How Do Free Apps Make Money in Apps in 2020: How do free apps make money? During the recent times we’ve been getting quite a lot of questions about the hottest topic on the app market. Well, it’s time to reveal the truth behind app monetization magic.

As free applications definitely outmaneuver the paid ones (considering download numbers), the main thing here is to find out how to capitalize on those new users, for example through app data monetization. With no further adue, let’s unveil the main advantages of creating free apps and the most efficient app monetization strategies.

How to make money with free apps

Key app monetization strategies include:

Advertising: interstitial, video, native, incentives, display ads and banners

• Email marketing
• Sponsorship
• Subscriptions
• In-app purchases
• Freemium upsell
• Amazon Underground
• Physical purchases and merchandise
• Collecting and selling data
• Affiliate income and referral marketing (from CPA to CPI)

Best tools to monetize free apps:

• In-app advertising tools
• In-app advertising for game applications
• Freemium model of app monetization
• In-app video advertising

The App Market overview

The global app economy is large and it’s going to keep growing. As of 2016, there were more than 2 million applications in Apple’ App Store and 2.4 million in Google' Play Market, making it the most popular distribution platform in the world. It is projected that revenues generated from mobile apps, including advertisements and in-app purchases, will double by 2020. By the way, you may check our research about how much does it cost to build an app.

Taking into account that tablet and mobile device usage has reached unprecedented records, it is the right time for your business to have the own app if you don’t have one. But what app type should you choose? How can you get revenue from free apps? Let’s have a closer look at mobile app market.

How do free apps make money?

let’s analyze the main revenue models for free apps:

Advertising
Mobile advertising remains the most profitable app revenue model. 7 out of 10 app providers used it in 2016, 18% plan to use it in the near future. Using ads to monetize app is quite simple, all required is to display commercial inside your mobile apps and get paid from the ad networks.

See also “How free games are designed to make money”. This video offers a great illustration about the most successful strategies of app monetization. Let's explore!

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