App monetization without ads: myth or reality?tips, best practices October 20, 2018 • 7 min read
In the data-driven world, user data means A LOT. Armed with data, new industry players shake-up the established industries and transform traditional businesses into innovative ones with this new approach. However, not all companies are ready to deal with data monetization, but those who dare, boost their ability to compete.
App developers recently discovered that there is a lot of money in data. But how do you gather & transfer it correctly while also being trustworthy to your app users? Big companies, telecom operators and research institutes see user data as a strategic asset to further their business development, and app owners can provide them with relevant and actual data about the target audience they're looking for.
We have gathered the top-5 questions regarding data monetization. If you are looking for a sustainable alternative to ads in your app, data monetization may definitely be the answer.
What is app data monetization?
Data monetization is the process of gathering, analyzing, transferring, and the segmentation of non-personal information about app users.
Advertisers, marketers, research institutes, and telecom companies need quality data to make better business
decisions or to improve their products. App owners have a lot of data they operate with during the internal
optimization. And data collectors simply connect the dots by bringing app owners and demand together.
Data Monetization has enough pros to give it a try:
No risks of unsold inventory
By Monetizing your data through data intermediaries, you eliminate the risk of unmonetized inventory. Data monetization companies have exclusive partnerships with dozens of companies and pay for each user data they receive.
Weightless and non-interrupting SDK
The truth is that data monetization SDK is only 50Kb and has no battery and memory consumption, meaning the entire process of data monetization runs smoothly.
Since the competition in quality data is not as enormous as in mobile advertising, CPMs are higher. Data monetization intermediaries offer the highest payouts for some geos and pass the data further to the telecom companies, marketers, research institutes, etc.
It has a simple mechanism: you add one lightweight SDK, prepare a user consent, and after the user agrees to
share non-personal data, you transfer it to the data collector.
Data collectors don't gather sensitive or private information. As a result, all users stay anonymous and protected.
Okay, I have enough data to monetize. Who can I transfer it to?
Let's define how much "enough" is. The "earlier - the better" rule doesn't work with data monetization. The same trick is with the advertising: only the minority of app developers are happy with the results after trying it for the first time. The story is as simple as that: the more DAU you have, the bigger the revenue you get. So if you have less than 10k DAU you should keep growing your user base. When your app reaches 50 000+ DAU it's time to try data monetization.
Working with data collectors directly, you face the risk of not selling your inventory, as big companies are
usually one-time buyers. As data monetization works with non-personal data, data collectors are usually
interested in buying it in bulk.
Here's why you need monetization intermediaries: they usually have exclusive partnerships with the global companies and handle all the risks securing you with timely payments. They gather data from 10-15 relevant apps and transfer it in batch to data collectors.
Data intermediaries don't gather private information: in fact, you are the one who controls how much data to be transferred.
The internal process is as simple as that:
- You evaluate your DAU;
- Partner with data collector or data intermediary;
- Sign the IO and setup a price for every user;
- Add the following permissions to your code:
- Download the SDK
- Prepare the User Consent
- As soon as User Agrees to share you non-personal data, you'll start earning.
Here's how the user consent will look like after downloading SDK on Android:
And here's the form user will see after opening your app:
Data monetization is absolutely worth trying as some of our app developers earn 30% more with data compared to what they had with ads.
Which information is to be gathered during data monetization?
Nowadays, the information from different sources is combined to give a 360° overview of the business goals.
Data used for high-quality analytic reports shouldn't always be private or personal, i.e. information
allowing to identify the real person behind it. The more non-personal data are put together, the more
precise it becomes.
For the sake of innovation, the company doesn't need to know the user's name - its user's behavior that interests them most.
Here's a small reminder about what to consider personal data:
The basic non-personal parameters that data collectors usually gather include:
- Device type;
- Device version;
- Screen size;
- Mobile Operator;
- Network type;
- CPU Core number;
- RAM, ROM;
- IP address.
The best part of data monetization is the app developer gets paid for the same users over and over again. The more DAU you have, the more appealing your app is to investors. The process is going further only when your users allow you to collect their data. So don't forget to ask before moving forward.
Can I completely drop off ads in my application?
It had been argued a lot on forums, whether the data monetization can be a worthy alternative to in-app ads in terms of revenue. The answer is: YES, but only if done right. If you've surpassed a mark of at least 50 000 of DAU, you will be able to notice the significant effect from data monetization.
User Monetization SDK is 100% compatible with any other SDK you have. As data collection takes place in the background the process of data monetization doesn't affect the usage of your app.
According to Epom Apps stats, app developers who dropped ads completely, haven't received any subsidence in-app revenue with data compared to what they had with ads. Test user monetization & ads SDK for a couple of weeks and see which one performs better in your app.
I've read multiple stories about user data leaks. Who's responsible for that? And what can I do not to be among the unreliable apps?
Data privacy was the reason for a big hype not only because of GDPR but also because users finally understood that they were not able to protect their personal data from being gathered. Users still do not read the long and complicated privacy policies, but they at least should have a choice to opt-out from gathering their data.
For app developers, keeping the balance between data privacy, UX and app stickiness is a real challenge. Some of them drop the privacy while developing new features.
The most important thing to remember: you have to ASK users for their permission before gathering and transferring their non-personal data. For this, you'll need to show the user a consent in your app. Users will decide whether they allow sharing their data or not.
Data monetization requires minimal or ZERO efforts and time invested. As long as the user agrees to share the data you keep getting payments from data collectors. Keep your app UX friendly and remember, that ads are not the only option to monetize it properly.
Want to maximize your revenue with user data monetization?