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.

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • regulatory compliance

    Regulatory compliance is an organization's adherence to laws, regulations, guidelines and specifications relevant to its business...

  • privacy compliance

    Privacy compliance is a company's accordance with established personal information protection guidelines, specifications or ...

  • data governance policy

    A data governance policy is a documented set of guidelines for ensuring that an organization's data and information assets are ...

SearchSecurity

  • asymmetric cryptography (public key cryptography)

    Asymmetric cryptography, also known as public-key cryptography, is a process that uses a pair of related keys -- one public key ...

  • Evil Corp

    Evil Corp is an international cybercrime network that uses malicious software to steal money from its victims' bank accounts.

  • Plundervolt

    Plundervolt is a method of hacking that involves depriving an Intel chip of power so that processing errors occur.

SearchHealthIT

  • telemedicine (telehealth)

    Telemedicine is the remote delivery of healthcare services, such as health assessments or consultations, over the ...

  • Project Nightingale

    Project Nightingale is a controversial partnership between Google and Ascension, the second largest health system in the United ...

  • medical practice management (MPM) software

    Medical practice management (MPM) software is a collection of computerized services used by healthcare professionals and ...

SearchDisasterRecovery

SearchStorage

  • 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...

  • 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 or ...

  • cache memory

    Cache memory, also called CPU memory, is high-speed static random access memory (SRAM) that a computer microprocessor can access ...

Close