You've done the hard part — building and launching your app. But here's where things get tricky: turning your creation into a sustainable business. With mobile games alone generating $107.3 billion last year, the possibilities are endless.
But which app monetization path is right for your app? Let's dig into what's actually working for successful apps right now.
What is app monetization?
Simply put, it’s how an app makes money. Whether you’ve built a game, a trip planner, or a social network, there’s always potential to monetize your app.
It’s best to start thinking about monetization early on. Is your app going to be paid or free? Is there a subscription plan involved, or perhaps in-app purchases? How will you interact with your users? Defining all of this before your app goes live will guarantee that your users have the best experience, and will keep them engaged for longer.
The good news is that the app market is booming, with revenues going up by 3% and reaching $533 billion worldwide. Mobile games dominate the app market, while other apps generated $64 billion in revenue. To get in on these earnings, you need to be smart about your revenue strategy.
The way you monetize your app can directly affect how users feel about it, and retaining users is crucial for long-term success.
How to choose your app monetization strategy
From watching a quick ad to unlock that next game level to subscribing for an ad-free experience, every payment option you see is there by design. Let's explore the strategies that are making revenue for app devs in 2025:
In-app advertising (IAP)
Ever wonder why that cooking app shows you grocery delivery ads while you're meal planning? That's no accident. In-app advertising has become one of the most common ways to generate revenue without asking users to reach for their wallets. The way it works is simple but powerful: you serve ads to your users through a mobile ad network like Yango Ad Network, and every time a user watches an integration from the advertiser, you earn revenue.
But there’s a catch: whenever an ad starts getting on their nerves or interrupts a key moment, users are quick to hit “Uninstall". The most successful apps turn this challenge into an opportunity by making advertising feel natural and even beneficial. Maybe it's a reward video between game levels, or a relevant product suggestion when someone's browsing recipes.
The best part about in-app advertising is its flexibility. You can adjust your ad strategy based on user behavior, test different formats, and fine-tune the frequency until you find the sweet spot that keeps both users and advertisers happy. This approach isn't just user-friendly — it's incredibly profitable. In 2025 and 2026.Worldwide ad spend was forecast to reach over $362 billion in 2024, with projections for even further growth.
You can choose the formats that are suitable for your app — small banners, full-screen ads, advertising when downloading, or even ads for which the user will receive a reward for viewing.
Pro Tip: Make your in-app ads work harder by offering incentives users actually want. Whether it's extra lives in a game, premium features for a day, or exclusive content, users are much more likely to watch ads when they get something valuable in return.
In-app purchases (IAP)
Remember getting frustrated at a tough game level and buying that power-up? That's the beauty of in-app purchases — they solve an immediate user need. But timing is everything. Users typically need to fall in love with your app before they spend any money in it. Take Candy Crush: players can progress for free, but they're offered power-ups and extra lives at moments of peak engagement or frustration. Many games also offer premium in-game currency that lets users upgrade their characters or unlock special items, creating a whole virtual economy within the app.
This isn't just for games though — look at how productivity apps handle it. Notion and Miro keep their basic features free but offer additional collaboration features as purchases. Photo editing apps like VSCO let users get hooked on basic editing features before offering premium filter packs. Even meditation apps have found success selling premium guided sessions or specialized meditation packs. The key is identifying those moments when users are most likely to see value in paying a little extra.
One-time purchase or subscription models
Here's the dream — steady, predictable income from your app. That's what makes subscription and one-time purchase models so appealing. But let's be real for a moment. If you're not Netflix or Spotify, asking users to pay upfront can be tricky, especially when they're used to free and freemium alternatives.
For one-time purchases, you're asking users to make a single decision. They see your app's value once, and if they like what they see, they're in. The trick here is identifying that perfect price point where perceived value exceeds cost — too high and you'll scare users away, too low and you're leaving money on the table. Your pricing needs to reflect both your development costs and the problem you're solving.
But subscriptions? That's a different game entirely. Users aren't just buying your app as it exists today, they're investing in its future. Look at apps like Headspace or Calm — they keep subscribers engaged by regularly adding new meditation sessions, sleep stories, and wellness features. For them, success demands a clear development roadmap and consistent value delivery that keeps pace with user needs.
Pro Tip: Consider different trial lengths based on your app's complexity — productivity apps might need 30 days to demonstrate value, while a fitness app could hook users in seven. Users who complete trials but don't convert are prime candidates for targeted win-back offers based on their usage patterns.
It’s no secret that many successful apps use a hybrid monetization model by combining several revenue streams. For instance, an app might use a combination of in-app purchases, subscriptions, and ads. Diversification can also maximize income and help weather market turbulence.
How to pick an app monetization strategy for your app
How do you know which model fits your app? Start by asking yourself these questions:
- What are your users already paying for in similar apps? If they're happily paying subscriptions for productivity apps but resisting them in games, that's a signal.
- How often do users engage with your app? Daily use might support subscriptions, while occasional use might work better with one-time purchases.
- What's your ongoing development cost? If you're constantly adding features and content, you'll need consistent revenue to support that.
Dive into the research
Gut feelings aren't enough — you need real user insights. Dive into customer reviews and run audience research to understand what features users actually value enough to pay for. Smart app developers build pricing strategies on solid feedback, not guesswork.
Test and adapt
Pricing shouldn’t be set in stone. Use analytics tools to track performance and see how users respond to different approaches. The key is being willing to adjust based on what the data tells you.
Don’t overlook emerging markets
Countries like Brazil, Mexico, Russia, UAE, India, and China offer a perfect testing ground with their lower acquisition costs and high mobile engagement. They represent 80% of smartphone users. They also have the highest number of app downloads, longer screen time, and higher rates of audience retention, specifically for iOS.
iOS users in emerging markets are more loyal than Android users, even surpassing developed markets in some cases. For instance, Russia has a higher retention rate (3.33%) compared to the US (3.27%) and Canada (3.20%).
Think of your pricing as a menu
Users have different appetites and budgets. A basic free version catches their attention, a mid-tier subscription keeps them engaged, and a premium tier offers the full experience. Make each tier's value crystal clear and keep the upgrade path smooth. And try not to look shady — an easy cancellation process builds the trust that turns users into long-term customers.
Before you go
There's no one-size-fits-all approach to app monetization. Success comes from understanding your users, testing different strategies, and being willing to adapt.
Whether you choose in-app purchases, advertising, subscriptions, or a mix of these, focus on creating value that users are happy to pay for. The $170+ billion app market has room for innovative approaches — the key is finding the right fit for your specific app and audience.
