8 Ways to Wring Revenue From Your Mobile App

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Mobile apps are a  to make you and your company money and help your company continue to grow. Sixtyfour percent of adults in , and that doesn’t account for people under the age of 18. Out of that 64 percent, another 34 percent use their phone as their main way of going online and connecting on social media.

Whether it is a new mobile game or a photo editing app, the mobile market is huge, having surpassed television in time viewed per day. People are spending, on average, three hours a day looking at their phones and tablets, and that number is expected to continue to rise as cellphone tech advances.

If you’re an entrepreneur and have an app idea, you’re already on the right path. Regardless of your amazing app idea, however, you need to have a revenue stream. The greatest app will eventually crumble if there is not a proper monetization model to back it up and support it. There are multiple ways you can go about monetizing your app. What the app business really comes down to is what type of app you have, and to whom and what demographic it is marketed to. Let’s take a look at some of the different ways entrepreneurs can make money from their mobile application.

1. Freemium.

The most popular way to monetize an app in 2015 is to offer your app for free (everyone loves free), but some hide certain features behind a paywall that requires users to commit to a one-time purchase to receive all of the benefits from the app. You likely encounter these types of ads daily. Everything from music applications like Spotify to antivirus programs like AVG use the freemium model. By offering the basics of the app for free, you give them a chance to find out if they like it. If they find themselves using it often, they are more likely to spend hard earned cash on the premium features of your app.

2. Freemium apps that allow multiple purchases.

While similar to to the basic freemium model, a freemium app that allows users to continue to pump money into it is also very popular. Most commonly seen in mobile games, this model encourages users to keep spending money on their "free'' app by offering additional in-game items. Instead of a one-time purchase, users pump real money into the game to advance their in-game ranks and items. Just look at the numbers  to see how well this worked for them.


3. Advertising on freemium apps.

Advertising is a win-win for app publishers. This model offers the app for free if users tolerate banner ads, or they can purchase a premium version without these sometimes intrusive ads. The publisher can make money from both ends. This works well, but many developers will go overboard with their ads and drive users away.

4. Advertising.

Using a mediation platform, publishers can make money through ad revenue on their app while still offering the entirety of your app for free. You can use a singular mobile ad network like  or AdMob to accomplish this, or you can use something like , which partners with multiple ad networks under their umbrella. Platforms like AdtoApp that use multiple networks can improve return rates on click-throughs thanks to higher fill rates and better target advertising, regardless of country or target demographic ( can return higher revenue).

AdtoApp improves return rate with a self-learning algorithm that can adjust accurately to 280 countries and essentially any target demographic. It has just four lines of code, so it can be implemented seamlessly into any existing app.

5. Partnering with a sponsor.

Unlike traditional advertising that will show a multitude of ads from different companies, partnering with a sponsor means that you show only ads from one company on your app, whether that sponsor is Amazon or Dunkin’ Donuts.


6. Video advertising.

This method has grown in popularity in recent years. Instead of just showing a basic banner ad on your app, some developers are partnering with ad networks to show video ads on their app. These types of ads can be overwhelming, but when properly implemented these short vid spots engage users in a way traditional banner ads simply cannot.

7. Promotional services.

If your app isn’t being seen by anyone, then you aren’t going to make any money from it. It’s that simple. By using promotional services like , your app has the potential to be seen by many app reviewers and consumers. You’re basically hiring a marketing team that will push your app through press releases and newsletters to journalists and to the general public. Getting your app on websites and social media can help it grow moderately, or in rare cases, go viral. The infamous  gained huge momentum thanks to social media.

8. Paid apps.

The most basic app model, paid apps, requires an upfront purchase to use your app. While this method has been losing momentum, thanks mainly to freemium apps, it’s still a business model that has the potential to make money. In order for this method to work, however, you either need a recognized product or brand with a dedicated user group or use a promotional service to show your app to a large subset of interested parties. You can also become a sponsor of another popular app, meaning that their users will see your ad and app exclusively.

There is not just one way to make money through your app. Every application works differently, and finding out what monetization model works best for you is key.  works best by offering a core gameplay experience for free, but encurages users to put money into it for a more immersive experience. Photo editing apps, however, should look closer at the basic freemium model that lets users to sink their teeth in with better features behind a paywall.

If you plan on monetizing through ad revenue, mediation platforms like AdtoApp are the way to go because of high fill rates and targeted advertising.


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