Browse Definitions:
Definition

app monetization

Contributor(s): Matthew Haughn

App monetization is a means of making money from a mobile app without charging for it. Users often balk at paying for apps because the vast majority of them are offered free of charge. Despite that fact, however, according to The Verge, free apps are the source of 98 percent of Google Play revenue.

One of the most common ways to monetize an app is to collect user data and sell it to third parties, usually advertisers. That often puts data at risk because it may be inadequately protected in transfer. Furthermore, those third parties may not protect the data well and it could be accessed by cybercriminals for identity theft or targeted attacks, among other possibilities. Although app developers may stipulate how they will access user data and what they will do with it, end users often fail to even read that information before they agree to the seller's terms. Another unpopular option is advertising within the app, which can be particularly distracting for users given the small screen size.

Other options for app monetization include:

The freemium model, in which a basic version of an app is available free of charge and a premium version is available for users who want added value. In this case, it's important to ensure that the original app is fully functional and that the premium version is a significant upgrade.

In-app purchases, which offer enhancements for purchase from within the application. In a game, for example, users may have the option of upgrading their skill levels or buying currency, characters, tools or weapons.

Free trial periods, after which the user has the option to pay for the app to continue using it.

Once an app is somewhat established, it may be possible to find sponsors who will pay to have their branding on the app. This practice is known as white labeling.

 

 

This was last updated in August 2016

Continue Reading About app monetization

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

SearchSecurity

  • copyright

    Copyright is a legal term describing ownership of control of the rights to the use and distribution of certain works of creative ...

  • keylogger (keystroke logger or system monitor)

    A keylogger, sometimes called a keystroke logger or system monitor, is a type of surveillance technology used to monitor and ...

  • password

    A password is an unspaced sequence of characters used to determine that a computer user requesting access to a computer system is...

SearchHealthIT

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • call tree

    A call tree -- sometimes referred to as a phone tree -- is a telecommunications chain for notifying specific individuals of an ...

  • mass notification system (MNS)

    A mass notification system is a platform that sends one-way messages to inform employees and the public of an emergency.

SearchStorage

  • CompactFlash card (CF card)

    A CompactFlash card (CF card) is a memory card format developed by SanDisk in 1994 that uses flash memory technology to store ...

  • email archiving

    Email archiving (also spelled e-mail archiving) is a systematic approach to saving and protecting the data contained in email ...

  • RAID (redundant array of independent disks)

    RAID (redundant array of independent disks) is a way of storing the same data in different places on multiple hard disks to ...

SearchSolidStateStorage

  • M.2 SSD

    An M.2 SSD is a solid-state drive (SSD) that conforms to a computer industry specification written for internally mounted storage...

  • NVMe (non-volatile memory express)

    NVMe (non-volatile memory express) is a host controller interface and storage protocol to enable a solid-state drive to use the ...

  • SSD RAID (solid-state drive RAID)

    SSD RAID (solid-state drive RAID) is a methodology commonly used to protect data by distributing redundant data blocks across ...

SearchCloudStorage

  • RESTful API

    A RESTful application program interface breaks down a transaction to create a series of small modules, each of which addresses an...

  • cloud storage infrastructure

    Cloud storage infrastructure is the hardware and software framework that supports the computing requirements of a private or ...

  • Zadara VPSA and ZIOS

    Zadara Storage provides block, file or object storage with varying levels of compute and capacity through its ZIOS and VPSA ...

Close