Did you know? The global mobile app market revenue is expected to surpass $755 billion in 2025. Daily, millions of people spend hours on their smartphones and many of the most famous downloaded apps consistently create revenue for their developers. For entrepreneurs, this is not simply a chance; this is a gold charge waiting to be explored.
The hurdle is how to get products to generate dollars without degrading their user experience. The good news? There are well-established strategies and newer ways to monetize without sacrificing your users’ experience.
Curious how mobile apps boost revenue before you think about monetization models? Check out our guide on how mobile apps can increase your business ROI.
In this blog, we will look into current mobile app monetization ideas and how to choose the right monetization solution for your app.
1. In-App Advertising
In-app advertising continues to be one of the most common forms of monetizing an app. This model loads ads for the user while they are using your app and the main revenue comes from either cost per click (CPC), or cost per thousand impressions (CPM).
Here are a few kinds of in-app ads:
Banner Ads: Non-intrusive, small ads that are allowed to show at the top or bottom. Often generate a smaller amount of income.
Interstitial Ads: These ads take the full screen, and show up at natural pauses in the app flow.
Rewarded Ads: The user watches a short ad to obtain an in-app benefit, such as getting extra lives in a game.
Native Ads: Ads that are styled to match the look and feel of the app, hence would be seamless.
Pro tip: You want to keep the ads relevant to your audience, in order to ensure higher click-through rates, but also so as not to frustrate your users.
2. Freemium Model
In the freemium model, you can let users download your app for free and charge for premium features. This model is often used in productivity tools, games, and creative tools.
Why it works:
- Lowers the entry barrier for new users.
- Let people sample the app before they are willing to pay.
Example: A free photo editing app may have one or two free filters, but charge for more advanced editing capabilities or special effects.
The trick is to offer enough value for free to get users to download the app, and make the premium features attractive enough to convert to a paying customer.
3. Subscription Services
Subscription is a common business model used in all industries, primarily because it generates predictable, recurring revenue. Users receive access to premium content or features, and they pay weekly, monthly, or yearly for it.
Most suitable for:
- Fitness apps that provide workout plans and tracking.
- Streaming apps that distribute movies, music or shows.
- Educational apps that provide a structured course.
Tip: Use a free trial and sign-up now offers to build your user base, then showcase what’s exclusive to subscribed users to retain them.
4. In-App Purchases (IAP)
In-app purchases are a way to allow users to purchase additional items or features within your app. These can include virtual currency, game modifiers, digital products, or additional content.
Things to remember:
- Clearly describe what they get for their price point.
- Make the purchase process seamless and secure.
For gaming apps, IAPs are a great revenue generator – players spend money in games on skins, power-ups, or collectibles to enhance their gameplay experience.
5. Paid Apps
Even though most app stores are filled with free apps, paid apps work too, as long as they provide unique and high-value features. This pricing model tends to succeed in tools that target specialized niches or professional software applications where people might find immediate value.
For example, a paid app could be a standalone app offered at a price, or a paid subscription app that could offer extra value through added features etc.
To put a paid app into practice:
- Always offer a value proposition before taking their money.
- You should always offer a free trial or demo version to establish credibility and trust.
Looking to align your app monetization with current tech trends? Explore the latest custom business application development trends driving real-world business value.
6. Sponsorship and Partnerships
When your app has a loyal following in a niche, you can work with brands for sponsorships. A fitness app, for example, could work with sports brands, which could be a featured sponsorship challenge or a sponsored product.
Advantages:
- Can create revenue with minimal user purchasing pressure.
- Can build a long term brand relationship.
7. Affiliate Marketing
Affiliate marketing lets you promote products or services through your app and earn a commission. A user purchases something after clicking an affiliate link, and you get paid.
This works best when affiliate products/services resonate with your user base. For example, a travel app could promote hotels or travel gear as affiliate marketing links.
8. Data Monetization (Ethically)
If your app collects non-sensitive, anonymous user data, you can work with some research companies or businesses to sell insights to them.
IMPORTANT:
- Always follow privacy laws and ensure user consent.
- Be transparent about usage of data.
9. Crowdfunding and Donations
Some entrepreneurs elect to crowdfund to get funding for the application development and/or maintenance. Loyal users who believe in the idea can fund the application through various platforms like Kickstarter or Patreon.
Best for:
Creative apps.
Apps that service niche communities.
10. Hybrid Monetization Models
Many of the most popular apps are using multiple monetisation strategies. For example: you can create a freemium app that includes in-app purchases and optional ads, or a subscription model that includes affiliate agreements. A hybrid model is a way to diversify your different income streams and reduce reliance on a single monetisation strategy.
How to Choose the Right Monetization Model
Not all monetization strategies fit every single app. Here is how to figure out the best approach:
Know where your audience: What are they used to spending their money on? How do they buy things?
Look at their alternatives: What monetization strategies are working in your app category?
Make sure your monetization ties into a good user experience: Don’t do anything too aggressive that will put people off your app.
Model, test, and adapt your monetization strategy: Pick one, two, or three initial strategies, measure your results before rolling out your monetization strategy broadly.
Related Blog
Top 5 Best Mobile App Development Frameworks in 2023
Current Mobile App Monetization Ideas for Entrepreneurs
If you’re entering the market in 2025, here are some monetization approaches that are gaining traction:
AI Personalization – Leverage Artificial Intelligence to personalize ads, offers, and features for each user, which will enhance user engagements.
Micro-Subscriptions – Offering a smaller subscription package to only target specific features, as opposed to full access.
AR/VR Premium Content – Offering immersive add-ons for use in gaming, education, and training apps.
Gamification Rewards – Monetization by rewarding users for engagement that leads to behavior which produces revenue for you.
Niche Community Memberships – Exclusive community groups on your app in which members pay for access, networking, or content.
Final Thoughts
Monetizing a mobile app isn’t just about profiting, it’s about building a sustainable business that provides users value. Whether the right choice is advertising, subscriptions, in-app purchases, or a hybrid model, the objective here has to be to keep your user experience enjoyable while creating a revenue stream.
As an entrepreneur, planning and building a monetizable mobile app with the right technical partner can result in a world of difference. Techmango focuses on building custom app development services that are user-friendly and functional while thinking about monetization. Techmango helps entrepreneurs build scalable and monetizable applications from concept to launch and helps differentiate it in the marketplace.
The mobile app economy is growing, and the time is ripe to capitalize on your app idea!