Simply put, digital monetization is the procedure in which the already existing traffic that is sent to a particular website is converted into revenue. Digital technologies offer an array of opportunities for growth. However, it is crucial to keep innovating about newer ways to convert resources into revenue.
Digital monetization transforms the nature of products and services. It changes the customers’ perceptions of value, and value delivery as well. Sustainable revenue growth in the digital era requires a new perspective of thinking about monetization. Monetization involves three major components which are mechanism, resources, and value.
- System: A system explains the means used to capture the value of resources that drive revenue. Digital monetization increases the variety of mechanisms by creating new ways of selling your product or leasing it. Advanced mechanisms like micropayments become possible, while others such as pay-per-use become economically feasible.
- Resources:At their inception, digital monetization strategies identified what the organization owns, controls, and wants to monetize. Earlier, the resources were limited to products and services. But, with the advent in technology, the spectrum of resources expands to include information or data, market access, experiences, and outcomes. However, a particular proposition may include a bundle of resources.
Varied configurations of resources determine the extensive choice of possibilities and approaches. In the digital era, leaders must consider new resources required and their monetization possibilities to stay ahead in the race.
- Desirability: Even though digital monetization implies a worth to the resources that is being exchanged, the value is not restricted to the ‘price’ only. If it implied only the ‘price’, everything would be nothing but a commodity. The most important in terms of our consideration of digital monetization, commodities create value through the customer experience, how they look and feel about themselves, and/or how they perceive themselves when relating to others.
A fine blend of these components helps in seeking revenue opportunities for companies. If one presumes that monetization models do not change, they are highly mistaken. It is important to know that the change in technology can change the mechanism, resource, and value. Sometimes, it can also disrupt a previously stable business. Digital monetization unveils newer and better values.
We, at Pegasus InfoCorp, believe that to grow profitably in a digital world needs an innovative approach. It is, however, disruptive because it changes views on what is sold, how it is valued and the mechanisms to make product and value equal revenue. The new digital monetization models are gathering attention.