above-mentioned monetization models.

It’s just the gist of getting on the most appropriate monetization strategy for your app. Because, if the subscription model can work for the OTT platforms, it will not necessarily work for the social platforms. Thus, the first basic step to start with is defining your final objective and what will work for you and what not. For what the audience will be ready to pay for and for what not!


An alumnus of IIT Kharagpur and CEO at Antino, with experience in working across various industries like Information Technology, Automobile, Education, E-Commerce, Travel, etc. Well-versed in leading software development teams focused primarily on iOS & Backend development.

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