Mobile app monetization trends: How are apps making money?

The mobile app market size is set to surpass $626 billion by 2030, and in the U.S. alone, mobile ad spend is projected to hit US$288.11 billion in 2025. To capitalize on this opportunity effectively, mobile app monetization must be baked into how apps are built, evaluated and optimized, not treated as a post-launch consideration. 

User acquisition (UA) teams must think beyond volume and into how they can ensure that the users they’re delivering offer maximum lifetime value (LTV) by matching them to the appropriate monetization model: it’s no longer about picking a single path. Smart app marketers and developers are now building holistic monetization strategies that adapt based on the segment or the stage in the user journey/lifecycle. This means tighter integration between product and performance teams and a higher bar for insight into what’s working, what isn’t, and why. 

Here’s how the mobile monetization landscape is evolving across core models, and how savvy teams are adapting.

In-app advertising (IAA) remains a core revenue stream for mobile apps, but how it's executed has changed. As acquisition costs rise and privacy frameworks narrow targeting capabilities, monetization teams are focusing less on ad density and more on efficiency.

Rewarded video is still the go-to format in gaming and continues to expand into lifestyle and utility categories, where opt-in mechanics fit cleanly into the user experience. Playables are increasingly used to drive performance earlier in the funnel, while native ads are delivering stronger results in content-heavy apps with tighter UX constraints.

The focus now is on control: where ads appear, which formats are used, and how different segments respond. Teams are building ad monetization into the broader product and lifecycle strategy, evaluating it against LTV and retention, not just fill rate.

Subscription monetization has matured. Blanket paywalls and generic upgrade prompts are being replaced with more deliberate strategies based on behavior, timing, and user intent.

The strongest performing apps—generally those in health and fitness, productivity, and education—are using data to identify when users are most likely to convert and tailoring pricing, trials, and messaging accordingly. Trial optimization, dynamic paywalls, and segmented onboarding flows are driving better conversion rates and improving long-term retention.

Teams are also refining post-subscription strategies: cancellation flow design, win-back campaigns, and churn prediction models are now standard parts of the monetization toolkit. The shift isn’t only toward increasing the number of subscriptions, but toward better ones that are less likely to cancel following a free trial, and in turn more likely to renew once the subscription cycle nears its end. 

Key trends shaping subscription monetization:

• Behavior-based paywalls: Static upgrade prompts are being replaced with paywalls triggered by in-app behavior and signals of intent.
• Trial optimization: A/B testing of trial length, messaging, and pricing models is driving better conversion and higher LTV.
• Personalized pricing: Apps are experimenting with geo-based or cohort-based pricing to improve accessibility and conversion in specific segments.
• Churn mitigation: Cancellation reasons are being captured and fed into re-engagement flows, with tailored offers based on user value.
• Cross-team ownership: Subscription monetization is now a shared responsibility between growth, product, and CRM, ensuring consistent messaging and better data flow.

In-app purchases (IAPs) remain one of the most flexible mobile app monetization models, especially in the gaming, social, and productivity verticals. But strong performance now depends on how and when purchase opportunities are presented, not just what’s being offered.

Static storefronts and generic upgrade prompts are being replaced by dynamic offers triggered by behavior, timing, and in-session context. Teams are mapping IAP opportunities to specific moments in the user journey, offering items when engagement peaks, upselling premium features after habit formation, and using limited-time bundles to drive urgency.

The aim has developed beyond increasing average revenue per user (ARPU), and into shaping purchase behavior in a way that supports long-term retention and value.

Fewer and fewer apps are driving sustainable growth with a single monetization model. As acquisition channels diversify and user journeys become less linear, app teams are adopting hybrid strategies that adjust based on segment, intent, and lifecycle stage. One of the first verticals to do this was hyper casual games, which resulted in the genre of hybrid casual. Instead of focusing solely on ad revenue, developers introduced stickier features and opened the games up to longer user lifecycles, adding the potential for IAP and even subscriptions. 

Matching model to user

A user acquired through paid search might be primed for a subscription. Another, who enters through organic discovery and engages casually, may respond better to in-app ads. Some apps use IAPs to target mid-funnel users who’ve hit key engagement milestones. The model isn’t fixed, it’s responsive.

Building for stability

Diversifying revenue is also a hedge. It protects against platform changes, seasonal ad fluctuations, and shifting CPMs. The goal isn’t just more revenue, it’s more reliable revenue across a wider range of user behavior.

Operational coordination

This kind of strategy only works when teams align. Monetization, product, and UA need to coordinate closely to avoid overlap, ensure consistency, and optimize for long-term value rather than short-term gains.

The monetization strategies emerging as top trends currently aren’t just “models,” they’re focused on infrastructure, data flow, and the ability to adapt. As the market evolves, three shifts are shaping how teams approach growth and revenue.

1. Measurement is becoming the differentiator
   As monetization strategies become more complex, the ability to tie revenue to acquisition source, channel, creative, and user segment is now a competitive advantage. Teams that can’t break down performance by cohort or lifecycle stage are flying blind and likely over- or under-investing in key channels.
2. Privacy constraints are raising the bar
   With less user-level data available, more emphasis is being placed on first-party engagement signals, contextual triggers, and cohort-level trends. Monetization strategies now have to work harder with less visibility, making alignment between product and marketing more critical.
3. Monetization is shifting earlier in the funnel
   Rather than waiting until post-onboarding or mid-funnel to optimize for value, many teams are building monetization into early product flows. From paywall testing in day one experiences to ad engagement cues during onboarding, monetization is moving closer to the moment of acquisition.

These shifts all point to the same conclusion: successful monetization now depends on how well teams can connect insight to action.

Mobile app monetization isn’t a standalone function, it’s a cross-team priority that spans product, growth, and data. And the teams seeing the strongest returns are the ones treating it like core infrastructure: something to test, refine, and scale as deliberately as user acquisition.

Mobile measurement partners (MMPs) like Adjust provide the data and insights that makes modern monetization strategies possible. From unbiased attribution to user-level ad revenue data, cohort-level insights, and subscription event tracking, Adjust’s solutions give teams the clarity and context needed to connect monetization performance to acquisition, engagement, and LTV, all with precision and speed.

The models may evolve, but the fundamentals stay the same. Know what’s working, know why, and act fast.

For more information on measuring monetization performance with Adjust or to see first-hand how we can grow your app business, request a demo today.