In-app advertising has been a traditional monetization play for app developers for good reason. With consumers spending upwards of 70% of their digital media time on apps, advertisements can help you monetize each user while they interact with your platform. But is it still the best option?
Ads often come at the cost of user experience. They clutter up interfaces, interrupt key moments, and can drag down engagement, retention, and even app store ratings. Think about it. If you’re spending time on your favorite app, would you enjoy random pop-ups? If you answered no, you’re among the 81% of U.S. app users who’ve expressed the same frustration in recent years.

So, what can your app do differently? How can you monetize your app without ads, without also negatively impacting user experience? In this blog, we’ll look at five of the monetization alternatives to ads you can lean into today.

Subscriptions and Freemium Tiers

Giving your users the freedom to carve out their own experience can help you monetize your app without ads. Subscriptions and freemium models generate predictable, recurring revenue while giving users the flexibility to try before they buy.

With nearly $50 billion in revenue generated by subscriptions, apps across all verticals should consider this option. Users pay a recurring fee, typically monthly or annually, to access exclusive features, content, or experiences. Think fitness programs, guided meditation, productivity tools, or language learning platforms.

Similarly, the freemium approach allows users to download an app for free but pay for additional features. Candy Crush, for example, revolutionized this approach. The platform became one of the first apps to generate over $1 billion in revenue from freemium purchases.

The key to success in either model is to ensure users truly understand why it’s worth upgrading their experience. Done right, you can seamlessly monetize your app without needing ads.

In-App Purchases

What’s another way to monetize your app without ads? In-app purchases (IAPs) are one of the most widely adopted monetization alternatives to ads. In the U.S. market alone, the IAP market size was estimated at over $166 billion in 2022 and is estimated to grow at an average of 12.9% each year through 2030.

There are generally two types of IAPs that apps prioritize:

• Consumables, such as extra lives or digital currencies within the app.
• Non-consumables, such as new features, watermark removals, or access to exclusive tools or content.

This model shines across several app verticals. A mobile game might let players purchase cosmetic skins or bonus levels. A habit tracker could offer a one-time purchase to unlock custom goal settings or integrations. Even streaming services can allow users to remove ads through purchases.

The beauty of IAPs lies in their scalability. You can offer a range of non-intrusive monetization options, giving users the feeling that they’re upgrading their overall experience.

Brand Partnerships

Affiliate marketing is no longer reserved for just influencers. It is becoming an increasingly powerful way to monetize apps without ads. Telegram, for example, recently partnered with X in a $300 million deal to bring Grok to all of its apps. For X, this represents significant app revenue earned without advertising.

The key here is alignment. Rather than relying on generic ad networks, affiliate partnerships give you control over which brands and products appear in your app. This creates opportunities to promote offerings that genuinely fit your audience’s needs. Workout apps could partner with fitness gear brands to offer exclusive merchandise. Users benefit from relevant, value-added suggestions, while you earn a commission on resulting sales.

The great thing about partnerships is that they can feel more natural than pop-up ads, making them a great non-intrusive monetization option. This type of revenue model allows you to earn additional revenue without compromising on UX.

Mobile Commerce

If you’re wondering how to monetize your app without ads or disruption to user experience, mobile commerce may be your answer. And no, you will not need to set up an internal eCommerce storefront in your app to tap into this growing market. All you’ll need is our first-of-its-kind Commerce SDK, which is quick and easy to add to your app’s existing code.

The best part? This non-intrusive monetization option helps you earn incremental revenue while users shop outside of your app’s platform. By connecting your app to our 50,000+ eCommerce partners, including brands like Walmart and Nike, you can deliver users personalized discounts and coupon codes when they’re buying their favorite products. The more they shop and save, the more revenue you earn. It’s that simple.

Apps that have integrated with Appnomix have seen 25%+ increases in ARPU. Want to experience this solution risk-free? Connect with us today to schedule your free demo.

FAQs

How can my app earn money without showing ads?
There are many ways to monetize your app without ads, including subscriptions, in-app purchases, and mobile commerce integrations like Appnomix.

Are subscriptions better than ads for my app?
While subscriptions are a great monetization alternative to ads, solely relying on them might not be the right strategy for your app.

What’s the best app monetization model without ads?
Strategizing how to monetize your app without ads will likely involve several models. Subscriptions and in-app purchases are solid monetization alternatives to ads, but the largely untapped mobile commerce market may present the best revenue potential.