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Monetizing An App: Strategies And Reasons To Go Ahead With It

Applications are one of the top revenue generators in the world. Statistics have shown that the revenue from mobile applications increased to over 318 billion U.S. dollars. This is a huge growth compared to 2019, which was over 60 billion U.S dollars. Many people use apps every day, as mobile applications are the things that make up the whole mobile experience in the first place. This is why earning through apps makes a lot of money for every app owner. 

In this article, you’ll be getting a complete and easy-to-follow guide that will show you why you should monetize your app and the ways you can go about it. So, sit tight, relax and read your way into your money-making era with your app. 

Starting, What Exactly Is App Monetization? 

Everywhere, the term app monetization is being thrown around, but what exactly is it? App monetization is simply a process of converting your app into revenue, most likely passive revenue. Simply, your app becomes your money-making machine. It is also how an app owner or developer can use the mobile user base as leverage to earn money from the app. 

Monetizing applications is not a one-way road or process, and the possible ways to monetize apps are in multiple forms. App Monetization strategies come in quite a several forms, and in this article, you’ll be learning all about them. 

Why Should You Take Monetizing Applications As An Important Thing? 

Over 90% of the mobile apps on all the app stores are free to install. So, even the most used mobile apps are free to download or install. Imagine spending hundreds or thousands of dollars on an app and then giving it out for free with zero benefits for you. The app monetization models obviously have to be adjusted so you will not run into a loss as an app owner or app developer. 

This is where the app monetization strategies come in. As someone who is offering an app as a service or a product, your app monetization strategies have to ensure two things as you put your user in mind. First, you must ensure that your application generates continuous and growing revenue. Then, you must also make sure that whatever app monetization methods you choose, your users and the user experience do not get affected at any point. 

Where Is Proof That App Monetization Is Important? 

Like every other essential topic or niche in the general commercial industry, app monetization is backed by statistics and figures that show that it is very beneficial. 

One of the most important statistics that depict this is that in 2015, global app revenues got as high as $70 billion, and by the end of 2016, it reached $88 billion. In 2021, the revenue reached $133 billion, up by almost 20% from 2020’s figure. 

Going slightly deeper into the app monetization sector, the app monetization strategies are of different forms. However, the most dominant form is in-app advertising. As the forms that app monetization occurs in have evolved seamlessly over the years, app monetization models are packed with advertisements. The most dominant form includes native ads, banner ads, and the likes. 

Right after advertising, paid ads are the most common method of mobile application monetization. In fact, around 20% of mobile applications on both the Google Play Store and Apple App Store are delving into the app monetization model. 

In-app purchases, subscriptions, sales of physical products, and also affiliate models come right after paid app models. 

What Do We Stand to Pick Up from This? 

It is easy to see that app monetization isn’t very hard and can’t be at the user’s expense with all of these. You don’t have to make your app a paid one to download to make money from it. The best app monetization strategy is an in-app advertisement, and it blends into the mobile application interface without disrupting the user experience. 

At the same time, the use of the paid application model is on the decrease as many app owners are looking to monetize their applications after the point of download or purchase. Also, subscription models are gaining more popularity, especially in streaming audio and video platforms. A lot more people are using Spotify, Netflix, Hulu, and the likes. Companies now realize that it’s better to have an engaged subscriber instead of a single paid user. 

Simply, no matter what method of mobile application monetization you decide to use, your users have to be first as they are the reason you’ll be making passive income.

Of course, certain in-app monetization strategies are used commonly compared to the others. The most common in-app advertising trend is rewarded videos. As mobile games are one of the top apps downloaded and used continuously, they use this app monetization strategy. This way, the advertisement phase is gamified, making the experience better for the user. After watching the video advertisement, a reward is presented to the gamer. This method was valued at $5.9 billion 202 and is predicted to grow to over 19.5% between 2021 and 2027. 

Another one of the trending app monetization models is native ads. Native ads tend to merge with the app’s interface seamlessly. It recreates the feel of your app, and in the process, your user gets a more satisfying user experience while they are still experienced in advertising. The success of this mode is why it is one of the best ways to monetize mobile apps. 

The App Monetization Strategies, A Total Guide On How Your App Will Make Revenue And Passive Income

This is where we get into the real deal of this article. You’re probably wondering right now, what are all the possible app monetization strategies we have in the world? How do these strategies work, where do they fit in? Which one is best for your app? Which would generate the most revenue for you without making you lose your users? 

All these questions and more will be answered in this article. Moving into this article, you have picked different methods and app monetization models that you can use as an app owner. App monetization isn’t one-way traffic, and it is quite complex and different from monetizing courses or templates, which most people are exposed to. You can approach app monetization in different ways. You can try out one at a time or pick up a couple at the same time. However, to choose the best way to monetize an app, you should understand every in-app advertisement method and how they work for you and your app. Let us go ahead to review these strategies. 

In-App Advertising

As this article has mentioned earlier, the most common app monetization method is in-app advertising. At the same time, although it is commonly used, it has many forms that it can be used in. All the apps that use this in-app advertisement model do them differently. In-app advertisements are easy to implement, and they are also very simple. However, they can affect your user experience if you aren’t very cautious, and they only generate more revenue when you have a large number of users. 

Regardless, it is obvious that many applications will not exist without these in-app advertisements. So, how does in-app advertising work? 

Banner ads are the top and earliest kind of app advert in the history of in-app adverts. As the name implies, in-app banner ads appear in banners on the app screen, and they appear in rectangular forms at either the top, sides, or bottom of the screen. Banner Ads are very common when an app has both a free and a paid version. So, the paid version will be ad-free, and users can opt for that. 

Although banner ads are one of the most common app monetization ads, they are inconvenient for users. People are always willing to pay not to see the banner ads on the app, and this clearly shows that it is a problem. The user experience with banner ads is quite bad, and they are often very ugly and intrusive, which makes the app user distracted from the in-app experience. 

Apart from this, because the ads are small and nobody clicks on them, the advertiser isn’t very willing to pay a lot to put up these adverts on your app. So, if you are looking for a way to monetize apps with ads, banner ads might be one of the least options to consider. 

Interstitial ads

Interstitial ads are slightly different from in-app banner ads, although they have the same title or job as in-app advertisements. Unlike banner ads where the ad appears at the top, side, or bottom of the app interface, interstitial app monetization ads cover the whole screen of the host application’s interface. Interstitial apps are displayed at the point where there’s a buffer or during a wait time while using the app. 

Simply put, they are displayed in the middle of activities or in the transitions that occur during an app. It can be when you load a new page, move to a new level, open a new tab, or simply while you’re waiting for the app to load. An interstitial ad can contain different media forms, and it can appear in an image, video, text, or a combination of some or all of these visual media forms. This screen stays for at least 5 seconds before you can interact with it.  

When considering android app monetization or monetizing ios apps, many app owners consider interstitial ads. Why is this so? Interstitial ads are considerate when it comes to the user experience on the app. In a bid to not affect the app user’s experience, interstitial ads give you the chance to either check out the advertisement by clicking on it or move on by clicking the cancel button that’s mostly at the top left or top right of the ad. However, no matter whatever option you decide to go ahead with, you will be engaging with the ad either way.  

Another form that interstitial ads can occur is as an expandable ad. These ads start as banner ads, and then they get expanded and take up the whole screen. Interstitial ads are the most popular method to monetize apps with ads, and they offer high impressions and good CTE, thereby increasing the mobile app ad revenue. 

Native ads

Native Ads are the most used and most widely accepted kind of in-app advertisements in the entire world. You might be wondering why it is possible. Native ads are one of the most considerate and integrating in-app monetization ads. Native ads have been adapted to merge seamlessly with the app by adapting to the app’s feel. 

This is shown perfectly in apps with some kind of feed or timeline. Instead of standing out oddly like an in-app banner ad, the ad tends to look like another post in the app’s timeline or feed. Native ads are on top of the list of the most common ways to monetize an app as they increase the mobile app ad revenue without affecting the user experience. The importance and effectiveness of native ads are forever glaring as they have a higher engagement than all the other types of in-app ad methods. As part of the app, these ads have to look native and still have features that let people know they are ads regardless. They can occur in various formats such as on contempt walls, news feeds, content streams, carousels, and app walls. 

This term is quite self-explanatory. With paid access to an app’s content feature, a user can pay to access certain content or features on the app. It is categorized under in-app purchases sometimes. When wondering how to monetize a mobile app, many people consider this feature. This app monetization model is often used with applications with different types of content firms. Simply, there can be some content that will be free to use, with no restrictions, and then as time passes, the users will see that there is more beyond the free content. This way, they can pay to access the exclusive content on the app. This is mostly used in apps like music, news, book, and the like. It is one of the very common ways to monetize an app. 

Affiliate ads 

The term “affiliate” has become more common these days as affiliate marketing is topping the marketing world. There is also affiliate involvement when it comes to mobile app monetization strategy. Affiliate ads are methods to monetize apps with ads by allowing an app to get a commission from another app, service, or product by advertising them in that app. 

So, by advertising another company or app’s services or products, you get a commission for the impressions and the number of people that patronize the company or app through your referral. Affiliate ads work perfectly because people like recommendations and referrals, especially when trusted sources are. However, make an effort to link the adverts at only relevant points without disrupting the user experience. Monetizing mobile apps with affiliate ads isn’t very hard to go through. 

Rewards ads

Reward Advertisements are used the most with apps that users spend a lot of time on. A perfect example of this is a gaming application. People play games a lot, which is why games are one of the top apps on all the app stores in the world. Simply put, the users of the apps are offered a reward for them to exchange content. A lot of app owners use this form of app monetization ads because of how it is a win-win for everyone and how it increases mobile app ad revenue. 

A perfect example is getting gems, coins, or an extra life after watching a video ad in the game’s interface. This depicts how rewards ads benefit both the user of the app and you as the app owner. However, the ad and the prize must be relevant to your user demographic for rewards ads to be effective. The reward also has to be delivered at the right moment, most likely at the end of the ad. 

All of these app methods might already sound complex, as you might be wondering how you can know which in-app advertisement method is best for your app. You’re also wondering how to advertise on apps the right way or decide the best app monetization strategy. This is why Andromo was created. 

Andromo is a platform for developing apps. However, Andromo does more than just help you develop your app. Andromo guides you to the answer of how to monetize an app idea. Whether your app is free or paid, Andromo provides many opportunities for you to go about monetizing your app.   

That’s why, with Andromo, you can use in-app advertisement methods in their different forms. Andromo makes monetization of your app a lot easier. This is why you can easily integrate in-app banner ads, interstitial ads, and native ads. Some features allow you to select the content of the kind of ad you’ll be showing on your app. You can also place sponsored content on the app interface. You can go ahead and learn the details of this process here. 

Another recent monetization method that Andromo recently added to the app-making features is the paid access to the content feature. With Andromo, you can restrict access to certain content and make the user pay to access that content, while there is other free content on the mobile app. So, why won’t you use Andromo to monetize mobile apps?

Free vs. Premium Versions

A lot of free mobile applications have many things in common. One of these things is the free and premium versions of the app, which can also be gotten by following the “freemium” model. Free mobile applications always have a free section of the app, where they have all the free features and content available to the app’s users. Then there are also parts and features of the app that are restricted, which makes those features the characteristics of the premium version of the app. This method can be used to monetize IOS apps and Android apps. 

Using the free version of the app, certain features and content will open to the users. Sometimes, this free version of the app will have ads in the interface. This can happen in many apps such as music, books, news, and many more. So, you would have to upgrade your account to access some other features in the app. 

This is where the premium version comes in. In the premium version, all the features of the apps will be open to the user as soon as they pay for an upgrade. The ads will be removed, and the restricted content will be open for you to access. This payment can happen in a one-time payment or as a subscription model. Many of these recent apps use the subscription app monetization model for the free and premium versions of the app. 

The freemium model is another feature that subscription models use to increase android app monetization and even IOS app monetization. In the freemium model, the user gets to taste the wolf of the app’s premium features for a short while that’s specified beforehand, for free. So, there is a limited trial period where the user gets to experience the premium version. This will now help them decide whether to pay for the subscription or not. These mobile app monetization models are one of the very popular ways to improve mobile app revenue. 

Using In-app Purchases, Virtual Currency, And Goods

In-app purchases are right after advertisements on the scale of preference and use of app monetization models. When monetizing mobile apps, a lot of people consider adding in-app purchases after adding ads and the like. The in-app purchases model is quite common because it is a sure way to monetize mobile apps after the user has downloaded them. 

An in-app purchase is any payment that occurs after a user downloads an app. Different game niches use in-app purchases as a method of how to monetize free apps. However, the most common app niche that uses this is the gaming niche. These applications generate money by selling virtual or physical goods within the app. Simply put, these in-app purchases involve the user of the app paying for certain in-game features or purchases with real-life currency. This is one of the answers to how to monetize Android apps. 

This app monetization model occurs in many forms, including subscriptions, paid access to content, virtual currency, virtual goods, and physical goods. However, in this context, there are two major forms of in-app purchases that serve the main purpose: virtual currency, virtual products, and physical products or services. 

Sales of virtual currency

In applications like games, there are certain in-app purchases, levels to be unlocked, clothes to be bought, ammunition to be bought, and many more. These purchases can only be made using the in-app virtual currency. Of course, the in-app virtual currency a user gets at the beginning of the game is limited, and it can finish at any time. 

So, to fully experience and maximize the game’s potential, the users have to purchase the app’s virtual currency. They can, of course, only do this with real fiat currency. Now, the application developers and owners have tapped into this as they use this method to monetize apps. They have hacked the new revenue stream to let the app user access the app’s virtual currency. So, they purchase it with real cash and use the virtual currency within the app. 

Most times, this currency is often used at stages where there would be a long process to load, unlock or attain and the game’s player yearns to get there ASAP or simply to purchase in-app assets. 

However, in this app monetization method, the user feels like they are getting the value for their money. Nobody wants to spend their hard-earned money in an in-app virtual currency that won’t be useful for them. This is why, at the same time, you need to make sure that the game is also interesting enough for people who won’t purchase the app’s virtual currency. If there aren’t a lot of players, the players who are ready to pay for virtual currency might withdraw from these games. Mobile app monetization has a lot of methods, and virtual currency brings out one of the best methods of doing it, especially in games. 

Purchase of physical services and/ or products

Not everyone creates an app with the motive of selling the use of that app alone. Although people create apps solely for technological use because they can only get virtual services and products, some apps offer physical products and services. 

Companies and business owners create mobile applications to increase the reach of their physical goods and services. They also do this to make it easier for people or potential customers to connect with them. This mobile app monetization strategy is one that a lot of companies pick up after successfully building an offline name. This way, the mobile app becomes a subset of the business or company. This way, in-app purchases are bound to form a significant part of your company or business’s income. 

People now want to live a life of comfort and ease, so with a mobile app, they are ready to pay online and quickly, using the built-in payment structure that you have on your app in exchange for your physical product and/ or service. However, to truly increase your mobile app revenue through this process, your physical product or service must be top-notch and be of high quality. Monetizing apps on android related to physical services or products is only possible when people trust the quality and effectiveness of your goods and services. If they are not up to standard, nobody is going to download your app, not to talk of paying for your goods and services. 

No matter your app’s category or what product or service you’re offering, Andromo has a lot in store for your app and you. The multiple app development and monetization features that Andromo offers make monetizing applications a breeze. Even with their app monetization blog, Andromo has multiple tips and suggestions on using Andromo for you.

One of the very important features that Andromo offers is creating a business category of an app. Yes, you can create an app specifically tailored for the kind of business you are involved in, whether virtual or physical. Isn’t that great news? Not a lot of mobile application-building platforms offer this service. So, with Andromo, you can select the business category you would like your app to be in. To begin this selection, you can check out the features of the app-building styles and available methods.  

If your app involves putting out content like PDFS, Images, Audios, YouTube videos, Pixafy photo stock, eBooks, RSS feeds, or WordPress feed? It’s up to you to decide and choose whatever feature you want. You can also decide if your application will be for links alone to put out. You can add links to your email address, telephone number, location, external website, dashboard, or quick access action link. 

You can also build an app for only extensions. You can go ahead to create an extension app such as web archives, your website link, create a custom HTML page, a QR code scanner or generator, a Zendesk support chat, a contact details app, a map application, or a WhatsApp sticker app. 

You can also decide how the layout of your app would be. It can be multiple dashboards, spacers layout, carousel items, dashboard cards, or using list items. Then next comes the app monetization method you’d like to use. Whether they are in-app banner ads, Paid access, Interstitial ads, or native ads, it is up to you to choose your method of generating mobile app advertising revenue. Lastly, you can use the firebase features such as eBook database, PDF database, Audio player database, photo gallery database or a firebase authenticator itself. 

No matter the features you choose, Andromo is here to make it easier for you, no matter how complex they sound. This is why there are many templates available for you to build your mobile application’s outline and design. 

These templates span over a wide range of niches befitting mobile applications. There are templates for recipes apps, eBook apps, fashion apps, motivational apps, news apps, spiritual apps, educational apps, personal apps, small businesses, wallpaper ad music apps, podcast apps, and affiliate apps. These templates suggest the kinds of app monetization methods that are best for these kinds of layouts and app niches too. If this isn’t enough proof that Andromo is out for you to get the best from your mobile app, what else is proof? 

The commission for app stores

While considering the in-app purchases as to how to monetize a free app, you should keep in mind that the app stores for online applications are going to be taking a commission out of the in-app purchases that your app’s users make. Specifically, app stores like Apple and Google take 30% off every single in-app purchase that’s made in your app. Yes, that’s a considerable percentage. Of course, now you’re probably wondering how much the huge mobile app companies that rely solely on in-app purchases are paying every year. 

Well, they don’t have to pay as much as 30% of every purchase. As long as the application and the company that owns it are big enough, they can negotiate an individual commission rate with the app stores. Sadly, your app is most likely small, so this negotiation isn’t possible for many of the apps available, so everyone has to abide by this weird rule of commissioning that large amount. 

The Best Ways To Practise App Monetization; How to Improve Your App’s Bank Balance

Unlike what a lot of people think about App Monetization, it goes beyond putting ads into the app’s interface and adding the different in-app purchases methods for the app’s users. When you’re trying to understand and decide how to monetize your app, consider other factors such as your audience and app users, their experience, and how not to run at a loss regarding the ads you’ll be putting out. 

These other ways to ensure that your app’s monetization is successful, to ensure that you hack how to monetize a free app, help you make sure that you make the experience great for everyone, that is, you and your user. So, how can you go about this? These next few points will help you figure out how to go about proper app monetization practices and improve your bank balance in the process. 

It starts with your user’s experience

Of course, you create your app for your users to enjoy and use the app with no problems. However, if the app monetization models you choose end up disrupting their user experience, what then is the use of your app? You have to make sure that you protect your app’s user experience, no matter what. If you damage your user experience, you are ruining the whole point of monetization, and you will not get anything from it. 

That is why you have to keep the user experience very clear and ensure that, no matter the app monetization strategies or models you decide to use, it does not affect or harm your app user’s experience. If this effect is unavoidable, make sure that you don’t go beyond the minimal effect. The alteration of the app’s user’s experience must be minimal with minimal impact to avoid issues. 

Another side to keeping this user experience intact is by actively increasing the engagement on your app. By improving the app engagement, you ensure that the users spend a lot more time on your app, increasing your earnings from monetization. Your application can benefit you only if you have your users in mind. 

Ensure that you keep bringing in new users

Like it has been mentioned earlier, the point of an app is to make users enjoy and use it. Without users, there’s no app, and there is no way you can successfully monetize an app. Also, having the same set of users for a long period is not progress, and it is just showing that the app use is stagnant, and there are no new users. As much as regular and old users are important, new users are equally important. New users are the reason your app monetization income will increase. New users learn what your app is doing right and what it is doing wrongly. You ensure that your app monetization models don’t flop by acquiring new app users. 

You have to keep investing in user acquisition, and this can happen by making affiliate marketing ads with influencers, trusted people, and the like. Don’t stop searching for new users as you need them to grow your app monetization conveniently. 

Hybrid app monetization

Many app owners tend to reason in the sense that only one method of app monetization should be used. However, it shouldn’t be so. When wondering how to monetize a free app, app users should consider all the multiple ways that can work hand in hand. There are various app monetization models, even more than the ones mentioned in this article. If you noticed, you’d see that quite a number of these ways to monetize apps are very related to each other, which means that they can be used together on one app. 

Using one app monetization method just means that you’re choosing to make money from only one source. This isn’t a great idea because sometimes, an Ad or in-app purchase model may not work the way it’s supposed to, then you’d end up running into loss at the end of the day, without making any money. However, when you decide to use the hybrid monetization system, you’re making it easier for your app to serve as multiple sources of income for you. With hybrid monetization models, you can make money from banner ads, native ads, interstitial ads, and in-app purchases simultaneously. Isn’t that a great thing? 

So, how can you merge these monetization methods to give you a proper hybrid monetization model in your application? You have to make sure to join similar app Monetization strategies. These strategies have to work hand in hand without anyone disrupting the other. You’re wondering how right? Here’s an instance. Ads in general and the subscription model work together. No matter the kind of ads, whether banner ads, interstitial ads, affiliate ads, or native ads, a lot of users will readily pay to get rid of them. This is where the premium and subscription models come in. You can now offer your user a chance to let go of those ads and still get access to exclusive content on the app. This way, you are gaining money from the free version of the app, and at the same time, you are earning money for those who want to switch to premium. 

Another example of this is merging interstitial ads with rewards ads. Interstitial ads are perfect for games as they can appear while the user is waiting for the app to load and show the next level of the game. Also, rewards ads are used to offer gaming incentives to the players as long as they watch an Ad. So, these are two sure Monetization methods as long as your players keep using your app. 

We can go on and on about the types of hybrid monetization models you can use, but surely, you already get the drill. However, while implementing these app monetization models alongside each other, make sure that the app’s user experience is not affected in any way. The user experience must be kept intact no matter what. As long as you do that, you’re good to go. 

Keep up to date

Another important thing you need to do consistently to ensure that your app monetization models work is keeping up to date. Our world is constantly evolving in the technology sector now. For instance, now there’s Web 3, the Metaverse, blockchain technology, Cryptocurrency, and many more. You might think the trending issues may have nothing to do with you or your app, and I suppose you might be wrong if that’s the case. Every evolvement in technology affects you as an app owner. You have to make sure that you keep up with the changes and updates of technology around you. 

It might be anything, something as simple as the app stores’ policy update. You have to be sure you constantly check what the app store is on is doing every moment. Also, you have to be up to date with the software models that your apps work on. The updates with Android and iOS apps must be something you’re very familiar with. Keep up to date with this information by checking the latest blogs and technology resources on the internet. The internet is there for that purpose. So, when you’re deciding the ways to monetize apps, make sure you put all of these constant updates in mind, as you need to gain the money you should be earning.  

Your app is unique

Whether your app is in the niche of the top apps, in a saturated niche, or in a niche where there aren’t many apps, one thing is constant; your app is unique. Your app is different from that app you’re eyeing. There are a lot of backend and frontend features that are different that you might not even know about. This is why the experience of your app is different from the experience of another. This is the exact reason why you can’t be confident that what worked for one app will work for yours. The way that app monetization model worked for that app you know isn’t the exact way it’ll work for your app, even if both apps are the same. 

This is why you have to carefully test the app monetization methods you want to use before fully implementing them into your app. Also, when checking out case studies and statistics of other apps, make sure that you look at the differences between those apps and yours. For example, with ads, you have to consider the method of implementation and the ad’s timing. An in-app advert can only be successful when you invest time to consider the placement and timing of the ad. Making a wrong decision can cause you to lose many users, so make sure to take your time while making this decision. 


Many people use mobile phones all over the world, and what is a mobile phone without mobile applications? These mobile applications are one of the highest revenue-generating sectors in the world. An app doesn’t have to be paid at the point of download to generate revenue, and this is obvious through the free social media apps we use every day. 

Monetizing your app might seem like a long and uncomfortable process for you to go through conveniently. However, it is not complicated as it appears to be, and now that you’ve reached the end of the article, you know this. No matter the form of in-app advertisement you want to use or the in-app purchases that you decide to implement, remember that Andromo is the one platform that makes the whole process seamless for you as you don’t even have to code.


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Mobile App Development Trends of 2020

Mobile App Development Trends of 2020

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