How to Generate Advertising Revenue from Mobile Apps
Developing a mobile app is a great step toward expanding your business’s digital presence—but what if that app could also be a reliable source of revenue? At Saigal Media, we help businesses unlock the true financial potential of their mobile apps through strategic in-app advertising. With user engagement on mobile devices at an all-time high, there’s never been a better time to explore mobile app monetization.
Mobile App Advertising Revenue Is on the Rise
The mobile advertising market has experienced exponential growth over the last decade—and it’s not slowing down. In fact, mobile ad revenue now accounts for more than 70% of digital ad spending globally. Between 2013 and 2014, mobile app store and in-app advertising revenue surged 1.7x faster than revenue from traditional PC and mobile web ads.
This shift is driven by changing user behaviour. Consumers are spending significantly more time in mobile apps than on desktop browsers or even mobile web pages. From social media and gaming to retail and productivity apps, users are deeply engaged—and that creates valuable opportunities for app owners to monetize. With the right strategy, a mobile app can become more than just a digital touchpoint—it can be a consistent income stream.
Different Ways to Earn with In-App Ads
There are several tried-and-true methods for generating revenue through mobile advertising, each with its own strengths depending on your app’s audience and functionality. A common monetisation method companies use is called Cost Per Impression or CPM. With CPM-based advertising, businesses get paid for every 1,000 views of an ad within the application. This model is great for apps with high daily traffic where users consistently return and interact with content. Even if users don’t click on the ads, the business can still earn revenue based on visibility.
Another popular model is called Cost Per Click or CPC. CPC-based advertising pays the business when a user actively clicks on an ad. This type of mobile app advertisement works best in apps that foster lots of user interaction such as news/entertainment apps or shopping apps, however it requires strategic ad placement so that engagment is encouraged without making any disruptions to the user experience.
So there’s getting paid from views and also from clicks, but how about actual installation? Cost Per Install or CPI is one of the most lucrative forms of mobile ad revenue, CPI pays you when a user installs a third-party-app after clicking an ad in your application. This model often sees higher payouts, espeiclaly if your app reached audiences in high-value regions.
Types of In-App Ads You Can Use
Choosing the right ad format is crucial. Each type offers a different user experience and monetization opportunity. Knowing your user-base and demographics plays a key part in what advertisements will work, and what will get ignored.
Interstitial Ads
These are full-screen ads that appear at natural transition points such as in between app sections or levels in a game. These are hard to miss and have high visibility, and they tend to generate more engagement than banner ads. However, as great of a method this is, they must be used sparingly in order to avoid making users frustrated.
- Banner Ads
Banner Ads are a classic format of advertisment, generally being displayed at the top or bottom of the screen. These ads often offer lower engagement compared to other formats, however they are extremly easy to implement and suitable for apps that garner a lot of attention, have frequent user visits, and long session times. - Video Ads
Video ads can be either auto-played or reward-based. With auto-play, a tab will pop up with a video and a skip button after a certain amount of time, and with the reward model, users may gain in-app perks (like coins or points for gaming apps, or extra free articles per day for news sites) for watching an ad. Video ads generate higher revenue per impression but require very careful UX placement. - Native Ads
These types of ads are seamlessly integrated into the app’s content and UI design which in result makes them feel less like ads and more like part of the app’s experience. These are the most effective in content-driven apps such as news or social feeds. - Playable Ads
These are primarily used in gaming apps however can be implemented elsewhere, these ads allow users to try out a small demo of a game directly within your app. They are very engaging and offer strong CPI monetisation potential.
Why Strategy Matters: Ad Quality, Placement, and Frequency
An effective ad monetization plan goes far beyond simply inserting ads into an app—it requires a thoughtful strategy that balances revenue generation with a seamless user experience. At Saigal Media, we focus on delivering high-quality ads that are relevant to your audience and aligned with your app’s purpose, knowing that irrelevant or intrusive ads can lead to user drop-off. We also prioritize strategic ad placement, ensuring ads appear in high-visibility areas without disrupting usability. Additionally, we carefully manage ad frequency to avoid overwhelming users, preserving engagement and long-term loyalty. By leveraging platforms like Google AdMob, Facebook Audience Network, and programmatic ad exchanges, we connect clients with premium advertisers and optimize earnings through data-driven insights and continuous refinement.
The Future of Mobile App Advertising Looks Bright
According to eMarketer and Statista, global mobile in-app ad spending is projected to reach over $200 billion by 2025. In Canada alone, mobile ad spending has seen double-digit growth year over year, driven by increased smartphone usage and mobile-first content strategies.
As more companies shift focus to mobile, businesses that integrate advertising into their apps will be positioned to earn recurring revenue while maintaining customer engagement. Whether your app serves a niche audience or millions of users, in-app advertising offers scalable, performance-based income potential.
Let’s Turn Your App Into a Revenue Engine
Mobile app monetization through advertising isn’t just for large companies—it’s accessible to startups, small businesses, and entrepreneurs with the right guidance. Whether you’re developing a brand-new app or looking to enhance an existing one, our Toronto-based mobile development team is here to help.
Ready to explore how advertising can boost your app’s ROI?
Let’s talk.
Are you looking for a proper digital agency to help you increase your sales?
By Swaleh Saigal