Definition
The canonical answer.
IAA (in-app advertising) and IAP (in-app purchases) are the two core app revenue models: monetizing attention with ads versus monetizing users with purchases and subscriptions. The mix dictates UA strategy, because ad-monetized apps optimize toward engagement value while purchase apps optimize toward payer value, and the events worth bidding
Worked example
In practice.
A hybrid game earns from both rewarded video and a battle pass. Its UA optimizes different campaigns to different signals: ad-value events for IAA-heavy geos, purchase events where payers concentrate. Treating both revenue types as one blended number would misprice
Where this work happens: Mobile
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