Why Data Monetization Should Be In Your 2019 App Monetization Strategy

This week we have a guest post from our friend Nina Bohush, who is an App Monetization & Marketing Expert at Epom Apps. She wrote an awesome piece on Data Monetization, keep reading!

App monetization with data is an evolving trend that has already proven to be a worthy alternative to in-app ads and here is why.

Data Monetization – Introduction

By 2025 Internet users are expected to generate over 180 trillion gigabytes of data. This number is 10 times more than we produced in 2015. Websites, social media, online tests, and dating apps – they all collect information about us, but for what reason?

Users’ data is a goldmine for a digital industry. Literally! Information about users can reveal insights that may later convert into millions of dollars for both online and offline businesses. This is why companies seek out quality data from users to create innovative products, to analyze the audience they are targeting or just to improve their products.

App Monetization Strategy 2019

As it turned out, app developers are the ones who can benefit the most from this ubiquitous obsession with data. Today users spend over 80% of their mobile minutes on apps. This means that app developers have direct access to the tremendous amount of users’ data. This is why app monetization with data has started to arise.

Yet data monetization is still an up and comer in the mobile app industry, it has already proven to be a sustainable alternative to in-app ads. By the end of this article, you’ll understand what exactly data monetization is and what are its explicit benefits for app developers. Are you ready?

What Is App Monetization With Data?

App monetization with data or data monetization is the process of collecting, processing and transferring of user’s data from a specific app to a data collector.

The data collector is the company that gathers user’s data. Advertisers, brands, marketers, research institutes and telecom companies are the most common data collectors on the market.

Monetizing of your in-app data is somehow similar to the ad mediation. The more data collectors you have in the pool, the higher percentage of app users you’ll monetize. As a result, your app will receive more revenue at the end of the month.

If you are too busy to contact data collectors one by one, you can opt for monetizing your data with intermediaries. Intermediaries handle data collection through a single SDK with dozens of data collectors included. Such an approach allows you to avoid an SDK bloat for apps, as well as reaching a higher number of users to be monetized.

For example, Epom Apps operates as an intermediary. The company has signed contracts with telecom companies, marketers, various online services and research institutes. As a result, they are able to pay for 100% of the user’s data that they gather.

When To Start Data Monetization?

The next thing to know is that the data monetization works with non-personal data. For running an in-depth analysis of a specific audience, data collectors usually buy non-personal data in large volumes. The more non-personal data that is put together, the more precise it becomes. What is considered to be non-personal data?

Non-personal data

Among the basic parameters that data collectors usually gather are

  • Device type;
  • Devise version;
  • Screen size;
  • Mobile Operator;
  • Network type;
  • RAM, ROM;
  • Country;
  • IP address, etc.

Mobile apps with a significant number of DAU have higher chances to monetize their data at competitive rates.

What number of DAU/MAU is enough to start driving solid revenue to your app? The statistics provided by Epom Apps features the following numbers:

DAU/MAU number

All in all, when your app reaches 50 000+ DAU it’s definitely time to try out data monetization.

How Does App Monetization With Data Work?

Monetizing your data requires far less effort than going live with in-app ads. The whole process of app monetization with data is as simple as this:

1- You evaluate your in-app audience. How many DAU/MAU does your app run?

2- Find a proper data collector or data intermediary with strong positions in your top countries.

3- Sign up the IO featuring a price for every app user who allowed to collect his/her non-personal data;

4- Before adding data collector’s SDK to your code, you will need to open some permissions like these ones:

<uses-permission android:name=”android.permission.INTERNET” />
<uses-permission android:name=”android.permission.ACCESS_NETWORK_STATE” />

Permissions will allow data collectors to gather non-personal information about your users. Data collectors won’t be able to gather more data than you enable them to see.

5- Implement the SDK from your data collector or add an intermediary’s SDK to your code.

6- Prepare the users’ consent.

The next thing (and the most important one) is to ask app users for their permission to gather their non-personal data. For this, insert a block with User’s Consent to your app code.

Code to prepare users' consent

7- After being added, the consent should be shown to every user who opens your app:

Consent message

As soon as the user agrees to share his/her non-personal data, you’ll start earning.

7 Undeniable Reasons To Embark Data Monetization

# 1. Data monetization is a scalable revenue-driver

Once added to your app, the data monetization SDK will drive sustainable earnings for the months or years to come. The more daily active users who allow you to share their non-personal data, the higher the revenue app developers receive.

The best part of monetization with data is that app users don’t lose their value from month to month. What does that mean?

Let’s say, your app had 500,000 monthly active users (MAU) in October. In the case that all those users responded ‘YES’ to your user’s consent, you would get paid for 500,000 MAU.

Then, in November you already have 530,000 MAU (+ 30,000 newbies) and all of them also permitted you to gather their non-personal data. In this situation, the data collecting company will pay for 530,000 MAU again even considering the fact that you’ve already received the payment for 500,000 users the month before. Sounds good, right?

MAU number payment

# 2. With data monetization, you can capitalize on 100% of in-app users

If you have a couple of data collectors in a pool, data monetization guarantees good payments for all users who enable access to their non-personal data. However, when monetizing your data through intermediaries, you will eliminate the risk of unmonetized inventory even more.

# 3. Data monetization generates revenue to any category of mobile apps

Whether you own a mobile game or utility app – data monetization is an option to bring in additional income. The most important criteria here is maintaining enough of a number of DAU and MAU, but how much is “enough”?

From experience, it shows that mobile apps with more than 50 000 DAU manage to reap results quicker.

By using this revenue calculator you can estimate your future earnings delivered by data monetization.

# 4. You won’t have to invest time and effort into the process onwards

Once added to your app, the data monetization SDK will do all work for you. App monetization with data doesn’t require any outwork except for a few quick-to-implement changes at the preparation stage. Afterward, there is no chance of it getting out of hand.

Hence, you won’t have to worry about everyday optimization or performance tracking. Instead, you’ll have more time to focus on your job.

# 5. The data collection takes place in the background, so the user’s experience stays untouched

This is another winning advantage or data monetization compared to monetization with ads. App monetization with data doesn’t harm the UX. The only thing that users will see in the app is a user’s consent asking for their permission to share their non-personal data. That’s it.

# 6. Weightless and non-interrupting SDK

Another good reason to hop on the data monetization train is that it doesn’t consume the memory or battery of the user’s device. The data monetization SDK weighs only 50Kb, meaning the entire process of data monetization runs smoothly.

#7. Data monetization won’t harm your existing SDKs

Just like with app users, data SDK stays hidden for other SDKs implemented in your app. In the case, if you already monetizing your traffic with in-app ads, be sure that the two SDKs don’t compete with each other. As a result, you can double the revenue driven by different types of app monetizations at a time.

Key Tips On Running a Successful Data Monetization

  1. Get into data monetization with at least 50 000 DAU on board.
  2. Always ask users for their permission before gathering and sharing their non-personal data.
  3. Make sure that the user’s consent is noticeable and that users will not have any chance to miss it when being in your app.
  4. Whether you decide to work with data collectors or a single intermediary, negotiate the parameters before adding their data monetization SDK to your code.
  5. After negotiating parameters, sign up the IO with all the negotiated parameters and prices included.
  6. Let your users stay anonymous and protected. Collect only non-personal data.
  7. Make sure that the user’s data that you share doesn’t violate the GDPR policy.

Today app monetization with data is a simple yet very promising option for making money with mobile apps. With its clear upsides, it has become an appealing alternative to other app monetization methods. Just be mindful of the fact that you have to always ask users for their permission to gather and share their non-personal data. The results won’t be slow in coming.

Check out how much you can earn while monetizing your app with data! Go to our Revenue Calculator.

7 Reasons Why Data Monetization Should Be In Your 2019 App Monetization Strategy
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