Monetize

What does 'Monetize' mean

To monetize is to convert an asset into or establish something as money or legal tender. The term monetize has different meanings depending on the context. It can refer to methods utilized to generate profit, while it also can literally mean the conversion of an asset into money. For example, the U.S. Federal Reserve can monetize the nation's debt; this involves the process of purchasing debt (treasuries) which in turn increases the money supply. This essentially turns the debt into money (monetization).

BREAKING DOWN 'Monetize'

Another example comes from websites monetizing their content. Many are set up to earn money through advertisers. When people who browse the particular site click on one of the advertisers' links, the owner of the website earns a small amount of money (this is known as pay-per-click, or PPC advertising). If the website attracts enough visitors, the small amount paid by the advertisers for each click can add up to substantial monetization.

Another method used to monetize a website is the placement of banner advertisements. If a particular website has proven that it attracts a certain number of visitors each month, companies may pay to place advertisements that appear on the home page, certain pages or every page of the website, depending on the agreement between the website owner and the advertiser. Typically, larger and more prominently displayed advertisements cost more.

Other methods of website monetization include CPM advertising (cost-per-mille), text link advertisements, affiliate marketing and monetization widgets.

RELATED TERMS
  1. Advertising Appropriation

    The portion of the total marketing budget that is allocated to ...
  2. Impression

    A metric used to quantify the display of an advertisement on ...
  3. Cost Per Thousand - CPM

    The price of 1,000 advertisement impressions on one webpage. ...
  4. Advertising Federation Of America ...

    A regional advertising group based on the U.S. East Coast that ...
  5. Cost Per Click - CPC

    A website that uses CPCs would bill by the number of times a ...
  6. Advertising Association Of The ...

    A regional advertising group based on the American West Coast ...
Related Articles
  1. Entrepreneurship & Small Business

    How To Monetize Your Website

    New technologies and services have made it easier to make money from your website than ever before.
  2. Markets

    Debt Monetization: A Nearsighted Government Policy?

    We look at whether this financial practice benefits a government in the long term.
  3. Entrepreneurship & Small Business

    How is Programmatic Advertising Changing Media?

    Understand what programmatic advertising is as well as the technology that drives it. Learn about the top four ways programmatic advertising is changing media.
  4. Markets

    How Is the Bank of Japan Monetizing Government Debt?

    With its massive QE program and more recent adoption of negative interest rates, it looks like the BOJ is monetizing the Japanese government's debt.
  5. Professionals

    Trends And Growth In The Digital Advertising Industry

    The rapidly expanding digital advertising industry is leading a shift towards content and demanding forced innovation.
  6. Investing

    7 Companies With Big Advertising Budgets

    Here's what the corporations with some of the biggest advertising budgets in the U.S. spend their money on.
  7. Professionals

    Advertising From TV To Internet: An Industry History

    Changes in television consumption habits have forced advertising to target audiences through new means, namely Internet advertising.
  8. Professionals

    Digital Advertising Is The Future, But Why? (ZNGA, GOOG)

    Digital advertising has outgrown the internet.
  9. Financial Advisor

    Are Adblockers Ruining Internet Business Models?

    Adblocking software helps Internet browsers avoid ads and impacts publishers' revenues. We look at how it is changing the Internet business model.
  10. Investing

    This Hated Stock Could Soon Be Worth Twice As Much

    Shares of Twitter (NYSE:TWTR) have been slammed lately after weak user growth and an inability to monetize its platform led investors to question the future. The big move in shares of the 14 ...
RELATED FAQS
  1. How important is advertising revenue in the Internet sector?

    Learn about the importance of advertising revenue in the Internet industry. Find out how much Internet firms rely on advertising ... Read Answer >>
  2. What metrics are commonly used to evaluate companies in the internet sector?

    Discover the best metrics to evaluate Internet companies. Internet companies are unique in that their costs are low but potential ... Read Answer >>
  3. What is the "bait & switch" technique?

    The bait and switch is a advertising technique which can be considered illegal, but in most cases is merely looked upon as ... Read Answer >>
  4. How do Internet companies profit if they give away their services for free?

    Learn how companies in the Internet sector make a profit when service, content and user applications are offered at no cost ... Read Answer >>
  5. How do companies like ClickBank help websites make money?

    Find out how sites such as ClickBank help websites make money by offering the opportunity for vendors and affiliates to promote ... Read Answer >>
  6. How do people make money on the videos they upload to YouTube?

    Learn about the primary ways that people can generate income based on the videos they upload to YouTube, including advertising ... Read Answer >>
Hot Definitions
  1. Put Option

    An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security ...
  2. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  3. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  4. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  5. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  6. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
Trading Center