A hybrid monetization model combines two or more revenue streams — typically ads, in-app purchases, and sometimes subscriptions — instead of relying on a single approach for the entire user base.
Why hybrid models outperform single-stream approaches
Different users have different willingness to pay and different tolerance for ads. A hybrid model lets an app monetize non-paying users through ads, capture additional revenue from moderate spenders through IAP, and offer an ad-free experience to users willing to pay for it — extracting more total value from the same audience than any single model could alone.
Getting the mix right
The main risk with hybrid models is stacking too many monetization touchpoints on top of each other. The strongest implementations keep the ad experience and the purchase experience clearly separated, so paying users genuinely feel the benefit of an ad-free (or ad-reduced) experience rather than encountering both constantly.