Ad-Based Revenue vs In-App Purchases

Developers should learn about ad-based revenue when building consumer-facing digital products (e meets developers should learn and use in-app purchases when building apps that require recurring revenue, freemium models, or enhanced user engagement through microtransactions, such as in mobile games, productivity tools, or subscription-based services. Here's our take.

Ad-Based Revenue

Nice Pick

Developers should learn about ad-based revenue when building consumer-facing digital products (e

Pros

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• Related to: mobile-ad-sdks, programmatic-advertising

Cons

• Specific tradeoffs depend on your use case

In-App Purchases

Developers should learn and use In-App Purchases when building apps that require recurring revenue, freemium models, or enhanced user engagement through microtransactions, such as in mobile games, productivity tools, or subscription-based services

Pros

• It is essential for monetizing free apps, offering tiered features, and complying with platform guidelines for digital sales, as it provides a secure and standardized payment infrastructure
• Related to: mobile-development, app-store-connect

Cons

• Specific tradeoffs depend on your use case

The Verdict

These tools serve different purposes. Ad-Based Revenue is a concept while In-App Purchases is a platform. We picked Ad-Based Revenue based on overall popularity, but your choice depends on what you're building.

The Bottom Line

Ad-Based Revenue wins

Based on overall popularity. Ad-Based Revenue is more widely used, but In-App Purchases excels in its own space.