Mobile app monetization is a topic that’s been on the rise for quite some time. With more and more people using mobile apps for their day-to-day needs – developers, marketers, and entrepreneurs are scrambling to figure out ways to make money off their work. 

Mobile App Monetization

In this article, we’ll explore multiple mobile app monetization options and the theoretical framework for achieving a higher return on investment. 

So let’s get started.

What is Mobile App Monetization?

The process of making money from a mobile app without charging a download fee is known as mobile app monetization.

Users are often unwilling to pay for any news or gaming application, as plenty of free mobile apps are available across the entire digital ecosystem.

As a result, several app monetization tactics have to be considered by app developers. A mobile app can make money via various monetization strategies, such as in-app advertising, in-app purchases, the freemium model, and more, by utilizing its user base.

Mobile App Monetization

However, determining which monetization strategies will be most successful depends on a number of variables.

Mobile App Monetization – Market Analysis

Techcrunch estimates there will be $258 billion in app downloads globally in 2022, up from 140.68 billion in 2016. Global spending on mobile apps (app monetization) increased 148% from $57.7 billion in 2016 to $143 billion in 2020.

As per the stats of Statista, free mobile app downloads were 96.9% on Google Play and 93.4% on the Apple App Store. In 2021, games accounted for around 67% of all app sales income.

As of 2022, 94% of iOS and 96.8% of Android apps are free. It is predicted that app downloads and in-app adverts will be the main revenue generators for apps by 2023, with revenues from apps reaching over $935 billion.

In terms of millennials, 21% of the generation open an app up to 50 times daily. Before continuing, learn how apps use monetization models to generate revenue.

It would be like having a treasure box without a key to have built up regular app traffic but not know how to monetize it.

mobile app revenue

Therefore, even if charging consumers to download your app is a simple monetization technique, you’ll face stiff competition from freemium rivals. Because of this, it is advised for the majority of developers to make their software free to download before implementing additional monetization techniques to increase revenue.

Mobile APP Development

How to Monetize Mobile Apps?

Knowing how to monetize your mobile app in 2022 is crucial. The following are the best models for a smooth monetization process:

ways to monetize your app

In-App Advertising

It is the most popular among app owners. It typically sparks a lot of conversations. There is no easy or universal strategy when it comes to in-app advertisements. The way that each app uses advertising varies. However, there are some general pointers for app promotion.

  • Benefits: quick implementation and straightforward app monetization
  • Concerns: can negatively impact the app experience; only produces considerable revenue if your app has a large user base

Many apps wouldn’t exist without in-app advertising and mobile ad networks. So let’s examine the many styles of prevalent in-app advertising.

In app advertising styles

  • Banner-Ads: These are the first app advertisements. These were more prevalent when apps offered free and premium editions. Having an ad-free version was an easy way to make money. However, the issues are highlighted by customers being happy to pay to avoid seeing any banner adverts.
  • Interstitial Ads: Banner ads become a problem for some users due to their size and the fact that they are intrusive. The solution is to take the ad and show it as a full-screen ad to the user. It usually occurs between separate users slowly. Hence, interstitial ads were introduced.

To make the most of this method, you must thoroughly understand your app’s users and how they use it. The conclusion of a flow is the ideal time to send an interstitial advertisement.

  • Native Ads: Most native advertisements have been customized to fit the aesthetic of an app. The adverts are elegantly included in the software. It typically requires a feed of some kind, where the advertisement appears as another timeline post.

The rate of engagement for native ads is higher. It is because they “blend in” with the app’s functionality. The user experience will suffer if the ad effectively misleads the user into clicking since they believe it to be a natural app feature.

  • Affiliate Ads: Affiliate ads are a type of app monetization that makes money from other apps, goods, and services by promoting them on your own. People enjoy being recommended things, which is why affiliate ads are effective. This technique can be quite helpful in converting if the audience has faith in the source.
  • Reward Ads: App incentive advertisements are common in apps where users engage extensively with content, such as games. Users are rewarded in this scenario if they interact with the content.

For instance, you might be offered a different life in a game if you watch a 30-second commercial. You need to get the reward and the advertisement just right for this to work. Keep the material as pertinent to your audience base as possible. Ensure the incentive is valuable to the user and given at the appropriate time.

Subscription and Freemium Model

Many apps now consider subscription models as a means to generate app revenue. It is becoming popular amongst developers for a number of reasons. Once more, the reason behind this is that people are increasingly accustomed to not paying to download software.

The user can download the program without paying anything if it uses a subscription model. Then, they get access to all or some of the app’s capabilities for a set period. After this time, they are required to continue using the app by paying a regular price.

It is easy to understand why this app monetization method is popular. The developer gets a steady flow of income. It is also simple to anticipate and can occasionally generate significantly more profits than other tactics.

It is because users who pay to utilize your app service will spend time there. They are unlikely to quit paying for access if this involves input. The app subscription model functions best with an engaging app with a distinct function and user interface.

  • Benefits: a consistent, dependable income with minimal impact on user experience can greatly increase engagement
  • Concerns: it takes a lot of money to develop a fantastic product and a smooth user experience to persuade users to part with their money

Transactional Apps

Transactional apps are also known as invoicing apps. These are a new generation of mobile apps dependent on transaction fees for monetization. These apps frequently provide the chance to exchange currencies or to invest in shares or other markets (consider purchasing Bitcoins). 

The app earns money each time a user makes a transaction. The Bux app, which deducts a portion of each sale that occurs in the app, is a prime illustration of this.

Transactional app monetization offers scalability. It also enables developers to forecast revenues precisely based on the number of users and active users. You can also improve income directly by investing in user engagement and acquisition. You can manage your app business with more reliable KPIs.

Hybrid App Monetization

Hybrid App Monetization is when you use two or more app monetization models. They are effective if you balance out the ongoing app monetization approaches and have a solid understanding of your audience.

Methods for monetizing apps can work harmoniously side by side and generate amazing amounts of ad income each month. Make sure it doesn’t interfere with the UX, and you are ready to go.

Hybrid App Development


A partnership may take many different forms. As a mobile app development company, you may have noticed a pattern where one app allows another to use its user base, reward users for utilizing it, and gain from increased user engagement.

For instance, Domino’s may provide additional discounts for using Uber Eats to order meals that it does not provide through other apps. According to conventional opinion, for the sponsorship model to succeed, there must be a shared user base.

Data Monetization

Digital businesses run on data. The public readily grants apps all the permission necessary to gather “relevant” data in exchange for exclusive experiences. In order to peel back the ancillary layers of behavioral psychology and enhance strategies that encourage purchase patterns, algorithms interpret the type and number of data they need on each user.

Facebook has over 52,000 data points on each user. By paying Facebook for unrestricted data access, Cambridge Analytica obtained valuable insights. Although the data collection method was dubious then, a real market for data access has since risen to prominence, making it the most popular way for mobile app monetization in 2023.

App Monetization Strategies In 2023

Many people try to create apps to make a lot of money quickly. Unfortunately, most people fail because they choose the wrong app monetization strategies. These pointers could improve the payout from your app.

app monetization strategies

Track Usage: You ought to have information at your disposal that enables user tracking. Among other things, it may tell you how frequently, on what platforms, and for how long your program has been used.

Additionally, you may observe when and how people spend money. It reveals the areas in which your software succeeds and fails. Then, to increase spending, you need to make changes to the failed concepts.

Set The Value: Your app was created by you and your developer over several days, weeks, and possibly months. Along with your idea, you also require design, formatting, testing, etc. Your users won’t agree, even though you believe your app to be worth millions.

Many people are frequently turned off if they have to pay even one dollar. This indicates that you must watch out for an excessive charge. Inquire about the typical price users would be willing to pay for your software. 

Customize: There are numerous platforms available for which you can adapt your content for each. If you configure your software for Android, you must also make adjustments for Mac goods. As a result, your customer base doubles and sales rise.

Once the revenue from your app’s monetization starts to flow in, you can start to pay your employees. Select a business that handles developer payments to make this procedure simple. You need not to worry about percentages or other costs because your employees will be compensated.

Successful App Monetization: Knowing the broad range of your potential earnings is critical before you start making money from your software. Few people who successfully launch their apps earn millions of dollars. If you target the right market, it is still possible to make a sizeable income.

App Downloads: You might believe that clicks will account for most of your app’s revenue. However, downloading the app might also increase your earnings. The overall money generated by app downloads earlier this year ranged from two to three dollars per download. When games were downloaded, they sometimes brought in as much as $7. It can result in a sizable profit margin if you choose the correct audience to target.

In-App Purchases: The majority of the money will come from in-app purchases. People desire unique advantages, a lack of commercials, or extra energy to keep playing. You can see this impatience in your bank account.

Worldwide Downloads: Apps that may be downloaded from anywhere worldwide are often easy to monetize. It gives a limitless client base by simply translating the text into another language. The US, UK, and Germany made about $1 for every app downloaded in the various nations examined. On the other hand, Japan experienced an increase of three dollars on average. Use app monetization to your advantage to reach a global audience of users.

Over time, effective app monetization has evolved. Remember to use downloads and purchases rather than relying solely on clicks. After that, you can choose a business you trust to distribute your developer fees and take a bigger check to the bank.

Mobile App Monetization Tools

App developers can use mobile app monetization tools. These tools don’t bring in money right away. Still, they provide the information you need to enhance customer happiness and user experience while retaining customers on your app for longer.

In-app Customer Survey

In-app purchases can contribute significantly to your income. But even if some users want to pay, you can still offer them the opportunity to acquire some rewards in exchange for their answers to questions or other benefits. It provides the necessary marketing data and may be made available annually or for a brief period.

Customers can provide you with suggestions for changes to make, aspects they adore, and any other information you may require. You can utilize this to have your developers make changes to the app that will improve user and download activity.

Swipe Sidebar

There are no items that your developer can include in your app. One is a swipe sidebar that encourages users to spend more time in your program. Links to social media platforms for simple sharing and in-app purchase payment methods may be found in the sidebar. It can be linked to whatever payout platform you decide on for consumer convenience.

If you outsource your payment processing to a third party, you may use an easy integration like iFrame to complete the transaction without leaving the app. Make sure there is a range of options available for them since the longer your customer stays in the sidebar, the longer they use your app.

Read Also: Mobile App Development Cost: App Budget By App Type

5 Mobile App Monetization Platforms In 2023

Mobile App Monetization Platforms are at the top of the list; developers of mobile apps may use these tools to swiftly and effectively monetize their apps with high-quality advertisements. If you’re still unsure, here is a list of the top five platforms in case it helps.

  • AdMob by Google

AdMob by Google

Google AdMob is one of the most well-known mobile app networks. Advertising organizations use native apps to reach millions of users. Your app needs to have an advertising-focused section. Then, by making bids, advertisers fight for your ad slots. Based on variables like profitability and engagement, your system selects the most lucrative and interesting adverts for your users.

  • MoPub


MoPub is another well-liked ad network. It controls advertisements through a bidding-style payment structure. MoPub has introduced Inventory Packages as a part of its inventory targeting solutions. Inventory Packages, a kind of ad inventory, enable brands to separate their inventory and target the appropriate consumers.

  • Chartboost


Chartboost stands out as a well-known network focusing on cross-advertising in mobile development. The app monetization platform enables game makers to deploy cross-platform mobile app adverts and sell ad space to other developers.

  • Unity Ads

Unity Ads

A lot of people use this network for mobile advertising. You can purchase certain unusual app types, such as playable creatives. Interactive ads with gameplay components are referred to as playable advertising. The game will be available to fans on television and in a small form. People are urged to download the app through a call to action (CTA) at the bottom of the page.

  • Facebook Audience Network

Facebook Audience Network

Facebook Audience Network is a network that enables advertisers to connect with customers who use mobile apps other than Facebook and Instagram.

Optional placements include native position, banner position, insert position, video position, and bonus video position. Publishers get a revenue cut when consumers click on Facebook ads in their apps.

Read Also: Top Mobile App Development Technologies for 2023

Wrapping Up

After reading this comprehensive blog on monetizing mobile apps, we hope you are now ready to choose and apply the optimal monetization plan for your app. You can combine marketing and sales efforts to maximize app monetization.

It all comes down to giving users an incredible experience and value that will keep them returning for more.


It can be hard for a beginner to create a successful app monetization process. However, you can hire mobile app developers to understand how to make big in the technology world.



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