How Can Apps Earn Money From Your Advertisement and Sponsorship?

Juliet D'cruz

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The trick is to choose the ideal application that would pique user attention and eventually generate downloads. However, it would help if you kept in mind that downloads do not always immediately convert to cash.


Whatever your motivation for developing an app, it’s clear that you share something with other potential developers. Each of you desires financial gain. However, planning your app income strategy before beginning development is critical. Without a firm grasp of your app’s revenue methods, you risk squandering time and money. Consumers like using applications, indicating that the potential exists.

The trick is to choose the ideal application that would pique user attention and eventually generate downloads. However, it would help if you kept in mind that downloads do not always immediately convert to cash. Getting the mobile app development services is costly, and you’ll encounter hidden development expenses along the road.

Therefore, before investing all your capital in a new app concept, you must ensure that it will produce a profit.

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Despite some initial doubts, mobile advertising continues to be the most successful app income source. According to recent reports, 7 out of 10 app companies used it in 2019, and 18 percent expect to utilize it soon. To be compensated via ad networks, all you must do is include advertisements in your applications, said John O. from twiftnews.

  • Interstitial ads

Close the advertisement by either accessing the sponsored page or clicking the close button in the ad corner. This technique of increasing app income is particularly effective during natural transition points in messaging and content applications, news, and games, either before or after an anticipated piece of content or functionality (e.g., game levels), and maybe utilized to maximize impressions.

  • Banners or display ads

These advertisements are often shown in various sizes and extend over the top or bottom of the screen. They are tiny and unobtrusive, allowing users to engage freely with the program. Additionally, app developers may target users based on their demographics and previous habits. Nonetheless, they have poor engagement rates, with a CTR of approximately 0.1 percent.

  • In-app video ads

Such ads are shown automatically or as a ‘reward video’ that may be accessed at any time in return for any in-app payment. For instance, the user may earn app money, more lives in games, or access to new features in exchange for viewing a video advertisement. It is a win-win situation for both app developers and users.

  • Native ads

These advertisements are designed to blend in with the primary idea design and display naturally inside the app. Typically, it takes the form of sponsored material or video intended to promote a product. Because consumers perceive native advertising to be less intrusive and invasive, it has become a more attractive income source for app developers.

  • Incentivized Ads (reward users for app engagement)

Almost 84% of app users prefer reward-based programs over those that include advertisements. Numerous methods exist that enable customers to be rewarded for completing an in-app activity, an ad interaction, or by completing a survey. The approach allows for increased interaction and the development of a favorable brand attitude. App developers get money when sponsors promote their in-app currency while also gaining pleased and committed customers.

Moreover, 91% of people who engage with incentivized advertisements do so with the intent of learning more about the business. For instance, running and exercise tracking apps utilizes incentivized advertising to enable users to earn special incentives and features without interfering with engagement through display and interstitial advertisements.


Sponsorship placement inside the application may be a very effective method of app monetization if the provider creates the appropriate specialized application for targeted consumers and launches it on behalf of another business. The primary obstacle is finding a funder with a comparable or same target demographic and white labeling or adapting an app’s appearance to fit the sponsor’s brand.

The following are the primary kinds of sponsorship agreements: 

  • Agreed income split from the app. 
  • Monthly sponsorship money paid by funders for app management or usage.

Additionally, the approach benefits developers by generating and expanding user audiences and promoting an app since most sponsors already have a strong website and devoted consumers.

A fantastic illustration of this is Home Depot’s sponsorship of the Weather Channel app. The animated app backdrop behind the temperature reading is the sponsor’s advertising, which is perfectly matched with Home Depot’s target consumers — homeowners interested in rust-proofing their homes.

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  • Affiliate links 

This is an alternate kind of sponsorship, in which you strike up negotiations with many interested companies, getting their reference links included in your application in return. When you hire a dedicated app developer, you will open ways to raise revenue if you have a good participant in the market willing to pay your expenses.

With all of that in mind, let’s see what other insights we can get from this research on how much money may be made from apps and their future.


Google and Apple provide an ability to handle the subscription transactions through their platforms, making it easier for developers to implement them. Apple takes 30% for the first year of any subscription, and then 15% after one year of paid service. Google introduces better terms, taking 15% of subscription revenue even during the first year.

Some product owners believe they can earn more money by combining several monetization techniques in an app. Consider how a user feels when they launch a beautiful new picture editor and is greeted with advertisements and banners. Suddenly, a pop-up window opens, informing you that the bulk of features are not free.

Additionally, you should understand that if you are a beginner here, you will make an error. Probably many of them. However, do not despair; you will have already gleaned the most critical success recommendations if you read our post carefully. If you need assistance with the marketing or ways to earn money from a mobile app, email us and speak to experts on how you plan to create a mobile app to drive better revenue.