What is app monetization?

App monetization — or mobile monetization — is the process of using free mobile apps to sell products and services or finding ways to monetize data collected through app downloads and registrations.

How app monetization works

  1. Product and service sales

    Companies create mobile apps that are designed to offer the quickest possible path to purchasing a product or service. Apps leverage mobile behaviors to entice consumers to make a purchase.

  2. In app purchases

    For app developers, especially game developers, downloading an app is just the first step to prompt consumers to make additional purchases through the app. Games might offer commercial free experiences with a premium and paid version of an app or offer additional benefits that the free download doesn't offer.

  3. Selling user data

    App development companies will often sell the information they collect when app users register to use a service. While most often users are given the option to opt-out of having their data sold, the immediacy with which app technology works often causes them to skip over the privacy options.

Why app optimization matters

  1. ROI

    Companies spend time and money developing mobile apps. Optimizing apps for revenue can pay for development costs and increase ROI for app marketing strategies.

  2. Brand loyalty

    If a customer has a good experience purchasing a product or service through an app, they're likely to keep coming back for more. Brand loyalists are company gold, especially with mobile technology.

  3. It's the future

    Millennials use their mobile phones, which means they use apps. A lot of them. They hail cabs (Uber), get dinner (Grubhub), meditate (Headspace), and date (Tinder). Monetizing apps will be an important source of revenue as Millennials age and have increased resources to buy products and services.