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

  • compliance audit

    A compliance audit is a comprehensive review of an organization's adherence to regulatory guidelines.

  • regulatory compliance

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

  • Whistleblower Protection Act

    The Whistleblower Protection Act of 1989 is a law that protects federal government employees in the United States from ...

SearchSecurity

  • brute force attack

    Brute force (also known as brute force cracking) is a trial and error method used by application programs to decode encrypted ...

  • spyware

    Spyware is software that is installed on a computing device without the user's knowledge. Spyware can be difficult to detect; ...

  • ATM black box attack

    An ATM black box attack, also referred to as jackpotting, is a type of banking-system crime in which the perpetrators bore holes ...

SearchHealthIT

SearchDisasterRecovery

  • business continuity and disaster recovery (BCDR)

    Business continuity and disaster recovery (BCDR) are closely related practices that describe an organization's preparation for ...

  • warm site

    A warm site is a type of facility an organization uses to recover its technology infrastructure when its primary data center goes...

  • disaster recovery (DR) test

    A disaster recovery test (DR test) is the examination of each step in a disaster recovery plan as outlined in an organization's ...

SearchStorage

  • enterprise storage

    Enterprise storage is a centralized repository for business information that provides common data management, protection and data...

  • disk array

    A disk array, also called a storage array, is a data storage system used for block-based storage, file-based storage or object ...

  • optical storage

    Optical storage is any storage type in which data is written and read with a laser. Typically, data is written to optical media, ...

Close