Privacy-Preserving Tech in App Monetization: Revenue & Security

The various app monetization methods allow creators to experiment with different revenue sources. For some, traditional paid apps are the appropriate path. Yet, some developers stray from this option, frequently introducing free apps and integrating various revenue generation techniques.

However, while monetizing applications is crucial for sustaining projects, users expect integrity, security, and privacy. Thus, developers are tasked with pursuing revenue without jeopardizing trust and preserving users’ privacy. This article discusses some options for keeping your customers satisfied while earning money.

One of the biggest concerns

Most users feel uncomfortable having data about their activities and behavior exchanged or sold to other entities. However, it is a fairly common practice for businesses to share data with their partners, and users frequently agree to this condition via privacy policies.

After all, data is a profitable source, and monetizing it can appear as a natural path. Regardless, this type of monetization is not the most widely accepted. If businesses decide to opt for this approach, it’s crucial to follow some rules:

• Data collection and sharing has become a sensitive matter, and following applicable regulations is crucial.
• User consent is vital here, and users should know how a company plans to collect, share, or sell information. In many apps, users also have the option to disable third-party data sharing.
• Data anonymization refers to eliminating all personal identifiers and ensuring that data has no way of relating to a particular individual.
• If data is collected and stored, it needs to be appropriately managed, following standard security practices.

Other less desired monetization methods

Users might also not prefer other app monetization strategies. For example, behavioral advertising has received criticism for making users feel uncomfortable and tracked. Location-based advertising is another example, and users state that tracking their location feels invasive. The same or similar attitudes involve practices like cross-app tracking and dark patterns.

What are the alternatives?

Luckily, businesses and developers working on applications have plenty of options for monetizing applications in a more privacy-conscious way.

Contextual advertising

Contextual advertising does not rely on users’ behavior or tracking. Instead, it focuses on the particular app and shows ads based on it. For example, a fitness app might display promotions related to this industry, such as apps for diet tips or workout gear.

Paid apps

Earning via direct app purchases is still one of the most private options. It requires no data collection; most users should feel comfortable doing it. However, developers should follow several rules:

• If users make payments via your official website, ensure that payments are handled securely.
• After paying for the app, users don’t want to be exposed to ads or other monetization strategies. If they will, it’s crucial to inform them of these conditions or additional purchases involved after the initial payment.

Subscription models

Users have grown accustomed to subscriptions, and millions of apps offer this option. Thus, creators should not need to perform data collection or other options for monetization. Additionally, the freemium model is associated with this option. This means that a basic app version is offered to users for free. Then, they might be exposed to different monetization strategies (such as ads).

Internet sharing

Developers can earn money through users’ unused internet bandwidth. Such app monetization can be highly successful since users don’t need to pay anything but can enjoy perks, rewards, or subscriptions. Of course, choosing trusted SDKs (Software Development Kits) or other services for monetizing apps in this manner is crucial. Users should be fully aware of its effects on browsing (if any) and what efforts go into protecting their connection.

Donations

Accepting donations is a way to receive financial support from your users. Of course, it might not work as a stable source of income. Not all users will choose to donate or will do so inconsistently. So, donations can be a way to monetize your application, but it might be an additional method (working together with other options, such as ads).

Conclusion

Businesses are responsible for adapting to users’ expectations, regulations, and overall trends in their industries. While some options for monetization are legal, they might not favor users. Thus, when crafting your app monetization strategy, don’t forget to consider users’ satisfaction. As the digital world becomes more privacy-conscious, people’s needs change and shift towards control and consent.