Mobile app monetization is the process of generating revenue from mobile applications. App monetization is important for both developers and app publishers, as it helps cover the costs of app development, marketing, and maintenance, and can provide a steady stream of income for continued growth and innovation.


There are several ways to monetize mobile apps, and each method has its own advantages and disadvantages. In this article, we will discuss some of the most common app monetization strategies and some of the leading companies that pay for app monetization.


1. In-App Advertising

In-app advertising is a popular method of app monetization where app developers display ads within the application, allowing them to earn revenue from clicks or impressions. There are various ad formats available, including banner ads, interstitial ads, native ads, and rewarded video ads.


Google AdMob, Unity Ads, and Facebook Audience Network are some popular ad networks that provide in-app advertising solutions to publishers. These networks offer ad inventory from a large pool of advertisers and also provide detailed analytics to help publishers optimize their ad placements and improve their overall revenue.


2. In-App Purchases

In-app purchases (IAPs) are another popular monetization option where developers offer additional features or content within their app for a fee. This can include virtual goods, premium content, or access to new levels or features. Success with in-app purchases requires resources that a very exciting and key feature in the app. The feature needs to be attractive and useful to keep users engaged and willing to pay.


Apple's App Store or Google Play Store, provide in-app purchasing capabilities that allow developers to sell virtual goods, subscriptions, and other digital items to users securely. Companies like Stripe and Braintree can also be used as payment gateways to seamlessly handle in-app payments.


3. Subscription Model

The subscription model is commonly used by apps that provide access to a service or content over a period of time for a recurring fee. It provides a stable and predictable source of revenue for app developers. It is used majorly in the entertainment and media industry, like music and video streaming apps.


Apple and Google offer their subscription services, App Store Subscriptions, and Google Play Subscription Center, respectively. Other companies like Stripe or Chargebee enable developers to add subscription management capabilities to their apps and accept payments.


4. Sponsorship and Branding

Sponsorship and branding are becoming an increasingly popular method of mobile app monetization. Brands sponsor apps, using them as a tool to reach a specific audience. The sponsor benefits from increased exposure and brand awareness, while the app developer earns revenue from the sponsorship.


Developers can partner with companies and brands for direct sponsorships. They can also use sponsor-based ad networks like Tapjoy and Fyber that provide app-targeted sponsor ad campaigns. These ad campaigns are to promote a product or service within the app. 


5. Freemium

The freemium model provides an app for free while offering advanced features for a premium fee. This makes it possible to gain a larger user base and retain more user engagement compared to charging upfront. Freemium has proven to be a popular option that has seen significant adoption across app categories.


6. Pay-to-Download

Pay-to-download is an app monetization strategy that requires users to pay upfront before downloading an app. It is used by many paid apps like games and productivity tools.


Companies like Apple and Google offer developers a distribution platform to upload their paid apps for users to purchase. App Store and Google Play Store have millions of app downloads, making it a great exposure and platform for apps to thrive if properly marketed.


7. Affiliate Marketing

Affiliate marketing is a monetization method that allows developers to earn a commission by promoting products or services to app users. As an app developer, developers can use affiliate links in the app to market and earn a commission for any resulting purchase.


One benefit of affiliate marketing is that promoting a product or service within app content that connects and resonates with users can lead to better engagement leading to higher conversion. A great resourceful affiliate network is Amazon associates and ShareASale as they provide high-quality products that fit into most app genres.


Conclusion

There are many ways to monetize a mobile app, and the best method will depend on the app’s business model, target audience, and features offered. Developers should research and choose a monetization strategy that is well aligned with the app’s focus, user needs, and app genre.


Companies like Google AdMob, Apple, Unity Ads, Stripe, Tapjoy, and affiliate networks are popular companies that offer app monetization options. They provide a powerful infrastructure to distribute and monetize apps, and offer many features and tools to help developers grow and succeed in their respective app markets.