A joint report from IDC and App Annie predicts that in-app purchases (IAPs) will become the most popular way for the mobile development industry to generate revenue by 2018. However, in certain markets, other monetization methods may remain more common. According to the report, “Publishers should consider different business model strategies depending on the geographic region; India skews toward in-app advertising, while Japan skews toward app store revenue.”
The report also found that in-app advertising and freemium app revenues climbed 71 percent and 72 percent respectively between 2013 and 2014. And while 49 percent of mobile development firms use in-app advertising, less than 15 percent of app publishers make $10,000 or more per month these types of ads.