In this article, I want to explain how free apps make money and list the best ways of how to monetize an app. We will consider the best approaches for those entrepreneurs, who already got an app idea.

But first of all, I want to answer your burning question. Are free apps worth developing and how much money do apps make today?

How Much Money Do Free Apps Make?

There has always been a deep-rooted prejudice that free apps cannot bring much profit. Yet, the mobile app industry statistics proves otherwise. Let’s compare the number of free apps available on the market today and their revenue.

The statistics in December 2019 shows that 96,2% of all apps on the market are free. Meanwhile, the mobile app market forecasted revenue is $581 billion in 2020. The numbers make it clear that this niche is highly competitive and profitable.

How to Monetize an App Idea?

Let’s have a detailed review of all mobile monetization strategies. That is how to make money from your app even if it is free.

In-App Advertising

The first and the most widespread monetization model is in-app advertising. Making money with ads seems to be old news, but this year advertising in apps will become even more popular. This mobile app monetization model allows to cooperate with brands in various spheres.

Banner Ads

Banner (or display) ads is one of the mobile ad formats. App banner ad is a rectangular picture that is displayed at the top or bottom of a mobile screen. 

Banners usually contain text and static or animated images. They are placed in the most high-visible areas of the app screen.

Video Ads

Video ad is a short promotional clip displayed within an app. Today, a video advertisement is one of the most effective mobile ad formats. But it is still rather controversial.

In-app video ads introduce an app and give a direct link to download it. They require large investments. But can provide founders with a high level of engagement. 

Native Ads

The most effective model of app advertising is a native one. Native ads is an organic and seamless way to present your app.

The main purpose of native ads is to display an advertisement as a part of a publisher’s content. The best approach is to present ads without obstructing user flow within the app.

Check out other 20 proven models, tactics, tips and hack on how to make money using your free mobile app - https://spdload.com/blog/how-do-free-apps-make-money/