Alternative App Monetization Strategies to Maximize Revenue
This story originally appeared on the MAF blog.
You’re probably monetizing your app with ads, IAPs, subscriptions, or all three.
There’s nothing wrong with that.
But have you ever considered boosting your earnings with app monetization strategies outside the “main three”?
These are what we call alternative app monetization strategies. While most of them aren’t meant to become the primary revenue source for mobile apps, they can bring in some extra revenue to the table.
Some alternative app monetization strategies in this list are more suitable for big apps, while some can be applied regardless of the app size.
Let’s go over them.
Web-Based Shops
In-app shops are the norm. But have you ever thought about creating a web-based shop for your app?
Web-based shops act as an extension of the app, where users can make purchases just like they would in an in-app shop. In these shops, you can offer anything you want, from in-app items and currencies to subscription plans.
The key difference from in-app shops?
Well, first of all, app stores take a cut (up to 30%) of each in-app purchase. By directing users to a web-based shop, developers can avoid these fees and keep more purchase revenue.
Moreover, web-based shops allow developers to create a more personalized shopping experience.
When users log into web-based shops, the developer can access more sophisticated analytics and user data than in the app environment. Thanks to this, they can create a tailored shopping experience for users (e.g. targeted recommendations, special promotions, customized bundles).
Suitable for: Medium and large gaming apps with strong user engagement.
Offerwalls
Offerwalls are probably the least alternative app monetization strategy on this list. But, since they are not as popular as classic ads and IAPs, they deserve to be mentioned.
Not familiar with how they work?
In mobile apps, offerwalls appear as “walls” consisting of different “offers”. Upon opening an offerwall, users can find a list of different actions they can take to earn rewards within the host app. For instance, installing other apps, reaching level X in a game, etc.
Users discover offerwalls while exploring the app and voluntarily engage with them because they get tempted by the rewards they offer.
What’s in it for the developer?
Offerwalls are more lucrative than all other ad formats, delivering extremely high eCPMs (effective cost per mille). They help developers monetize non-paying users and even improve their retention rates. According to Unity, offerwalls users have up to 5x higher retention rates than other app users.
Lately, this long-standing monetization strategy started gaining some new traction. More and more developers are turning away from intrusive ads and focusing on providing their users with rewarding experiences.
Suitable for: Apps of all sizes, particularly effective in mobile gaming.
Merchandising
Yup, apps can sell their own merch. There are many examples of apps that sell things like clothing, mugs, and toys to digital goods like music or artwork.
But, in order for this to work, apps must have strong user bases.
This strategy is mainly used by major mobile gaming titles with worldwide popularity. For example, in its merch store, Fortnite sells T-shirts, hoodies, lamps, phone cases, etc. Angry Birds also has a store where they sell T-shirts, toys, headphones, skateboards, etc.
In most cases, these merch stores operate as web-based shops outside the app. To spread the word about it among players, the developers can promote the merch through social media and in-app events.
Suitable for: Big mobile gaming titles with a strong brand and dedicated user base.
Sponsorships and Partnerships
Sponsorships can be applied to many verticals, and app monetization is no exception. App developers can earn extra money by partnering with brands and featuring them within their apps.
The first step is finding a brand willing to pay to get featured in your app. Next, you’ll need to decide on the integration strategy.
Here, you can get creative.
There are no particular rules for featuring brands in mobile apps. Some common strategies include creating product placements, sponsored in-app events, challenges, etc. For example, a racing mobile game might promote a brand by featuring it on a billboard on the side of the road (this type of advertising is called native advertising).
When it comes to sponsorships, it’s important to ensure there is an audience match. The advertised brand should be aligned with the interests of the app’s userbase to create a mutually beneficial partnership.
Suitable for: Gaming apps with large enough user bases to attract sponsors.
Blockchain Monetization
A few years ago, many industry experts believed blockchain monetization would become mainstream. Even though this didn’t happen, it has remained one of the most valuable alternative app monetization strategies.
In most cases, apps use blockchain technology to create NFTs (non-fungible tokens) that users can buy, sell, or trade. In this process, the NFT creator (developer) makes money by receiving a cut from each transaction involving their NFTs.
Some popular apps and games that integrated this monetization strategy include Ubisoft’s Ghost Recon: Breakpoint, Animoca Brands’ Crazy Defense Heroes, the NBA app, Shopify, etc.
Suitable for: Gaming apps and digital collectibles platforms.
Paywalls
Don’t want to make users pay to download your app, but wish to restrict access to premium content?
Consider adding a paywall to your app.
There are two basic types of paywalls: hard paywalls and soft paywalls.
While hard paywalls allow no free features except for a trial period, soft paywalls allow users to access basic app content for free but restrict exclusive content or features. Both types of paywalls typically present users with multiple subscription options (e.g. weekly and monthly).
If you’re adding a paywall as an additional revenue stream, then think about integrating a soft paywall.
This monetization model works well for apps that provide premium, high-value content or services. For example, an education app can offer basic lessons for free but put a paywall on advanced courses, a no-ad experience, personalized lessons, etc.
Suitable for: Different sized apps, including education apps, productivity apps, photo and video apps, fitness apps, etc.
Real-World or Virtual Events
When you have a megapopular mobile game, you also have additional monetization options.
One of these options is hosting gaming events — mobile game studios can organize real-world or virtual tournaments, conventions, and gaming sessions.
To encourage users to join, such events typically offer special in-game rewards, exclusive content, and direct feedback opportunities.
How do these events make money?
In most cases, they charge users for tickets, and this is their main revenue source. However, they often reap some extra revenue from sponsorships and merchandise.
A great example of this is Pokémon Go Fest by Niantic. This annual event takes place in various cities around the world, as well as virtually. The basic virtual version of the event is free, but users who purchase tickets can access exclusive content and special bonuses.
Suitable for: Big mobile gaming titles with strong communities.
Live Streaming
Do you think a live streaming feature might make sense for your app? Do you have the resources to integrate it?
Live streaming can become a valuable additional revenue stream for your app.
It usually works like this — through live streaming features, users can broadcast gameplay or content. Typically, viewers support streamers through donations, tips, and sending virtual gifts. The developer earns from each of these transactions by taking a platform fee percentage.
Integrating such features makes the most sense for apps that thrive on content sharing, real-time engagement, and community building.
Suitable for: Mid to large apps, inlcuding social platforms, fitness apps, educational apps, and content-sharing apps.
Alternative App Monetization Strategies Wrap-Up
Did you have the chance to test any of these alternative app monetization strategies?
If you’re planning to do it after reading this article, make sure to choose wisely based on your app type, size, and your users’ preferences.
The most universally applicable strategy on this list?
Offerwall monetization — offerwalls can be effective for different-sized apps across different verticals.
If you’re interested in adding an offerwall to your app, make sure to read our guide for choosing an offerwall partner. If you’d like to learn more about offerwall monetization and explore if it makes sense for your app, feel free to reach out!
