From gaming and dating to shopping and banking - mobile apps have become a staple for most smartphone users around the world. Over the last few years, the number of mobile app downloads has soared, reaching 204 billion annual downloads by 2019. With so many customers downloading and engaging with apps on a daily basis, it comes as no surprise that brands and marketers have begun to tap into the immensely profitable app industry and capitalize on the rising demand for app content.
But how do digital content stores generate revenue from their apps, and what are the most lucrative app monetization methods among digital marketers? According to a 2019 survey, the most used mobile app business models include subscription, freemium, and advertising models. While subscriptions are considered the most profitable monetization model, monetization via in-app purchases (IAP) and in-app advertisements (IAA) is also becoming increasingly prevalent among app developers nowadays. As for the most effective in-app advertising formats, developers often opt for playable, interactive, and rewarded video ads. All of these monetization strategies are particularly popular as they allow for long-term revenue stream, even from apps that are free to download. Even if users are not charged a one-off fee upon initial download, their engagement, clicks, or spending on ad-free app versions contributes to the app industry’s standing as a multi-billion-dollar empire.
As both mobile app downloads and app revenue are forecast to increase in the following years, brands and marketers will continue to benefit from the vast monetization potential of mobile apps. Nevertheless, they will also have to overcome particular challenges in their strive for profit, such as ensuring a positive app experience to their users, regardless of possibly intrusive advertising content.
This text provides general information. Statista assumes no
liability for the information given being complete or correct.
Due to varying update cycles, statistics can display more up-to-date
data than referenced in the text.
In the following 6 chapters, you will quickly find the 71 most important statistics relating to "Mobile app monetization".