monetize

verb mon·e·tize \ ˈmä-nə-ˌtīz also ˈmə- \

|Updated on: 9 Aug 2018

Definition of monetize

monetized; monetizing

1 : to coin into money; also : to establish as legal tender

2 : to purchase (public or private debt) and thereby free for other uses moneys that would have been devoted to debt service

3 : to utilize (something of value) as a source of profit

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monetizable

\-ˌtī-zə-bəl\ adjective

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monetization

play \ˌmä-nə-tə-ˈzā-shən also ˌmə-\ noun

See monetize defined for kids

Recent Examples of monetize from the Web

Mileage limits are there to help the dealer monetize the car, not to help drivers.

— christopher elliott, USA TODAY, "Car subscriptions could be boon for travelers," 1 July 2018
Users upload cooking videos or Fortnite explainers, YouTube monetizes them, and the company shares a thin slice of the proceeds with the creators.

— david scharfenberg, BostonGlobe.com, "Why Facebook and Google should pay you for your data," 14 June 2018
That eliminates one middleman with access to your personal financial data and a desire to monetize it.

— david dayen, The New Republic, "Give Everyone Government Bank Accounts," 13 June 2018
The senior Facebook executives appeared to grow frustrated by the WhatsApp duo’s reasons to delay plans that would help monetize the service.

— deepa seetharaman, WSJ, "Behind the Messy, Expensive Split Between Facebook and WhatsApp’s Founders," 5 June 2018
It was explained to me, by several owners, that going in and trying to monetize traditional betting on a point spread would be a low-margin business for the NFL.

— albert breer, SI.com, "Legal Sports Gambling is Coming, and the NFL Is Getting Ready to Capitalize (Of Course It Is)," 29 Mar. 2018
Your business model is to monetize user information, maximize profits over privacy.

— martin finucane, BostonGlobe.com, "Forget what you thought about rooftop solar and consider these seven things instead," 10 Apr. 2018
The Nagoya Protocol, ratified by 97 parties and in force as of 2014, attempted to lay out a system of standards for monetizing biodiversity within national jurisdictions.

— ryan p. smith, Smithsonian, "Nearly Half the Patents on Marine Genes Belong to Just One Company," 13 June 2018
What is left belongs to the city and is up to Miedema to monetize.

— allie gross, Detroit Free Press, "Detroit Red Wings fans scoop up Joe Louis Arena chairs, slice of history," 15 May 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'monetize.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

Origin and Etymology of monetize

Latin moneta

NEW! Time Traveler

First Known Use: circa 1879

in the meaning defined at sense 1

See Words from the same year

Other Economics Terms

actuary, compound interest, globalization, indemnity, portfolio, rentier, stagflation, usurer

Financial Definition of MONETIZE

monetize

verb

What It Is

To "monetize" something is to convert non-revenue generating assets into sources of revenue. In economic terms, monetize means to convert any event, object or transaction into a form of currency or something with transferable value.

How It Works

For example, over time, a company may develop any number of systems or assets that are part of the company's overhead and infrastructure, supporting the company in selling its products or services. Examples of these may include a safe storage system or an innovative and efficient distribution system or an information system to track sales, monitor projects, track personnel time, account for funds or even report on company activities. These systems are typically non-revenue generating, in that they are not sold to generate revenues independently of the company's core product or service.

But sometimes a company may be able to find an independent market for these systems. When the company begins to package and sell these traditionally non-revenue generating systems, the company "monetizes" them, creating new sources of revenue for the company.

In another example, a flow of traffic to a destination, such as tourists to a historic site, can be monetized by capturing retail sales from those tourists en route to the historic site. At the same time, Internet surfing "traffic" to popular websites has been "monetized" by selling advertising space and getting site visitors to view the advertisement.

Why It Matters

The process of figuring out creative ways of monetization is about as old as capitalism (which is only about 300-400 years old in its current form). The processes of monetization -- that is, thinking systematically about how to convert something into cash -- is a valuable part of a business's strategic planning process.

Similarly, the capital markets are constantly innovating and finding new ways to monetize market transactions, using letters of credit, standby guarantees, derivatives and swaps to allow for the creation of new tradable financial products.

Source: Investing Answers