Canonical: https://www.strataigize.com/glossary/iaa-vs-iap/
Description: IAA (in-app advertising) and IAP (in-app purchases) are the two core app revenue models: ads that monetize attention, or purchases and subscriptions.

[Home](https://www.strataigize.com/) / [Glossary](https://www.strataigize.com/glossary/) / IAA vs IAP

Mobile Growth

# IAA vs IAP.

Definition

## What it _means._

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 on differ.

Worked example

## In _practice._

A hybrid game earns from both rewarded video and a battle pass. Its UA team tests ad-value events for IAA-heavy geos and purchase events where payers concentrate. It also checks combined revenue where the bidding setup supports it. The useful signal depends on what the campaign is optimizing and which value data it receives.

Where this work happens: [Mobile App Marketing](https://www.strataigize.com/services/mobile-app-marketing/)

Related terms

-   [Paywall optimization](https://www.strataigize.com/glossary/paywall-optimization/)
-   [LTV to CAC ratio](https://www.strataigize.com/glossary/ltv-to-cac-ratio/)

## Put it in _context._

Bring your growth question to a free 30-minute consultation. We can work through what the numbers mean and which changes to consider.

[Book a growth consult →](https://www.strataigize.com/audit/)