Best App Monetization Strategies that will make you more revenues

Here’s a scenario.

You have been trying to figure out and come up with a profitable app idea for you!

Or maybe you already have an app in the market, and you are stuck wondering how to make revenue from it!

While shaping your vision into a reality is just the beginning, do you know that your app can also help you to earn millions of dollars effortlessly?

This comprehensive article will take you through widely known and little known app monetizaton strategies and can also refresh your learnings and ways to monetize your mobile app! Read on.

App Monetization

In the following roundup on how to monetize an app, we’ve included everything you need to know about revenue generation:

  • What are the strategies of App Monetization?
  • What is Audience Monetization?
  • How can you monetize data?
  • Which are the ways to App Monetization?
  • What is the final verdict on monetizing apps?

What do the records have to say on the amount of app usage?

  • Early 2017 reported the usage of mobile apps to be around 50% of the total global internet traffic. It is continuing to grow, with an all-time estimated high in 2020 rapidly.
  • Approximately 20% of the population says that they keep juggling around between mobile apps around 50 times per day.
  • Almost 38% of users spend their time between music and game apps. While 42% of the users spend their time browsing shopping apps.
  • A rough idea suggests that around 87% of the total users spent their time on mobile apps versus only 13% on the web. It is substantial enough to pronounce the massive potential of app usage and app monetization prospects in upcoming years.

Here’s a general scenario of app monetization: You have come up with a free mobile app and are eager to launch it in the market.

But you are concerned, what if it doesn’t pay you revenues against the intense toiling you did for it. Irrespective of when your app was launched in the market you can still monetize app.

In this article, I will answer all your questions regarding ‘How apps make money’ and ‘How to monetize Android apps’. And further help you in successful revenue earning, thereby increasing your ROI.

To start with;

What are the strategies of App Monetization?

On average, users spend around 2-3 hours engaging themselves in mobile apps. If you haven’t monetized your mobile app, you should start thinking of ways to convert those gazing eyes on mobile screens into revenue giving pockets.


Let us look at the best app monetization strategies that are most effective in revenue-generation

Audience monetization for App Monetization

A common way to monetize android app is through ‘App Monetization’ where you may collect user data and enable brands and advertisers to target users based on their interests.

You can monetize their data and derive economic benefit, thereby achieving app monetization in the best possible way.

To monetize data

Transform raw data into finished data products through a process of filtration, segmentation and packaging.

Ensure that your data is accurate and collected by complying with consumer privacy policies.

Make your data broadly accessible to buyers through your partner data networks. Match your data to a broad set of identifiers to enable wider monetization.


In-app Advertising for App Monetization

Advertising is the easiest way how apps make money. You collect data and display the third-party ads within your applications.

This way, you get revenue from the views, clicks and conversions. You may use the following ad formats:

Rewarded Ads

You can monetize android app using rewarded ads.

This ad form works best for mobile games where you watch a 30-second ad to unlock something special, like doubling your coins/points. These rewards provide extended health, or any other exciting feature.



Banners are the most practised strategy of mobile app monetization. You must have seen them as the rectangular ads at the top or bottom of the screen.

Although banners are popular, they need to be extremely focussed and precisely designed to draw attention and recognition.

Also, banners are sometimes disturbing to the users as they overlap the content they are viewing. So, take care to not make them look disturbing while advertising.


Interstitial ads

Interstitial ads are those that fill up the whole application window hiding the content that you viewed. These ads attract more audience than banner ads owing to their size and are more productive.

Users can either skip these ads by clicking “x” and return to the application they were in. Otherwise they can click “play” and direct themselves to the advertisements shown.

Interstitial ads are more pronounced; hence, they attract more user attention and help to monetize android app.


Native advertising

Native ads seem like a part of the application that does not look like ads at all. These are within the website in such a manner that you can’t say that it is an ad.

Generally, these ads are marked as “Featured”, “Sponsored by”, “Recommended for you.”

For, e.g. to see how a native ad looks like, look at the sponsored content in the ad below.


In-app purchases

If you have kept your application free for download and you are seeking for strategies to earn revenues, you could try implementing in-app purchases.

In this, the application is generally free but offers additional features to be purchased. In-app purchase is one of the most widely used app monetization strategies.

For, eg. many game apps ask their users to buy more lives to unlock new levels and move further in their games.


Freemium models for App Monetization

Freemium model is another strategy through which you can monetize app by offering a free version of the app. And provide more features later which can be charged.

The users using the free version enjoy this so much that they are ready to pay for the premium version offering a unique feature.

The free version of this app provides a platform for writing and thought sharing since inception.

or, e.g. One of the best writing apps,YourQuote now offers a freemium version.

But the app has become so popular that recently they came up with a premium version of the app. The users can pay and book their unique hashtags and write on moving pictures (cinemagraphs).

The ‘in-app purchase’ and ‘freemium models’ of app monetization are quite similar.

Freemium model allows you to download an app for free. However, you cannot access the entire set of features if you don’t upgrade to the paid version.

While in the ‘in-app purchases’, the application is generally free but offers additional features to be purchased.


Email and SMS marketing for App Monetization

Email and SMS Marketing is a popular way to monetize android app wherein you may send emails or sms about other brands to your subscribers and those brands shall pay you for doing so.

Sponsorship & Partnerships

Monetizing app through sponsorship is another way out. Look for a potential partner with a similar customer base and offer to cross promote each other’s apps to one another’s email lists.

It works exceptionally well with event apps. For e.g., A business partnering with or sponsoring an event can pay you to have their content included in your app.

You may consider ‘sponsor content’ for mobile apps monetization, wherein a sponsored post is explicitly sponsored as an advertisement by a particular company to draw a large amount of popularity to their app.

For e.g., Consider a case of ‘Myntra’ displaying an article for their ‘End of season sale’ on ‘Womansera’ to widen user activity on their app.

This is how apps make money through the sponsored content strategy.

Subscriptions for App Monetization

If your app offers a specific regular service to your customers, you can provide a subscription for your loyal customers and thus monetize android app.

Content like news, magazines etc. generally practices Subscriptions. With a subscription, you can provide the service for free, and users need to pay for receiving the material further.


Paid-only applications

If you offer a mobile app that is a paid one, that means that your app has a user value. User value shows that it is unique and exceptional enough to compete as a paid one as against thousands of free apps.

Often you may keep it a trial one and then demand prices for usage.

For, e.g. Tasker is an Android app made for getting things done quickly.


You need to pay $2.99 to avail utilities like location, date, time and to pull off more than 200 different actions.

Charge users to have an ‘ad-free app’

Having an ‘ad-free app’ is another answet to ‘how apps make money’. The users might already be using a free version of your app that shows ad contents.

You may ask the users to pay you a certain amount of money for an ‘ad-free version’ of the app in order to have a better user experience.

White labeling

White labeling is the process of creating a product or service that another company can brand as their own.

In white labeling, you produce the product under one brand and sell it under another. If your app is struggling with sales and marketing issues, you may consider White labeling for app monetization.


For, e.g. D (the provider) manufactures coffee and further passes it to company E (the reseller) to rebrand it and finally sells it to Bob (the buyer).

Crowdfunding or Donations

If you are an entrepreneur trying to eliminate the overbearing upfront costs that most startups face, then crowdfunding is the best way out.

As one of the app monetization strategies, you may get others to finance its creation. The way crowd funding platforms make money is by taking a percentage of the money that is raised during a project and this is how apps make money.

Active Content Strategies for App Monetization

Another effective way to monetize app can be a regular addition to your app’s content. Once the traffic for your site increases, and then you can use any of the above monetization strategies and achieve revenues.

For e.g., if your business has a blog section, you can renew your content with regularly posting new blogs so that the user gets the feeling that you are there in the market.

App monetization: The Final Verdict

There is no ‘one rule’ to ‘how apps make money’. You need to develop app monetization strategies as per the purpose of your app.

You may add a pinch of advertising and sprinkle other approaches to make more revenue with your app.

If you have been using a strategy that’s not generating expected revenues, and you are perplexed on how to monetize Android apps, it’s time for a strategy optimization.

What was your experience of using these mobile apps monetization strategies?

Share in the comments!



Sonali is a technical content writer who loves to blend her creativity with rational ideas of business and technology. She intends to keep it up with the digital trends and accommodate within herself the upcoming trades. She writes expert resource materials related to the Martech and adtech world. Previously worked as a banker, she has been a student of Economics and Human Resources. An ardent believer of Universe and optimism, she writes poetry and quotes to satiate her soul. Always keen about nature, travelling, music and photography.


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