Trends in Mobile App Monetization: What to Expect in 2023?

As with other areas of technology, the mobile app market is growing quickly. The players in this field are creating and releasing unique Mobile App Monetization that make the lives of mobile users simpler and more enjoyable. The average time spent by mobile users is around 5.4 hours per day on their phones.


With the increased dependence on smartphones and mobile apps, developers are seeking new ways to earn income from the apps they design. They are looking for the best ways to make money from the engagement of their customers with their apps.


Ahead is a guide for app monetization to provide you with an understanding of the meaning behind app monetization as well as the trends that you should anticipate going forward.

What is Monetization?

The term “monetization” is described as “the act or procedure of earning income through an asset company, etc.” In another way, monetization refers to the process of changing non-revenue-generating assets into revenue-generating sources.


In the financial world, it is the process of converting any kind of event, object or transaction into a type of money or any other thing that can be transferred value.


In a few ways, the concept of monetization can be compared to revenue models which is the basis to determine how a company will generate financial earnings, earn profits, and earn more than the typical return on investments.


A revenue model is usually utilized for long and mid-term estimates of a company’s profit potential and is an essential part of your business’s model.


What is App Monetization?

Mobile app monetization is the process or method employed to earn money from mobile applications. It offers you the chance to expand your existing user base to the point that you earn revenue. It’s easy as it gets.

So, how do you make money from apps?


Publishers and developers of apps typically seek to engage their customer base to make this process possible.


They need to influence the actions of their customers to increase the number of purchases as well as ad impressions and other forms of conversion.


The strategy for monetizing mobile apps the publisher employs is based on the app’s type and the model, with certain models better appropriate to certain types of apps than others.


Based on recent stats on app monetization, the mobile app’s revenues are predicted to surpass the $693 billion figure by 2021. To further break down this the expected amount of the spending of mobile app users will be between $50 billion or the figure will be $90 billion for Google Play Store and App Store and App Store, respectively.


The Growth of the App Industry

The number of businesses that are conducted online indicates an increase in the use of the internet to buy products and services that consumers typically purchased from brick-and-mortar stores. As the proportion of businesses that are online grown so does the number of services that are available via smartphone apps. Additionally due to the COVID-19 pandemic business has exploded in the last year, creating huge opportunities for mobile marketers as well as app product managers.


The worldwide revenues from mobile applications exceeded 318 billion dollars in the year 2022, which is a rise of more than 60 billion since 2019. Industry experts believe that the app market will continue to grow over several years which is estimated to be $613 billion in 2025. So, the vast majority of the people working employed in the industry of apps earn a living.


In an industry that is filled with fierce competition, the issue is usually whether it’s possible to generate profits from an app and, if yes how. There are a variety of strategies and models that mobile app marketers and product managers can employ to monetize apps of various categories and across mobile platforms across the globe. Finding the most effective method of monetization for a particular app requires careful analysis of the various models.


Before examining different methods of monetization it is essential to have an understanding of the possibilities for app revenue. The demand and popularity for top-quality mobile apps have grown rapidly over the past few years, opening up huge opportunities for the monetization of mobile apps.


Examples of App Monetization

There are several strategies that app developers employ to earn money. A retail app could motivate users to download with an incentive, for example, a reduction as a method of thanking users for downloading the application. If it’s an amount of money there is a greater chance that the user will recall the experience and decide to convert in the future. Ideally, mobile marketers as well as app product managers must try to make money from users using this approach within just a few days following the application’s launch, especially as close to 25 per cent of users leave the app within one day.


Cross-selling and upselling can also be effective ways to generate additional revenue for an application. For instance, by keeping track of the purchase history of users it is possible to present customers with product recommendations that are related to the future. Marketers can also motivate customers to revisit their shopping carts with messages or push notifications. For instance, if a user looked up hotels on an app but did not make the payment, you could send them a reminder or message to remind the user to return to action.


Influencing the behavior of users is one method of monetizing apps, however, it is also possible for revenue to be earned through other sources. For instance, in-app ads can bring in additional income for app developers and advertisers, with higher ad views generally translating into increased advertising revenue for advertisers. It is also possible to generate revenue by offering users the choice to purchase an ad-free alternative. Another alternative is to use sponsorships and affiliate programs that will benefit both the app’s creator and the company by generating brand awareness.


In the end, mobile marketing, as well as app managers, need to utilize a variety of ways to monetize their apps to get the best return on investment through encouraging purchases in-app to earn commissions, and working with major brands.


What is the significance of App Monetization for Marketers?

Experts in the field estimate that, when all together, the total amount of iOS and Android OS apps installed on tablets and smartphones is more than 5 million, and it continues to increase. From a mere few hundred apps as of 2008, the industry has seen a massive expansion driven by tablets, smartphones smartwatches, smartwatches, and various other wearable devices as well as the ongoing transition from a feature phone to smartphone usage and the explosive expansion of the middle class in Asia particularly in China.


App monetization is vital for mobile app marketers and product managers who wish to stay competitive in the sea of free mobile apps, and still, earn a profit on their investment. Another benefit of earning money through these methods of marketing is the improved user experience. For example, marketers can customize ads to appeal to certain users, giving them relevant content and enticing them to come back after a while. In addition, users who are targeted at an early stage with personalized rewards are more likely to feel appreciated and will often keep using the app regularly.


In 2022, mobile app monetization methods will primarily focus on providing the utmost user experience–publishers will not compromise user experience when monetizing their apps. This means the app will have less space for in-app advertisements to succeed as a method of revenue generation. However, non-intrusive advertising styles have a shot at being successful in this business.

In-App Advertising

In-app ads are a major component of the app’s monetization ecosystem. It is the term used to describe the placement of advertisements within your application. In-app advertising is a monetization strategy that is suitable to all verticals and offers many ways of displaying advertisements to users.

Here’s an overview of the monetization options available in in-app apps:

Native advertising:

It is a simple method of earning income from advertising without interfering with the user experience of your app. Native advertising is intended to recreate the user experience and look of your application. It gives users a positive experience but also exposes users to ads. Since native ads have to look at the style and functionality of the app, it may create a more unique marketing strategy.


Playable ads:


If you’re advertising a mobile game there’s no better way to showcase its strengths than by letting users play the game. Playable ads allow this to be done because they let users play a part of the game without having to install it. In the past playable ads have become the preferred choice of many advertisers. It was the case that the playable format was chosen as the most efficient in-app ad format across the US.


The Rewarded Video:


This video format includes gamification in the experience of watching an advertisement. Mobile users are encouraged to view ads in-app since they’ll be rewarded with an incentive each time they watch. For example games on mobile devices could give players additional lives or coins when watching a 30-second advertisement. Based on the market research report on the use of in-game advertisements it is rewarded video is the most popular method of advertising. Another report from Ocean found that the cost of game-related advertising was around 5.29 billion in the year 2020 and is projected to increase by more than 19.5 percent between 2021 and 2027.


Interstitial ads:


These advertisements are the biggest in terms of their size. The idea behind them is to cover the entire smartphone screen to draw the attention of all mobile devices to a single advertisement. They are two-edged swords On one hand they ensure that users of smartphones will see the ad, but they can irritate users, making them less likely to view an advertisement that advertisers would like to provide them with.



Considering that banner ads occupy a tiny area on phones, users pay no attention to these ads. For banners on Android banners, ads range from $0.15 to $1.50, and for iOS banners, they range from $0.20 up to $2.00.


A Model of App Monetization is Freemium

Several apps provide a freemium service that lets users download the app free of cost and benefit from the benefits of advertisements. The likelihood of people buying an app they’ve never tried is very low. So, many developers offer a freemium option to let users test the apps before they commit to a long-term subscription.


If you offer a free service it is possible to demonstrate the benefits of your product to convince people that it’s worth the money. The model of monetizing your app for free is very popular since it is more effective to attract users with a completely free app. Furthermore, those who don’t sign up for the premium version of your app can be monetized using in-app advertisements.


For example, Dropbox, a popular cloud storage website, provides an affordable plan with 2GB of storage, which is ideal for backups and file sharing. Dropbox’s Pro package, which includes 1TB cost $9.99 each month. The Dropbox freemium plan is designed to demonstrate how simple it is to transfer and back up your data with Dropbox’s Dropbox framework. This is because you can save files from any location and mobile device. Furthermore, anyone with photos or videos would say that 2GB isn’t enough. In this regard after you’ve seen how simple it is to make use of Dropbox and pay a $9.99 monthly cost to upgrade is an easy choice.


Subscription Monetization Model

Subscription monetization models allow users to improve their experience and eliminate ads. A Sensor Tower Survey revealed that sales for the 100 most popular apps in the US have increased by 21% between 2019 and 2022 up from $3.8 billion to over $4.6 billion. A good illustration of a subscription model for monetization can be found on Spotify. Spotify model.

If anyone wants to download and begin listening to music that has ads but they’ll have to subscribe to a monthly fee for unlimited ad-free service.

The majority of apps allow an initial one-month trial of their subscription packages so that customers can check out the benefits they’ll lose when they stick with their free versions. One great instance is Netflix. It is among the most well-known companies worldwide as its revenues have grown by 23% or more each year since the beginning of 2018. Netflix is currently among the most profitable companies that operate exclusively based on subscriptions. It focuses on three areas of investment, which are technology as well as content, and marketing. Its revenues are built around customers paying a monthly flat fee to stream television shows and other specials.

In-App Purchases

A lot of mobile apps rely on in-app transactions for their operation. For instance, 95 percent of Google Play Store applications are free, and they generate revenue via the use of monetization techniques such as in-app purchases. In-app purchases amount to approximately $380 billion worldwide. They are among the most effective methods of growing the revenue of an app.

In-app purchases for games on computers can be classified into two types which are consumer-grade items and those that are not consumable. Consumables such as in-game currency are typically available for only a short period, while the non-consumables are purchased only once. Unlocking a character’s face as well as the stage can be an example of an in-app purchase.


There are many advantages when you use in-app purchases. In-app purchases give you the ability to control the amount of money you spend. You can play games or download apps at no cost without having to purchase any items. But the need for players to advance to the next stage often is a long-lasting desire. They’ll buy gems or coins to advance to the next stage of the game.



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