What monetization strategies are available for AR applications?

Monetizing AR applications can be approached through several practical strategies tailored to user engagement and technical capabilities. Below are three effective methods, explained with concrete examples for developers.

1. In-App Purchases and Virtual Goods A common strategy is offering digital items or premium features within the app. For example, an AR game might sell virtual weapons, skins, or power-ups, while a retail app could charge for exclusive 3D product previews. Pokémon GO successfully uses this model by allowing players to buy PokéCoins for items like lures or incubators. Developers can implement this by integrating payment gateways and designing scalable content pipelines to regularly update purchasable items. This approach works well when the app has a dedicated user base willing to pay for enhanced experiences.

2. Subscription Models Subscriptions provide recurring revenue by granting access to premium content or features. Fitness apps like Zombies, Run! use AR to create immersive workouts, with subscriptions unlocking advanced training plans or storylines. Similarly, educational AR apps could offer monthly access to interactive lessons or AR-based tutorials. To make this viable, ensure the subscription offers clear value, such as exclusive updates or cloud-based saves. Developers should focus on maintaining content quality and updating features to retain subscribers over time.

3. Advertising and Brand Partnerships Integrating ads into AR experiences can generate revenue without requiring direct payments from users. For instance, a navigation app might display sponsored AR overlays for nearby stores, while social media filters could promote branded content (e.g., Coca-Cola’s Snapchat lenses). Location-based AR ads, like those in Ingress Prime, reward users for interacting with virtual checkpoints at physical businesses. Developers should design ads to feel native to the experience—avoiding intrusive pop-ups—and use SDKs like Google AdMob or AR-specific ad networks to streamline implementation. Partnering directly with brands for custom campaigns can also yield higher payouts.

By combining these strategies—such as a free app with ads and optional subscriptions—developers can create flexible monetization systems. The key is aligning the approach with the app’s purpose and user behavior, ensuring value is clear and friction is minimized.