Monetize

AAA

DEFINITION of 'Monetize'

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).

INVESTOPEDIA EXPLAINS '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. Electronic Commerce - ecommerce

    A type of business model, or segment of a larger business model, ...
  2. Currency

    A generally accepted form of money, including coins and paper ...
  3. Finance

    The science that describes the management, creation and study ...
  4. Money Market

    A segment of the financial market in which financial instruments ...
  5. Money

    An officially-issued legal tender generally consisting of currency ...
  6. Welfare Capitalism

    Definition of welfare capitalism.
Related Articles
  1. Debt Monetization: A Nearsighted Government ...
    Economics

    Debt Monetization: A Nearsighted Government ...

  2. What Is Money?
    Economics

    What Is Money?

  3. The Money Market
    Retirement

    The Money Market

  4. Investing 101: A Tutorial For Beginner ...
    Options & Futures

    Investing 101: A Tutorial For Beginner ...

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center