Mobile Apps Business Strategy

How do Free Mobile Apps Generate Revenue?

When it comes to mobile app development, one of the most common questions that we hear is how do free apps generate revenue? There are a number of different ways that this can be done, and in this blog post we will discuss some of the most popular methods. Keep in mind that there is no one “right” way to make money from mobile apps – it depends on the specific app and its target audience. But by understanding the various options, you can create a monetization strategy that works for your app. So let’s get started!


One common way to generate revenue from free mobile apps is through advertising. This can be done by displaying banner ads within the app, or providing in-app purchase opportunities where users can pay to remove ads. Another option is to offer a paid version of the app that does not include any ads. This allows users who are willing to pay for a premium experience to do so, while still providing a free option for those who are not as willing to spend.

There are typically 4 ways to display ads within your app. Banner ads, video ads, interstitial ads and native ads.

Banner Ads: Banner ads are the most common type of ad you’ll see in mobile apps. They are typically displayed at the top or bottom of the screen and can be easily ignored by users if they are not interested in what is being advertised.

Video Ads: Video ads are becoming increasingly popular, as they are more engaging than banner ads. They can be played automatically or on-demand, and are often skip-able after a few seconds.

Interstitial Ads: Interstitial ads are full-screen ads that are shown at natural transition points in the app, such as between levels in a game. They are usually more difficult to ignore than banner ads, but can also be more intrusive and interrupt the user experience.

Native Ads: Native ads are ads that are designed to blend in with the overall look and feel of the app. They are typically less disruptive than other types of ads, and can even be beneficial to the user experience if they are relevant and well-designed. Examples of these include promoted tweets on Twitter that looks like a normal tweet.

There are a few things to keep in mind when choosing which type of ad to display in your app. First, consider the target audience for your app. If it is aimed at children, for example, you will want to avoid showing interstitial ads, as they can be disruptive to the user experience. Second, think about the overall design of your app. If it is clean and minimalistic, you may want to avoid banner ads, as they can clutter up the interface. Finally, consider your own goals for the app. If you are looking to generate a lot of revenue, then you will want to choose an ad format that is more likely to be clicked on by users.

IN-App Purchases

Another popular monetization method is in-app purchases. This can be used to sell virtual or physical goods within the app, or to provide access to premium features that are otherwise locked. For example, a game might offer in-app purchases for new levels or power-ups, or a productivity app might offer an annual subscription that unlocks all of its features. In-app purchases are a great way to make money, as they are usually relatively inexpensive and easy to implement.


Another way to generate revenue from is through sponsorships. This involves finding companies or brands who are willing to pay to have their name associated with your app. This can be done by displaying their logo within the app, or by featuring their products or services within the app. For example, a fitness app might feature a particular brand of sports equipment, or a news app might be sponsored by a particular media outlet.

Sponsorships can be a great way to generate revenue, as they are usually relatively easy to secure and can provide a significant boost to your app’s income.


There are a number of different ways to generate revenue from a free mobile app. By understanding the different options available, you can choose the one that best suits your app and its target audience. By incorporating one or more of these methods, you can start generating revenue from your free mobile app.