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 ???publishDate.suggestedBy???

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

  • risk map (risk heat map)

    A risk map, also known as a risk heat map, is a data visualization tool for communicating specific risks an organization faces. A...

  • internal audit (IA)

    An internal audit (IA) is an organizational initiative to monitor and analyze its own business operations in order to determine ...

  • pure risk (absolute risk)

    Pure risk, also called absolute risk, is a category of threat that is beyond human control and has only one possible outcome if ...

SearchCloudProvider

  • cloud ecosystem

    A cloud ecosystem is a complex system of interdependent components that all work together to enable cloud services.

  • cloud services

    Cloud services is an umbrella term that may refer to a variety of resources provided over the internet, or to professional ...

  • uncloud (de-cloud)

    The term uncloud describes the action or process of removing applications and data from a cloud computing platform.

SearchSecurity

  • cyberextortion

    Cyberextortion is a crime involving an attack or threat of an attack coupled with a demand for money or some other response in ...

  • Cybercrime

    Cybercrime is any criminal activity that involves a computer, networked device or a network.

  • National Security Agency (NSA)

    The National Security Agency is the official U.S. cryptologic organization of the United States Intelligence Community under the ...

SearchHealthIT

  • Practice Fusion

    Practice Fusion Inc. is a San Francisco-based company that developed a free electronic health record (EHR) system available to ...

  • RHIA (Registered Health Information Administrator)

    An RHIA, or registered health information administrator, is a certified professional who oversees the creation and use of patient...

  • 21st Century Cures Act

    The 21st Century Cures Act is a wide-ranging healthcare bill that funds medical research and development, medical device ...

SearchDisasterRecovery

SearchStorage

  • Random Access Memory (RAM)

    Random Access Memory (RAM) is the hardware in a computing device where the operating system (OS), application programs and data ...

  • floating gate transistor (FGT)

    A floating gate transistor (FGT) is a complementary metal-oxide semiconductor (CMOS) technology capable of holding an electrical ...

  • bad block

    A bad block is an area of storage media that is no longer reliable for storing and retrieving data because it has been physically...

SearchSolidStateStorage

  • hybrid hard disk drive (HDD)

    A hybrid hard disk drive is an electromechanical spinning hard disk that contains some amount of NAND Flash memory.

Close