When it comes to mobile app monetization strategies, there are multiple routes your business can go down. From branding to marketing, you’ll already know that perfecting your mobile app monetisation strategy will do more than sell a product or service — it’s the gateway to your customers.
It’s predicted that over the 2021-2030 decade, mobile will generate $2.2 Trillion in consumer spending, a 267% increase on the decade before.
This explosive growth highlights the immense potential for businesses to tap into mobile platforms for revenue generation and customer engagement. However, with increased competition and evolving consumer expectations, businesses must stay agile, continually innovate and refine their mobile strategies to capture users’ attention.
This means that choosing the right app monetisation strategy for your content, audience, and needs is essential to your future success.
So, whether you’re looking for the right monetisation model pre-launch or considering optimising your revenue strategy for an already existing app, this post will provide you with invaluable insight into each model and help you decide what monetisation strategy is the right one for you.
But before we jump straight into the five best app monetisation strategies you can adopt for your mobile app, let’s recap what monetisation is all about.
What is App Monetisation?
App monetisation is what happens when you convert your app users into revenue.
With so many app models to choose from, you’ll need to understand the best mobile app monetisation strategies to stay competitive in 2024 and beyond. With almost 1.81 million apps and 472,000 games available in the App Store alone, it’s clear that there’s immense competition in the mobile app market. However, it also demonstrates there are a lot of opportunities to tap into profitable niches.
So how do you make money from apps? What methods can make your customers part with their cash, and what app strategy best suits your mobile needs? Let’s dive deeper.
5 Effective App Monetisation Strategies
Mobile app marketing is about engaging with your users — from when they first discover your app to becoming loyal customers. To succeed in the mobile marketing game, you’ll have to figure out who will use your app, where to find them, what they want from you, and how you can support their needs.
Here are our top 5 app monetisation strategies you can use to connect with your customers in 2025.
#1 Subscription-based
Subscription models continue to gain traction, with users showing increased willingness to pay for ongoing access to quality content and services. Beyond traditional examples like Netflix and Spotify, new players are finding success:
- Adobe Creative Cloud provides flexible access to design tools, allowing users to pay for just the services they need.
- Curated subscription services like beauty boxes and meal kit deliveries tap into preferences for personalized, convenient products.
Subscription revenues increased to $45.6 billion in 2023, (with iOS being responsible for 76% of that revenue), so it’s no surprise this model is gaining in popularity. Especially when offering a free subscription model doesn’t stop you from generating revenue by using targeted ads to monetise users, which makes this model an attractive entry point for start-ups and SMBs.
Subscription-based apps not only offer a greater chance to increase revenue, but they also provide a steady income stream for businesses, assuming you built a strong customer loyalty.
However, it’s worth keeping in mind that your users will expect more for their money if there’s a monthly fee. This means you’ll need to monitor your user churn regularly and implement effective techniques to increase retention at each stage of the user lifecycle.
#2 Freemium
Freemium is a pricing model where the basic app features are free, but users have the option to purchase premium features, content or services. While the free version attracts a large user base, a percentage of those users convert to paying customers, generating revenue.
By attracting users for free, you can persuade them to pay to access premium content or features, either through subscription fees or in-app purchases. There are many successful apps using this monetisation strategy, such as Dropbox, Spotify, Canva or Zoom.
Free features are the ultimate marketing pull as they allow you to scale up and attract new users ideally at a lower cost for your ad campaigns or acquisition efforts.
To further enhance conversion rates, there are several effective techniques to consider.
- Personalized in-app messaging to highlight premium features when users engage with basic functionalities
- Segmented user targeting, creating tailored marketing campaigns based on user behaviour and preferences. For example, offering personalised discounts to users who frequently use the app but haven’t upgraded.
- Limited-time offers and promotions to create urgency and encourage upgrades, such as timely discounts on annual subscriptions.
- Trial periods for premium features, allowing users to experience added value firsthand, without an initial financial commitment.
- Strategic feature locking, keeping high-demand tools behind a paywall to encourage upgrades. For example, a music learning app may offer access to advanced lessons only to subscribed users.
- Gamification elements to boost engagement and motivate users to transition to paid tiers. This could be implemented in the form of monthly challenges or leaderboards motivating users to engage further and unlock advanced features with paid subscriptions.
Social sharing is a powerful force for this app monetisation model too as many freemium apps offer incentives for referring friends, which is easy when the app is free.
#3 Pay-to-download
Pay-to-download apps can cost anything from $0.99 to $999.99, generating money upfront from every new user.
Crucially, anyone paying for your app is more likely to engage with your wider services once they’ve signed up. This app monetisation model attracts users who prefer to pay for quality and enjoy the full experience that the app can offer. But before they hit that pay-to-download button, they’ll likely weigh up the benefits of doing so very carefully. Therefore, to entice the right users, most apps using this model have an outstanding design, navigation, and a huge marketing budget.
Remember that the success of this strategy often correlates to transparent communication about app benefits and consistent support. Apps that deliver significant value or unique features justifying the upfront cost tend to perform well in this category.
This monetisation strategy is quite popular for gaming apps, particularly those offering immersive experiences, high-quality graphics, or long-term engagement.
It’s worth keeping in mind, however, that not many people want to pay for apps before using them nowadays. They will also have zero tolerance for any monetisation tactic that disrupts their user experience while using the app. So, if you decide on this monetisation strategy, make sure you demonstrate your app’s value to users, include beautiful visuals and work on those five-star reviews, as they will validate that your app’s purchase is essential.
#4 In-app Advertising
In-app advertising enables companies to pay you to advertise inside your app. Using this model is a win-win because:
1) The app is free for users to download, making the user acquisition process that little bit easier
2) You can generate revenue through targeted adverts
If you want to make the most of this app monetisation model, placing the right ad will be essential. A relevant and interesting ad will encourage users to interact with the ad more, which in turn leads to increased engagement, retention, and revenue. For example, videos that provide rewards, such as in-game currency, will appeal to users because they’re people-focused and increase app engagement over time.
One thing to consider for this model is incorporating emotional advertising into your plan. Emotional advertising plays to our desire for love, power, security, and gratification, which are subconscious and can be tapped into by in-app marketing.
One way to achieve this is by creating content that appeals to your customer’s emotional needs. Here’s a great interactive example of emotional advertising from Coca-Cola.
The brand was looking to drive engagement among Millenials and Generation Z. They leveraged their existing Beat Can campaign to create a unique rich media interstitial ad experience. These ads featured four beats, four melodies, and four effects that users could mix and match on their mobile devices to create a personalized Coke Beat, which could then be shared on social media.
It’s a great example of emotional advertising. By allowing users to create their own Coke Beats, the campaign fosters a sense of personal involvement and creativity. Sharing these beats on social media further enhances the emotional connection by integrating the brand into the users’ social interactions and personal expression.
#5 In-app Purchases
In-app purchases occur when users buy content inside your app.
This involves selling extra content, subscriptions, or virtual goods, such as gems and coins that can be used as in-app currency in games. With this app monetisation strategy, you can make big profits while forming a long-term emotional bond with your customers leading to a deeper level of in-app engagement.
This model is particularly popular within the gaming vertical but other app categories such as photo & video, education, or fitness have adopted this strategy successfully.
If you want to leverage this monetisation model, consider features that provide value to your users and enhance their experience. Keep in mind, however, that app stores will take a commission on all virtual goods you sell inside the app.
Choosing the Best App Monetisation Strategy for Your Business
If your goal is to build and grow revenue through your app, selecting the right mobile app strategy is essential.
When evaluating which app monetisation strategy aligns best with your app, consider:
- Target audience: Understand user preferences and willingness to pay.
- Value proposition: Ensure your monetisation model supports your app’s core offering.
- Market trends: Stay updated with emerging trends and privacy regulations.
- Performance metrics: Use in-app analytics tools to track key metrics like ARPU (Average Revenue Per User) and DAU (Daily Active Users) to refine your strategy.
For example, a subscription model will work better if your app is content-focused, such as news, video on demand, fitness, or music. Having a daily stream of content will provide value to your users and motivate them to use your app regularly, which psychologically justifies the cost they spent paying for it.
However, if your app involves gaming or video editing, the in-app advertising model might be a better choice. These examples of apps incorporate interactive and visual elements that enrich the user experience and motivate your customers to make the purchase within the app.
Alternatively, if you’re offering a free to download app to your users, you’ll need to demonstrate its value through its utility, so your potential customers feel motivated to invest further and access premium content or new features.
Regardless of what your app offers, the bottom line is that people expect to receive value to engage with your product. So, if you want them to buy something upfront, you’ll need to show them beforehand what your app offers.
Achieving Success with App Monetisation
Brass tacks, you’re developing an app to create or supplement your income, so choosing the right monetisation strategy is essential for your mobile app success. Whether your goal is to earn money from the get-go or acquire users at a slower pace, it’s best to consider the suitable monetisation model before you launch your app. By taking the right approach, your app monetisation strategy can not only increase sales but also ensure the long-term popularity of your product.
