App monetization trends: How are apps making money in 2024?

In a world where apps are a major part of our daily lives, app developers are constantly seeking new and innovative ways to monetise their creations.

The year 2024 has proven to be an exciting time for app monetisation trends, offering a myriad of opportunities for apps to generate revenue from users and customers. The global revenue from mobile app downloads is projected to reach $935 billion by 2024.

Dive into this article as we explore the various strategies and trends that are currently shaping the app monetisation landscape.

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From in-app purchases to subscription models, and from advertising to strategic partnerships, the possibilities are endless for mobile apps to create a steady stream of income.

Whether you’re an app developer, investor, or simply someone who’s curious about how apps make money, this article is for you. Let’s unlock the secrets of app monetisation in 2024together! In 2024, in-app advertising is expected to remain the primary source of revenue for mobile apps. This is due to the increasing number of app users and the growing popularity of mobile advertising. According to eMarketer, mobile advertising spending is projected to reach $290 billion by 2024. This presents a significant opportunity for app developers to monetize their apps through in-app advertising.

User behaviour when it comes to paying for apps is influenced by several key factors. One of the most important factors is the perceived value of the app.

Users are more likely to pay for an app if they believe that it offers them something of value that they cannot get elsewhere for free. This could be a unique feature, a better user experience, or exclusive content.Another key factor that influences user behaviour is the price of the app. Users are more likely to pay for an app if they feel that the price is reasonable and reflects the value that they are getting. If the price is too high, users may be deterred from purchasing the app, even if they believe that it offers them something of value.

The ease of payment can also be a key factor in user behaviour when it comes to paying for apps. If the payment process is simple and straightforward, users are more likely to complete the purchase.

However, if the payment process is complicated or requires too much personal information, users may abandon the purchase. The user behaviour when it comes to paying for apps can also be influenced by the availability of alternative options. If there are similar apps available for free, users may be less likely to pay for an app, even if it offers them something of value. Developers need to be aware of the competition and ensure that their app stands out in terms of value, price, and user experience.

In-App Purchases and Microtransactions

In-app purchases (IAP) remain a popular monetisation strategy in 2024, allowing users to buy virtual goods, premium features, or even currency within the app. Microtransactions, small purchases that enhance the user experience, have also gained traction in recent years, driving revenue for app developers. According to a report by Statista, in-app purchases are projected to generate $201 billion in revenue by 2024. This is due to the increasing number of apps that offer premium features and content that users can purchase within the app. This trend is particularly popular in gaming apps, where users can purchase virtual goods and currency.

One of the most successful strategies for generating revenue through in-app purchases is to offer users a freemium model. This means that the app is free to download and use, but certain features or content are locked behind a paywall. This allows users to try out the app and decide if they want to invest in the premium version. Freemium models have been successful for apps such as Spotify and Candy Crush, which offer a basic version for free and charge for additional features or in-game items. Freemium apps generate the most revenue among all app types.

Freemium models can be successful, but it’s important to make sure the free version provides enough value to entice users to upgrade to the paid version.
– David Heinemeier Hansson

Apps can also generate revenue through consumable in-app purchases, which are items that can be used up or depleted, such as virtual currency or lives in a game. Users can purchase these items to enhance their experience within the app. This strategy has been successful for apps such as Clash of Clans and Pokémon Go.

Finally, apps can generate revenue through non-consumable in-app purchases, which are items that do not expire or disappear, such as additional levels or features. Users can purchase these items to enhance their experience within the app. This strategy has been successful for apps such as Minecraft and Headspace.

Subscription Models

Another effective way for apps to generate income is through subscription models, which provide users with access to exclusive content, features, or services for a recurring fee. This method offers a predictable, steady revenue stream for developers, while giving users the value they seek on an ongoing basis.

Subscription-based models can be a great way to generate recurring revenue from your app, but it’s important to provide enough value to justify the cost.
– Jason Fried


With this model, users pay a recurring fee to access premium content or features within an app.

This model has been particularly successful in apps that offer ongoing services, such as music streaming or fitness tracking. One of the most successful strategies for generating revenue through app subscription model is to offer a free trial period to users. This allows them to try out the app and its features before committing to a subscription. During the trial period, users can become familiar with the app and its value proposition, which can increase the likelihood of them subscribing once the trial period ends. Another successful strategy is to offer different subscription tiers with varying levels of access and features. This allows users to choose the subscription level that best fits their needs and budget. It also provides an opportunity for the app to upsell users to higher subscription tiers as they become more engaged with the app and its features.

Subscription-based models are also expected to become more popular in 2024. According to a report by Sensor Tower, subscription-based apps are projected to generate $86 billion in revenue by 2024. This trend is particularly popular in entertainment and media apps, such as music and video streaming services. App developers can generate recurring revenue by offering users access to premium content for a monthly or yearly fee.

Therefore, it is important for apps to regularly communicate the value of their subscription to users. This can be done through in-app messaging, push notifications, or email marketing. By reminding users of the benefits of their subscription, apps can increase the likelihood of users renewing their subscription and continuing to generate revenue.

Advertising and Strategic Partnerships

Advertising within apps can take various forms, such as banners, interstitials, or native ads, all of which can generate income based on user impressions or clicks. Strategic partnerships, on the other hand, involve collaborating with other companies or influencers to promote each other’s products or services, creating a win-win situation for all parties involved.

Targeted advertising is one of the most popular ways for mobile apps to generate revenue. By collecting user data such as demographics, interests, and behaviors, apps can display ads that are more relevant to the user, increasing the likelihood of clicks and conversions.

To implement targeted advertising, mobile apps can use various methods such as in-app ads, native ads, and rewarded video ads. In-app ads are displayed within the app, while native ads blend in with the app’s design. Rewarded video ads offer users a reward, such as in-game currency, for watching the ad.

However, it’s important for mobile apps to balance the use of targeted advertising with user experience. Too many ads or irrelevant ads can lead to user frustration and even app abandonment. Apps should also be transparent about their data collection and use, and offer users the option to opt-out of targeted advertising. Targeted advertising can be a lucrative revenue stream for mobile apps, but it requires careful implementation and consideration of user experience. By using various ad formats and programmatic advertising, apps can increase the relevance of ads and maximize revenue potential.

App monetization trends have come a long way since the early days of mobile apps. Developers now have a range of options to generate revenue, from in-app purchases and subscriptions to hybrid models that combine different strategies. Mobile app revenue is expected to reach $935 billion by 2024. As the app market continues to evolve, it will be interesting to see what new monetization trends emerge in the future.

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