The days of choosing between ads and in-app purchases (IAPs) are over. Successful apps today use a hybrid monetization model that combines both—maximizing revenue across a wider user base. According to AppLovin, apps using hybrid models report up to 2.5x more revenue than single-stream monetization apps.
Hybrid monetization means using multiple strategies—typically a mix of rewarded video ads, interstitials, banners, and IAPs or subscriptions—within one app experience.
This approach lets you earn revenue from both free and paying users without sacrificing engagement or user experience.
Unity Ads says that rewarded ads are one of the least intrusive types of ads. They work well when combined with valuable in-app purchases.
- Ad revenue monetizes your non-paying users.
- IAPs capture your high-LTV users.
- More entry points = more chances to convert.
Apps that use hybrid monetization usually keep users longer. They also have longer session times and higher average revenue per daily active user (ARPDAU).
- Use rewarded ads at natural breaks in the app experience.
- Make IAPs desirable but not mandatory.
- A/B test combinations of ad formats + offers by user segment.
Combine data from platforms like AdMob and Firebase Analytics to identify top-converting flows.
- Use rewarded ads at natural breaks in the app experience.
- Make IAPs desirable but not mandatory.
- A/B test combinations of ad formats + offers by user segment.
Combine data from platforms like AdMob and Firebase Analytics to identify top-converting flows.
- Gaming: Rewarded hints + optional level pack purchases.
- Fitness/Wellness: Daily tips with ads + premium unlocks via subscription.
Lifestyle/Productivity: Ad-supported freemium features + in-app upgrades.
If you’re still choosing between ads or IAPs—stop. The most scalable strategy is both.
Hybrid monetization unlocks new revenue channels while creating a better user experience. When designed right, this model will not just maintain engagement—it will grow your bottom line.
