Hybrid Monetization

Monetization

TL;DR

Hybrid monetization is a revenue strategy that combines two or more monetization models within a single app — typically a mix of subscriptions...

What is Hybrid Monetization?

Hybrid monetization is a revenue strategy that combines two or more monetization models within a single app — typically a mix of subscriptions, in-app purchases, and advertising. Rather than relying on a single revenue stream, hybrid monetization allows apps to capture value from different user segments based on their willingness and ability to pay. For example, a freemium app might generate subscription revenue from its most engaged users, display ads to free users who are unlikely to convert, and offer one-time in-app purchases for specific features or content. The rise of hybrid monetization reflects the reality that most apps have diverse user bases with varied preferences. A user who won't pay $9.99/month for a subscription might still watch a rewarded video ad to unlock premium features for a session. Implementing hybrid monetization requires careful balancing — too many ads can degrade the user experience and reduce subscription conversion, while overly aggressive paywalls might drive away users who would have generated meaningful ad revenue. The most successful hybrid models segment users dynamically and adjust the monetization approach shown to each user based on behavioral signals and predicted lifetime value.

Related Terms

Subscription Revenue

Subscriptions & Billing

Subscription revenue refers to the income generated from a recurring payment model, where users pay a regular fee, often on a monthly or yearly basis, to access premium features, content, or services within the app.

In-App Subscriptions

Subscriptions & Billing

In-app subscriptions are a payment model in which users are charged on a recurring basis in exchange for access to premium content, exclusive features, or services. They are frequently used by developers as a way to monetize their apps by providing users with ad-free experiences or exclusive content.

Offerwall

Monetization

An offerwall is an in-app advertising format that presents users with a list of tasks or offers they can complete in exchange for virtual rewards, such as in-game currency, premium features, or other in-app benefits.

Paywall

Monetization

A paywall functions as a digital blockade that restricts users from accessing certain content or services until they have paid a fee or subscribed to a service. For mobile app developers, paywalls present an opportunity to showcase the value of their product and address any concerns that potential subscribers may have.

Average Revenue Per User (ARPU)

Monetization

ARPU stands for Average Revenue per User, and it refers to the average amount of revenue an app generates from each active user. App growth teams that develop subscription or revenue-driven apps often include ARPU as a key performance indicator to measure their financial success. By calculating ARPU, you can determine the average amount of money you earn from each user. While ARPU takes into account the revenue earned from both paying and non-paying users, there is another similar metric used specifically for subscription-based apps. This metric is known as ARPPU (Average Revenue per Paying User), which only considers the revenue generated by users who have made a payment.

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Hybrid Monetization — Glossary | Zellify