How To Make Money Off Internet Ads – If you’re an aspiring entrepreneur who wants to learn how free apps make money, then you’ve come to the right place.
Mobile app development requires huge capital investment. Therefore, it is important to learn how to invest in your free app before the development process begins.
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While all of these strategies certainly work for most free mobile apps, they are not the only monetization methods out there.
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In fact, if you only plan to use these three strategies, then achieving the million dollar mark in revenue will take forever given today’s market conditions and competition.
In this blog, we’ve shared 9 proven app monetization strategies that still work in 2019 and will continue to work well into the future.
If you want to skip the learning part and create your own app to earn money, talk to our expert advisor.
Ads are one of the easiest and most common app monetization options for making money from free mobile apps.
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In fact, mobile app advertising revenue already reached $159 billion worldwide in 2018 and is projected to reach $250 billion by 2022.
What’s more, according to eMarketer, more than 67% of digital advertising spending will soon move to mobile.
Well, it’s basically because mobile apps provide a dynamic environment in which ads can be seamlessly integrated into the app’s content.
In simple terms, ads in mobile apps are viewed as a relevant proposition rather than an unwanted distraction, which ultimately enhances users’ app experience.
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Below, we have shared all the ad formats so that you can understand how each ad format will affect the user experience while using your mobile app.
Now, when it comes to mobile app ads, there are two main categories – video ads and display ads.
As the name suggests, video ads are basically short promotional videos that can effectively deliver brand messages to all users.
Below are 4 main video ad formats you can consider integrating into your free app.
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Interstitial Video Ads: Interstitial video ads are basically full-screen ad videos that appear automatically when a user takes a natural pause in the app.
For example, when a user completes a level in a mobile game or tries to navigate to the home page of an application, an ad automatically pops up and starts the game. Overall, Internet video advertising is very effective because it fills the user’s screen and allows for rich storytelling.
Rewarded Video Ads: This video ad format is mainly used in gaming apps. It basically enables users to earn virtual points or items to advance faster in the game in exchange for watching a video ad.
Unlike an online video ad, a rewarded video ad is opt-in, meaning users have the option to skip it and continue using the app without seeing the ad. And it is for this reason, rewarded video advertising has the highest view rate among all advertising formats.
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Outdoor Video Ads: Outdoor video ads basically do not take up the entire screen of users’ devices. Instead, they are placed in the middle of the app content as shown in the image below.
This video ad basically plays automatically when the ad reaches the right viewable area of the screen. And just like rewarded video ads, outdoor video ad also has a higher view rate because it also offers the option to pause or stop the ad.
Instream pre-roll video ads: Instream pre-roll video ads are basically played before, in between or after the video content in the app’s video player. This video ad format has become increasingly popular and is an effective way to capture users’ attention.
The best example of an Instream pre-roll video ad is YouTube. Remember those “skip in 5-second ads” that appear at the beginning and sometimes in the middle of the video you watch? – This is a pre-roll video ad.
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Display ads, as you already know, are static or GIF image ads that help brands expand their reach in the app environment.
Interstitial display ad: Like an interstitial video ad, an interstitial display ad is a full-screen ad that appears when a user pauses native content in an app.
Since this ad format covers the entire device screen, they are believed to be one of the most engaging display ads.
Banner Display Ad: The banner display ad was probably the first ad format introduced in mobile apps. It is basically a small banner placed inside the app content either at the top, middle or bottom.
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Although these ad formats are small in size, they still have a large reach and impact that can help increase brand awareness.
Medium rectangular ad: The medium rectangular ad, to explain it in the simplest possible terms, is basically a large square ad.
Unlike a banner display ad, a medium rectangle ad provides more space for promotional content with higher viewability.
Native Display Ad: Native display ad basically fits in a way that it doesn’t look and feel like an ad.
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As a result, it creates a highly effective user experience in which native display ads are perceived as a welcome consideration.
These are all the best practices for in-app advertising that you can use to start making money with apps.
As the name suggests, in-app purchases basically allow app providers to sell various types of virtual goods such as additional bonuses, virtual goods, in-game currency, or premium content within the app.
According to Forbes, free apps that use the in-app purchase monetization model generate the highest revenue, and this model is also predicted to continue to dominate in the coming years.
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Subscriptions: You can provide in-app subscriptions where users can unlock premium content for a limited time. Example: Insider news stories.
Consumable: This can be a digital product that can be purchased and used within the app. Example: Premium stickers in a chat app.
Non-expendable: This may be a feature that users can purchase for unlimited use. Example: Nutrition tracker in a food tracking app.
Using any one or a combination of these categories, you can easily start making money from your free app.
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Freemium basically means that an app is offered for free to download and use with minimal features.
Then, if users feel that the content of your app is worth paying for, they can access all the features by purchasing the PRO version of your free app.
However, you can apply this strategy even if you have no additional features to offer.
For example, you can integrate various ads in the free version of your app and if users want to enjoy an ad-free experience, they can do so by purchasing the PRO version of your mobile app.
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The best example of this strategy is the MX player. This is a video player app where the free version often displays both videos as well as banner ads.
However, users can get rid of all ads in MX Player by purchasing its PRO version for a small amount of money.
You, as a free app owner, can partner with brands and sell affiliate services and products based on different models.
Cost per view, as you may have guessed, depends on the number of views an affiliate ad receives on your free mobile app.
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You can implement this model by using the interstitial video ad format to display affiliate ads at regular intervals.
This referral marketing model depends on the number of clicks the displayed ad receives on your free app.
In simple terms, you can earn a certain amount of money every time a user clicks on a displayed referral ad. The ad can be either a video or a display ad.
AdMob and Adfonic are two of the most popular platforms to partner with brands and earn money per click on your free app.
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In this referral marketing model, you basically promote many other apps through a pop-up video or display ad. If your user, for example, clicks on an ad and installs the advertised app, you will earn a fixed amount of money.
There are many CPA affiliate platforms that you can join to earn money. To help you get started right away, here is a list of the best mobile CPA networks for you to check out.
The difference between the two is that in this model you provide all the features or content for free for a short period of time. And then, lock all the features and charge a monthly/annual subscription fee for those users who want to continue using your app.
As you all know when you first sign up on Netflix, you get free access to all content for 30 days, and if you want to continue watching on Netflix after 30 days, then You must purchase any of their subscriptions. Plans
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This app monetization model is often used in online music and video streaming apps like Netflix, Amazon Prime Video, Spotify, etc.
However, it is still one of the most powerful app monetization options if you build your app in the right place.
For those who don’t know, app sponsorship is similar to website/blog sponsorship where sponsors refer app owners who have a similar target audience.
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