How Do Free Apps Make Money In 2020?

By Author: Maksym Babych
Total Articles: 2
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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.

The research on how much money apps make shows that the revenue of mobile apps in 2019 was $461 billion.

But how do apps make money if they are 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.

Interstitial Ad Model

Interstitial ads are full-screen ads shown within the entire mobile screen. They are usually shown in the most non-disturbing way. Interstitial ads are tapped in the app flow. They are usually displayed while the app is loading, between levels or during the pause.

Users can close, tap or just watch an interstitial ad. The main purpose of this ad type is to catch the user’s attention. Thus, these full-screen and high-quality ads usually use creative and smart call-to-actions.

Incentivized Ad Model

Incentivized advertising is also called sponsored, rewarded or value exchange model. It rewards a user for particular actions. For example, users can gain something through actions. They can watch an in-app video ad, install an app, engage with app features and so on.

Check out 20 proven marketing tactics, models, hacks & tips on how to monetize your FREE app for day 0 - https://spdload.com/blog/how-do-free-apps-make-money/

I am CEO at https://spdload.com/