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[TECHNOLOGY] · Germany, Italy · 2 sources

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Digital monetization through data and in-app purchases

Mobile applications often generate revenue through methods other than direct upfront costs. Many apps are free to download but monetize users via targeted advertising, in-app purchases, or subscription models for additional features.

Advertising revenue is frequently driven by the collection of personal data. Apps may gather information such as names, email addresses, contact lists, location data via GPS or Wi-Fi, and device identifiers to build detailed user profiles. This data allows advertisers to tailor content based on user interests, habits, and device usage. Legal frameworks recognize that personal data can serve as a form of payment in digital product contracts.

In-app purchases represent a booming market, particularly within mobile gaming. Users can buy virtual items, such as skins, equipment, or in-game currencies like coins and diamonds, as well as premium features or ad-free versions. These transactions are typically processed through integrated payment systems linked to an app store account, often requiring confirmation via passwords or biometric authentication.

Entities

Bitkom

Sources