Free mobile games make money in three ways: advertisers pay to show you ads, a minority of players buy things inside the game, and some games sell a subscription or a one-time upgrade. Most games mix two or three of these. Apple or Google takes a cut of every purchase, and ad networks take a cut of every ad. Knowing which model a game uses tells you what it will ask of you, whether that’s your time, your attention or your money.
The three ways free games earn money #
| Model | Who pays | What you’ll notice |
|---|---|---|
| Ads | Advertisers | Banners, full-screen ads between rounds, optional “watch to earn” videos |
| In-app purchases | A small share of players | Currencies, boosters, lives, cosmetic items, battle passes |
| Subscriptions and upgrades | Players who want more | VIP memberships, “remove ads,” “buy the full game” |
How do ads pay for a free game? #
When a game shows an ad, an ad network such as Google AdMob fills the slot with an advertiser who wants your attention, and the game’s developer gets a share of what the advertiser pays. A single ad earns very little, and the amount varies a lot by country, ad type and time of year. That’s why ad-supported games need lots of players and lots of views. We cover the ad side in detail, from banners and full-screen ads to rewarded videos and why short games show the most, in why mobile games have so many ads.
On iPhone, Apple’s App Tracking Transparency, introduced with iOS 14.5 in 2021, makes apps ask before tracking you across other apps. If you say no, you still see ads, just less personalized ones, which generally earn the developer less.
Some games run on ads alone. Flappy Kittens (Flappy Cat on Google Play) is one: it has no in-app purchases at all, every cat and world is earned with fish you collect while playing, and ads, most of them optional, pay for the game. That’s the easiest model to judge, because the game has nothing to sell you.
How do in-app purchases work? #
In-app purchases let a game give itself away and charge only the people who want more. Common items include:
- Premium currency like gems or coins, which you then spend on everything else
- Boosters and extra lives to get past a hard level or skip a wait
- Cosmetics such as skins, outfits and decorations that don’t change how the game plays
- Battle passes, which open up a track of rewards over a season
- Randomized rewards like loot boxes and gacha pulls
Most players never buy anything. The bulk of in-app revenue comes from a small group of big spenders, which the industry bluntly calls “whales.” That’s why some free games are designed around pressure: countdown offers, energy bars that run out, and difficulty spikes right after the tutorial. Our guide to spotting pay-to-win games shows how to recognize those designs from the store page.
Premium currencies deserve a special mention. Converting dollars into gems makes prices harder to judge, and packs rarely match item prices exactly, so there’s usually a little left over to top up.
Subscriptions, passes and one-time upgrades #
Some games charge a monthly fee for perks such as daily rewards, no ads or extra content. Others use a simpler deal: a free demo or opening chapter, then one purchase for the rest. Monument Valley 3 works this way, and it’s about as fair as free gets.
There’s also the “remove ads” purchase, a one-time payment that switches off forced ads. It’s often the best value in a game you play every day, but check whether it removes rewarded ads too, since some games keep those.
Where does your money go? #
Apple and Google take a commission on most purchases made through their stores. For years the standard rate has been 30%, with a reduced 15% for smaller developers and for some subscriptions. So when you spend $10 in a game, a real share of it never reaches the studio that made it.
Court cases and new laws have started to loosen those rules in some places. In the US, for example, a 2025 ruling in Epic Games v. Apple let apps link to outside payment pages, and some games now offer a “buy on the web” option that may come with a discount or bonus. Before paying anywhere outside the app store, make sure the link came from inside the game or the developer’s official site, and remember that a purchase made on the web falls outside the app store’s own refund process.
Why make a game free in the first place? #
Because most people won’t pay for a game they haven’t tried. A free download removes that barrier, and simple games are relatively cheap to make compared with big console titles. So a free game can reach millions of players and earn money a little at a time.
That trade-off shapes what you get. A premium game only has to convince you once. A free game has to keep convincing you, with ads you’ll tolerate or purchases you’ll want. The fair ones make that easy to ignore. The unfair ones make the game worse until you pay. If you’re deciding which kind to play, our comparison of free-to-play vs premium games covers which model suits which player.
How to tell a fair free game from a trap #
- Read the in-app purchase list on the store page. A single “Remove Ads” or “Full Game” purchase is a good sign. Items at $49.99 or $99.99 are a warning.
- Check how ads appear. Optional rewarded ads and short breaks between rounds are fine. Ads in the middle of play, or every thirty seconds, are not.
- Look for timers. Energy bars and waits exist to sell skips.
- See what money buys. Cosmetics and convenience are fine. Power in competitive modes isn’t.
If ads are your main complaint, our guide on how to stop ads in mobile games covers ad-free upgrades, subscriptions like Apple Arcade and Google Play Pass, and which tricks aren’t worth it.
Frequently asked questions #
Do free games really make money from ads? #
Yes. Each ad pays the developer very little, but a popular game shows millions of them. Many simple arcade and puzzle games rely on ads alone, while bigger games mix ads with in-app purchases.
Why do free games ask to track me? #
Personalized ads usually pay more, so games ask for permission to track you across apps. On iPhone you can say no when asked, or switch off “Allow Apps to Request to Track” in Settings under Privacy & Security, then Tracking. You’ll still see ads, just less targeted ones.
Is it bad to never pay for free games? #
No. Free-to-play games are designed on the expectation that most players won’t pay, and ads still earn money from you. If you enjoy a game a lot, a one-time “remove ads” purchase is a simple way to support the developer.
Are free games safe for kids? #
The game itself may be, but the purchases and ads need attention. Turn on purchase restrictions in Screen Time on iPhone, or require authentication for purchases in the Google Play Store, and check each game’s age rating before handing it over.