A large number of downloads does not necessarily mean a large cash register. Some game developers solve this issue by introducing advertising. But there are other options. For example, selling user data.
Lina Lugovaya from Epom Apps wrote a column for us in which she tells us what kind of monetization this is.
Lina Lugovaya
I built my story on answers to basic questions from developers who are facing this type of monetization for the first time:
- what is user data monetization?
- how can it interest the developer?
- what data is usually transmitted?
- what is important to remember when monetizing user data?
- under what metrics does it make sense to enable this monetization?
1. What is the monetization of user data?
Data monetization is the collection, analysis, segmentation of depersonalized information about application users and its transfer to partners.
2. What is interesting about the monetization of user data?
A. The game developer monetizes in this way, including non-paying users, who are the absolute majority today.
B. High CPM. A good price is due to two factors. Firstly, such data is always of high quality. Secondly, while this is a new topic in the monetization market, the cost of a thousand users can reach $ 12.
3. What data is usually transmitted?
Those that are not personal. These usually include the following:
- device type;
- device version;
- screen size;
- mobile operator;
- connection type;
- CPU number;
- RAM, ROM;
- country;
- IP.
The nuance is that you form the list of data. Optionally, you can add a more accurate user location and Bluetooth connection. Some app owners also add gender and age, which allows you to earn more. However, it is necessary to be very careful here. The main thing is to get the user’s explicit consent to use a specific list of data. Plus, data collection should not contradict GDPR.
4. Under what metrics does it make sense to include this monetization?
If you have a DAU of less than 10 thousand, the chance to see a tangible result from the monetization of user data is small. The profit starts from a DAU of 50 thousand.
5. What should I keep in mind when monetizing user data?
The main rule of monetization of the application is not to collect excess.
With proper setup, compliance with GDPR standards and following common sense, monetization of users is a good source of additional income.