How To Monetize The Mobile App Data From Your App
People invest in apps a lot. Just for a reference, people spent more than $85 million on apps in 2017, and this number keeps on rising. By looking at these amazing numbers, you can quickly tell that creating a mobile app and monetizing it could be a great way of earning huge revenue. There are several minimum viable product examples out there that have reached their maximum potential just by focusing on data analytics.
If you’re thinking about developing a paid app, then don’t expect to earn a lot as there are hundreds of free substitutes to almost every paid app, and people would go for them instead of yours.
So what other options can you consider for your app monetization? We have the answer. Data Monetization!
With the humungous amount of data being processed daily, developers and business owners have realized this non-traditional and yet innovative strategy for measurable economic advantage.
In this article, we’ll talk about innovative ways of data monetization for your app. But before we dig deep into that, here’s a brief overview of data monetization and how it can benefit you.
What Is Data Monetization
In simpler words, Data monetization can be referred to as leveraging data for a company’s economic advantage. Let me elaborate on it further for you.
Data monetization involves trading or selling direct access of user data to third parties to increase revenues or cut down expenses. It is especially helpful to marketers, telecommunication companies, advertisers, and research companies. They use these insights to gather solid stats and provide the right ads to the right audience.
Now for those who’re wondering if their data is being sold to third-parties for benefits, that’s not the case. Your personal information like name, age, address, interests, income, etc., are anonymous and secured. The kind of data that is being monetized usually includes
- Your device
- Devise Version
- Your mobile operator
- Your network type
- The screen size of your device
- CPU Core metrics
- Your device’s storage
How Can Data Monetization Benefit You
- It is a scalable and safe model of revenue.
- Unlike in-app advertisement, the data collection takes place in the background, so there is no effect on the user experience.
- You’ll get paid monthly for every user’s data who have agreed with data collection. The higher your DAU is, the greater revenue you can earn.
- Data monetization doesn’t affect your existing monetization models.
Now you have a strong understanding of what data monetization is, so here are some great methods of executing it.
Data Monetization Methods
Data As A Service
This is quite a straightforward approach for data monetization as the data is sold directly to the consumers. The data that is being shared is raw or anonymized, and the buyers could mine it for creating insights. Buyers cannot benefit from this data directly as they create these insights from themselves and use it further to reach the right audience for their business.
Insights As A Service
Now this one quite similar other than the fact that instead of raw data, insights are sold that are created by combining external and internal data. Either these insights are directly sold or provided in formats such as analytics-enabled apps to provide updated data. The insights are limited to specific sets of data or contexts that the buyer has purchased.
This is perhaps the most progressive form of data monetization and provides the most value to those who purchase it. In this method, features associated with BI software are added, for example, dashboard reporting, data visualization, and analytics tools – to existing applications
Leveraging these integrations, product teams can build and scale custom actionable analytic apps and integrate them into other applications, opening new income streams and providing a powerful competitive lead over the others.
For embedded analytics techniques, you can use the Sisense platform as it is built to provide performance and agility with scale. Moreover, it lowers the TCO and offers fully customized embedded analytics solutions for specific needs.
Analytics-enabled platform as a service
Now, this is quite a flexible approach towards data monetization and provides notable value to the customers. In this method, analytics and BI platforms are leveraged to provide customers with highly-scalable insights and data analytics in real-time. They’re available both on-premises and on the cloud and are compatible with all cloud-based warehouses. In simpler words, the data can be used from any source and in any format. However, to get maximum benefits from cloud-based sources, you’ll need an expert setup and support.
Today, there are tons of methods for monetizing your app and earn revenues. However, using data monetization strategies have made this job much easier than ever. Since you understand how beneficial data monetization is for you, you can leverage these methods above to reap maximum benefits out of it.