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The first question that arises here is "how do free apps make money in 2024?"

Have you gone through any money-making app from free apps?

Here, we have covered all the points and mobile app strategies for a profitable application for entrepreneurs who want to monetize an app.

There are several ways to approach a money-making app where businesses can contact software outsourcing companies who will help you develop an app and choose the right strategy that fits your business needs.

The free apps market has always exceeded the paid ones with more downloads and profit. A common question I came across is "how much money do apps make?"

According to a recent survey conducted by the study by TechCrunch, the app boom hasn’t ended and it will not end in coming times as the market for a mobile app is booming. Monetizing your app isapp depends on the app offering and app strategy you use for your niche.

If you are thinking about how to make money from apps, our marketing experts and custom mobile app development team will help you develop your dream app.

Table of Content

  1. 1. What Are the Best App Monetization Methods?
  2. 2. App Monetization Strategies
  3. 2.1 Advertising
  4. 2.2 Freemium Model
  5. 2.3 Sell your own In-app Ad Space
  6. 2.4 Sponsors, advertorials, special offers
  7. 2.5 Dynamic ads with Logic
  8. 2.6 Subscription Model
  9. 2.7 Sponsorships
  10. 3. App Monetization Models: In-App Purchases vs. a Mobile Site
  11. 4. Revenue Channels for Mobile App
  12. 5. How to Make Money from Mobile Apps?
  13. 6. In a nutshell

What Are the Best App Monetization Methods?


Users are spending 90% of their time on mobile apps and consumers love to use apps that provide them with better features and functionality. There is a huge scope in the app market where with the help of an app development company, you can build an app that fulfills users' needs. It will you stand unique in the competitive app market.

A business must research the market trends and identify how to choose the perfect app that will catch users' attention and get more downloads.

Along with more downloads, you also need an app strategy that will support you in gaining a real profit.

App Monetization Strategies

We are surrounded by mobile apps that is helping us to get whatever we want at our doorstep. It is essential to monetize your app with the right model to pitch your investors showing your vision for your mobile app development.

For the same, you can show statistics and app forecasting along with app presentation, monetization steps, app performance metrics, and more.

  • With the help of an App Development Company, you will get the right model to monetize your app and make your business profitable in a shorter time.
  • There is no profit for app download from either the Apple App Store or Google App Store. Instead, Apple and Google stores will take their of an app’s profits i.e., 30% from in-app purchases.

So, businesses are opting for app monetization and developing an app that will help them earn.

If you are looking to earn money from a free app, it is required to set up revenue streams and an experienced software company can help you with it. There are some win-win strategies that have proved best for mobile applications for both the app provider and customers.

One such strategy is video ads where a user clicks to watch an ad and you will receive points and an app bonus as well.


Let's see how to make money from mobile apps:

1. Advertising

After digitalization, mobile ads are more approaching as it is easy and offer excellent result when the user clicks the ad. It is one of the most popular ways to receive money from any free mobile app. At present, the majority of the apps are embedded with commercials that create payments per display or impression when clicked.

More money now in Ads.

Mobile advertising has overtaken in-app purchases as the traditional way to earn more money for the app publishers. Since the decade, the mobile display landscape is increasing with the rising use of mobile devices.

And because of these dollars, Google and Facebook have come to command mobile advertising hugely. These mobile ads are presented in various sizes that you will see in the top or bottom part of the app screen.

Here are all five types of ad variants that can be used in a mobile app:


  • Banner Ad

Mobile banner ads perform an influential role in today’s marketing trend and after digitalization, more and more businesses are adding banner ads in their app. These are highly known as digital advertising and are more relevant and engaging that helps both users and organizations.

It depends on which ad and how you opt for the banner ads for its good design and must not be interfering.


  • Banner ads are located at the top or bottom of your device.
  • As per the study by eMarketer research, it has grown from $162.6 in 2018 to $384.9 billion in 2023 globally.
  • Banner ads give you a better CTR - click-through rate based on brand recognition.


  • Video Ad

Mobile video ads work significantly great in comparison to non-video ads as per the research. Video ads help you drive more traffic and ultimately more conversation and high eCPMs.

Besides, mobile video ad revenue is estimated for 31% of all app revenue thus more businesses are opting for video ads.

A video ad lasts for 10-30 seconds while you start the app or while using your app. It is set in such a way that engages the user as ads play automatically at certain pauses.

  • Mobile video advertising also gives a better ad experience.
  • It will create more revenue.
  • This form of advertising will convert the most doubtful customer.
  • It is targeted based on geolocation, contextual and behavioural to help you earn more with more clicks.
  • Video ads naturally improve the user experience with quality ads.


  • Native Ad

Native mobile ads are popular for their feature as they are a digital form of word of mouth. Native ads are easy to share and can be shared quite easily with others. This money-making app strategy is getting more and more familiar as users are less irritated and don’t feel interfering with such ads.

  • Native ads can be defined as “covered” due to their blend functionality with the website.
  • It resembles the app interface and usually replicates essential web/app functionality.
  • Native ads are sharable so if the viewer knows someone who might be interested, they can share the ad.
  • Mobile native ads are naturally integrated into an app.
  • Native ads are manifested to promote a product or a mobile app

Sometimes the revenue of the native ads can be rather low as compared to other methods.

  • Interstitial Ad


Interstitial ads are the ones that cover the whole screen of the mobile device. They are interactive and consist of the interface of their host app. Amongst other ads, native ads come between the content. They are placed to engage users and thus set naturally in between activities or game levels.

Native ads are highly known for their pop-ups that are shown at a particular moment within an app. These ads are rated effective than other types of ads for money-making apps.

  • Incentivized Ad

An Incentive Ad is a reward in digital marketing terms used in mobile advertising. The incentivized ad offers rewards to users for performing certain actions. The actions may include installing an app, creating a video, completing a video ad view, and more.

Users will be attracted to such ads for gaining rewards and follow the given steps rather than following the advertisements.

  • It will help you raise app loyalty and engagement.
  • The profit from this tactic is earned through in-app sponsorships.
  • Incentivized ads offer rewards to users for a specific in-app action like filling out a poll, content sharing, and more.

Also Read: Ultimate Guide to Custom Software Development in 2021.

2. Freemium Model

The freemium model is a popular strategy for mobile app monetization, where the app is offered for free with basic features available to all users, while advanced features, additional content, or premium services are accessible through in-app purchases or subscriptions. This model allows users to experience the core functionalities of the app without any financial commitment, encouraging widespread adoption and user engagement. By providing value upfront, the freemium model builds trust and demonstrates the app's potential, which can lead to higher conversion rates as users are more likely to invest in premium features once they see the app's benefits.

Implementing a freemium model effectively requires a careful balance between free and paid offerings. The free version should be compelling enough to attract and retain users, while the premium features need to provide substantial value to justify the cost. This can include exclusive content, advanced tools, or enhanced user experiences. Additionally, offering limited-time trials or special promotions for premium features can entice users to upgrade. By continuously analyzing user feedback and behavior, app developers can refine their freemium strategy to maximize both user satisfaction and revenue generation, ensuring a sustainable business model.

3. Sell your own In-app Ad Space

The header image in the mobile app is the most notable ad while using any app. Users won't ignore any ads that are set on the top and advertisers love that stunning appearance that cannot be missed by your app users.

It can be anything from a promotional link, an image, or content in the header image on a landing page.

A software company will help you create special pages to show your advertisers and place them in the header that attracts users' interest. The app pages you create have their header image and the number of ads it contains is unlimited.

For more attractive and innovative ads, you can use different font sizes and colors to stand out from others.

4. Sponsors, advertorials, special offers

For sponsors, you can show the app presentation and future profits to attract sponsors for your app. A business can provide good advertorials or special offers to investors that are intensively used in mobile apps.

For mobile app development, you can ask for sponsorships to get your excellent app idea into existence and pay for an article or interview in the app. To get more attention, you can share the app idea and futuristic approach of your mobile app.

Apart from just running ads, a business can offer advertorials and sponsor's logo or icon on the splash screen, footer to get more visitors. Another way is to integrate sponsored content with special offers and add to the app to make the monetization model more profitable.

If you are looking for any product or service-based mobile app development, special offers and sponsors work well.

5. Dynamic ads with Logic

In a pro version of an app, you can make and add dynamic ads to your mobile app. The logic function allows you to add and mix several actions in your app such as Goto, Call, Show Message, and more.

For example, you have an app for the city cafes that represents all the cafes. So, by using the Logic function, you make a message display when a user taps on an item. While searching, a user will tap on any Cafe where a list opens containing more information: ‘Get 25% Off on First Order".

Also Read: 10 Reasons Why You Need a Mobile App for Your Restaurants & Cafes

6. Subscription Model

Are you looking to monetize your app that creates great revenue?

A software company in India will help you develop an app that hits competition and profit your business.

For monetization, one more popular strategy is the subscription strategy. It is known as one of the finest and most useful strategies that will help you earn money from your mobile app.

Here you can contact publishers who will offer free content in the apps for a limited amount of time and ask for paid subscription from users. Once the user buys the subscription; it will allow them to use complete data or information without any limitations.

Most of the business are using this strategy by offering a free trial for a short period and then adding a subscription fee to those who wish to continue accessing the app content. It is majorly seen in gaming apps, cloud services, audio, and video streaming apps, and for online news, services to let the user access the information.

For an iPhone app development company, Apple is offering easy integration for such an ad strategy, and for Android app development, a mobile app development company will help you get smooth ad integration.

7. Sponsorships

Sponsorships present a lucrative avenue for mobile app monetization, enabling businesses to generate revenue through partnerships with brands and companies. By integrating sponsored content or advertisements within the app, developers can leverage their user base to attract sponsors willing to pay for visibility and engagement. This strategy is particularly effective for apps with a large and active user base, as it provides sponsors with a targeted audience. The key to successful sponsorship lies in ensuring that the sponsored content is relevant and seamlessly integrated into the app experience, enhancing rather than disrupting user engagement.

To implement sponsorships effectively, app developers should identify potential sponsors whose products or services align with their app's theme and user demographics. Crafting customized sponsorship packages that offer various levels of exposure, such as banner ads, sponsored posts, or branded content, can cater to different sponsor needs and budgets. By building strong relationships with sponsors and continuously optimizing sponsored content based on user feedback and performance metrics, app developers can create a sustainable revenue stream that benefits both their business and their partners.

App Monetization Models: In-App Purchases vs. a Mobile Site


An in-app purchase is any ad beyond the original cost of downloading the app. It is not compulsory for any mobile app as it gives users additional features; others serve as subscriptions and require users to sign up and pay a fee to use the app, often after an initial free trial.

If you want to create an account with the App Store or Google Play, you will need a credit or debit card on file, to cover any costs associated with downloading paid apps. So, making in-app purchases are easy to make, as there’s no need to enter credit card information or to enter a password.

Mobile site advertising will appear in a text format where the user will see ads in between the apps such as banner ads in product-based and mobile games.

Considering the normal screen size of mobiles, an app development company will help you optimize apps that furnish ads into a smaller display area.

Besides, mobile advertising comes in a mobile marketing area that plays a key role. When traditional techniques are used for the ads, a business can gather data by email sign up, and form filling. Now, businesses are focusing on information sharing and engaging users with relevant ads.

The design of mobile advertising is getting advanced when it comes to marketing campaigns and promoting the ad content. Such ads proved more engaging, social media-friendly, and will give more conversations cost-effectively.

Revenue Channels for Mobile App

Most business goes for mobile app development that gives them user loyalty, gains new mobile users, and generates more brand awareness in addition to offering a valuable benefit.

But all the mobile app developers need their app to give a sustainable source of revenue for mobile apps business models. It is not easy as it seems because when it comes to developing a profit-generating app, it takes a lot in terms of design and development along with the right set of technology. And, that is the reason a successful revenue channel takes an app to the next level.

By using free apps, businesses get more downloads, but users could be less engaged. So, as a business, if you are not using paid ads, users may potentially download your app, but will not use it for long.

While paid ads may cause a little high but give the result you are looking for. As per the study by Statista, if you’re offering an app for free you will have to find other app revenue channels.


How to Make Money from Mobile Apps?

Uber is a great example here. The company offered an innovative and much-needed taxi solution for transportation. It will help users to get rides easily and shift people's behaviour that assists Uber to profit.

Besides, every one of us does half of our work from the device using mobile apps. According to research, 90% of users spend their time on mobile is on applications. So, if you are planning to develop a mobile app or thinking to outsource mobile app developers, we are here to help you convert your app idea into a successful mobile application.

Snapchat is another great example of a free app that earns billions. It earns from ads, through the application of branded Geo filters, sponsored lenses, and discover section.


Once the app development process is done, you must make a crucial decision before making it available on the Apple App Store or Google Play Store. Here you can get the help of app developers for hire who assist you in developing a successful mobile app.

Do you ask a user to pay for downloading your app?

Absolutely not.

But you can offer free apps with a strategy that will make money. You need the right mobile app development partner who knows the correct way for app monetization for your free app.

  • In-app advertising includes banner ads, native ads, in-app ads, interstitial ads, and more.
  • App purchases for specific products or service applications.
  • Offer in-app purchases to upgrade the apps for gaming, entertainment apps.
  • Freemium apps.

In a nutshell

Before a decade, in the traditional time making money from mobile apps was a big question. After digitalization and the increasing use of mobile devices, businesses are gaining profit from mobile apps and recovering their cost of developing an app.

A business can opt for any one strategy or more than one strategy by mixing them for app monetization and making money by offering a free app to users.

There is no one right method of making money from mobile apps. As a business, you can choose methods that fit your business niche and organization goal to generate a different amount of income.

We suggest choosing the monetization model based on your app niche, its purpose, and the target audience of your business offering.

  • You can mix two ads and offer users a better app experience by offering a paid ad-free app version, which is a win-win situation for users and a business.
  • You can also opt for combining the subscription model with in-app purchase advertising and integrating it into your mobile app for making revenue.

If you find this blog useful, we as well-known Mobile App Development Company will be glad to help you in developing a fruitful mobile app with cost-effective app development services.

If you like the above blog and are curious to know more about mobile app development, then please go through the below-mentioned blogs.

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